Integrating Environmental Goals and Firm Strategy: China Mobile and Climate Change

by: Jacob Park, Rick Bunch

Publication Date: February 2, 2010
Length: 36 pages
Product ID#: 1-428-876

Core Disciplines: International Business, Operations Management/Supply Chain, Strategy & Management, Sustainability

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Description

In September 2009, Chinese President Hu declared that China would reduce the amount of carbon dioxide it emits by a notable margin by 2020 and work to develop a green economy. At the same time, the Chairman of the largest telecom company in China (China Mobile) was awaiting the release of his company’s third CSR report, as well as the conclusion of the Green Action Plan, a comprehensive, company-wide environmental strategy. The Green Action Plan target aimed to reduce energy consumption by 40% per business unit by 2010 compared to 2005 levels and prevent the use of 8.2 billion kWh of electricity. To date, Chairman Wang had been able to meet the expectations of both public shareholders and the Chinese government by subscribing the greatest number of mobile users in the world. At the same time, he had established a CSR program that would enhance the company’s brand image and advance profits. This case examines whether the firm’s environmental strategy could support the firm’s business strategy.

Teaching Objectives

After reading and discussing the material, students should:

  • describe appropriate business terms and principles approriate to this case,
  • apply critical concepts from earlier learning to define a solution to the case,
  • successfully articulate data and information in support of the solution proposed,
  • critically analyze and discuss other responses and solutions to the case,
  • draw lessons from the case analysis,
  • generalize the learnings of this case to other business challenges and decisions in organizations other than the one analyzed in this case study,
  • demonstrate leadership and scholarship in analysis.