Sustainable Solutions
Running head: SUSTAINABLE SOLUTIONS
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Sustainable Solutions Paper Katherine Kem DBA Strategy Dr. Robert Hockin, Instructor February 21, 2010
Running head: SUSTAINABLE SOLUTIONS Sustainable Solutions Paper Walmart has some of the best supply chain methods in the market, and is working to become an industry leader in sustainability. Despite this, there is much criticism of this ‘giant’, and an in-depth look of their organization from a sustainable lens will review their successes, failures and areas of opportunity. Senge (2008) provides a Sustainable Value Framework in which to evaluate the sustainability of a company. He says that in order for the company to be truly sustainable, it must be balanced in all four quadrants, (Senge, Smith, Kruschwitz, Laur, & Schley, 2008). The quadrants “above the line” include innovation and repositioning, and growth. “Below the line” are cost and risk reduction, and reputation and legitimacy. Those above the line generally are directed toward the future, where those below the line are focused on today. Walmart has done
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much below the line, particularly in the lower left quadrant (cost and risk reduction), where most companies start. The lower right quadrant involves stakeholders that attempt to hold organizations accountable. The success of this quadrant for Walmart warrants further research as well as those located above the line. Though growth has been a definite strategy in years past for Walmart, sustainable growth is altogether different. Meznar, Chriman & Caroll’s (1990) discussion on enterprise strategy and corporate social responsibility, also define the success of a sustainable organization as an essential part of its strategic management. Specifically, “strategic management theory, suggests, superior performance comes from successful implementation of a strategy that matches organization skills and resources with environmental opportunity in ways that create competitive advantage”, (Meznar, Chrisman, &
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Sustainable Solutions Paper Katherine Kem DBA Strategy Dr. Robert Hockin, Instructor February 21, 2010
Running head: SUSTAINABLE SOLUTIONS Sustainable Solutions Paper Walmart has some of the best supply chain methods in the market, and is working to become an industry leader in sustainability. Despite this, there is much criticism of this ‘giant’, and an in-depth look of their organization from a sustainable lens will review their successes, failures and areas of opportunity. Senge (2008) provides a Sustainable Value Framework in which to evaluate the sustainability of a company. He says that in order for the company to be truly sustainable, it must be balanced in all four quadrants, (Senge, Smith, Kruschwitz, Laur, & Schley, 2008). The quadrants “above the line” include innovation and repositioning, and growth. “Below the line” are cost and risk reduction, and reputation and legitimacy. Those above the line generally are directed toward the future, where those below the line are focused on today. Walmart has done
2
much below the line, particularly in the lower left quadrant (cost and risk reduction), where most companies start. The lower right quadrant involves stakeholders that attempt to hold organizations accountable. The success of this quadrant for Walmart warrants further research as well as those located above the line. Though growth has been a definite strategy in years past for Walmart, sustainable growth is altogether different. Meznar, Chriman & Caroll’s (1990) discussion on enterprise strategy and corporate social responsibility, also define the success of a sustainable organization as an essential part of its strategic management. Specifically, “strategic management theory, suggests, superior performance comes from successful implementation of a strategy that matches organization skills and resources with environmental opportunity in ways that create competitive advantage”, (Meznar, Chrisman, &