General

Question 1

4 motivators for improved env. and social performance?

Answer 1

• increased revenues
  via e.g. product differentiation
  measured e.g. revenue growth for this product/service
• improved brand image
  via e.g. effective communication
  measured e.g. customer surveys
• decreased costs
  via e.g. resource efficiency
  measured e.g. input-output ratios
• decreased risks
  via e.g. increased flexibility in supply chain
  measured e.g. supplier compliance with standards, audits checks.

Question 2

Specific skills and knowledge that are important?

Answer 2

• knowledge of relevant aspects and trends, managing risks and opportunities, identifying threats
• ability to track issues and understand business implications
• specific skills to identify stakeholders, judge their salience and engage actors external and internal
• access and learn knowledge - networking

Question 3

What is meant by dynamic capabilities?

Answer 3

Using resources in a strategic way in a hyper competitive or complex changing environment

Essential for success!

Meeting escalating expectations from markets or critical stakeholders

actively developed over time, e.g. HR, specific skillsets e.g. standards, equipment, facilities, networks,

Question 4

Firms cannot be static as differentiation will be eroded

in what way is differentiation multifaceted?

Answer 4

broadering (range)
aspects: design, energy use, education, etc….

deepening (performance)
expanding scope of performance, e.g. new commitments, CSR, ….

develop capabilities (dynamic)
using right resources and capabilities to maintain differentiation - physical, human and organizational

to adapt to escalating expectations from markets or critical stakeholders

Question 5

When is a resource or capability valuable to a firm?

Answer 5

If it allows them to exploit opportunities or negate threats int he environment.

Question 6

What is good to consider when looking at the portfolio of offerings?

Answer 6

Firms may have wider och more narrow differentiated offerings across their entire portfolio
Is the company green or is just the product green?
Is the company a part of sustainability movement or a leader of it?

The ones with wider portfolio may have differentiated their business and processes as a whole.

Being a leader doesn’t necessarily mean that all you’re products are env. differentiated, e.g. Patagonia, firms also can differentiate on quality and image. But a least some products should be env. differentiated

Beyond compliance leadership - wider, organizational processes
Eco-branding - could be more narrow

Question 7

What is generally a requirement to credible differentiation?

Answer 7

a record and evidence of env./social strong performance - more likely for firms that have “green” organizational processes, even more likely if its a service that is offered.