As a person with knowledge of the role that corporations will play in global environmental sustainability, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this issue and at times fail to understand the reasons or logic behind certain strategic implementations imposed on it.


By delving into this project paper, the author intends to have better insights into how global environmental sustainability is thought up, formulated and then imparted down. The author hopes to have an in-depth understanding as to how the roles that corporations play in global environmental sustainability enable them to compete effectively and profitably in this era of internationalization where competition is extremely intense.


In order to reinforce the learning objectives, two key focal issues were focussed upon, i.e. innovation and diversity. Innovation was discussed with regard to the roles that corporations play in global environmental sustainability where they were renowned for their developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.


 


EXECUTIVE BRIEF


Multinational companies who normally make an effort to be involved in global environmental sustainability efforts normally have four main objectives: (a) Remain one of the top companies in terms of making an impact towards global environmental sustainability; (b) Gain more fame and attention than other multinational companies; (c) Establish the best credentials, with global environmental sustainability as the international flagship goal; and (d) Maintaining its competitiveness. The selection of the target country to pursue is important for the multinational companies in order to achieve their objectives. A key factor that these companies look into, of course aside from being underdeveloped, is markets where a broad leadership position has yet to be fully developed.


There is no doubt that in order to gain enormous publicity and praise in the industry, there are multinational companies who engage in global environmental sustainability efforts as part of their strategy to monopolize the entire place. Their efforts towards global environmental sustainability in their own capabilities are really good, but the debate lies on whether the price these poor countries have to pay in exchange for environmental sustainability programs is fair or not is still on. This may be a clear indication of how worse the world environmental situation has gotten over the years. India, Brazil and many other underdeveloped countries will continue to remain under the control of these multinational companies unless the world environmental crisis is resolved.


INTRODUCTION


Environmental management can be defined as the efficient and effective implementation of the policies and tasks necessary towards the attainment of global environmental sustainability. Environmental management focuses on the careful management of the processes involved in the establishment and implementation of environmental policies (Bhattacharya, 2000).


More often than not, multinational companies don’t really have the initiative to make an impact towards global environmental sustainability. Instead, these companies engage in activities that various schools of thought typically associate with “making an impact” towards global environmental sustainability. These activities include the evaluation of products and services in terms of their environmental impacts as well as establishing various environmental development projects.


However, to make an impact, multinational companies must deal with all processes also done by most companies and organizations concerned with global environmental sustainability. Activities such as organizing activities for environmental management are often related with making a positive impact to global environmental sustainability. A great deal of emphasis lies on the efficiency and effectiveness of these processes. Palm, Inc. and Heineken will be the model multinational corporations that will be used in this research based on their history in environmental management.


GOALS / OBJECTIVES


Multinational companies like Palm, Inc. and Heineken who normally make an effort to be involved in global environmental sustainability efforts normally have four main objectives:


A)   Remain one of the top companies in terms of making an impact towards global environmental sustainability. Being on top of this list enables these multinational companies to command the respect and confidence of people around the world, especially the environmentalists. Thus, these multinational companies are able to expand their operations in countries where environmental crisis exists.


B)    Gain more fame and attention than other multinational companies. The activities that that these multinational companies conduct to make a positive impact to global environmental sustainability are able to meet high quality standards. As a result, these multinational companies are able to get more publicity as against other multinational companies doing the same environmental efforts.


C)    Establish the best credentials, with global environmental sustainability as the international flagship goal; and


D)   Maintaining its competitiveness. Being competitive allows these multinational companies to continue its tradition of excellence in both its products and services by being involved in global environmental sustainability efforts.


In order to achieve these objectives, most multinational companies implement a strategy of offering a combination of programs and projects to selected underdeveloped and heavily polluted countries, but maintaining global environmental sustainability as the flagship goal of the company. These multinational companies, in exchange, also aim for broader positions as well as either the top or secondary positions in the market of these poor countries. Any of these positions would be enough for these multinational companies to deliver a high level of performance in terms of the delivery of projects and programs meant to alleviate the environmental crisis in that place. Moreover, these positions create a platform from which these multinational companies can sell their premium brands in exchange of these environmental programs (Booms, 1981).


PALM, INC.’S CURRENT ENVIRONMENTAL MANAGEMENT STRATEGY

Palm, Inc. aims for global environmental sustainability as a broad market leader in mobile computing as well as for segment leadership. In both cases, the Palm, Inc. brands will play a crucial part. Palm, Inc. is able to establish its environmental management strategy usually by acquiring other strong mobile computing companies and their environmental management policies, which are then combined into a new, larger multinational company. Offering environmental training to its employees, improving the company’s environmental policies, and the introduction of new technologies for global environmental sustainability then reinforces the position of Palm, Inc. in pushing for global environmental sustainability. This practically results in economies of scale that is able to create a distribution network for both the local and international environmental strategies of Palm, Inc. If an environmental strategy is already being implemented by other mobile computing companies, Palm, Inc. devotes its attention towards the development of a unique environmental protocol with its various Palm products.


            The mission of Palm, Inc. is to secure the growth of its environmental strategies in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements:


  • Striving in order to reach a leading position in attractive markets

  • Focusing on securing a competitive share of the mobile computing market segments.

  • Working in order to improve the company’s efficiency and cut costs in operations.

  • Continuous growth through selective acquisitions for as long as they are able to create shareholder value. 

  • Palm, Inc. is committed on its efforts to continuously develop original environmental strategies that generate a high appeal to the general public due to its quality and cost effectiveness. Over the years, Palm, Inc. has been able to build a substantial base meant to boost the company’s drive for global environmental sustainability. This enables the company to bring to the fore truly original and more importantly environmental strategies that are very effective in uplifting global environmental sustainability. The research and development team of Palm, Inc. also plays a crucial role in the achievement of this feat. The company also believes that making a positive impact in the society through their environmental strategies is the very essence of being a manufacturer.


    HEINEKEN’S CURRENT ENVIRONMENTAL MANAGEMENT STRATEGY


    The selection of the target country to pursue is important for Heineken in order to achieve their objectives regarding global environmental sustainability. A key factor that Heineken looks into, of course aside from being underdeveloped, is countries where a broad environmental crisis has yet to be fully solved. In these countries Heineken strives for strong positions, because they surely know what they would get in return.


              Good examples here include Heineken’s leading position in the rural areas in India as well as in Brazil. In both examples, Heineken shows its desire to establish environmental sustainability through the establishment of more and more environmental management programs in exchange for the resources that these could provide them consistently.


    India


    India has been showing steady signs of growth and progress in terms of its environmental situation for a couple of years now. This consistent progress can be attributed to the change in strategic directions that was implemented several years ago and is still being further structured up to now. Basically, the critical element of the environmental strategy was that its Government started looking at things from the perspectives of the citizens.


    India remains one of the favourite targets of multinational companies with their environmental programs. Under the leadership of these multinational companies and with the cooperation of the Indian government, large-scale environmental operations are being initiated from time to time in various parts of India. But along with these programs, business units of these multinational companies also started to be established to initiate the change process needed to bring these companies closer to the Indian market and their people. In the part of marketing, the decisions taken in recent years by these multinational companies already established positive impacts such as portfolio management and ethnic marketing.


    Brazil


    Brazil possesses a strong market and some heavily polluted cities that enable it to be easily targeted by the world’s leading multinational companies like Heineken Brazil’s market value has even increased over the recent years especially with the steady increase of their presence.


    Brazil has also one of the largest markets of home-grown products in the world. For instance, its oil market earned an estimated sales volume of 250 million hectoliters of oil in 2003. Add the fact that with a population of nearly 85 million people, Brazil is certainly one of the largest and wealthiest markets in South America. But along with these economic benefits comes the devastation of its water and mineral resources due to the improper management of oil and mining firms.


    BENEFITS OF MULTINATIONAL COMPANIES


    Undoubtedly, charitable multinational companies like Heineken and Palm, Inc. experience the following profits and benefits in the process of their global environmental sustainability efforts:


    ·        Financial Growth and Stability


    Financial stability is crucial especially in the pursuit of environmental programs and activities. Since these companies are always first in the scene to help countries with environmental crises, they continue to enjoy financial growth and stability.


    ·        Excellent Product Performance and Price


    The excellent performance of the products of these multinational companies comes as a result of well-funded environmental activities established in their target countries. In return, the people in these poor communities continue to patronize the products of these multinational companies which they think are helping them get over their worsening environmental situations. The strong performance of the products in these poor countries could also be linked to their cost-effectiveness. Surely, the multinational companies are aware of the positioning in terms of process so as to maintain satisfactory profits margin and remain competitive in the market (Gronroos, 1984).


    ·        Improved Marketing Strategy and Distribution


    High brand awareness among the poor people as buyers has created the need for aggressive marketing, and access to strong distribution channels is critical for the introduction of new products.


    ·        Economies of Scale and Scope in environmental management and social welfare development arising from its numerous resources and facilities situated in targeted countries worldwide.


    ·        Strong Publicity owing to heavy emphasis on efforts


                A multinational company’s commitment to global environmental sustainability activities has always been one of the top strategies to remain competitive in the market.


    ·        Differentiated Products


    Through the unsolicited marketing of differentiated products originating from their global environmental sustainability activities, multinational companies are able to create its own firm-specific advantages. The continuous pursuit of environmental programs enables multinational companies to produce a steady stream of original projects and ideas which makes it difficult for competitors to find substitutes. Because of this differentiated approach, these multinational companies are able to market their products worldwide with the help of the poor people who keep on patronizing their products at a price. This is the way multinational companies are able maximize the returns on environmental program expenditures.


     


    CONCLUSION

    The results of the analysis carried out on the environmental management of multinational companies Heineken and Palm, Inc. indicated very significant effects, even amidst the threats of unrest. Therefore, we could conclude that the environmental management of these multinational companies could still be expected to improve faster than average.


    The review of these companies’ environmental management capabilities and resources revealed very little inconsistencies regarding their strategies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for both Palm, Inc. and Heineken.


    The analysis among the environment as well as the environmental management and capabilities of Palm, Inc. and Heineken revealed certain gaps, most of which are biased towards the environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure their competitiveness.


    Also, Palm, Inc. and Heineken have to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.


     



    Credit:ivythesis.typepad.com


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