ABSTRACT

THE MAJOR STRATEGIC CHALLENGE FACING OOTEEL LTD. is that continuation of its current business model will not guarantee future profitability because of a radically different business environment with the emergence of concerns over sustainability among the general public and its customers. A four-pronged innovative strategy has been proposed by consultants that has the potential for both sustainability and long-term profitability. If successful execution can be realized, this would represent the operationalization of Michael Porter’s seminal hypothesis [see chapter 1] that sustainability is the key to long-run competitive advantage. Figure 22–1 displays the goals and inherent challenges facing the company, and Figure 22–2 presents the detailed business case defined by the strategic initiatives, tactical targets, and specific constraints, risks and challenges. It is apparent that this strategy is not without risks, and a fundamental issue is whether the company can achieve profitability through the success of any one or subset of the four initiatives, or whether the achievement of all four is necessary for success. This challenge is portrayed using a model from electrical engineering in Figures 22–3a and 22–3b. Model A uses an “OR Gate” where satisfying any one of the independent conditions will suffice for success; while Model B uses an ‘AND Gate” where all of the independent conditions are necessary for success. The following sections discuss in greater detail the opportunities and risks associated with each of the four strategic thrusts. Ooteel's sustainability challenge https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203107478/c2bc82bb-d1e1-4a9f-b07e-484744df4bd9/content/fig22_1_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/> Ooteel's four sustainability initiatives https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203107478/c2bc82bb-d1e1-4a9f-b07e-484744df4bd9/content/fig22_2_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/> Two models of a successful business strategy for Ooteel https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203107478/c2bc82bb-d1e1-4a9f-b07e-484744df4bd9/content/fig22_3a_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/> Two models of a successful business strategy for Ooteel https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203107478/c2bc82bb-d1e1-4a9f-b07e-484744df4bd9/content/fig22_3b_C.jpg" xmlns:xlink="https://www.w3.org/1999/xlink"/>