Question

Differentiate between implementing a value-added strategy and mapping it for sustainability. From the e-Activity, provide one example of a strategy and one environmental factor that management for this organization should consider when mapping the organization for sustainability.

Answer 1

Value added strategy may not be always having sustainability element. Value addition can be just for business process enhancement like improving customer service, reducing operational cost, more innovation and optimisation, increasing sales revenue etc. At the same time sustainability practices may not always have direct impact on organisation growth or business process improvement. It is more socially relevant and aligned to a long term strategy which helps in reduing company's negative impact over the environment.

One of the value addition strategy for a company can be reducing operational cost especially in the area of storage and distribution of goods. Inorder to attain this strategy they will study their current distribution network and customer center of gravity. Based on that they wil realign their supplychain network. At the same time environment strategy could be promoting or designing lean initiatives and green supplychain management which will eventually reduce the otal distance covered for lastmile and for receiving goods. This also reduces the carbon footprint and other green house gas emission. When mapping the organisations sustainabilty there should be a proper balance between business and social impact, proper rules and regulation shoould be in place while developing such strategies and it should be well aligned to the business ethics. The company should not compromise on their business values for any of their strategies.