MGMT3160 SYLLABUS

ENVIRONMENTAL BUSINESS STRATEGIES

Spring Semester 2018
Course Hours: Monday & Wednesday 12:00 - 1:20pm

Location: Room 6602 (lifts 31/32)

Description:

The global environment will continue to degrade until there are significant changes in
business practices and consumer behavior. In this course, we are going to explore how
environmental forces are creating threats and opportunities for business. We will look at “best
practices” of companies across countries and industries from different perspectives. We
explore why current destructive business practices are so “sticky” and resistant to change. We
will look into the future and ask what more can be done?

You don’t have to be an environmentalist or a tree-hugger to benefit from this course. More
companies are seeing opportunity in taking action to reduce or mitigate their environmental
impact. This is not necessarily virtue driven, but a decision to increase returns, mitigate future
risk, find new product spaces, and create value. The perception that business and nature are in
conflict is false; it is possible to be engaged in business and also do something positive for the
planet.

Instructor: Paul Forster ([email protected]) room 4354 (lifts 17/18) main campus

Office Hours: I have found from experience that there are few hours that fit everyone’s
schedule. So drop me an email and we can arrange a time that suits you.

Assistant:

Becky Tsui, [email protected], LSK5018

Course Learning Outcomes:

Through your participation in this course by the end you will:

- Demonstrate an understanding of the conceptual relationships between a
firm’s business strategy and the natural environment. (Application)
- Assess the efficacy of the incorporation of environmental perspectives into
business design. (Evaluation)
- Analyze business situations to identify alternative environmental strategies
and recommend environmentally responsible solutions. (Analysis)
- Apply an understanding of environmental issues to business decision-
making processes. (Application)
- Synthesize an environmentally sustainable business model for a business.
(Synthesis)
- Develop an understanding of the concepts of environmental stewardship,
environmental ethics, and environmental and social responsibility
- Appreciate the need for professional behavior and teamwork

Assessment:
 Participation 10%

Midterm exam 30%

Final exam 30%

Case write-ups (2x15%) 30%

Total 100%

Note: Final grades will be awarded according to recommended

academic guidelines.

1. Participation (10%)

Participation is how I can assess your case preparation and your comprehension of articles.
Please note that this is a weight of 10%, which will likely make a substantial difference in the
final grades. I grade participation across the semester as a holistic measure. I assess
participation along the lines of the following rubric.

Exemplary

Frequently participates in class discussion. Obviously has read the material. Comments are
insightful and constructive. Balances between general opinions, specific comments,
criticisms. Listens to others, builds on their remarks.

Proficient

Participates regularly but not frequently. Mostly insightful and constructive. Occasionally
comments are off topic, vague or irrelevant to the discussion. Mostly attentive when others
are presenting ideas.

Developing

Student does not initiate contribution without instructor. Comments are uninformative,
reveals lack of preparation. Heavy reliance on personal opinion. Is not paying attention,
does not listen to others, is on computer or phone, sleeps, etc.

A necessary condition for class participation is to show up and have the case prepared. Please
plan for 3 hours preparation for class to read and do basic analysis for a case. Leave more
time if you are a slow reader.

Participation also means you’re here in mind *and* body. So if you’re on your computer,
ipad, phone, watch, smart glasses, cerebral implants or whatever during the class, your
body may be there but your mind is absent.

Studies have found that when computers are used in class about 70% of the time the
student is looking at something not related to class. And the use of computers in class is
correlated with lower grades. I will provide copies of materials so you can take notes on
them. Research finds that writing notes improves retention over computer notes.

Please contribute to a good learning environment in our class.

2. Midterm Exam (30%)

The midterm exam will consist of multiple choice and short answer questions to assess
comprehension and facility with concepts from lectures, readings and cases for the first half
of the course.
3. Final Exam (30%)

A few short answer questions about the readings in the second half of the course. You will be
given a full-length case and asked to do an analysis bringing to bear all you have learned in
the course.

4. 2-Person Case Write-ups (two @ 15%)

• Two people per case.

• Max 1000 words via Canvas – not including heading and references, word limit
strictly enforced for fairness.
• Review the case analysis process from Day 1
• Note: case preparation questions provided for the cases are for class discussion not
for the case write-up.
• Case write-ups are to be submitted to Canvas before the start of class on the day the
case is discussed. Because the class covers the case, write-ups cannot be accepted
after class discussion of the case.

Other Administrivia

Missed exam: Students that have some significant reason (health, exceptional event) for
missing an exam may consult with the instructor for an alternative arrangement. A substitute
exam will not be of the same format as the in-class exam. Medical documentation is required.

Integrity: In any written work you must cite any sources you are using and use your own
words when you are writing. Please be aware of university plagiarism guidelines and
enforcement at:
http://www.ust.hk/vpaao/integrity/student-4.html.

Electronic Etiquette: Humans have finite attentional resources. So if you use your phones to
text or talk in the classroom or computers to use Facebook, online chatting, checking mail or
surfing the net, your attention cannot be in the class. It is also rude and interferes with the
classroom dynamic.

SYLLABUS (subject to change – follow the most recent version on Canvas)

1 FEB 5 MONDAY

Introduction: Environmental strategy; course overview; syllabus; how to prepare

a case for class discussion

2 FEB 7 WEDNESDAY

Mini Case – distributed in class

Read: R. Nidomolu et al., Why Sustainability is Now the Key Driver of

Innovation, 2009, 11pp

3 FEB 12 MONDAY

Prepare Case:

Veja: Sneakers with a Conscience,16 pp

• Pay particular attention to Veja’s business model and review the Business
Model Canvas
• How well is Veja doing in the “ethical” fashion segment, and how should we
 measure its success?
• Is Veja’s business model any different from a conventional brand?
• Did the founders do anything noticeably different in building the firm?
• How did Veja’s founders choose brand, product and process extensions?
• Would you advise Veja to sell itself to Timberland if the offer arose?

Watch: The business model canvas is a template that helps you put the key pieces
of a firm’s business model onto one page. Very useful for organizing your
thoughts. (https://strategyzer.com/canvas/business-model-canvas )

Access 2:19min video at:

https://www.youtube.com/watch?v=QoAOzMTLP5s&t=24s

4 FEB 14 WEDNESDAY ♥

Topic: When does it pay to be green?

Read:

Renato Orsato (2006) Competitive Environmental Strategies: When does it pay to

be green? California Management Review, CMR334, 2006, 18pp

** MONDAY FEB 19 THIRD DAY OF CHINESE NEW YEAR – NO CLASS! **

5 FEB 21 WEDNESDAY

Prepare Case:

Jamba Juice and the Foam Cup, W92C98, 20pp

• Will ending foam cups and trying to be more “sustainable” help Jamba’s
appeal to customers?
• If Jamba Juice is sincere in becoming an all-natural, healthy food chain
will it win over customers from other chains?
• Should public pressure dictate what is best for a product? i.e. foam
insulates really well, so should it’s environmental impact matter?
• Is switching from foam actually good for the environment?

Tools:

A Value Proposition is a quick way of saying why the target consumer should buy
a product. If done well, it condenses much of the business model into a simple
statement.

Access 4:38min video at:

https://www.youtube.com/watch?v=aN36EcTE54Q

6 FEB 26 MONDAY

Lecture: CSR, Environmental Strategy, Triple Bottom Line

Read:

Stuart L. Hart and Mark B. Milstein, Creating Sustainable Value, Academy of

Management Executive, 2003, Vol. 17, No. 2, 15 pp
7 FEB 28 WEDNESDAY

Prepare Case:

Damaí Lovina Villas: Can Eco-standards and Certification Create Competitive

Advantage for a Luxury Resort? NA0300, 2014, 20pp

• How balanced was the hotel’s approach to generating value from

sustainability?
• How balanced were the various VEPs under consideration to generating value
from sustainability?
• What were the similarities and the differences between the hotel’s activities
and the various VEPs?
• If cost were not a consideration, which VEP(s) (if any) would you recommend
Knape pursue?

8 MAR 5 MONDAY

Lecture: Social License to Operate

Read: Michael Porter and Mark R. Kramer, Creating Shared Value, 2011, 17pp

9 MAR 7 WEDNESDAY

Prepare Case:

Sustainability at Tetrapak: Recycling Post-Consumer Cartons, Ivey W12434,

2012, 16 pp

• What benefits do a multinational’s partnership with an NGO bring to the

table?
• What contributes to the success of these partnerships, and what makes them
fail?
• How are the benefits offered by a partnership with an NGO maintained in this
new model (horizontal model) of partnership defined by Tetra Pak?
• What steps can the company take in the future to create more value for itself
and its stakeholders through its efforts toward environmental and social
responsibility?

Tools: Stakeholder Analysis is a concept that helps us identify those with a

relevant stake in our activities who need to be included in our planning.

https://www.mindtools.com/pages/article/newPPM_07.htm

10 MAR 12 MONDAY

Lecture: Energy

Read: PWC UK Managing Our Carbon Emissions

Access at: https://www.pwc.co.uk/who-we-are/corporate-

sustainability/environment/carbon-emissions.html

• What do you see if you look at PWC’s activities through the frameworks
of Orsato and Hart and Milstein?

11 MAR 14 WEDNESDAY
MIT Cleanstart simulation – one person per group needs a laptop

Prep: MIT CleanStart Simulation. Read abstract, skim instructional video. You
can try playing the simulation solo.

https://mitsloan.mit.edu/LearningEdge/simulations/cleanstart/Pages/default.aspx

12 MAR 19 MONDAY

Prepare Case:

Google Energy’s Shift into Renewables, W92C26, 15pp

• What are the risks and benefits of pursuing sustainability as a core

objective?
• Was releasing energy consumption and emissions data a good decision?
• Will Google be able to achieve its sustainability objectives? What are the
consequences if it fails?

13 MAR 21 WEDNESDAY

Lecture: History of Business and the Environment

14 MAR 26 MONDAY

Midterm: covers lectures, readings and cases classes 1-13

15 MAR 28 WEDNESDAY

Movie: Demain (Tomorrow)

** APR 2 & 4 – NO CLASS! **

16 APR 9 MONDAY

Lecture: Systems Thinking

Read:

Linda Sweeney, Systems Thinking: A Means to Understand our Complex World,

11pp

Access at:
http://scpsystem.weebly.com/uploads/2/1/3/3/21333498/linda_booth_sweeney_-
_systems_thinking_a_means_to_understanding_our_complex_world.pdf

17 APR 11 WEDNESDAY

Prepare Case:

Patagonia, HBS 9-771-020, 2010, 29pp

• What is Patagonia’s business model? How does environment fit into the
business model?
• What is your assessment of the Product Lifecycle Initiative (Reduce, Repair,
Reuse, and Recycle)? Go or no go?
• Could Patagonia pursue its business as it does if it were publicly held?
18 APR 16 MONDAY

Lecture: Transformational Change

Read: Transformational Times Call for Transformational Change, Guardian, 28

July 2011, access at https://www.theguardian.com/sustainable-
business/blog/transformational-change-firms-future-ecosystems-communities

19 APR 18 WEDNESDAY

Prepare Case:

Aviva Investors, HBS 9-112-047, 17pp

• What are the reasons for Aviva’s activism?

• What is your analysis of Aviva’s campaign against Vedanta?
• Is the Sustainable Stock Exchange a good use of Aviva’s resources?

20 APR 23 MONDAY

Lecture: Circular Economy

Read and Watch:

Circular Economy Overview, access at:

https://www.ellenmacarthurfoundation.org/circular-economy/overview/concept

Watch 4:44min video at: http://www.mckinsey.com/business-

functions/sustainability-and-resource-productivity/our-insights/moving-toward-a-
circular-economy

21 APR 25 WEDNESDAY

Prepare Case:

Sustainability at Ikea Group, HBS 9-515-033, 2015, 22pp

• How would assess IKEA Group’s People and Planet Positive sustainability
plan? Is the plan likely to help the company transform its business? Are the
plan’s targets too limited, appropriate, or too ambitious?
• How do you feel about the progress IKEA Group has made implementing this
plan?
• How does IKEA’s sustainability strategy align with its business model? What
are the overlaps? What are the conflicts?
• Which option(s) should IKEA Group pursue to address IKEA’s Wood Supply
Chain sustainability? Which has the highest leverage for IKEA?

22 APR 30 MONDAY

Lecture: Alternative Thinking

Read:

E.F. Schumaker, Buddhist Economics, excerpt from Small is Beautiful, 1973,

11pp

“One the 100 most influential books published since World War II”
—The Times Literary Supplement

23 MAY 2 WEDNESDAY
Prepare Case:

Interface’s Net-Works Program: A New Approach to Creating Social Value

through Sustainable Sourcing, WDI W93C74, 20 pp

• What does Net-Works do for Interface? For what types of companies

might a program like Net-Works be beneficial?
• What are the challenges of relying on the Net-Works supply chain?
• What types of partnerships will help ensure program success?
• Could a program like Net-Works scale globally? How?

24 MAY 7 MONDAY

TBA

25 MAY 9 WEDNESDAY

Course Reflection