Building a business case for the environment: What's strategy got to do with it?

Sammanfattning: Under an action research paradigm, this thesis project explores the business potential of an environmental strategy and assesses the formulation of such a strategy implemented by an automotive original equipment manufacturer. Because of the heterogeneous nature of a company’s approach to environmental issues due to inter alia managerial conducts and company culture, this article provides an in-depth study and explorative analysis on a single- case rather than performing a meta-analysis. The single-case was performed on Volvo Car Group. After considering the intensifying environmental pressures in the automotive industry together with society’s quest for sustainable development, the results of this study revealed that having an environmental strategy at Volvo Car Group, hereafter referred to as Volvo Cars, has potential for delivering benefits of tangible and intangible nature considering the company’s Swedish heritage, values, unique brand strategy Designed Around You, and progressive approach to business in an otherwise conservative industry. However, the results also revealed that the current strategy in place is not reaching this potential. The results from the current strategy's assessment indicate that the environmental strategy is inter alia: (a) at risk of falling by the wayside due in part to a lack of engagement from key stakeholders; (b) in need of strategic reformulation; (c) requires a stronger business approach and further integration within the company’s core business. Recommendations for how Volvo Cars should approach these results have been provided within the context of this thesis project. The primary objective of this exploratory study is to brief the Executive Management Team at Volvo Cars on the research results related to the environmental strategy in question. Research was conducted performing cycles of change with key stakeholders at the company including those developing the strategy and those leading the company. The analysis of the environmental strategy identified the key issues and key variables deemed significant for the case. After discussing the theoretical and tangible results, the exploratory study attempts to provide responses to the following questions: How can an environmental strategy be formulated and implemented to make Volvo Cars more efficient and effective in its environmental work? To what extent is Volvo Cars’ environmental strategy strategically formulated and implemented? Under which circumstances is the environmental strategy currently delivering benefits to the company? Recommendations for the reformulation of the strategy and areas for further work and research are presented to the client in the Executive Summary and final sections of this paper. The research may act as guiding material for other companies, academics, or any other parties interested in the formulation and implementation of environmental strategies that maximize benefits for firms.