MAN7SMC: Strategic Management of Change

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Strategic Management of
Change

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Executives Summary
The aim of this report is to critically analyse and evaluate how the recent changes in the
corporate governance policies and expectations relating to corporate social responsibility
require organisations to change their policies relating to environment opportunities and
threats or develop new capabilities to address these challenges. This report assessed the
examples of Apple, Panasonic and IKEA to understand how their management has dealt
with this issue. The importance of compliance with corporate governance theories is
discussed in this report along with their role in protecting environmental resources.
Moreover, the CSR approach adopted by these corporations are analysed in this report to
understand how to reduce their carbon footprint. The importance of environmental analysis
and the role of environmental forecasting while forming business strategies are discussed in
this report along with evaluation of key tools. Lastly, a conclusion is drawn, and
recommendations are given for corporations to incorporate their strategic management
tools and corporate government theories to develop sustainable development policies in
the business.

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Table of Contents
Introduction...............................................................................................................................3
Corporate governance...............................................................................................................4
Company CSR Approach.............................................................................................................5
Environmental Analysis..............................................................................................................7
Conclusion..................................................................................................................................8
Recommendations.....................................................................................................................9
References................................................................................................................................10

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Introduction
The importance of compliance with effective corporate governance policies has increased
substantially between corporations. The impact of organisations on society is significant,
therefore, it is expected from multinational corporations that they ethically conduct their
operations while focusing on achieving the interest of their stakeholders rather than
increasing their profitability. The pressure on corporations to implement environment-
related policies has been increased in the past few years, and many corporations have
implemented different strategies to reduce their carbon footprint (Jo and Harjoto, 2012).
This is a major issue relating to corporate social responsibility (CSR) policies because
corporations have to disclose the damage which they did to the environment, and they have
to select alternative ways to conduct their operations which resulted in increasing their
operation costs (Khan, Muttakin and Siddiqui, 2013). In this report, the strategic
management challenges faced by corporations will be discussed to understand how changes
in corporate governance and expectations relating to CSR require the organisations to deal
directly with environmental opportunities and threats or develop new capabilities. This
report will take the example of three corporations to understand how they have faced this
strategic management issue and how their executives have handled this challenge. Firstly,
the report will focus on Apple Incorporation and how the company’s corporate governance
strategies are focused on using 100 percent recyclable energy to build their products.
Another example is Panasonic which is using a recycling-oriented manufacturing approach
for sustainable development. Lastly, example of IKEA will be analysed because the company
has announced to invest €1 billion in sustainability efforts.