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Sustainable Solutions 1

Sustainable Solutions Paper


Ronald Shabaya
DBA Strategy
Dr. House
October 21, 200
Sustainable Solutions 2
Sustainable Solutions Paper
!he Babcoc" # $ilco% &o'pany (B # $) is one o* the +orld,s leading pro-iders o*
energy ser-ices. $hile the co'pany +as *ounded +ith a niche *or uni.ue stea' boilers *or
po+er generation, B # $ no+ boasts o* 'ore than 1/0 years0 e%pertise in nuclear, *ossil and o*
late rene+able po+er generation processes. A*ter being caught up in the +eb o* asbestos
la+suits, B # $ and so'e o* its a**iliates *iled *or &hapter 11 in 2000. $hat e'erged out o* the
court protection +as a +ell oiled 'achine +ith a ne+ 'andate to be en-iron'entally *riendly.
1e+ organi2ational strategy +as no+ s.uarely predicated upon -alues as enunciated in the
corporation0s ne+ly *ound core -alues based on people, sa*ety, e%cellence, technology and
ste+ardship. 3t is the intention o* this paper to research and disco-er sustainable solutions *or B
# $. 3n order to understand the current organi2ational en-iron'ent as +ell as gaining so'e
insight into possible options in creating a strategic plan, 3 +ill identi*y the sta"eholders,
co'petitors and the en-iron'ent. B # $ +ill be analy2ed using the -alue chain analysis, S$O!
analysis, the general *orces analysis and Porter0s *i-e *orces as they i'pact the co'pany to assist
in de-eloping a strategic plan. !his in*or'ation is intended to assist B # $ *or'ulate strategies
that +ill consolidated procure'ent operations, reduce paper consu'ption and related costs,
thereby increasing pro*itability and preser-ing natural resources.
4%ecuti-e Su''ary
Summary Focus
!he Babcoc" # $ilco% &o'pany (B#$) is a 5ynchburg, 6irginia head.uartered global
co'pany that pro-ides construction ser-ices and e.uip'ent to po+er generation plants. 3n
addition, the co'pany pro-ides nuclear operations and technical ser-ices *or the go-ern'ent. B
# $ is a +holly o+ned subsidiary o* 7cDer'ott 3nternational, 3nc. 819S4: 7DR;.
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3ncorporated in Pana'a, 7cDer'ott through -arious subsidiaries is a leading engineering and
construction co'pany, +ith specialty 'anu*acturing and ser-ice capabilities. !he &o'pany
pro-ides its ser-ices to a -ariety o* custo'ers in the energy (o**shore oil and gas rigs) and po+er
industries, including the =.S. >o-ern'ent. 7cDer'ott operates in 2< countries and has o-er
20,000 e'ployees.
Key Take-aways
B # $ ?acti-ely pro'otes public +el*are and possesses an o**ensi-e@broad enterprise
strategyA (7e2nar et al, 10, p. 1/). !he co'pany continuously tries to i'pro-e +or"ing
en-iron'ent *or its e'ployees, as e-idenced by the recent co'pletion o* a ne+ +ellness center
e.uipped +ith a doctor and nurses that ta"e o* e'ployees0 'inor ail'ents, subse.uently sa-ing
e'ployees a lot o* 'oney that they +ould ordinarily pay at the doctor0s o**ice in coBpays. !he
+ellness runs a lot o* progra's that include *ree +eight loss classes *or e'ployees. One can
argue that B # $ aspires to 'aintain a le-el < in ter's o* espoused -alues and strategy as it e'bar"s on
?sustainable organi2ation culture, +here the organi2ation recogni2es the interdependencies and synergies
bet+een the *ir' and sta"eholdersA ($heeler, &olbert # Cree'an, 200<, p.11).
Po+er generation plant construction co'panies ha-e beco'e global organi2ations +ith
increases in technology and 'ergers and ac.uisitions. &urrent regulations 'ainly dri-en by the
need to curb *ossil po+er en-iron'ental pollution ha-e brought serious challenges to B # $
custo'ers and the industry in general. Senge et al. (200D, p. 10) stated that organi2ations *aced
+ith challenges step up to ?create *lourishing ne+ businesses, net+or"s, and organi2ations o* all
"inds based on these opportunities.A !hese challenges are clear spring boards o* opportunities
*or B # $ to de-elop ne+ technology@e.uip'ent that is co'patible +ith rene+able energy
sources.
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B # $0s operations are pri'arily designing, de-elop'ent, 'anu*acturing, deli-ery
and@or *itting o* electric po+er generation e.uip'ent. 4'ployees are responsible *or operations,
'ar"eting, sales, ser-ice and general 'aintenance o* custo'er0s po+er plants or nuclear
*acilities in case o* the =nited States go-ern'ent. Due to their *unction in the technology
de-elop'ent and licensing process, e'ployees and technology pro-ide the greatest -alue and
strengths to the co'pany. B # $0s e'ployees are +ell e%perienced and 'any ha-e attained
college degrees or certi*ications +ithin their *ield. !he co'pany -alues training and 'andates
'ost e'ployees to get at least 20 hours o* rele-ant training annually in addition to an e%ecuti-e
7BA progra' that0s run through the co'pany.
Integration of Concepts
!o ensure sustainability, B # $ needs to le-erage its current strengths, 'ini'i2e its
+ea"nesses and threats as +ell as *ully e%ploit the opportunities being presented by the dri-e to
li'it en-iron'ental pollution. !he co'pany, ha-ing a 'aEority 'ar"et share o* e.uip'ent on
coal po+ered plants, has an opportunity to generate re-enues *ro' replace'ent parts as utility
co'panies are Eust 'aintaining these plants +aiting *or a 'ore concrete direction *ro' the
ad'inistration. Resources sa-ed *ro' 'ore strea'lined and e**icient group procure'ent
syste's and reduced paper usage can be channeled to research and de-elop ne+ technologies,
+hich +ill enhance co'pany sustainability.
Sta"eholder 3denti*ication and 6alue Analysis (Part 3)
Culture Type
As is the case +ith 'ost organi2ations, B # $ -alues its sta"eholders, +ho essentially
are the deter'inants o* the co'pany0s e%istence. 3t there*ore goes +ithout saying that +hat the
co'pany considers to be the core -alues e-ol-ed out o* the need to satis*y the sta"eholders. 3n
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order to understand +ho the sta"eholders are and +hat -alues the co'pany belie-es in, there is
need to re-ie+ the co'pany0s 'ission state'ent. !he *ollo+ing is the co'pany0s -ision@'ission
state'ent *ound on their +ebsite:
At !he Babcoc" # $ilco% &o'pany, +e ha-e 'ore than 1/0 years o* e%perience, a
passion *or inno-ation and a dedication to ser-ing our custo'ers. Our -ision, 'ission and
-alues set us apart. !hey inspire us to achie-e 'ore and ser-e as the guiding principles
*or ho+ +e +ill operate our business no+ and into the *uture.
Vision: !he pre*erred global leader, e%celling in the deli-ery o* ad-anced energy and
operational solutions.
Mission: $e are B#$ +ant you to count on us to deli-er inno-ati-e technologies and
solutions to *ul*ill the needs o* our custo'ersG pro-ide a challenging, re+arding, and sa*e
+or" en-iron'ent *or our e'ployees and generate increasing -alue *or our sta"eholders.
Core Values: Our core -alues are 'ani*ested through our people, sa*ety, e%cellence,
technology and ste+ardship.
People: $e +ill treat each other +ith dignity and respect, +hile e'bracing di-ersity,
cooperation, open dialogue and tea'+or".
Safety: $e stri-e to *inish each and e-ery day incident and inEury *ree.
!cellence: $e are co''itted to the relentless pursuit o* .uality, ser-ice and integrity in
e-erything +e do.
Tec"nology: $e are passionate about inno-ation and technology leadership.
Stewar#s"ip: $e are dedicated to the longBter' +ellBbeing o* the en-iron'ent and to
preser-ing the -alue o* our custo'ers, and shareholders, assets.
3n a recent address to e'ployees, Brandon, B. (200) +ho is the &4O o* the co'pany su''ed
up the co'pany 'ood and direction +ell +hen he said, ?Across our operating groups, B#$ has
the depth and breadth o* products, e%perience and e'ployees to ensure +e are +ellBpositioned to
re'ain a leading solutions pro-ider *or the changing energy landscape. $e can and 'ust
'aintain that position.A
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Integrate# Concepts from $ea#ings
B # $ stri-es *or long ter' sustainability. As a result, its strategies are essentially
guided by a desire *or corporate social responsibility. Parish # Co%on (200) stated that
?SustainabilityBdri-en entrepreneurs design -entures +ith the pri'ary intention o* contributing to
i'pro-ed en-iron'ental .uality and social +ellBbeing in +ays that are 'utually supporti-eA (p.
1). !he co'pany0s core -alue state'ents are in the'sel-es enunciations o* sta"eholder
categories and +hat the co'pany intends to achie-e +ithin that category. !he co'pany
recogni2es the interdependence bet+een business and society in creating sustainable corporations
(Rooney 200I). As cited by Rooney (200I), BEorn Stigson, President o* the A $orld Business
&ouncil *or Sustainable De-elop'ent nicely su''ed up the interdependence o* businesses and
societies +hen he said ?businesses cannot succeed in societies that *ailA (p. 2). $ithin the
co'pany it is +ell "no+n that all e'ployees0 learning beha-iors are ai'ed at bene*itting all the
sta"eholders.
%i#ence an# Implications
!he co'pany0s core -alues +ere de-eloped +ith an ob-ious -ie+ o* ser-ing the interests
o* all sta"eholders. As a result, the choice o* strategies the co'pany i'ple'ents are in har'ony
+ith e'ployees, custo'ers, -endors and the co''unity as a +hole. 3t goes +ithout saying that
signi*icant bene*its accrue *ro' this 'utual coe%istence. &o'pany operations and pro*itability
increases *ro' satis*ied +or"ers +ho tend to per*or' better as e-idenced by high pro*itability
o-er the last si% consecuti-e years and consistent de-elop'ent o* ne+ intellectual property.
5ocal authorities also pro-ide other support *unctions, +hich include but are not li'ited to
inco'e ta% brea"s, allocation o* land *or e%pansion and support in lobbying *or regulations that
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enhance the co'pany0s sustainability. B # $,s prosperity in turn 'ani*ests itsel* through better
salaries and bene*its to e'ployees, increased contributions to charity, increased area co''erce
+hile state and local authorities bene*it *ro' increased inco'e and sales ta%es re-enues.
Because all sta"eholders reali2e the bene*its o* +or"ing together as a tea', this i'pro-es the
co'pany0s sustainability.
>eneral Corce Analysis (4%ternal J Re'ote 4n-iron'ent)
A general *orce analysis is a use*ul tool to use *or e-aluating organi2ational co'petiti-e
trends, e-ents and *orecasts to the organi2ation that can lead to opportunities *or sustainability
(>ould, 200). Pearce # Robinson (200<) as cited by >ould (200) stated that ?there are *i-e
categories o* *orces in the e%ternal en-iron'ent: econo'ics, de'ographics@social@culture,
go-ern'ent@legal@'ilitary, physical en-iron'ent, and technologyA (p.<). B # $0s e%ternal
en-iron'ent +ill be scanned *or trends and e-ents that directly i'pact its sustainability.
&eneral Force Matri! 'nalysis
!he po+er generation industry in the =13!4D S!A!4S is in li'bo as it +aits *or a clear
energy policy *ro' the current ad'inistration. !he uncertainty created by this lac" o* clear
direction has i'pacted B # $0s bac"log as custo'ers postponed any 'eaning*ul capital
e%penditures. According to 4nergy &entral (200) at least nine coal plants representing H,HF0
'ega+atts had been canceled by 7ay 200, Eoining 2/ plants that +ere scuttled in 200D.
&learly, the co'pany0s regulatory ris"s are e%pected to get +orse be*ore they get better as the
+orld +restles +ith the +hole issue o* en-iron'ental e'issions and global cli'atic change. !he
global nature o* the co'pany0s *ootprint also 'eans increased co'petition as proEects are open
*or bids +orld+ide. !he *act that 'ore co'panies are chasing *e+er contracts negati-ely i'pacts
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pro*itability. Porter (200D, p.DF) stated that ?Ri-alry is especially destructi-e to pro*itability i* it
gra-itates solely to price because price co'petition trans*ers pro*its directly *ro' industry to
custo'ers.A !he global *ootprint also adds challenges associated +ith political and *oreign
e%change ris"s. !he +ea" global econo'y and recent *inancial sector 'eltdo+n adds another
proble' to the e.uation. Because o* the current li.uidity crunch, s'all pri-ately held co'panies
that are typically B # $ -endors ha-e di**iculty in accessing +or"ing capital. Possible *ailure o*
these -endors that 'ay ha-e contracted to supply B # $ +ith a product on a critical path
increases the co'pany0s proEect ris" pro*ile and in so'e instances signi*icant li.uidating
da'ages.
$hile challenges 'ay be de-astating *or so'e, they also create opportunities *or
co'panies that co'e up +ith products or ser-ices to sol-e those proble's. Because o* the B #
$0s strong history in the coal po+ered plants, the co'pany enEoys signi*icant bene*its *ro' the
current status .uo in the po+er generation industry. >i-en that B # $ designed and@or
constructed appro%i'ately <DK o* the installed base o* coalB*ired po+er generation in the
=13!4D S!A!4S, there is a signi*icant opportunity *or the co'pany to bene*it in the continued
retro*it (nearBter') and build (longBter') o* the =.S. coal *ired po+er generation *leet.
A general *orce analysis is a use*ul tool *or identi*ying trends, e-ents, and *orecasts to the
organi2ation as the process tends to re-eal strategies that can lead to opportunities *or
sustainability (House, 200). B # $ has and continues to e%ploit current en-iron'ental
challenges through ingenuity and inno-ations that ha-e 'ade the co'pany one o* the leaders in
the industry. Senge et al. (200D) concluded that ?!hose leading the industries today are doing so
because they ha-e recogni2ed the ne+ reality o* business and positioned the'sel-es
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accordinglyA (p.11). !he co'pany +as one o* the *irst to co'e up +ith carbon se.uestration
technology, +hich captures and stores the carbon underground instead o* e'itting it into the
at'osphere. 3n addition, in Lune o* 200, the co'pany also announced a ne+ 'Po+erM nuclear
reactor, a scalable (12F7ega+att J IF0 7ega+att) and 'odular nuclear reactor solution. $hile
the 'Po+erM reactor is still in early stages o* de-elop'ent, and production is not li"ely *or
another FBH years, it represents an attracti-e opportunity *or B # $ to e%pand its presence into
ne+ nuclear po+er generation build, as the =S is +or"ing to+ards increasing its e%posure to
nuclear po+er generation a*ter <0 years o* no ne+ nuclear plants being built.
Implications of &eneral Forces
&o'pleting the >eneral Corces analysis gi-es organi2ations a *or'al +ay o* establishing
de*ensi-e 'echanis's *or threats and strategies to e%ploit opportunities. !he *ollo+ing is a list o*
B # $ threats and opportunities:
T"reats: Stringent coal e'ission regulationsG accelerated global co'petition on bid
proEectsG political and *oreign e%change ris": and li.uidated da'ages *ro' -endor *ailures.
(pportunities: 4%pand re-enues through carbon se.uestration technologyG increase
re-enue *ro' nuclear sectorG increase re-enues *ro' solar build sectorG and upstrea' or
do+nstrea' ac.uisitions.
Porter0s Ci-e Corces 3ndustry Analysis (4%ternal J 3ndustry 4n-iron'ent)
Fi%e Forces Matri! 'nalysis
Porter0s *i-e *orces 'odel deter'ines co'petition and +hat threats *ace an organi2ation
(Porter, 200D). !he *ollo+ing are the *i-e *orces (barriers to entry, co'petiti-e ri-alry,
a-ailability o* substitutes, bargaining po+er o* suppliers, and bargaining po+er o* buyers) and
ho+ they i'pact the co'pany:
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)arriers to entry: !he energy industry is considered to be a 'atured industry. !hreats o*
entry are considered 'ini'al to 'oderate due to high bars to entry created by signi*icant capital
asset in-est'ents re.uired. 3n addition, entry into the industry is ha'pered by lengthy po+er
generation plants appro-al process. Cor e%a'ple, it ta"es up to 12 years *ro' the application
process until *ull *unctional co'pletion o* a nuclear po+er station. Since the application process
is detailed in ter's o* technology and construction phases, ne+ po+er plant constructors or
e.uip'ent pro-iders ha-e a hard ti'e pro-ing that they ha-e both the technical and *inancial
+here+ithal to co'plete the proEects.
)argaining power of suppliers: !he Babcoc" # $ilco% &o'pany0s suppliers can be
classi*ied in three distincti-e categories. One is co'posed o* 'ostly s'all pri-ately held
co'panies that deal in sta'ping and *abrication. !his category has 'ini'al po+er as it is highly
*rag'ented in a highly co'petiti-e industry. !he second category is *or uni.ue suppliers as they
'ay be the sole suppliers due to special alloy or intellectual property issues associated +ith
original e.uip'ent 'anu*acturers. As a result, suppliers in this category possess high supplier
po+er as they can dictate both the price and pay'ent ter's.
)argaining power of *uyers: !he industry typically has a rigorous bidding process *or
large proEects. Since 'ost custo'ers are either go-ern'ents or large utility corporations, B # $
custo'ers ha-e 'oderately high to high po+er. !he buyers0 po+ers are so'e+hat 'oderated by
the *act that in instances o* replace'ent parts (+here B # $ is an original e.uip'ent
'anu*acturer), once the buyer installs the e.uip'ent, the only source o* spare parts beco'es the
original 'anu*acturer.
T"reats of su*stitute goo#s: Since the larger part o* the co'pany0s business is related to
stea' creation in the electricity generation process, threats o* substitutes are 'ini'al as the only
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other li"ely generation processes that do not include stea' are hydro and +ind. Reality is that
+ith currently a-ailable technology, it +ill ta"e a +hile *or either hydro or +ind po+er to ha-e a
serious threat on stea'.
$i%alries among e!isting competitors: !here is intense co'petition *or 'ost proEects that
are *loated *or bids in the industry as proEects are open to +orld+ide co'petition e%cept in
restricted go-ern'ent Eobs. As a result, 'argins on big proEects are usually depressed so
co'panies stri-e to continuously lo+er costs to boost the botto'Bline.
Implications of Fi%e Forces
&o'panies use *i-e *orces analysis to prepare the'sel-es against threats and e%ploit
opportunities. B # $ has a clean balance sheet +ith a robust cash position. As o* 2N0, B # $
had OHI1.<7 o* total cash # e.ui-alents on the balance sheet, +ith only O.I7 o* total debt.
3ncluding restricted cash and in-est'ents, the co'pany has a-ailable li.uidity o* O1.1B at the
end o* 2N0. $ith a'ple li.uidity, and li"ely increasing cash throughout the re'ainder o* 200
and throughout 2010, the co'pany is in a good position to ac.uire or in-est in upstrea' or
do+nstrea' co'panies. S'all to 'ediu' si2ed ac.uisitions are li"ely to enhance its po+er
ser-ices o**erings, as +ell as in-est'ents in ne+ technologies.
Detailed 6alue &hain Analysis (3nternal 4n-iron'ent)
Organi2ational structural 'odels are based on the products or ser-ices pro-ided. !he
-alue chain analysis brea"s do+n the -arious acti-ities o* the organi2ation *ro' beginning to
end, +hich gi-es ad'inistrators an opportunity to see +here synergies can be created and +here
i'pro-e'ents can be 'ade. As a result, organi2ations can reduce costs by addressing a speci*ic
stage o* the -alue chain or the +hole -alue chain.
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Customi+e# Value C"ain of 'cti%ities in Ta*le Form
!he B # $ -alue chain structure re*lects the di-ersity o* operations that include product
designing, de-elop'ent, 'anu*acturing, distribution, ser-icing and installation. As an original
e.uip'ent 'anu*acturer (O47), the co'pany has nu'erous intellectual properties that create
di**erentiation ad-antages throughout the -alue chain. As +ith 'ost organi2ations, there are
areas the co'pany can i'pro-e based on Porter0s cost dri-ers related to -alue chain acti-ities.
One apparent e%a'ple results *ro' di**erent di-isions operating under di**erent na'es. !his
proble' particularly i'pacts procure'ent costs as the co'pany *ails to enEoy cost sa-ings *ro'
-olu'e discounts and other bene*its associated +ith purchasing po+er. An article on
1et7BA.co' (200I) aptly su''ed up the i'portance o* business units0 interrelationships by
stating that ?tangible interrelationships o**er direct opportunities to create a synergy a'ong
business units.A !he co'pany can also ser-e 'oney by adopting an internet based pay
noti*ication process instead o* the current ho'e 'ailing. Out'oded in*or'ation technology that
does not allo+ di-isions to easily share in*or'ation to the le-el that SAP so*t+are +ould does
not help 'atters either.
!he *ollo+ing, +hich sho+s that +hile the co'pany co'pares +ell to peers, it has roo'
*or i'pro-e'ent and also needs to loo" at the +ind sector o* the industry. !he rating "eys are:
0B< Poor relati-e per*or'ance in industry and absoluteG /BH As good as a-erage in the industryG
and IB10 Better than a-erage in the industryBto $orld &lass.
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!able 1
B # $ -alue chain acti-ities ratings co'pared to peers
A&!363!34S 6A5=4 &HA31 B # $ Sha+ Dae+oo
>eneral 7anage'ent Syste's # S"ills
3n*or'ation Syste'sB!echnology H D F
3n*or'ation Syste'sBBProcess # Clo+ / D D
&o'pany &ulture I I
Hu'an Resource Syste's # S"ills
Recruiting Strategy # Processes D I
HR tied to Strategic 1eeds Planning 10 D D
4**ecti-e HR Operational Syste's D D D
Product or Ser-ice R # D Syste's # S"ills
Product design J &oal po+ered D I
Product design J 1uclear Po+er D I
Product design J $ind 0 < <
Product design J Solar / F F
7ar"eting personnel .00 D.00 D.00
Sales personnel D.00 D.00 D.00
Sales 3n*or'ation Syste's H.00 .00 D.00
Cinance # Accounting Support
&ontract Accounting Syste' D.00 .00 I.00
3nternational Accounting Syste' F.00 F.00 D.00
&redit &ontrolling Syste's F.00 D.00 D.00
3nbound 5ogistics
Procure'ent 5ogistics <.00 I.00 D.00
3n-entory 7anage'ent D.00 D.00 .00
Operations # Production
!i'ely co'pletion o* construction proEects I.00 D.00 I.00
Product re+or" .00 H.00 D.00
3ntellectual property -alue .00 I.00 H.00
Outbound 5ogistics
$arehousing logistics D.00 .00 D.00
Distribution logistics I.00 D.00 I.00
Ser-ice # $arranty
Ser-ice personnel .00 I.00 H.00
Ser-ice in*or'ation syste's F.00 I.00 D.00
&usto'er Satis*action D.00 I.00 I.00
A-erage I.00 I.<D I.1F
(OneSource, 200D)
Company Skills , Capa*ilities
3n order to understand B # $ s"ills and capabilities, there is need to separate
'anu*acturing operations *ro' construction operations. 7anu*acturing depends on e'ployee
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ingenuity and inno-ations, strong R # D budget as +ell as top o* the art 'anu*acturing *acilities
to produce products. !o stay on top, the co'pany needs 'any o* engineers that consistently
produce leading technology in the industry. !he co'ple%ities in construction o* po+er generating
plants de'and substantial in-est'ents in a s"illed +or"*orce and plant and e.uip'ent. !he t+o
di-isions are not 'utually e%clusi-e as success in the de-elop'ent o* ne+ products +ill generate
business *or the construction operations. !he co'pany has established a global presence through
subsidiaries or representati-e agencies. !o co'ple'ent these operations, there is need *or top o*
the class in*or'ation technology.
A re-ie+ o* the s"ills and capabilities re-eals that +hile the co'pany currently has a
strong pool o* intellectual property de-elopers, there is an inherent +ea"ness due to the *act that
o-er <0K are approaching retire'ent in the near *uture. !his s"ill structural +ea"ness especially
in the engineering *ield is 'ore o* a national issue than B # $ *ailure. As the baby boo'ers
approach retire'ent +ithin a short ti'e *ra'e, corporations *ace ti'ing proble's as they ha-e to
either settle *or increased pay and bene*it e%penses or *ace a "no+ledge gap bet+een the bloc"
retire'ent o* baby boo'ers and bringing in o* ne+ talent. As pre-iously discussed, the
out'oded in*or'ation technology apart *ro' reducing synergies created by sharing data reduces
e**iciencies through duplication o* acti-ities as +ell as creating +aste either in cost o* paper or
+arehousing o* in*or'ation *iles.
Implications of Competiti%e 'nalysis
B # $ -alue chain acti-ities are essentially supporting acti-ities so a change in
one area +ill a**ect the breadth o* the -alue chain. 3t +ould see' that 'oderni2ing the
in*or'ation technology +ithin the co'pany +ould create long ter' bene*its as the co'pany
stands to ser-e 'oney in the long run. !he issue o* baby boo'ers retiring needs *urther
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in-estigation to establish attrition rate and ti'eline. 3t 'ay be prudent *or the co'pany to
acti-ely see" ac.uisition o* a s'all to 'iddle si2e co'pany that has a di**erent s"ill age
de'ographic. !he good thing is that the global reach pro-ides the co'pany +ith a +orld+ide
s"ill pool and co'pany has strong cash reser-es to either +ithstand the i'pact o* increased costs
or ac.uisitions.
Detailed S$O! Analysis
A strengths, +ea"nesses, opportunities and threats (S$O!) analysis entails loo"ing at
internal and e%ternal *actors o* the co'pany to deter'ine the strengths, +ea"nesses,
opportunities, and threats. !he ai' o* the analysis is to co'e up +ith strategies that reduce the
e**ect o* +ea"nesses and threats and le-erage strengths to e%ploit opportunities. 4%cept in
e%tre'e cases, one can argue that it is prudent *or corporate strategists to concentrate on
co'pany0s strengths in relation to opportunities (SO) to neutrali2e threats or +ea"nesses. 3n this
regard, B # $ can le-erage the strong cash position to ac.uire strategic upstrea' or do+nstrea'
organi2ations (SO). !he ne+ partners can bring in ne+ technology that +ill enhance the
co'pany0s sustainability. 3* the ne+ technology is in the rene+able energy sector, this +ill also
reduce the i'pact o* stringent e'ission regulations (S!). !his +ould especially help since the
co'pany loudly absent *ro' the +ind po+er sector. !he co'pany can also use the baby boo'er
retire'ent proble' as an opportunity to recruit ne+ talent ($O). &learly, technology is
changing at and uni-ersities are e%posing students to areas li"e second li*e, si'ulations@ga'ing
etc. that +ere not e-en i'agined during the baby boo'er school era.
SC(T Factor Matri!
5oo"ing at an organi2ation0s past and present s"ills and capabilities in ter's o* their role
in a co'pany0s opportunities and threats is called S&O! analysis. Historical in-est'ents are
Sustainable Solutions 1H
re-ie+ed +ith a -ie+ o* deter'ining *uture in-est'ents that +ill result in better societal bene*its.
Cor B # $, the largest in-est'ent has been in the de-elop'ent o* a "no+ledge and s"ill
+or"*orce to research and de-elop so'e o* the best products in the po+er generation industry.
&o'pany capabilities are e-idenced by the successes o* the stea' boiler, +hich has do'inated
(<DK 'ar"et) the =S coal po+er plants. !he recent de-elop'ent o* the pre-iously discussed
scalable nuclear reactor (*irst o* its "ind) is a good testi'ony to the co'pany0s superior s"ills and
capabilities.
!he current need to change the +ay +e li-e 'eans that B # $0s current and *uture s"ills
need a lot o* support i* the co'pany is to re'ain co'petiti-e. !he co'pany should go all out to
source *or uni.ue talent to spear head the de-elop'ent o* ne+ ?greenA po+er technology.
Key Success Factor Matri!
Pey success *actors are de*initely the 'ore than <00 engineers, strong cash reser-es
ob-iously generated by superior products and the co'pany0s di-erse geographic presence, +hich
di-ersi*ies concentration ris"s as +ell as strategically pro-ide the co'pany +ith access to global
s"ills pool. !he co'pany has also 'anaged to increase 'ar"et share and incorporate ne+
technology through ac.uisitions. O-erall, *ocusing on core -alues +ill enhance the bene*its
deri-ed *ro' all the "ey success *actors.
Implications of 'nalysis
B # $ is in a -ery good position to o-erco'e both internal and e%ternal challenges. A
+ell *unded R # D group has the potential to turn the current threats *ro' en-iron'ental
regulations into opportunities. Although the baby boo'er +or"er challenge is national it is
necessary to be proBacti-e and start to slo+ly prepare *or the ine-itable.
Sustainable Solutions 1I
Analy2ing the &o'pany Strategy !ype (Part 33)
Strategy Type
&o'pany strategy is de*initely di**erentiation or *inding a niche in the 'ar"et. As a
result, the co'pany has a uni.ue and -ery popular stea' boiler +hich continues to do'inate
co'petition. 3n the coal industry, the co'pany de-eloped carbon se.uestration technology
+hich is -ery pro'ising. As pre-iously discussed the nuclear reactor is yet another e%a'ple to a
-ery success*ul di**erentiation strategy.
Supporting 'rgument
B # $ continuously researches +ays o* de-eloping ne+ products *or the 'ar"et. $ithin
the last three years, the co'p any has introduced t+o tangible products that go a long +ay in
reducing en-iron'ental e'issions. 3n addition, the co'pany also de-eloped so*t+are that
'onitors plant running e**iciencies and pro-ide continuous 'onitoring o* e'issions in po+er
plants so that de-eloping proble's can be .uic"ly attended to.
Analy2ing the &o'pany Strategy 7o-es
$ele%ant Strategy Mo%es
B # $ 'ar"et entry strategy is also through de-elop'ent o* co'ple'entary products as
+ell as o**ering a construction. !he supply o* 'ore products as +ell as the ability to supply and
*it di**erentiates the co'pany *ro' co'petitors. !he co'pany also recently de-eloped a boiler
dedicated to solar plants. 3ndications are that this boiler +ill open a lot o* 'ar"et *ronts as the
proto type is being tested in the =S and 3ndia.
Supporting 'rgument
!he di-ersity and span o* the co'pany0s product port*olio illustrate B # $0s
deter'ination to o**er a +ide range o* products and ser-ices to 'eet the needs o* 'any
Sustainable Solutions 1D
custo'ers. 3t is e.ually critical that the co'pany also loo"s at +hat can be done in the +ind
sector, +hich is an area that has generated a lot o* interest. !his e%pansion essentially
di**erentiates itsel* *ro' other co'petitors.
Align'ent and >oals Analysis
'lignment C"ecklist an# -nit &oals Matri!
&o'pletion o* an align'ent chec"list re-eals that the co'pany has 'ore than ade.uate hu'an
and capital resources to *ul*ill the strategies. !he culture as culti-ated through the
co'pany0s core -alues re'ains to be the beacon *or the co'pany0s sustainability as
e'ployees are +ell re'unerated and the local co''unity is *ully supporti-e o* +hat the
co'pany is doing. !he lac" o* coordination bet+een procure'ent tea's o* -arious
di-isions needs to be addressed pro'ptly. !he co'pany is currently i'planting the SAP
so*t+are, +hich +ill help in 'ore e**icient co''unications across the di-isions.
!able 2
) . / 'lignment C"ecklist an# -nit &oals Matri!
9es 1o
People
Our people ha-e the necessary s"ills to 'a"e
strategy +or". Q
!hey support the strategy. Q
!heir attitudes are aligned +ith the strategy. Q
!hey ha-e the resources they need to be
success*ul. Q
3ncenti-es
Our re+ards syste' is aligned +ith the
strategy. Q
4-eryone has per*or'ance goals aligned +ith
the strategy. Q
Structure
=nits are opti'ally organi2ed to support the
strategy. Q
Supporti-e Acti-ities !he 'any things +e do around here B pricing,
the +ay +e handle custo'ers, *ul*ill orders,
Q
Sustainable Solutions 1
etc. B support the strategy.
&ulture
Our culture and strategy are +ell 'atched. Q
(Strategy, p.I/, 200F)
Supporting 'rgument
>oals need to be set +ith a 'eaning*ul i'ple'entation ti'e*ra'e. Cor e%a'ple, the s"ill
pool attrition +ea"ness should be put on a ti'e *ra'e and 'easured against the 'ilestones set.
3n addition, any interloc"s bet+een di-isions@a**iliates should be deter'ined to sa-e ti'e,
'oney, and unnecessary duplication (Strategy, 200F, p.HD).
Action Plan Analysis
An action plan is a *or'al organi2ation 'anuscript that sho+s organi2ational goals and ho+ they
are to be achie-ed (Strategy, 200F, p.ID). !he action plan should state +hat the goals are, the
ti'elines and 'easurable 'ilestones. !his essentially helps an organi2ation e-aluate progress
and ta"e correcti-e 'easures +here necessary. Sustainable action plans *or B # $ should
include but not li'ited to centrali2ing procure'ent ser-ices and reduce carbon e'issions. 3n
addition to this coordination 'a"ing all -endors a+are that they are dealing +ith the sa'e
co'pany, a lot o* duplication *ro' say -endor .uali*ying processes +ill be eli'inated. !his +ill
reduce duplication costs as +ell as possible reduction in cost o* goods sold *ro' -olu'e
purchase discounts. !echnology that reduces en-iron'ental pollution *ro' coal po+er plants
+ill not only e%pand re-enues but enhance organi2ational sustainability.
$ele%ant 'ction Plan
!he action plan *or de-elop'ent o* carbon se.uestration technology 'ust be based on the
co'pany0s research and de-elop'ent strength that is rooted in the 'ission state'ent and core
Sustainable Solutions 20
-alues so that it can bene*it all sta"eholders. As a global organi2ation, the co'pany can use its
di-erse population o* e'ployees +ith -arying educational bac"grounds and e%perience to bring
to 'ar"et ?greenA products o* the 20
th
century. !he *ollo+ing is an action plan *ra'e+or" *or the
carbon se.uestration technology goal:
1. Scan the global 'ar"et re.uire'ents *or the coal e'ission proble's, possible
regulations and pricing by 7arch 1, 2010
2. Based on goal 1 results, design t+o prototypes *or 'ar"et testing by 7ay 1, 2010.
<. Based on >oal 2 results, create 'anu*acturing speci*ications *or the t+o custo'i2able
'odels by Septe'ber 1, 2010.
/. $or" +ith 'anu*acturing on design 'anu*acturability. At least t+o designs o*
carbon capture and underground storage *acilities. Deadline: 1o-e'ber 1, 2010.
(Strategy, 200F, p.D0).
Supporting 'rgument
Since carbon e'ission *ro' *ossil po+er sources has beco'e one o* ht crises *acing the
+orld today. De-eloping a sa*e and acceptable carbon se.uestration technology +ill 'ean that B
# $ in helping society continue to use clean coal +ill also generate signi*icant re-enues. B #
$0s core -alues as enunciated in the 'ission state'ent states the co'pany0s clear goal o*
stri-ing *or the better'ent o* e'ployees, custo'ers, colleagues, and the co''unity. Reducing
carbon e'issions goes a long +ay in reducing serious da'age to our en-iron'ent.
Citness 5andscape Analysis
As cited by Stacey (200I, p. 1D), the *itness landscape is a sur-i-al strategy analogy, +hich +as
coined by Pau**'an (1F). 3n the analogy, Pau**'an uses ani'al species tra-eling across
-alleys and 'ountain pea"s, +here ?to get caught in a -alley is to beco'e e%tinct, and to be
Sustainable Solutions 21
trapped in the *oothills is to *orgo the opportunity o* *inding one o* the 'ountainsA (Stacey,
200I, p. 1D). !ra-elling through the land and the ensuing patterns present challenges,
co'peting +ith other ani'als *or territory and *ood so the ani'al has to de-elop sur-i-al
instincts. !he 'etaphor o* the *itness landscape clearly portrays the struggles that organi2ations
*ace in their .uest *or sustainability.
0escription of Fitness 1an#scape an# 'nalysis
!he electric po+er generation industry has *aced 'any ups and do+ns o-er the last 20
years. $hile the econo'ic landscape o* the 'ar"et is in a constant state o* change, the situation
continues to be e%acerbated by stringent regulations as the +orld struggles to co'bat
en-iron'ental pollution. >i-en the signi*icant dri-e to shi*t *ro' *ossil po+er to so'e
co'bination o* nuclear and rene+able source o* energy, to borro+ *ro' the *itness landscape
analogy, the pea"s and -alleys continue to shi*t as organi2ations are at the 'ercy o* the e%ternal
en-iron'ent. $hat is also critical in the industry is the state o* the +orld econo'y. As the
econo'y continues to +ea"en, co'panies, +ho are the biggest consu'ers o* electricity continue
to shrin" i'pacting de'and. 3* this trend continues *or an e%tended period, the +hole landscape
+ill change as utility co'panies scale do+n on in-est'ents. !his slo+ do+n 'ay ha-e a real
telling e**ect on the ad-ance'ent o* rene+able energy technology.
Implications of 'nalysis
Re-ie+ing the past practices o* the electric po+er generation industry sho+s that had
sustainable e**orts been 'ade in the past, the current crisis 'ay not ha-e occurred. Cor e%a'ple,
e-en +ithout the global +ar'ing argu'ent, coal *ired po+er plants ha-e al+ays been a health
ha2ard *ro' the bul"ing s'o"e to the *ine coal dust that 'ade surrounding areas inhabitable.
&learly si'ple 'easures 'ade earlier on ho+ to handle the -alleys o* the landscape could ha-e
Sustainable Solutions 22
helped to +eather, or perhaps a-oid, the negati-e outco'es. !he proposed cap and trade syste'
is a double Eeopardy to the industry as it penali2es the utility co'panies but also a**ects industrial
e%pansion, +hich +ill depress de'and. 3n the past, the industry landscape +as based on
pro*itability so as coal +as the cheapest source o* energy, there +as no 'oti-e *or ingenuity.
>i-en the current *itness landscape, B # $ needs to go beyond the easy and reactionary route to
co'e up +ith trans*or'ing clean and e**icient rene+able technology. Any organi2ation that +ill
co'e up +ith say co'pact solar technology that can be positioned +here there is e%isting po+er
lines can easily na-igate to the pea" o* the *itness landscape.
Boid Analysis
)oi# 'nalysis Systems 0escription an# 'nalysis
A Boid analysis relates to understanding the patterns o* a co'ple% adapti-e syste' (&AS). !he
analogy used is that o* a *loc" o* birds 'o-ing together in a pattern +ith no one bird directing
the *or'ations. All Boids ('o-ing agents) *ollo+ the sa'e three rules, +hich are:
1. 7aintain a 'ini'u' distance *ro' other obEects in the en-iron'ent including other
Boids.
2. 7atch -elocities +ith other Boids in the neighborhood.
<. 7o-e to+ards the percei-ed centre o* 'ass o* the Boids in the neighborhood.
(Stacey, 200I, p.200)
!hese three rules can be e%trapolated into an industry or e'ployees +ithin an organi2ation. !he
po+er industry is gi-en the ?*loc"ingA beha-ior by stringent regulations *ro' the *ederal
go-ern'ent, states and 'unicipalities. =tility co'panies need state appro-als on +hat they
build, +here they build and ho+ they charge *or their ser-ices as 'ost organi2ations still operate
under regulated prices regi'es. $ithin an organi2ation, each Boid does its particular Eob *or the
+hole o* the group +hich produces a pattern o* beha-ior *or the entire population. A good
e%a'ple +ithin B # $ +as the recent de-elop'ent o* a ne+ boiler by 'echanical engineers
Sustainable Solutions 2<
+hile at the sa'e ti'e the in*or'ation technology engineers de-eloped a boiler stea'
'onitoring so*t+are that can be operated by one person to signi*icantly increase boiler *la'e
e**iciency. !he negati-e result, though, is that the sa'e patterns are continuously repeated +ith
no e-olution or dri-e to i'pro-e (Stacey, 200I, p. 201).
Implications of 'nalysis
As discussed abo-e, 'any organi2ations in the sa'e line o* business *ollo+ identical
patterns or o**er identical products. !he po+er industry is a -ery good e%a'ple o* the Boid
beha-ior. 3n addition to being under stringent regulations, the electric po+er industry has
historically used co''odities (coal, gas, oil etc.), +hich 'ade it -ery di**icult *or utility
co'panies to brea" out *ro' the pattern as using say oil instead o* gas +hich +ill be cheaper
during that period +ould not be *easible. As the consu'er also cannot easily di**erentiate the
electricity that co'es into their ho'es in ter's o* source o* po+er, 'ar"et di**erentiation is
e-entually i'possible.
!he regulatory en-iron'ent has created this type o* *loc"ing beha-ior and the lac" o*
identity a'ong co'petitors in the sa'e industry. &learly the Boid beha-ior does not pro'ote
'eaning*ul sustainability +hich re.uires an organi2ation to adapt and e-ol-e as necessary to
enable it to na-igate through the *itness landscape. &o'panies 'ust constantly ree-aluate their
goals as the e%ternal en-iron'ent, be adapti-e and proacti-e. Organi2ations need a +ider -ie+
o* the landscape and transcend the si'ple 'oti-e o* 'a"ing short ter' pro*its.
Sustainable Solutions 2/
3ndustry 4-olution 7odeling
In#ustry %olution Mo#eling 0escription an# 'nalysis
A co'puter si'ulation o* the *irst digital organis' pro-ides insight into ho+ and +hy
organi2ations e-ol-e and adapt. 3nitially, the organis' is a string o* digits but it begins to
replicate. Lust li"e in a creature reproduction +here each generation +ill di**er *ro' the last,
organi2ation e.ually e-ol-e. But Eust li"e any organis's, old organi2ations and products beco'e
outdated and are eli'inated. 1e+er -ersions are better but because o* continuing co'petition,
the li*espan is deter'ined by ho+ soon another better specie, product or organi2ation sur*aces.
4-entually, the organis's can not entirely reproduce, but re.uire cooperation *ro' other
organis's (Stacey, 200I, p. 20<). B # $ li"e other co'panies in the industry has gro+n
through 'erging and ac.uiring other co'panies. $hile B # $ +as originally Eust a boiler
'anu*acturing co'pany, it ended up di-ersi*ying the product line as it *ound itsel* losing on
boiler bids to co'petitors that sub'itted bids that included boiler turbines. 3n addition to
e%panding product lines, the co'pany ended up creating a construction di-ision to get as close to
a turn"ey co'pany as possible. So'eti'es the only +ay organi2e can sur-i-e is through 'ergers
or ac.uisitions.
!he *ishing industry analogy produced 'ultiple conclusions as to ho+ to allo+ *or
changes in an organi2ation0s en-iron'ent. !he negati-e *eedbac" e**ect o* the regulatory
policies should create an en-iron'ent +here the *ishing co'panies li'it their catch to .uantities
that lea-e Eust enough *ish population in the en-iron'ent to sustain itsel*. !his ho+e-er
beco'es di**icult +hen gi-en the co'ple% syste's dyna'ics that also includes *ish 'ar"ets and
general hu'an econo'ic en-iron'ent. !he issue o* e.uilibriu' in the po+er industry has
e.ually been di**icult. 4-en in hindsight, it is di**icult to ha-e "no+n +hen the use o* coal
Sustainable Solutions 2F
should ha-e been li'ited or +hether it +as necessary to slo+ do+n industriali2ation to reduce
the en-iron'ental i'pact. !he current race to co'e up +ith alternati-e 'ore en-iron'entally
*riendly sources o* energy is destined to co'e up +ith unparalleled ingenuity. !he e-olutionary
co'ple% 'odel incorporates the use o* di**erent boats or beha-iors, 'a%i'i2ing creati-ity and
di-ersity (Stacey, 200I, 221).
Implications of 'nalysis
!he po+er industry has e-ol-ed o-er ti'e through 'ergers and ac.uisitions. Due to a lot
o* si'ilarities in the de-elop'ent history o* the industry, sustainability has essentially been
based on creation o* intellectual property and 'aintaining high le-el o* con*identiality. A good
e%a'ple is that +hile the industry has so'e+hat e-ol-ed, the co'pany still generates re-enues
*ro' replace'ent parts on boilers that +ere installed thirty years ago.
5i*e &ycle Assess'ent
What is a Life Cycle Inventory (LCI)?
A li*e cycle in-entory is a process o* brea"ing do+n the +hole process in-ol-ed in 'anu*acturing
a product, process or acti-ity +ith a -ie+ o* trying to .uanti*ying ra+ 'aterial re.uire'ents, energy,
at'ospheric e'issions, +aterborne e'issions and other solid +astes that cannot be recycled.
Why Conduct an LCI?
&onducting an 5&3 pro-ides either an organi2ation or regulatory entity an opportunity to
syste'atically collect data and get a deeper understanding in the process. !his understanding o* the
process helps in the de-elop'ent o* 'ore en-iron'ental *riendly products or 'anu*acturing techni.ues.
3t is i'portant to note that accuracy is *unda'ental to a success*ul 5&A process. 3n the absence o* an
Sustainable Solutions 2H
5&3, there is no obEecti-e basis *or e-aluating causal e**ects o* en-iron'ental i'pacts that assists in
*or'ulating strategies. 5i*e cycle in-entory analyses can also be used by an organi2ation *or continuous
i'pro-e'ent purposes or as e'ployees in-ol-ed in the analysis are continuously as"ed to e-aluate
+hether there is a better +ay o* doing any acti-ity +ithin the li*e cycle.
1C' Mo#eling 0escription an# 'nalysis
A li*e cycle diagra' is a -isual tool +hich sho+s the product a co'pany 'a"es *ro' the
ra+ 'aterial input to the deli-ery o* the product and ho+ all the processes relate bac" to the
en-iron'ent and the concept o* sustainability (Senge et al, 200D). A li*e cycle diagra' *or B #
$0s boiler *or coal po+ered po+er plant is as *ollo+s:
Cigure 1
Babcoc" # $ilco% coal *ired boiler li*e cycle
Sustainable Solutions 2I
Implications of 'nalysis
!he o-erall picture is that B # $ has a signi*icant and di-erse en-iron'ental pollutants
*ootprint. !he co'pany needs to shi*t a+ay *ro' the coal *ired boiler or pro-ide a 'ore
acceptable the carbon se.uestration technology to reduce or eli'inate the releasing o* carbon
into the at'osphere. As *or the en-iron'ental i'pact *ro' paper usage, the co'pany needs to
'o-e a+ay *ro' gi-ing e'ployees pay slips. $ith o-er t+enty thousand e'ployees recei-ing
pay t+o pay slips a 'onth, the co'pany +ould sa-e a lot o* trees and energy by s+itching to
intranet distribution o* pay ad-ices. !his +ill also sa-e the co'pany substantial a'ounts *ro'
postage sta'ps and the labor associated +ith sorting and 'ailing. &urrently, the co'pany does
not 'onitor indi-idual printing, +hich nor'ally +or"s as a deterrent and un+arranted printing
control 'easure.
&o'pliance to 3nno-ation Analysis
Compliance to Inno%ation 0escription an# 'nalysis
&o'pliance to inno-ation analysis is a +ay o* deter'ining +here a co'pany is on the
*i-e stages o* the *i-e step process. At the botto' or *irst o* the steps is nonco'pliance. $hen a
co'pany is at that stage, it is operating under a threat o* e%tinction as the regulators can i'pose
hea-y *ines or close the organi2ation until the nonco'pliant issue is resol-ed. Step t+o is
co'pliance stage, +here the organi2ation is still reacti-e and does the bare 'ini'u' to a-oid
con*rontation +ith the la+. 3n step three, organi2ations are starting to be proacti-e and reali2ing
that the bene*its are 'ore than the initial in-est'ent. Sustainability strategies beco'e a +ay
*or+ard on step *our and this concept is recogni2ed at e-ry le-el o* the organi2ation. Step *i-e is
a co'pany +hose sole purpose is to contribute to a society and be regenerati-e (Senge et al,
200I. p. 11F).
Sustainable Solutions 2D
Implications of 'nalysis
Due to the broad spectru' and di-ersity o* the co'pany0s operations, di-isions see' to
operate at di**erent le-els o* the *i-e stage process. $hile say the procure'ent and the hu'an
resources depart'ents ha-e short*alls that drag the' to stage three, 'ost o* the groups are highly
proacti-e and operate at 'ini'u' on stage *our. !his integrated strategy is e-idenced by top o*
the industry intellectual property in nuclear, solar and coal technology, +hich has 'ade the
co'pany a leader in the industry. !he co'pany stands to signi*icantly bene*it *ro' the already
discussed scalable nuclear po+er reactor as +ell as ne+ly de-eloped solar po+er e.uip'ent.
Sustainable 6alue Cra'e+or" Analysis
!he Sustainable 6alue Cra'e+or" Analysis is a ti'e and space diagra' that helps
organi2ations see +hat needs to be done in the present as +ell as de-elop sustainable strategies
*or the *uture. !he *ra'e+or" has *our .uadrants that ?helps people place their organi2ation0s
acti-ities in perspecti-e, and sho+s ho+ they can +or" together to create and 'aintain -alue and
si'pli*y strategic decision 'a"ing.A (Senge et al, 200D, p.122). Cunda'entally i'portant are the
re.uired strategies, dri-ers and pay o** bene*its possible in each .uadrant.
0etaile# 'nalysis of 'll Four 2ua#rants
!he lo+erBle*t .uadrant o* the sustainable -alue *ra'e+or" relates to the internal
*unctions o* a co'pany today (Senge et al, 200D). !he current issues at B # $ are ine**icient
procure'ent strategies and paper usage. !o generate the possible synergies, the -arious
purchasing groups +hich are currently segregated by di-isions ha-e to *ind +ays o* cooperating
+here they use a si'ilar -endor. !his +ill reduce duplication and stands to bene*it the co'pany
*ro' -olu'e purchases discounts. As *or the paper usage, the co'pany needs to use the
technology a-ailable to other organi2ation to the e%tent that that +ill no longer need to 'ail pay
Sustainable Solutions 2
slips to e'ployees. Pro-ision o* so*t+are that sho+s printing reports per e'ployee is also a
good deterrent to unnecessary printing o* docu'ents that go straight into the +aste paper bas"et
or are so'eti'es not e-en pic"ed up *ro' the printer.
!he lo+erBright .uadrant in-ol-es e%ternal dri-ers a**ecting B # $ today (Senge et al,
200D, p. 122). !his includes all the e%ternal sta"eholders. !o re'ain sustainable, B # $ 'ust
continue to incorporate -ie+s *ro' a societal perspecti-e so that it can de-elop products that are
in har'ony +ith society, both in ter's o* process and outco'e.
!he upperBle*t .uadrant o* the sustainable -alue *ra'e+or" de*ines internal dri-ers
a**ecting B # $ to'orro+ (Senge et al, 200D, p. 122). !his directly relates de-elop'ent o*
clean technology li"e the solar products that are currently being tested. !he co'pany 'ust
continue to use the di-ersity o* its +or"*orce *or inno-ation and de-elop'ent o* products *or the
*uture, +hich +ill "eep the co'pany in a leader position in the 'ar"et place.
!he upperBright .uadrant relates to *uture B # $ e%ternal dri-ers (Senge et al, 200D, p.
122). !he ulti'ate goal is to shed o** ine**iciencies *ro' uncoordinated procure'ent
depart'ents, reduce paper resource depletion to a 'ini'u' and be a leader in ad-ocating *or
en-iron'entally *riendly operations. !he co'pany needs to continue 'a"ing sure that its
e'ployees are highly 'oti-ated to continue producing products that sol-e societal po+er
proble's +ith 'ini'u' i'pact to the en-iron'ent. !his sustainability -ision +ill increase
co'pany -alue *or all sta"eholders.
'rgument in Support of Conclusions
B # $ continues to pursue +ays to i'pro-e e**iciencies. !he co'pany is in the process
o* i'ple'enting the Syste's Applications and Products (SAP) so*t+are. !his +ill enable all
a**iliated co'panies to be under the sa'e data +arehousing, +hich +ill assist in reducing
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duplication as +ell as going to+ards centrali2ing the purchasing depart'ent. O-erall, the
organi2ation0s 'ission continues to guide it to+ards strategies that enco'pass all the interests o*
the -arious sta"eholders.
Implications of 'nalysis
!o a great e%tent, B # $ operates in the upper le*t .uadrant and its inno-ati-e culture
and industry leadership 'a"es it head to+ards the right direction. $ith a lot o* intellectual
property under proto type testing in the industry, B # $ is destined to a 'uch brighter *uture
despite the current challenges in the industry.
&onclusions
B # $0s strength is deeply rooted in the highly .uali*ied di-erse strongly "nit together by the
co'pany0s culture +or"*orce and its culture, +hich is 'ani*ested through its core -alues about
people, sa*ety, e%cellence, technology and ste+ardship. !he co'pany continues to bring to
'ar"et inno-ati-e products in the industry and has ta"en a lead in the de-elop'ent o* the nuclear
technology o* the *uture. !he co'pany has also established a good reputation by pro-iding
carbon se.uestration technology that 'ay re-olutioni2e the coal industry and pro-ide clean coal
po+er. Ho+e-er, the po+er generation industry landscape re'ains highly challenging due to
the global thrust to re-olutioni2e the +hole industry, a situation +hich is *urther e%acerbated by
the lac" o* an energy policy in the =nited States.
Sustainable Solutions <1
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