Strategic Management: Building a Sustainable Organisation Analysis

This report explores the critical role of strategic management in building a sustainable organization, using Climeworks as a case study. It details the roles and responsibilities of a strategic manager, including performance management, planning, data analysis, risk management, crisis management, and coaching. The report also discusses key concepts and tools for strategic business management, such as life cycle assessment, energy efficiency, carbon footprint analysis, and community development tools. Furthermore, it addresses the economic and ethical dilemmas strategic leaders face in balancing short-term and long-term goals, considering external factors, environmental issues, market dominance, recession, and product quality. The report concludes that organizations must prioritize ethical responsibilities towards the environment and society to achieve long-term sustainability, highlighting Climeworks' efforts in this area.

Building A Sustainable
Organisation

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK-1 ...........................................................................................................................................1
Roles and responsibility as sustainable strategic manager..........................................................1
Concepts and tools of strategic business management................................................................3
TASK-2............................................................................................................................................4
The economic and ethical dilemmas that strategic leaders face in the process of balancing long
and short-term goals.....................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In today's world businesses tend to focus over the sustainable ideas and actions that puts a
positive impact on both the business and environment. The term sustainability in business is been
referred as actions taken by the business that does have adverse impact on the environment,
community, or society as a whole (Fuso Nerini and et. al., 2019). It generally conveys two major
factors, that are, impacts of businesses over environment and the other one is it's impact over
society. The goal here is to make and execute such strategies that has positive effects on at least
some areas that can be looked after by the business (Goni and et. al., 2021). While making these
strategies the organisations considers various factors such as environmental, economic, and
social. The following report will be based on the business Climeworks and will also include brief
discussion about the roles and responsibilities of a strategic manager. Moreover, it will also
cover concepts and tools of strategic business management for it's suitability.
MAIN BODY
A sustainable business is generally concerned with fulfilling the ethical requirements of
environment, society and financial demands (Haseeb and et. al., 2019). The effect of these
actions helps both the business and the society as whole in the long term. Roles and
responsibility of a strategic manager are as followed:
TASK-1
Roles and responsibility as sustainable strategic manager
The roles of Strategic managers are predetermined i.e., to develop, execute and also
management of long-term strategies of the business (Leiblein and Reuer, 2020). Here are some
of the key responsibilities of strategic managers:
 Performance management: One of the crucial role of managers is to develop and
manage KPI (Key performance indicators) of the concerned business. In this they
forecast and analyse performance of the company. This allows the business to serve
accuracy in setting goals, budgeting, and resource planning. The mangers of Climeworks
must look after performance of their business after a certain period of time on regular
basis.
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 Planning: This is another role played by the managers. Their job is to identify a specific
time and resources required in order to achieve objectives of the business. Primary focus
is on developing plans and later on executing them, after reviewing along with this they
determine the strategic priorities into considerable and actionable plans. An effective plan
renders focus, improvement in operations. Climeworks must consider the most suitable
strategies to ensure sustainability.
 Analysing data: Considering the points mentioned above their job is to collect relevant
data as well as to analyse result of the plans executed by them. This helps them to
examine strategies that worked for them and the potential areas of improvement. Later
on, with they use those analytics in order to set standards to measure long term market
strategies that assists in making financial and resource decisions. As the chosen business
has their primary focus over sustainability the managers must collect and analyse their
data.
 Management of risk: This can be considered as the most vital role played by the
managers, here they evaluate possible threats and set up effective plans to reduce those
risk factors. It allows business to understand, interpret and manage expectations, this aids
in improvement in relations with it's employees, customers and suppliers. With reference
to Climeworks the managers must focus on the forecasting any possible risk that the
business might face ion the near future.
 Management in a crisis situation: In a situation of crisis, its the strategic managers of
the concern business that helps them to uplift from the unfavourable circumstances. In the
situation of crisis they tend to establish and adapt such strategies that helps in raising
customer value and cut down costs. In addition to this the also analyse the root cause of
the of the situation and provide constructive solutions for them to prevent its further
occurrence. In accordance with the chosen company they must be able to take the most
effective and constructive measures in such situation.
 Coaching: It is a strategic managers job to coach the department supervisors and help
them establish plans so that the can meet them organisational goals. They assist the
supervisors to make strategies for each department and later on review, analyse and
manage all the department plans this ensures that the all departments are focused towards
same organisational goal. In context with Climeworks they make sure that all of their
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supervisors or departmental head have the required coaching to ensure the alinged
achievement of its objectives.
Some of the key responsibilities of strategy managers:
based on the above statements the key responsibilities of Climeworks managers are listed below:
 They are responsible for analysing the trends of market and the competitors of the
concerned business.
 They ensures orientation of the company's goals, processes and resources in all it's
existing departments with the strategies.
 They also help in developing the long term strategies of the organisation.
 Help identifying all the opportunities and threats.
 They plan, utilise and manage given suggestions and projects.
 Another responsibility is to observe and and make reports over projects.
 Performing researches and examining the effectiveness of the operations, shareholders
and processes.
 Introducing the company with new discoveries, projections and recommended actions.
 Their last but not the least responsibility is to guide the senior executives in making
decisions.
Concepts and tools of strategic business management
Strategic business management is includes formation and executions of main objectives
an organisation (Bindra, Parameswar and Dhir, 2019). The strategies are formed through
considering company's resources and extensive examination of internal and external
surroundings in the operational areas of the organisation. This allows the a business to allocate
their resources properly and along with this it provides a proper path to the business via
stipulating it's goals, developing plans and policies in order to attain the goals. Following are
some tools of strategic business management.
 Life cycle assessment tool: This tool allows to business to get a basic idea about of LCA
in addition to this it helps in allocating major components of technique. This
predetermined for the use of industrial organisations, companies, academic campuses,
etc., to describe how to integrate a life cycle based environmental performances
considering while making decision.
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 Energy efficiency tool: This tools provides the resources in trend on using energy
resource on trends in energy use and degree of energy used in the industries. This can be
helpful to determine the areas of improvement, measurement of any possible options for
improvement of energy.
 Carbon foot print tool: It assists the mangers and companies in tracking the solid waste
and as well as prepare a report for reductions of release of Green House Gases by using
various waste waste management practices.
 Toxic chemicals and pollution prevention tool: It helps estimate fumes produced at
workplaces and toxic damage spread due to contact with skin to a chemical during
commercial and industrial operations which involves chemical or any toxic components.
This also evaluates the release of chemical or toxicants in air, land and water.
 Community development tool: Through this tool company's can find, compare and
extensively examine the communities using new ways in order to expand the business.
This enables business to effectively select the site and also be able to make quick and
accurate decisions based on numerical data sets that includes, sociological, industrial,
transpositional and property informations(Makadok, Burton and Barney, 2018).
 Workforce development tool: This is a cyber-space for e-learning and interchanging
knowledge. This helps the professionals at workplaces, employers, academic professional
and economical development to get an ever-changing system with advance solutions.
 Workers safety tool: This tools an interactional tool for training purpose regarding
workplace safety and health topics. The training is well explained and also uses user
interface. At some organisations the advance modules are used to get reliable ideas.
All these tools must be taken into consideration while forming strategies for building a
sustainable environment by Climeworks.
TASK-2
The economic and ethical dilemmas that strategic leaders face in the process of balancing
long and short-term goals.
 External factors: This is the most common issue faced by the strategic leaders while
balancing their short and long run goals (Moradi, Farajolahzadeh and Naderi, 2018). This
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obstacle is generally experienced by them because the market is a dynamic and ever
changing place and the managers can not rely on its same plans after a certain period of
time(Dzwigol and et. al., 2019). In case of unfavourable changes they need lay down new
plans and strategies that helps their organisation maintain stability and reduce their risks.
Due to this the short term goals of managers of Climeworks re effected.
 Environmental issues: The organisations are usually concerned with the maximum
utilisation of their resources allowing them produce maximum revenue generation. But
this does not imply that the organisations are allowed to exploit the their surroundings
and harm the society in any possible manner. In order to reduce this the managers make
certain plans to ensure no such exploitations takes place. In context to Climeworks they
have taken the initiative by developing such technology that claims to slow down the
massive challenge of climate changing through capturing CO2 directly from the air. This
effects the long term goals of the business.
 Dominance of other business in marketplace: It is also a considerable economic factor
that the managers experience as a difficulty. The market place can be challenging for
most of the start-ups business because of the presence of other dominants. Managers of
the Climeworks are not immensely affected by this factor as the business have come up
with a very innovative idea to serve the environment but this does not imply that the
should consider other ideas and this affects the short term and long term goals.
 Recession: This is another factor that negatively impacts the decision making process of
strategic managers. It is a period of temporary downswing of economical growth
generally determined by fall in Gross domestic production(GDP) in two successive
quarters(Sachs and et. al., 2019) . The economical activities like, industrial and trading
are decreased. The decision making of the chosen business's managers are not highly
effected by this factor and it also impacts the short-term goals.
 Compromise with quality of product: the business leaders tend to make this mistake to
save extra cost spent on production by compromising over the quality of the product. This
does help business leaders to generate extra revenue but there is a risk involved that the
customers can notice the cheap quality of the product. In a situation where the customers
notice the quality of the product and it can effect the good-will of the business negatively.
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It is essential for business to provide the customers with the quality products because a customers
choses a brand over inferior products only because of the quality. Even this situation occurs due
to some technical issues then they must ensure the quality of the product before releasing it into
the market and if any faults then they should not deliver those products in the market. The
managers of Climeworks should consider the best best quality of it's products(Nosratabadi and
et. al., 2019) .
CONCLUSION
From the above report this can be concluded that every must take the responsibility and
take necessary actions in order to fulfil their ethical duties towards environment, communities
and society. This should be done in a way that it is beneficial for both the organisation and the
environment. The concerned business have taken all the necessary steps to ensure sustainability
of its business that puts a positive impact over the environment in the long run. This will help
them increase their trust among its consumers and suppliers that enables them to build better
relationships with them. Further more it has been discussed above that how their managers must
assist the business leaders to understand the needs of the their surroundings and to make certain
plans that helps them support it's surrounding in long-term. Along with there was a brief
discussion over the key roles and responsibilities of the strategic managers towards their
concerned business as well as the economical and ethical dilemmas faced by the them while
developing the strategies for their business leaders. Considering all this steps will ensure building
a sustainable organisation.
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REFERENCES
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change, 28(6), pp.469-478.
Dzwigol, H. and et. al., 2019. Formation of strategic change management system at an
enterprise. Academy of Strategic Management Journal, 18, pp.1-8.
Fuso Nerini, F. and et. al., 2019. Connecting climate action with other Sustainable Development
Goals. Nature Sustainability, 2(8), pp.674-680.
Goni, F.A. and et. al., 2021. Sustainable business model: A review and framework
development. Clean Technologies and Environmental Policy, 23(3), pp.889-897.
Haseeb, M. and et. al., 2019. Role of social and technological challenges in achieving a
sustainable competitive advantage and sustainable business
performance. Sustainability, 11(14), p.3811.
Leiblein, M.J. and Reuer, J.J., 2020. Foundations and futures of strategic management. Strategic
Management Review, 1(1), pp.1-33.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal, 39(6), pp.1530-1545.
Moradi, M.R., Farajolahzadeh, M. and Naderi, M., 2018. Identifying the Dimensions and
Indicators Affecting Theorizing Strategic Managers Experiences. Interdisciplinary
Studies on Strategic Knowledge, 2(6), pp.67-98.
Nosratabadi, S. and et. al., 2019. Sustainable business models: A review. Sustainability, 11(6),
p.1663.
Sachs, J.D and et. al., 2019. Six transformations to achieve the sustainable development
goals. Nature sustainability, 2(9), pp.805-814.
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