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Business Strategy and Sustainable Development

Business Strategy and Sustainable Development

Section A
Compulsory Case Study Question
Question 1
Critically evaluate IKEA’s sustainability strategy. (around 800 words +/- 10%)
IKEA group unveils new sustainability strategy: people & planet positive (taken from
Ikea’s website)
The IKEA Group today released a new, ambitious sustainability strategy, People &
Planet Positive. The strategy is an integrated part of the IKEA Group long-term
growth direction and builds on the Company’s long history of working with
sustainability by outlining a new set of goals and actions for delivery up to 2020.
People & Planet Positive will focus on the following areas:
Inspiring and enabling millions of people to live a more sustainable life at home,
offering products and solutions that help customers to save money by using less
energy and water and reducing waste. Examples include: converting all lighting to
LED that last for 20 years and use up to 85% less electricity; offering the most
energy efficient home appliances on the market at the lowest price; creating low
price, functional and easy to use solutions for sorting and minimising waste and
using less water at home.
IKEA plans to achieve energy independence by producing as much renewable
energy as is consumed in IKEA Group stores and buildings. To achieve this goal, it
plans to invest over €1.5 billion into renewable energy such as wind and solar
projects. It also includes improving the energy efficiency in IKEA Group operations
by at least 20% and encouraging suppliers to do the same. IKEA plans to continue
developing products that are more sustainable by ensuring all main home furnishing
materials, including packaging, are renewable, recyclable or recycled.
IKEA intends to take the lead in creating a better life for the people and communities,
which includes supporting the development of good places to work throughout the
IKEA Group supply chain. It also wants to encourage suppliers to not only focus on
compliance but also shared values. This includes going beyond the immediate reach
of the supply chain and helping to support human rights.
“We want to create a better everyday life for the many people. A better life includes
living more sustainably. We have been working towards that goal for many years and
have already done a lot, and we are now ready to take the next big step. People &
Planet Positive will help us to do that; transforming our business and having a
positive impact,” said Mikael Ohlsson, President and CEO, IKEA Group.
One of the biggest challenges for the 21st Century is how to address resource
scarcity and climate change whilst providing a great quality of life for people around
the world. People & Planet Positive will help IKEA Group to play a small but
significant part in meeting those challenges. In addition to contributing to the quality

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of life of people and communities where it operates, it will use resources with the
utmost efficiency and turn waste into resources. In the future, only renewable energy
will be used in IKEA Group operations. Our suppliers will have to comply with health
and safety regulations and responsible stewardship of forests, water and farmlands.
“We believe that sustainability should not be a luxury good – it should be affordable
for everyone. With over 770 million visitors to IKEA stores each year, we will be
making use of the opportunity to help customers fulfil their dreams at home with
beautiful products that help them save money by reducing energy and water use, as
well as reducing waste. People & Planet Positive will also enable us to take our
responsibilities in the supply chain further over the coming years by, for example,
only using renewable energy to power our buildings and advocating for children’s
rights,” said Steve Howard, Chief Sustainability Officer, IKEA Group.
Total [50] marks.
Total marks for section A is [50 marks]


Section B
Answer ONE Question Only
Question 1
“Practising Conscious Capitalism enriches your life and the lives of people you do
business with. And it’s without a doubt, the most fun, enduring and profitable way to
build a sustainable business.”
Kip Tindell, Chairman & CEO, the Container Store
Critically evaluate the tenets of Conscious Capitalism. (around 800 words +/- 10%)
Total [50] marks.
Question 2
Porter (2013) argued “There’s a fundamental opportunity for business today to
impact and address social problems, and this opportunity is the largest business
opportunity we see in business” (Porter, 2013). Critically evaluate this statement by
examining the case for letting business solve societal problems and illustrate your
answer with business examples. (around 800 words +/- 10%)
Total [50] marks.

Question 3

The Financial Times in 2019 stated “Capitalism. Time for a Reset – This is the New
Agenda”. Challenging its readers to find opportunity and manage strategic risk, so to
help business to adapt and thrive, protecting the future of free enterprise and wealth
creation by pursuing profit with purpose.
Critically evaluate how organisations can seek opportunities and mitigate risk in the
context of creating sustainable value, illustrated with real business examples.
(around 800 words +/- 10%)
Total [50] marks.
Total marks for section [B] is [50]
End of Paper