The Mini Cases 5 Companies, 5 Strategies, 5 Transformations

Enhanced ability to enter new markets more potential

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Unformatted text preview: reate Value Value creation levers Pricing power Margin improvement Cost savings Profits Employee recruitment and engagement Total shareholder return The potential impact of sustainability efforts • A stronger brand and greater pricing power • • • • Greater operational efficiencies More efficient use of resources Supply chain optimization Lower costs and taxes • Enhanced ability to attract, retain, and motivate employees • Greater employee productivity Market share Revenue growth Free cash flow Valuation multiple • Improved customer loyalty; lower rate of churn New market entry • Enhanced ability to enter new markets • More potential sources of revenue Risk premiums • Lower market, balance-sheet, and operational risks • Lower cost of capital • Greater access to capital, financing, and insurance Sources: The Sustainability Initiative 2009 Survey, BCG and MIT Sloan Management Review; interviews with thought leaders. MIT SLOAN MANAGEMENT REVIEW 02_BOSS_Report Exhibits_17-23 21 02_BOSS_Report Exhibits_17-23 21 21 9/9/09 7:08:18 AM 9/9/09 7:08:18 AM Exhibit 6. Business Leaders Reported Various Internal Challenges to Sustainability Which internal challenges within your organization present the most significant roadblocks to addressing sustainability issues? Health care companies cited outdated mental models as their greatest challenge 21 Overall 20 18 14 10 8 5 4 Automotive companies cited insufficient resources as their greatest challenge 27 Agriculture,...
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  • Spring '14
  • Business, MIT Sloan School of Management, Massachusetts Institute of Technology, MIT Sloan Management Review, sustainability initiative, 01_BOSS_Sustainability Report_1-16.indd Sec2

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