Global Environmental Trends and Corporate-Level Strategies

Global Environmental Trends and Corporate-Level Strategies

Corporate-Level Strategies

Corporate-level strategies are the future-level strategies of organizations that focus on the company’s bigger picture. This strategy mainly focuses on four main components of the business

which are stability, growth, retrenchment, and re-invention of the company (Beard & Dess, 1981).

For example, a corporate-level strategy company is when a company chooses to merge with or acquire another business.

Global Environmental Trends

Global Warming

Global Warming is one of the major global concerns that companies must address while considering incorporating their corporate-level strategies (Tharme, 2003). Companies are required to check the emission of greenhouse gases, which can heavily impact the environment. If a company fails to address these potential risks, then the company will be negatively viewed in the eye of the consumer, which will depreciate the company’s value. For example, suppose the company plans to reduce the amount of CO2 produced by the year 2025. In that case, it will invest in energy-efficient technologies aligning with the company’s goal.

Bad Labor Practices

Bad Labor Practices are one of the most unethical practices that companies perform to their employees to increase production at a meager price. They violate many human rights and labor rights of individuals. This leads to their reputation being damaged in the long run, followed by a revolt against the company by their employee union. To avoid such problems, the company must follow an ethical supply chain where the company prioritizes its employees and commits to putting their well-being first. Some practices like fair pay to the workers and no labor below the age of 18. This would allow the company to have a good reputation in the industry.

Governance of Operations

Governance of Operations is a policy that the company must implement where the company is transparent about its operations at every step. One good example of a company in Nepal that does outstanding work is the Yak Brewing Co., which manufactures Barahshighe beers in Nepal. They allow people to enter their factories and workplaces to see how they function. All of their operations are 100% transparent. This will enable them to attract their customer and future investors to the company,

Triple Bottom line

Triple Bottom line is a concept that focuses on three company dimensions: economic, social, and environmental (Jennifer, 2008). For example, in the economic dimension, companies must not exploit the quality of products to increase their profits. In society, they must create a positive workplace for their employees and treat them fairly by giving them additional benefits. In the environmental dimension, companies must ensure the degree to which they harm the planet and use eco-friendly products and technologies to minimize their carbon footprints. If the companies fail to do this, then the company will have a bad reputation in the market.

References

 Beard, D. E., & Dess, G. G. (1981). Corporate-Level Strategy, Business-Level Strategy, and Firm Performance. Academy of Management Journal, 24(4), 663–688. https://doi.org/10.2307/256169

Jennifer, S. (2008). Tripple Bottom Line. In VDM Verlag Dr. Müller eBooks. https://www.knigozal.com/store/gb/book/tripple-bottom-line/isbn/978-3-639-06922-8

Tharme, R. E. (2003). A global perspective on environmental flow assessment: emerging trends in developing and applying river flow methodologies.

River Research and Applications, 19(5–6), 397–441. https://doi.org/10.1002/rra.736

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Global Environmental Trends and Corporate-Level Strategies

In your opinion and from your perspective, what are some of the most pressing global environmental trends that companies must consider when making decisions about their international corporate-level strategies? How do these trends impact companies’ choices, and what are the potential consequences of these decisions for both the company and the environment?