Correlation Between Sustainability And Strategy

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Sustainability and strategy

Introduction
Over the last one year we have learnt a lot of strategic frameworks as a part of various courses and have seen how the companies have used these frameworks to come up with successful initiatives. But today for being successful in long run it is important for businesses to integrate strategy into their business goals and strategies. Infact, sustainability has to become a soul of any company today if it wants to ensure long term profitability. So in this report, we will see how the various well known strategic frameworks ( star model, BCG matrix, Porter’s 5 forces, blue ocean strategy, etc.) can be used to embed sustainability into the company’s core culture and how can these sustainable frameworks
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Kim & Renee Mauborgne in the year 2004. The concept behind Blue Ocean Strategy is to look for or create market where the competition is non-existent and the opportunities for growth and becoming profitable are immense. It is completely opposed to red ocean strategy where companies compete in a given market space. The red ocean represents a known market place where competition is fierce. This puts a pressure on companies’ margins and growth prospects. On the other hand in blue ocean strategy talks about unchartered territory(9).

Blue Ocean Strategy is linked to sustainability through innovation. The innovation here is related to all the three spheres: Environmental, Social & Economic. It relates to green processes and products, community development, human capital development, labour practices etc. The focus of innovation has to be on creation of value. Companies adopt BOS and sustainability which leads to product differentiation, cost reduction and value innovation making competition irrelevant for long. In order to stay ahead on the curve the organizations need to constantly improve. This implies sustainability can become a source of growth for companies. The BOS & Sustainability framework (Source: Blue Ocean Strategy and Sustainability for Strategic Management HananAlhaddi) consists of 3 step
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BSC is a framework which helps to implement the strategies into action(Bieker, 2002). It is a tool which links the strategic goals of the four parameters to the performance. This approach also makes it easier for the management to link the employee performance and rewards on all the four parameters. Sustainability can become strategic when it is built into the fabric of the organizational thinking, planning and managerial decision process. BSC approach by including the customer perspective which also includes various stakeholders incorporates this important theme into the vision of an organization. Sustainability can be described from the four perspectives

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