case study on the business environment

7 Favorite Business Case Studies to Teach—and Why

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• Case Teaching
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FEATURED CASE STUDIES

The Army Crew Team . Emily Michelle David of CEIBS

ATH Technologies . Devin Shanthikumar of Paul Merage School of Business

Fabritek 1992 . Rob Austin of Ivey Business School

Lincoln Electric Co . Karin Schnarr of Wilfrid Laurier University

Pal’s Sudden Service—Scaling an Organizational Model to Drive Growth . Gary Pisano of Harvard Business School

The United States Air Force: ‘Chaos’ in the 99th Reconnaissance Squadron . Francesca Gino of Harvard Business School

Warren E. Buffett, 2015 . Robert F. Bruner of Darden School of Business

To dig into what makes a compelling case study, we asked seven experienced educators who teach with—and many who write—business case studies: “What is your favorite case to teach and why?”

The resulting list of case study favorites ranges in topics from operations management and organizational structure to rebel leaders and whodunnit dramas.

1. The Army Crew Team

Emily Michelle David, Assistant Professor of Management, China Europe International Business School (CEIBS)

“I love teaching  The Army Crew Team  case because it beautifully demonstrates how a team can be so much less than the sum of its parts.

I deliver the case to executives in a nearby state-of-the-art rowing facility that features rowing machines, professional coaches, and shiny red eight-person shells.

After going through the case, they hear testimonies from former members of Chinese national crew teams before carrying their own boat to the river for a test race.

The rich learning environment helps to vividly underscore one of the case’s core messages: competition can be a double-edged sword if not properly managed.

Executives in Emily Michelle David’s organizational behavior class participate in rowing activities at a nearby facility as part of her case delivery.

Despite working for an elite headhunting firm, the executives in my most recent class were surprised to realize how much they’ve allowed their own team-building responsibilities to lapse. In the MBA pre-course, this case often leads to a rich discussion about common traps that newcomers fall into (for example, trying to do too much, too soon), which helps to poise them to both stand out in the MBA as well as prepare them for the lateral team building they will soon engage in.

Finally, I love that the post-script always gets a good laugh and serves as an early lesson that organizational behavior courses will seldom give you foolproof solutions for specific problems but will, instead, arm you with the ability to think through issues more critically.”

2. ATH Technologies

Devin Shanthikumar, Associate Professor of Accounting, Paul Merage School of Business

“As a professor at UC Irvine’s Paul Merage School of Business, and before that at Harvard Business School, I have probably taught over 100 cases. I would like to say that my favorite case is my own,   Compass Box Whisky Company . But as fun as that case is, one case beats it:  ATH Technologies  by Robert Simons and Jennifer Packard.

ATH presents a young entrepreneurial company that is bought by a much larger company. As part of the merger, ATH gets an ‘earn-out’ deal—common among high-tech industries. The company, and the class, must decide what to do to achieve the stretch earn-out goals.

ATH captures a scenario we all want to be in at some point in our careers—being part of a young, exciting, growing organization. And a scenario we all will likely face—having stretch goals that seem almost unreachable.

It forces us, as a class, to really struggle with what to do at each stage.

After we read and discuss the A case, we find out what happens next, and discuss the B case, then the C, then D, and even E. At every stage, we can:

see how our decisions play out,

figure out how to build on our successes, and

address our failures.

The case is exciting, the class discussion is dynamic and energetic, and in the end, we all go home with a memorable ‘ah-ha!’ moment.

I have taught many great cases over my career, but none are quite as fun, memorable, and effective as ATH .”

3. Fabritek 1992

Rob Austin, Professor of Information Systems, Ivey Business School

“This might seem like an odd choice, but my favorite case to teach is an old operations case called  Fabritek 1992 .

The latest version of Fabritek 1992 is dated 2009, but it is my understanding that this is a rewrite of a case that is older (probably much older). There is a Fabritek 1969 in the HBP catalog—same basic case, older dates, and numbers. That 1969 version lists no authors, so I suspect the case goes even further back; the 1969 version is, I’m guessing, a rewrite of an even older version.

There are many things I appreciate about the case. Here are a few:

It operates as a learning opportunity at many levels. At first it looks like a not-very-glamorous production job scheduling case. By the end of the case discussion, though, we’re into (operations) strategy and more. It starts out technical, then explodes into much broader relevance. As I tell participants when I’m teaching HBP's Teaching with Cases seminars —where I often use Fabritek as an example—when people first encounter this case, they almost always underestimate it.

It has great characters—especially Arthur Moreno, who looks like a troublemaker, but who, discussion reveals, might just be the smartest guy in the factory. Alums of the Harvard MBA program have told me that they remember Arthur Moreno many years later.

Almost every word in the case is important. It’s only four and a half pages of text and three pages of exhibits. This economy of words and sparsity of style have always seemed like poetry to me. I should note that this super concise, every-word-matters approach is not the ideal we usually aspire to when we write cases. Often, we include extra or superfluous information because part of our teaching objective is to provide practice in separating what matters from what doesn’t in a case. Fabritek takes a different approach, though, which fits it well.

It has a dramatic structure. It unfolds like a detective story, a sort of whodunnit. Something is wrong. There is a quality problem, and we’re not sure who or what is responsible. One person, Arthur Moreno, looks very guilty (probably too obviously guilty), but as we dig into the situation, there are many more possibilities. We spend in-class time analyzing the data (there’s a bit of math, so it covers that base, too) to determine which hypotheses are best supported by the data. And, realistically, the data doesn’t support any of the hypotheses perfectly, just some of them more than others. Also, there’s a plot twist at the end (I won’t reveal it, but here’s a hint: Arthur Moreno isn’t nearly the biggest problem in the final analysis). I have had students tell me the surprising realization at the end of the discussion gives them ‘goosebumps.’

Finally, through the unexpected plot twist, it imparts what I call a ‘wisdom lesson’ to young managers: not to be too sure of themselves and to regard the experiences of others, especially experts out on the factory floor, with great seriousness.”

4. Lincoln Electric Co.

Karin Schnarr, Assistant Professor of Policy, Wilfrid Laurier University

“As a strategy professor, my favorite case to teach is the classic 1975 Harvard case  Lincoln Electric Co.  by Norman Berg.

I use it to demonstrate to students the theory linkage between strategy and organizational structure, management processes, and leadership behavior.

This case may be an odd choice for a favorite. It occurs decades before my students were born. It is pages longer than we are told students are now willing to read. It is about manufacturing arc welding equipment in Cleveland, Ohio—a hard sell for a Canadian business classroom.

Yet, I have never come across a case that so perfectly illustrates what I want students to learn about how a company can be designed from an organizational perspective to successfully implement its strategy.

And in a time where so much focus continues to be on how to maximize shareholder value, it is refreshing to be able to discuss a publicly-traded company that is successfully pursuing a strategy that provides a fair value to shareholders while distributing value to employees through a large bonus pool, as well as value to customers by continually lowering prices.

However, to make the case resonate with today’s students, I work to make it relevant to the contemporary business environment. I link the case to multimedia clips about Lincoln Electric’s current manufacturing practices, processes, and leadership practices. My students can then see that a model that has been in place for generations is still viable and highly successful, even in our very different competitive situation.”

5. Pal’s Sudden Service—Scaling an Organizational Model to Drive Growth

Gary Pisano, Professor of Business Administration, Harvard Business School

“My favorite case to teach these days is  Pal’s Sudden Service—Scaling an Organizational Model to Drive Growth .

I love teaching this case for three reasons:

1. It demonstrates how a company in a super-tough, highly competitive business can do very well by focusing on creating unique operating capabilities. In theory, Pal’s should have no chance against behemoths like McDonalds or Wendy’s—but it thrives because it has built a unique operating system. It’s a great example of a strategic approach to operations in action.

2. The case shows how a strategic approach to human resource and talent development at all levels really matters. This company competes in an industry not known for engaging its front-line workers. The case shows how engaging these workers can really pay off.

3. Finally, Pal’s is really unusual in its approach to growth. Most companies set growth goals (usually arbitrary ones) and then try to figure out how to ‘backfill’ the human resource and talent management gaps. They trust you can always find someone to do the job. Pal’s tackles the growth problem completely the other way around. They rigorously select and train their future managers. Only when they have a manager ready to take on their own store do they open a new one. They pace their growth off their capacity to develop talent. I find this really fascinating and so do the students I teach this case to.”

6. The United States Air Force: ‘Chaos’ in the 99th Reconnaissance Squadron

Francesca Gino, Professor of Business Administration, Harvard Business School

“My favorite case to teach is  The United States Air Force: ‘Chaos’ in the 99th Reconnaissance Squadron .

The case surprises students because it is about a leader, known in the unit by the nickname Chaos , who inspired his squadron to be innovative and to change in a culture that is all about not rocking the boat, and where there is a deep sense that rules should simply be followed.

For years, I studied ‘rebels,’ people who do not accept the status quo; rather, they approach work with curiosity and produce positive change in their organizations. Chaos is a rebel leader who got the level of cultural change right. Many of the leaders I’ve met over the years complain about the ‘corporate culture,’ or at least point to clear weaknesses of it; but then they throw their hands up in the air and forget about changing what they can.

Chaos is different—he didn’t go after the ‘Air Force’ culture. That would be like boiling the ocean.

Instead, he focused on his unit of control and command: The 99th squadron. He focused on enabling that group to do what it needed to do within the confines of the bigger Air Force culture. In the process, he inspired everyone on his team to be the best they can be at work.

The case leaves the classroom buzzing and inspired to take action.”

7. Warren E. Buffett, 2015

Robert F. Bruner, Professor of Business Administration, Darden School of Business

“I love teaching   Warren E. Buffett, 2015  because it energizes, exercises, and surprises students.

Buffett looms large in the business firmament and therefore attracts anyone who is eager to learn his secrets for successful investing. This generates the kind of energy that helps to break the ice among students and instructors early in a course and to lay the groundwork for good case discussion practices.

Studying Buffett’s approach to investing helps to introduce and exercise important themes that will resonate throughout a course. The case challenges students to define for themselves what it means to create value. The case discussion can easily be tailored for novices or for more advanced students.

Either way, this is not hero worship: The case affords a critical examination of the financial performance of Buffett’s firm, Berkshire Hathaway, and reveals both triumphs and stumbles. Most importantly, students can critique the purported benefits of Buffett’s conglomeration strategy and the sustainability of his investment record as the size of the firm grows very large.

By the end of the class session, students seem surprised with what they have discovered. They buzz over the paradoxes in Buffett’s philosophy and performance record. And they come away with sober respect for Buffett’s acumen and for the challenges of creating value for investors.

Surely, such sobriety is a meta-message for any mastery of finance.”

More Educator Favorites

Emily Michelle David is an assistant professor of management at China Europe International Business School (CEIBS). Her current research focuses on discovering how to make workplaces more welcoming for people of all backgrounds and personality profiles to maximize performance and avoid employee burnout. David’s work has been published in a number of scholarly journals, and she has worked as an in-house researcher at both NASA and the M.D. Anderson Cancer Center.

Devin Shanthikumar  is an associate professor and the accounting area coordinator at UCI Paul Merage School of Business. She teaches undergraduate, MBA, and executive-level courses in managerial accounting. Shanthikumar previously served on the faculty at Harvard Business School, where she taught both financial accounting and managerial accounting for MBAs, and wrote cases that are used in accounting courses across the country.

Robert D. Austin is a professor of information systems at Ivey Business School and an affiliated faculty member at Harvard Medical School. He has published widely, authoring nine books, more than 50 cases and notes, three Harvard online products, and two popular massive open online courses (MOOCs) running on the Coursera platform.

Karin Schnarr is an assistant professor of policy and the director of the Bachelor of Business Administration (BBA) program at the Lazaridis School of Business & Economics at Wilfrid Laurier University in Waterloo, Ontario, Canada where she teaches strategic management at the undergraduate, graduate, and executive levels. Schnarr has published several award-winning and best-selling cases and regularly presents at international conferences on case writing and scholarship.

Gary P. Pisano is the Harry E. Figgie, Jr. Professor of Business Administration and senior associate dean of faculty development at Harvard Business School, where he has been on the faculty since 1988. Pisano is an expert in the fields of technology and operations strategy, the management of innovation, and competitive strategy. His research and consulting experience span a range of industries including aerospace, biotechnology, pharmaceuticals, specialty chemicals, health care, nutrition, computers, software, telecommunications, and semiconductors.

Francesca Gino studies how people can have more productive, creative, and fulfilling lives. She is a professor at Harvard Business School and the author, most recently, of  Rebel Talent: Why It Pays to Break the Rules at Work and in Life . Gino regularly gives keynote speeches, delivers corporate training programs, and serves in advisory roles for firms and not-for-profit organizations across the globe.

Robert F. Bruner is a university professor at the University of Virginia, distinguished professor of business administration, and dean emeritus of the Darden School of Business. He has also held visiting appointments at Harvard and Columbia universities in the United States, at INSEAD in France, and at IESE in Spain. He is the author, co-author, or editor of more than 20 books on finance, management, and teaching. Currently, he teaches and writes in finance and management.

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1.2 Understanding the Business Environment

• What are the sectors of the business environment, and how do changes in them influence business decisions?

Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives. This external business environment is composed of numerous outside organizations and forces that we can group into seven key subenvironments, as Exhibit 1.4 illustrates: economic, political and legal, demographic, social, competitive, global, and technological. Each of these sectors creates a unique set of challenges and opportunities for businesses.

Business owners and managers have a great deal of control over the internal environment of business, which covers day-to-day decisions. They choose the supplies they purchase, which employees they hire, the products they sell, and where they sell those products. They use their skills and resources to create goods and services that will satisfy existing and prospective customers. However, the external environmental conditions that affect a business are generally beyond the control of management and change constantly. To compete successfully, business owners and managers must continuously study the environment and adapt their businesses accordingly.

Other forces, such as natural disasters, can also have a major impact on businesses. While still in the rebuilding stage after Hurricane Katrina hit in 2005, the U.S. Gulf Coast suffered another disaster in April 2010 as a result of an explosion on the Deepwater Horizon oil-rig, which killed 11 workers and sent more than 3 million barrels of oil into the Gulf of Mexico. This event, which played out for more than 87 days, severely affected the environment, businesses, tourism, and people’s livelihoods. Global oil conglomerate BP, which was responsible for the oil spill, has spent more than $60 billion in response to the disaster and cleanup. Seven years after the explosion, tourism and other businesses are slowly recovering, although scientists are not certain about the long-term environmental consequences of the oil spill. 7

No one business is large or powerful enough to create major changes in the external environment. Thus, managers are primarily adapters to, rather than agents of, change. Global competition is basically an uncontrollable element in the external environment. In some situations, however, a firm can influence external events through its strategies. For example, major U.S. pharmaceutical companies have been successful in getting the Food and Drug Administration (FDA) to speed up the approval process for new drugs. 8 In recent years, the five largest companies in the S&P Index— Google , Facebook , Amazon , Microsoft , and Apple —have spent close to $50 million on lobbying activities in the nation’s capital in an effort to help policy makers understand the tech industry and the importance of innovation and an “open” internet. 9 Let’s now take a brief look at these varied environmental influences.

Economic Influences

This category is one of the most important external influences on businesses. Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways. When the economy is growing, for example, unemployment rates are low, and income levels rise. Inflation and interest rates are other areas that change according to economic activity. Through the policies it sets, such as taxes and interest rate levels, a government attempts to stimulate or curtail the level of economic activity. In addition, the forces of supply and demand determine how prices and quantities of goods and services behave in a free market.

Political and Legal Influences

The political climate of a country is another critical factor for managers to consider in day-to-day business operations. The amount of government activity, the types of laws it passes, and the general political stability of a government are three components of political climate. For example, a multinational company such as General Electric will evaluate the political climate of a country before deciding to locate a plant there. Is the government stable, or might a coup disrupt the country? How restrictive are the regulations for foreign businesses, including foreign ownership of business property and taxation? Import tariffs, quotas, and export restrictions also must be taken into account.

In the United States, laws passed by Congress and the many regulatory agencies cover such areas as competition, minimum wages, environmental protection, worker safety, and copyrights and patents. For example, Congress passed the Telecommunications Act of 1996 to deregulate the telecommunications industry. As a result, competition increased and new opportunities arose as traditional boundaries between service providers blurred. Today the dramatic growth in mobile technology has changed the focus of telecommunications, which now faces challenges related to broadband access and speed, content streaming, and much-needed improvements in network infrastructure to address ever-increasing data transmissions. 10

Federal agencies play a significant role in business operations. When Pfizer wants to bring a new medication for heart disease to market, it must follow the procedures set by the Food and Drug Administration for testing and clinical trials and secure FDA approval. Before issuing stock, Pfizer must register the securities with the Securities and Exchange Commission . The Federal Trade Commission will penalize Pfizer if its advertisements promoting the drug’s benefits are misleading. These are just a few ways the political and legal environment affect business decisions.

States and local governments also exert control over businesses—imposing taxes, issuing corporate charters and business licenses, setting zoning ordinances, and similar regulations. We discuss the legal environment in greater detail in a separate appendix.

Demographic Factors

Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. Demography is the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location. Demographics help companies define the markets for their products and also determine the size and composition of the workforce. You’ll encounter demographics as you continue your study of business.

Demographics are at the heart of many business decisions. Businesses today must deal with the unique shopping preferences of different generations, which each require marketing approaches and goods and services targeted to their needs. For example, the more than 75 million members of the millennial generation were born between 1981 and 1997. In 2017 they surpassed baby boomers as America’s largest generation. 11 The marketing impact of millennials continues to be immense. These are technologically savvy and prosperous young people, with hundreds of billions of dollars to spend. And spend they do—freely, even though they haven’t yet reached their peak income and spending years. 12 Other age groups, such as Generation X—people born between 1965 and 1980—and the baby boomers—born between 1946 and 1964—have their own spending patterns. Many boomers nearing retirement have money and are willing to spend it on their health, their comforts, leisure pursuits, and cars. As the population ages, businesses are offering more products that appeal to middle-aged and senior markets. 13

In addition, minorities represent more than 38 percent of the total population, with immigration bringing millions of new residents to the country over the past several decades. By 2060 the U.S. Census Bureau projects the minority population to increase to 56 percent of the total U.S. population. 14 Companies recognize the value of hiring a diverse workforce that reflects our society. Minorities’ buying power has increased significantly as well, and companies are developing products and marketing campaigns that target different ethnic groups.

Social Factors

Social factors—our attitudes, values, ethics, and lifestyles—influence what, how, where, and when people purchase products or services. They are difficult to predict, define, and measure because they can be very subjective. They also change as people move through different life stages. People of all ages have a broader range of interests, defying traditional consumer profiles. They also experience a “poverty of time” and seek ways to gain more control over their time. Changing roles have brought more women into the workforce. This development is increasing family incomes, heightening demand for time-saving goods and services, changing family shopping patterns, and impacting individuals’ ability to achieve a work-life balance. In addition, a renewed emphasis on ethical behavior within organizations at all levels of the company has managers and employees alike searching for the right approach when it comes to gender inequality, sexual harassment, and other social behaviors that impact the potential for a business’s continued success.

Managing Change

Balancing comes easy at h&r block.

In an industry driven by deadlines and details, it’s hard to imagine striking a balance between work and everyday life for full-time employees and seasonal staff. Fortunately, the management team at H&R Block not only believes in maintaining a strong culture, it also tries to offer flexibility to its more than 70,000 employees and seasonal workers in 12,000 retail offices worldwide.

Based in Kansas City, Missouri, and built on a culture of providing exceptional customer service, H&R Block was recently named the top U.S. business with the best work-life balance by online job search site Indeed. Analyzing more than 10 million company reviews by employees, Indeed researchers identified the top 20 firms with the best work-life balance. H&R Block headed the 2017 list, followed by mortgage lender Network Capital Funding Corporation , fast food chain In-N-Out Burger , Texas food retailer H-E-B , and health services company Kaiser Permanente , among others.

According to Paul Wolfe, Indeed’s senior vice president of human resources, empathy on the part of organizations is a key factor in helping employees achieve balance. Wolfe says companies that demonstrate empathy and work diligently to provide personal time for all employees tend to take the top spots on the work-life balance list. “Comments we have seen from employee reviews for these companies indicate ‘fair’ and ‘flexible work environments,’” he says. Surprisingly, none of the tech companies known for their generous work perks made the top 20 list in 2017.

In this 24/7 world, when no one is far from a text or tweet, finding time for both family and work can be difficult, especially in the tax services industry, which is so schedule driven for a good part of the year. Making a commitment to help workers achieve a healthy work-life balance not only helps its employees, but it also helps H&R Block retain workers in a tight labor market where individuals continue to have choices when it comes to where and for whom they want to work.

• How does management’s support of employee work-life balance help the company’s bottom line?
• What can other organizations learn from H&R Block when it comes to offering employee perks that encourage personal time for workers even during the busy tax season?

Sources: “Career Opportunities,” https://www.hrblock.com, accessed May 25, 2017; “About Us,” http://newsroom.hrblock.com, accessed May 25, 2017; Abigail Hess, “The 20 Best Companies for Work-Life Balance,” CNBC, http://www.cnbc.com, May 4, 2017; Kristen Bahler, “The 20 Best Companies for Work-Life Balance,” Money, http://time.com, April 20, 2017; Rachel Ritlop, “3 Benefits Companies Can Provide to Boost Work-Life Balance,” Forbes, http://www.forbes.com, January 30, 2017.

The application of technology can stimulate growth under capitalism or any other economic system. Technology is the application of science and engineering skills and knowledge to solve production and organizational problems. New equipment and software that improve productivity and reduce costs can be among a company’s most valuable assets. Productivity is the amount of goods and services one worker can produce. Our ability as a nation to maintain and build wealth depends in large part on the speed and effectiveness with which we use technology—to invent and adapt more efficient equipment to improve manufacturing productivity, to develop new products, and to process information and make it instantly available across the organization and to suppliers and customers.

Many U.S. businesses, large and small, use technology to create change, improve efficiencies, and streamline operations. For example, advances in cloud computing provide businesses with the ability to access and store data without running applications or programs housed on a physical computer or server in their offices. Such applications and programs can now be accessed through the internet. Mobile technology allows businesses to communicate with employees, customers, suppliers, and others at the swipe of a tablet or smartphone screen. Robots help businesses automate repetitive tasks that free up workers to focus on more knowledge-based tasks critical to business operations. 15

Concept Check

• Define the components of the internal and the external business environments.
• What factors within the economic environment affect businesses?
• Why do demographic shifts and technological developments create both challenges and new opportunities for business?

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Making the Business Case for Sustainability

• 13 Apr 2021

Once thought to be opposing goals, sustainability and financial success now go hand-in-hand for many businesses. Some, however, may be skeptical of the claim that a business can do well by doing good. How can you make the business case for sustainable practices to skeptical decision-makers in your organization?

Here are key terms to use to frame your discussion, several ways sustainable business practices can pay off financially, and tools to leverage when pitching sustainability to stakeholders.

Access your free e-book today.

Corporate Social Responsibility and the Triple Bottom Line

Corporate social responsibility (CSR) is a business model in which for-profit companies seek to create social and environmental benefits while pursuing organizational goals. Whereas companies typically focus on the bottom line, or generating profit, socially responsible corporations focus on the triple bottom line.

The triple bottom line can be described as the “three Ps”: people, the planet, and profit. In other words, in addition to striving to succeed financially, socially responsible companies commit to measuring success through their impact on people—employees, customers, and society at large—and the environment.

It’s important to not think of sustainability initiatives as a financial trade-off, but rather, as a wise financial strategy.

“There’s good reason to believe that solving the world’s problems presents trillions of dollars’ worth of economic opportunity,” says Harvard Business School Professor Rebecca Henderson in the online course Sustainable Business Strategy .

Leading with purpose can positively impact both the planet and your business’s financials. Here are eight benefits of a sustainable business strategy you can use when making the case to your internal team.

8 Benefits of Sustainability in Business

1. drives internal innovation.

Making the switch to sustainable business practices provides an opportunity for new, innovative ideas to grow. Consider this your chance to question the way your organization operates. Are there inefficiencies in your production process? Are there alternatives to how you currently source production materials? What equipment or technology could make your internal processes and product delivery more energy efficient?

These types of questions reveal opportunities to save money on energy and reassess how ethically you source materials. They can also shake up your mindset of “this is how we’ve always done it” and prompt innovative ideas for new business opportunities.

Related: 23 Resources for Mobilizing Innovation in Your Organization

2. Improves Environmental and Supply Risk

Investing in more sustainable practices can pay off in the form of risk management. By using renewable resources—such as wind, water, and solar power—your company has greater security over its energy sources.

This can also offer financial benefits. For example, if your company switches from coal to clean energy, like ice cream company Ben & Jerry’s , you can avoid the hassle and cost when coal prices skyrocket.

3. Attracts and Retains Employees

Being a sustainable company can have a big impact on the talent you attract and retain. A recent survey conducted by clean energy company Swytch found that nearly 70 percent of employees report that their company’s strong sustainability program impacts their decision to stay with it long term.

The same survey reports that 75 percent of millennials—who will make up three-quarters of the workforce in five years—would take a decrease in salary if it meant working for an environmentally responsible company. Nearly 40 percent selected one job over another because of an organization’s sustainability practices.

Committing to sustainability puts your company’s values at the forefront, which can attract employees and job seekers who share those values. Hiring and retaining the right team can save your organization the time and money of having to rehire for multiple roles.

4. Expands Audience Reach and Builds Brand Loyalty

A focus on sustainability can not only help attract and keep the right employees, but build a broader, more loyal customer base.

Research in the Harvard Business Review shows that sustainable businesses see greater financial gains than their unsustainable counterparts. In addition, consumers’ motivation to buy from sustainable brands is on the rise. For instance, products with an on-package sustainability claim delivered nearly $114 billion in sales in 2019—a 29 percent increase from 2013—and products marketed as sustainable grew more than five times faster than those that weren’t.

Adopting sustainable practices and marketing appropriately can enable your business to reach new, sustainably-minded market segments while building brand loyalty among your customer base.

5. Reduces Production Costs

One of the simplest business cases for sustainability is that using fewer resources, or more sustainable ones, can decrease production costs.

Examining your supply chain, production process, and energy use at brick-and-mortar stores and office buildings can help identify places where cutting back on finite resources and switching to greener alternatives is a cheaper option.

“Some firms invest in sustainability because the business case is so glaringly obvious, they’d be foolish not to,” Henderson says in Sustainable Business Strategy.

6. Garners Positive Publicity

Another outcome of opting for sustainability is the positive publicity it can garner. Especially if it’s a divergence from your business’s previously established practices or industry standards, your switch to sustainability and investment in the environment can call for press releases and announcements.

Side effects of this positive publicity can be employee pride, sustainably-minded job applicants, and increased customer loyalty and referral rates.

7. Helps You Stand Out in a Competitive Market

In a competitive market, any way to differentiate your product and brand from your competitors is valuable. Sustainable business practices can be a positive way to stand out if your competitors haven’t adopted those practices themselves or match them if they’ve already made the switch to sustainability.

Calling back to research in the Harvard Business Review , consumers’ focus on brands’ sustainability practices is on the rise, and your business’s practices could be the sole reason consumers choose your product over your competitors’.

8. Sets the Industry Trend

Sustainability not only helps your company stand out against competitors but also influences their behaviors. If your organization is one of the first in its field to adopt sustainable practices, it could set your business apart as a trend-setting leader and prompt other companies to follow suit.

“The leaders, the firms who are driving real change and reaping the benefits of being first-movers are often as motivated by a driving desire to make a difference as they are by the wish to make money,” Henderson says in Sustainable Business Strategy.

If the sustainability trend continues, it could become the norm in your industry. When many corporations adopt sustainable practices, they have the potential to make a real impact on the world’s largest problems.

Tools for Pitching a Sustainable Business Strategy

When pitching sustainability to internal decision-makers, use the data, projections, and anecdotal evidence at your disposal. Here are a few tools to help you make your case.

1. Data Visualizations

Data visualizations are graphical representations of data. When making the case for sustainability, you may create a graph that shows the increasing prices of fossil fuels, a chart that shows consumer preferences for sustainable companies, or a visual forecast of what future revenue could look like if a piece of sustainable technology were purchased.

Some data visualization tools you can use are:

• Microsoft Excel & Power BI
• Google Charts
• Zoho Analytics
• Datawrapper

Visualizations are a clear, concise way to tell the story of why you should adopt a sustainable business strategy.

Related: Bad Data Visualization: 5 Examples of Misleading Data

2. Anticipated Return on Investment Formula

When advocating for specific sustainability projects or equipment purchases, it can be useful to calculate the anticipated return on investment (ROI) . Calculating the anticipated ROI shows internal stakeholders how much financial return the business can expect as a result of investing in the sustainable practices you’re proposing.

To calculate anticipated ROI, use the following formula:

ROI = (Net Profit / Cost of Investment) x 100

In project management, the formula is written similarly but with slightly different terms:

ROI = [(Financial Value - Project Cost) / Project Cost] x 100

3. Case Studies of Businesses with Successful Sustainability Initiatives

Real-world examples can go a long way when proposing new ideas. There are plenty of businesses that have successfully executed sustainability initiatives and put the triple bottom line at the forefront of their business strategies. A few examples include:

• Bank of America
• AstraZeneca
• Ben & Jerry’s
• Levi Strauss

Dig deeper into what made these firms’ efforts successful, and use that as fuel for your company’s strategy.

Furthering Your Sustainable Business Education

If you and your colleagues want a strong foundation for making the shift to sustainable business, consider taking Sustainable Business Strategy . The online course presents groundbreaking concepts using the HBS case method and asserts that sustainable capitalism has the power to influence the world’s most pressing challenges.

By bolstering your knowledge of the space, your organization could become one of the many success stories of those that create shared value from sustainable business practices.

Are you interested in leading your business to a more sustainable future? Explore our three-week online course Sustainable Business Strategy to become a purpose-driven leader.

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The Business Environment: Themes and Issues in a Globalizing World (Fourth Edition)  

The Business Environment provides a ‘themes and issues’ approach to this topic. The core business environments and their interrelationships are explored using the established STEEPLE framework in Part One. Part Two then looks beyond these topics and invites readers to analyse a range of contemporary issues such as globalization, corporate power, equal opportunity, and entrepreneurship. Case studies illustrate key topics in real-life, international, and wide-ranging business settings. Unilever's corporate responsibility policy, Samsung and South Korean economic development, and Starbucks on sustainability are just some of the case studies in this book.

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• Dedication  
• List of Cases  
• About the Authors  
• Acknowledgements  
• About the Book  
• New to this edition  
• How to use this book  
• How to Use the Online Resources  
• 1. Introduction: ‘Business’ and its ‘environment’ in a ‘globalizing world’  
• 2. The economic environment  
• 3. The technological environment  
• 4. The political environment  
• 5. The legal environment  
• 6. The social and cultural environment  
• 7. The ethical environment: corporate responsibility  
• 8. The natural environment: global warming, pollution, resource depletion, and sustainable development  
• 9. How has macroeconomic policy changed in an era of uncertainty?  
• 10. Globalization of business: good or bad?  
• 11. Does business have too much power?  
• 12. Is inequality bad for business?  
• 13. Creating effective trading blocs: what lessons does the European Union provide?  
• 14. What role for the public sector?  
• 15. From starting to scaling and beyond: how do entrepreneurs and SMEs innovate and grow?  
• 16. Conclusion: Looking ahead—managing in a dynamic environment  

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Case Studies

Case studies demonstrate how the complexities of real life influence decisions. these original and curated cases are valuable additions to our interdisciplinary curriculum at the nexus of business and the environment., case studies view, connecticut green bank: in pursuit of inclusive prosperity.

Low-Carbon Investing: Commonfund & GPSU

Santam: Crop Insurance and Climate Change

Coffee 2016

The Future of Nuclear in Connecticut

Conservation International and Hewlett Packard Enterprise

Carbon and Markets

VirginiaSAVES

Commission of the European Communities v. Microsoft Corporation

Australia Clean Energy Finance Corporation Environmental Upgrade Agreements

Yale Farm: Engaging New Haven Children

The Rhode Island Infrastructure Bank’s Efficient Buildings Fund

Project Sammaan

AXA: Creating the New CR Metrics

Palm Oil 2016

Understanding Economic Systems and Business

Understanding the business environment.

• What are the sectors of the business environment, and how do changes in them influence business decisions?

Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives. This external business environment is composed of numerous outside organizations and forces that we can group into seven key subenvironments, as (Figure) illustrates: economic, political and legal, demographic, social, competitive, global, and technological. Each of these sectors creates a unique set of challenges and opportunities for businesses.

Business owners and managers have a great deal of control over the internal environment of business, which covers day-to-day decisions. They choose the supplies they purchase, which employees they hire, the products they sell, and where they sell those products. They use their skills and resources to create goods and services that will satisfy existing and prospective customers. However, the external environmental conditions that affect a business are generally beyond the control of management and change constantly. To compete successfully, business owners and managers must continuously study the environment and adapt their businesses accordingly.

Other forces, such as natural disasters, can also have a major impact on businesses. While still in the rebuilding stage after Hurricane Katrina hit in 2005, the U.S. Gulf Coast suffered another disaster in April 2010 as a result of an explosion on the Deepwater Horizon oil-rig, which killed 11 workers and sent more than 3 million barrels of oil into the Gulf of Mexico. This event, which played out for more than 87 days, severely affected the environment, businesses, tourism, and people’s livelihoods. Global oil conglomerate BP, which was responsible for the oil spill, has spent more than $60 billion in response to the disaster and cleanup. Seven years after the explosion, tourism and other businesses are slowly recovering, although scientists are not certain about the long-term environmental consequences of the oil spill. [1]

Exhibit 1.4  The Dynamic Business Environment (Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

No one business is large or powerful enough to create major changes in the external environment. Thus, managers are primarily adapters to, rather than agents of, change. Global competition is basically an uncontrollable element in the external environment. In some situations, however, a firm can influence external events through its strategies. For example, major U.S. pharmaceutical companies have been successful in getting the Food and Drug Administration (FDA) to speed up the approval process for new drugs. [2]  In recent years, the five largest companies in the S&P Index— Google , Facebook , Amazon , Microsoft , and Apple —have spent close to $50 million on lobbying activities in the nation’s capital in an effort to help policy makers understand the tech industry and the importance of innovation and an “open” internet. [3] Let’s now take a brief look at these varied environmental influences.

Economic Influences

This category is one of the most important external influences on businesses. Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways. When the economy is growing, for example, unemployment rates are low, and income levels rise. Inflation and interest rates are other areas that change according to economic activity. Through the policies it sets, such as taxes and interest rate levels, a government attempts to stimulate or curtail the level of economic activity. In addition, the forces of supply and demand determine how prices and quantities of goods and services behave in a free market.

Political and Legal Influences

The political climate of a country is another critical factor for managers to consider in day-to-day business operations. The amount of government activity, the types of laws it passes, and the general political stability of a government are three components of political climate. For example, a multinational company such as General Electric will evaluate the political climate of a country before deciding to locate a plant there. Is the government stable, or might a coup disrupt the country? How restrictive are the regulations for foreign businesses, including foreign ownership of business property and taxation? Import tariffs, quotas, and export restrictions also must be taken into account.

In the United States, laws passed by Congress and the many regulatory agencies cover such areas as competition, minimum wages, environmental protection, worker safety, and copyrights and patents. For example, Congress passed the Telecommunications Act of 1996 to deregulate the telecommunications industry. As a result, competition increased and new opportunities arose as traditional boundaries between service providers blurred. Today the dramatic growth in mobile technology has changed the focus of telecommunications, which now faces challenges related to broadband access and speed, content streaming, and much-needed improvements in network infrastructure to address ever-increasing data transmissions. [4]

Federal agencies play a significant role in business operations. When Pfizer wants to bring a new medication for heart disease to market, it must follow the procedures set by the Food and Drug Administration for testing and clinical trials and secure FDA approval. Before issuing stock, Pfizer must register the securities with the Securities and Exchange Commission . The Federal Trade Commission will penalize Pfizer if its advertisements promoting the drug’s benefits are misleading. These are just a few ways the political and legal environment affect business decisions.

States and local governments also exert control over businesses—imposing taxes, issuing corporate charters and business licenses, setting zoning ordinances, and similar regulations. We discuss the legal environment in greater detail in a separate appendix.

Demographic Factors

Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. Demography is the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location. Demographics help companies define the markets for their products and also determine the size and composition of the workforce. You’ll encounter demographics as you continue your study of business.

Demographics are at the heart of many business decisions. Businesses today must deal with the unique shopping preferences of different generations, which each require marketing approaches and goods and services targeted to their needs. For example, the more than 75 million members of the millennial generation were born between 1981 and 1997. In 2017 they surpassed baby boomers as America’s largest generation. [5] The marketing impact of millennials continues to be immense. These are technologically savvy and prosperous young people, with hundreds of billions of dollars to spend. And spend they do—freely, even though they haven’t yet reached their peak income and spending years. [6] Other age groups, such as Generation X—people born between 1965 and 1980—and the baby boomers—born between 1946 and 1964—have their own spending patterns. Many boomers nearing retirement have money and are willing to spend it on their health, their comforts, leisure pursuits, and cars. As the population ages, businesses are offering more products that appeal to middle-aged and senior markets. [7]

In addition, minorities represent more than 38 percent of the total population, with immigration bringing millions of new residents to the country over the past several decades. By 2060 the U.S. Census Bureau projects the minority population to increase to 56 percent of the total U.S. population. [8] Companies recognize the value of hiring a diverse workforce that reflects our society. Minorities’ buying power has increased significantly as well, and companies are developing products and marketing campaigns that target different ethnic groups.

Social Factors

Social factors—our attitudes, values, ethics, and lifestyles—influence what, how, where, and when people purchase products or services. They are difficult to predict, define, and measure because they can be very subjective. They also change as people move through different life stages. People of all ages have a broader range of interests, defying traditional consumer profiles. They also experience a “poverty of time” and seek ways to gain more control over their time. Changing roles have brought more women into the workforce. This development is increasing family incomes, heightening demand for time-saving goods and services, changing family shopping patterns, and impacting individuals’ ability to achieve a work-life balance. In addition, a renewed emphasis on ethical behavior within organizations at all levels of the company has managers and employees alike searching for the right approach when it comes to gender inequality, sexual harassment, and other social behaviors that impact the potential for a business’s continued success.

Managing Change

In an industry driven by deadlines and details, it’s hard to imagine striking a balance between work and everyday life for full-time employees and seasonal staff. Fortunately, the management team at H&R Block not only believes in maintaining a strong culture, it also tries to offer flexibility to its more than 70,000 employees and seasonal workers in 12,000 retail offices worldwide.

Based in Kansas City, Missouri, and built on a culture of providing exceptional customer service, H&R Block was recently named the top U.S. business with the best work-life balance by online job search site Indeed. Analyzing more than 10 million company reviews by employees, Indeed researchers identified the top 20 firms with the best work-life balance. H&R Block headed the 2017 list, followed by mortgage lender Network Capital Funding Corporation , fast food chain In-N-Out Burger , Texas food retailer H-E-B , and health services company Kaiser Permanente , among others.

According to Paul Wolfe, Indeed’s senior vice president of human resources, empathy on the part of organizations is a key factor in helping employees achieve balance. Wolfe says companies that demonstrate empathy and work diligently to provide personal time for all employees tend to take the top spots on the work-life balance list. “Comments we have seen from employee reviews for these companies indicate ‘fair’ and ‘flexible work environments,’” he says. Surprisingly, none of the tech companies known for their generous work perks made the top 20 list in 2017.

In this 24/7 world, when no one is far from a text or tweet, finding time for both family and work can be difficult, especially in the tax services industry, which is so schedule driven for a good part of the year. Making a commitment to help workers achieve a healthy work-life balance not only helps its employees, but it also helps H&R Block retain workers in a tight labor market where individuals continue to have choices when it comes to where and for whom they want to work.

• How does management’s support of employee work-life balance help the company’s bottom line?
• What can other organizations learn from H&R Block when it comes to offering employee perks that encourage personal time for workers even during the busy tax season?

Sources: “Career Opportunities,” https://www.hrblock.com, accessed May 25, 2017; “About Us,” http://newsroom.hrblock.com, accessed May 25, 2017; Abigail Hess, “The 20 Best Companies for Work-Life Balance,” CNBC, http://www.cnbc.com, May 4, 2017; Kristen Bahler, “The 20 Best Companies for Work-Life Balance,” Money, http://time.com, April 20, 2017; Rachel Ritlop, “3 Benefits Companies Can Provide to Boost Work-Life Balance,” Forbes, http://www.forbes.com, January 30, 2017.

The application of technology can stimulate growth under capitalism or any other economic system. Technology is the application of science and engineering skills and knowledge to solve production and organizational problems. New equipment and software that improve productivity and reduce costs can be among a company’s most valuable assets. Productivity is the amount of goods and services one worker can produce. Our ability as a nation to maintain and build wealth depends in large part on the speed and effectiveness with which we use technology—to invent and adapt more efficient equipment to improve manufacturing productivity, to develop new products, and to process information and make it instantly available across the organization and to suppliers and customers.

Many U.S. businesses, large and small, use technology to create change, improve efficiencies, and streamline operations. For example, advances in cloud computing provide businesses with the ability to access and store data without running applications or programs housed on a physical computer or server in their offices. Such applications and programs can now be accessed through the internet. Mobile technology allows businesses to communicate with employees, customers, suppliers, and others at the swipe of a tablet or smartphone screen. Robots help businesses automate repetitive tasks that free up workers to focus on more knowledge-based tasks critical to business operations. [9]

Key Takeaways

• Define the components of the internal and the external business environments.
• What factors within the economic environment affect businesses?
• Why do demographic shifts and technological developments create both challenges and new opportunities for business?

Summary of Learning Outcomes

The external business environment consists of economic, political and legal, demographic, social, competitive, global, and technological sectors. Managers must understand how the environment is changing and the impact of those changes on the business. When economic activity is strong, unemployment rates are low, and income levels rise. The political environment is shaped by the amount of government intervention in business affairs, the types of laws it passes to regulate both domestic and foreign businesses, and the general political stability of a government. Demographics, or the study of people’s vital statistics, are at the heart of many business decisions. Businesses today must deal with the unique preferences of different generations, each of which requires different marketing approaches and different goods and services. The population is becoming increasingly diverse: currently minorities represent more than 38 percent of the total U.S. population, and that number will continue to increase over the next several decades. Minorities’ buying power has increased significantly as well, and companies are developing products and marketing campaigns that target different ethnic groups. Social factors—our attitudes, values, and lifestyles—influence what, how, where, and when people purchase products. They are difficult to predict, define, and measure because they can be very subjective. They also change as people move through different life stages.

• Environmental Defense Fund, “Seven Years Later: What’s Ahead for the Gulf,” http://www.edf.org , accessed May 15, 2017; “Oil Spills Fast Facts,” CNN, http://www.cnn.com , February 9, 2017; Steven Mufson, “BP’s Big Bill for the World’s Largest Oil Spill Reaches $61.6 Billion,” Washington Post, https://www.washingtonpost.com , July 14, 2016; Debbie Elliott, “5 Years after BP Oil Spill, Effects Linger and Recovery Is Slow,” NPR, http://www.npr.org , April 20, 2015. ↵
• Melissa Healy, “Speed Up Drug Approvals at FDA? It’s Already Faster Than Europe’s Drug Agency,” Los Angeles Times, http://www.latimes.com , April 6, 2017. ↵
• Hamza Shaban, “Google for the First Time Outspent Every Other Company to Influence Washington in 2017,” Washington Post, https://www.washingtonpost.com , January 23, 2018; Saleha Mohsin, “Silicon Valley Cozies Up to Washington, Outspending Wall Street 2–1,” Bloomberg, http://www.bloomberg.com , October 18, 2016. ↵
• “CIO Journal: 2017 Telecommunications Outlook,” The Wall Street Journal, http://deloitte.wsj.com , March 1, 2017. ↵
• Richard Fry, “Millennials Overtake Baby Boomers as America’s Largest Generation,” Pew Research Center, http://www.pewresearch.org , April 25, 2016. ↵
• Ashley Lutz, “Everything You Know about Millennial Spending Is about to Change,” Business Insider, http://www.businessinsider.com , October 1, 2016. ↵
• Geoff Gross, “5 Ways to Effectively Market to Baby Boomers,” Entrepreneur, http://www.entrepreneur.com , June 1, 2016. ↵
• U.S. Census Bureau, “Projections of the Size and Composition of the U.S. Population: 2014 to 2060,” http://www.census.gov , accessed May 15, 2017. ↵
• “Why Move to the Cloud? 10 Benefits of Cloud Computing,” http://www.salesforce.com , accessed May 15, 2017; Jim Rock, “How Robots Will Reshape the U.S. Economy,” Tech Crunch, http://techcrunch.com , March 21, 2016. ↵
• Intro to Business. Authored by : Gitman, et. al. Provided by : OpenStax. Located at : http://cnx.org/contents/[email protected] . License : CC BY: Attribution . License Terms : Download for free at http://cnx.org/contents/[email protected]

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What the Case Study Method Really Teaches

• Nitin Nohria

Seven meta-skills that stick even if the cases fade from memory.

It’s been 100 years since Harvard Business School began using the case study method. Beyond teaching specific subject matter, the case study method excels in instilling meta-skills in students. This article explains the importance of seven such skills: preparation, discernment, bias recognition, judgement, collaboration, curiosity, and self-confidence.

During my decade as dean of Harvard Business School, I spent hundreds of hours talking with our alumni. To enliven these conversations, I relied on a favorite question: “What was the most important thing you learned from your time in our MBA program?”

• Nitin Nohria is the George F. Baker Professor of Business Administration, Distinguished University Service Professor, and former dean of Harvard Business School.

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The microenvironment of the business is characterised by explosive industrial growth in some segments and at the same time, rapid technological development is rendering existing solutions to customer problems obsolete. On the macro-economic front, governments are increasingly facing the dilemma of choosing between economic progress and welfare - affecting government expenditure, and in turn the economic growth of the country. On the other hand, recessionary conditions in other countries have forced many companies out of business. Added to these, are the regulatory frameworks of the country and socio-cultural factors. The scenarios become even more complex when companies expand to new geographical regions. They have to deal with multiple � yet distinct � business environments. Organisations have no control over the changes happening in its external environment; but these factors cannot be ignored as they have a profound impact on the business operations and its profitability.

With the ongoing rapid change in business environment, the conventional bases of competitive strategy are continuously eroding. In such a scenario, any company that is not continually developing, acquiring, and adapting to new technological advances and to the changing business environment is preparing itself to be out of the business within a few years. So, an extensive study of the business environment has become an essential prerequisite for success.

The case studies featured in this book provide an in-depth and rigorous perspective on various business environment issues across the globe. Starting with a short theoretical framework, the book, Case Studies on Business Environment - Vol. I , provides insights into some of the companies that have been successful in managing their ever-changing and demanding business environments. This book would definitely be an essential reading for all those executives managing or desirous of managing different business environments.

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Case Study Basics

What is a case study *.

A case study is a snapshot of an organization or an industry wrestling with a dilemma, written to serve a set of pedagogical objectives. Whether raw or cooked , what distinguishes a pedagogical case study from other writing is that it centers on one or more dilemmas. Rather than take in information passively, a case study invites readers to engage the material in the case to solve the problems presented. Whatever the case structure, the best classroom cases all have these attributes: (1)The case discusses issues that allow for a number of different courses of action – the issues discussed are not “no-brainers,” (2) the case makes the management issues as compelling as possible by providing rich background and detail, and (3) the case invites the creative use of analytical management tools.

Case studies are immensely useful as teaching tools and sources of research ideas. They build a reservoir of subject knowledge and help students develop analytical skills. For the faculty, cases provide unparalleled insights into the continually evolving world of management and may inspire further theoretical inquiry.

There are many case formats. A traditional case study presents a management issue or issues calling for resolution and action. It generally breaks off at a decision point with the manager weighing a number of different options. It puts the student in the decision-maker’s shoes and allows the student to understand the stakes involved. In other instances, a case study is more of a forensic exercise. The operations and history of a company or an industry will be presented without reference to a specific dilemma. The instructor will then ask students to comment on how the organization operates, to look for the key success factors, critical relationships, and underlying sources of value. A written case will pre-package appropriate material for students, while an online case may provide a wider variety of topics in a less linear manner.

Choosing Participants for a Case Study

Many organizations cooperate in case studies out of a desire to contribute to management education. They understand the need for management school professors and students to keep current with practice.

Organizations also cooperate in order to gain exposure in management school classrooms. The increased visibility and knowledge about an organization’s operations and culture can lead to subsidiary benefits such as improved recruiting.

Finally, organizations participate because reading a case about their operations and decision making written by a neutral observer can generate useful insights. A case study preserves a moment in time and chronicles an otherwise hidden history. Managers who visit the classroom to view the case discussion generally find the experience invigorating.

The Final Product

Cases are usually written as narratives that take the reader through the events leading to the decision point, including relevant information on the historical, competitive, legal, technical, and political environment facing the organization. A written case study generally runs from 5,000 to 10,000 words of text supplemented with numerous pages of data exhibits. An online raw case may have less original text, but will require students to extract information from multiple original documents, videos of company leaders discussing the challenges, photographs, and links to articles and websites.

The first time a case is taught represents something of a test run. As students react to the material, plan to revise the case to include additional information or to delete data that does not appear useful. If the organization’s managers attend the class, their responses to student comments and questions may suggest some case revisions as well.

The sponsoring professor will generally write a “teaching note” to give other instructors advice on how to structure classroom discussion and useful bits of analysis that can be included to explicate the issues highlighted in the case study.

Finally, one case may inspire another. Either during the case writing process or after a case is done, a second “B” case might be useful to write that outlines what the organization did or that outlines new challenges faced by the organization after the timeframe of the initial case study.

* Portions of this note are adapted from E. Raymond Corey, “Writing Cases and Teaching Notes,” Harvard Business School case 399-077, with updates to reflect Yale School of Management practices for traditional and raw cases.

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Part of the book series: World Sustainability Series ((WSUSE))

India is one of the fastest-growing economies in the world. As India’s economy grows, so does its environmental impact. However, many Indian businesses are leading the way in sustainable business management. Consumers are demanding more sustainable products and services, and investors are putting more money into sustainable companies. As a result, businesses in India need to find ways to manage their operations and supply chains more sustainably. This chapter will present case studies of eight Indian companies that are leading the way in sustainable business management. These companies are Tata Power, Dalmia Cement, Godrej Consumer Products Limited, Hero MotoCorp Limited, Mahindra and Mahindra, Infosys, Dabur India Limited and ITC Limited. Each company has taken a different approach to sustainability, but they all share a commitment to reducing their environmental impact and promoting social justice. The case studies will show how these companies have implemented sustainable practices in their operations, supply chains, and product development. They will also discuss the benefits that these companies have achieved as a result of their sustainability initiatives.

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Business Today (2021) Mahindra and Mahindra’s sustainable mobility journey: a model for responsible innovation. Accessed June 2023

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Business World (2022) Dabur’s sustainable ayurveda practices receive global recognition. https://indiacsr.in/india-csr-awards-dabur-india-honored-for-desert-bloom-ensuring-year-round-water-availability-for-farmers-in-6-villages/

Dabur Sustainability Initiatives (2023) https://www.dabur.com/csr-at-dabur/ensuring-environmental-sustainability . Accessed Nov 2023

Godrej Consumer Products Press Releases on Sustainability Initiatives (2023) https://www.godrejcp.com/media/press-releases . Accessed Nov 2023

Godrej Consumer Products Sustainability Report (2022) https://www.godrejcp.com/sustainability . Accessed Nov 2023

Godrej Consumer Products Sustainability (2022) https://www.godrejcp.com/sustainability . Accessed Nov 2023

Harvard Business School (2021) The mahindra group: leading with purpose. https://store.hbr.org/product/the-mahindra-group-leading-with-purpose/421091?sku=421091-PDF-ENG

Harvard Business School (2022a) Case study: Godrej consumer products’ circular economy practices. https://store.hbr.org/case-studies . Accessed Nov 2023

Harvard Business School (2022b) Case study: ITC’s traceability and transparency in supply chain management. https://store.hbr.org/case-studies/?page=5 . Accessed Oct 2023

Harvard Business School (2022c) Case study: Mahindra and Mahindra’s electric vehicle leadership. https://www.slideshare.net/profatish/mahindra-and-mahindra-case-study . Accessed Nov 2023

Harvard Business School (2023a) Case study: Dalmia cement’s circular economy practices in cement manufacturing. https://hbsp.harvard.edu/product/IMB845-PDF-ENG . Accessed Oct 2023

Harvard Business School (2023b) Case study: hero MotoCorp’s leadership in electric vehicles. https://store.hbr.org/product/the-growth-of-the-electric-vehicle-industry-facilitating-and-impeding-forces/SM193 . Accessed Sept 2023

Harvard Business School (2023c) Case study: Infosys’s innovation and growth strategies. https://www.academia.edu/7206520/Harvard_Business_Case_Study_Infosys_Group . Accessed Nov 2023

Harvard Business School (2023d) Case study: Dabur's sustainable sourcing practices in Ayurveda. https://www.thecasesolutions.com/dabur-145199 . Accessed Oct 2023

Hero MotoCorp Sustainability Initiatives (2023) https://www.heromotocorp.com/en-in/sustainability/overview.html . Accessed Nov 2023

Infosys Sustainability Report (2022) https://www.infosys.com/about/esg/sustainability-reports.html . Accessed Sept 2023

ITC Limited Press Releases on Sustainable Sourcing Initiatives (2023), https://www.itcportal.com/media-centre/press-releases.aspx . Accessed Aug 2023

Kundu A, Kumar A (2016) Sustainable business management in India: a case study approach

Kundu A, Kumar A (2018a) Case studies in sustainable business management in India

Kundu A, Kumar A (2018b) Mahindra and Mahindra: a case study in sustainable mobility

Kundu A, Kumar A (2018c) Tata power: a case study in sustainable energy

MIT Sloan Management Review (2022a) Dabur: a champion of sustainable Ayurveda in India. https://mitsloan.mit.edu/sustainability-initiative/welcome . Accessed Sept 2023

MIT Sloan Management Review (2022b) Mahindra and Mahindra: a leading example of sustainable mobility solutions. https://sloanreview.mit.edu/case-study . Accessed June 2023

MIT Sloan Management Review (2023) Hero MotoCorp: a pioneer in sustainable mobility solutions. https://energy.mit.edu/wp-content/uploads/2019/11/Insights-into-Future-Mobility-Executive-Summary.pdf . Accessed July 2023

Pachauri RK, Sharma AK (2019a) Godrej consumer products: a case study in sustainable manufacturing

Pachauri RK, Sharma AK (2019b) Sustainable business management in India: a review of the literature

Pachauri RK (2018) Sustainability in India: a business perspective

SIAM (2023) The role of hero MotoCorp in India's sustainable mobility transition. https://www.siam.in/uploads/filemanager/416BackgroundPaper-SustainableMobility2023.pdf . Accessed Oct 2023

Sridhar KR, Sahni DC (2017a) ITC: a case study in sustainable sourcing

Sridhar KR, Sahni DC (2017b) Sustainability and business in India: a casebook

Sridhar KR, Sahni DC (2017c) Sustainable business management in India: challenges and opportunities

Tata Power Annual Report (2023) https://www.tatapower.com/investor-relations/annual-reports.aspx . Accessed Nov 2023

Tata Power Press Releases on Renewable Energy Initiatives (2022) https://www.tatapower.com/media/media-releases.aspx . Accessed Oct 2023

Tata Power Renewable Energy (2022), https://www.tatapower.com/businesses/renewables.aspx . Accessed Nov 2023

Tata Power Sustainability Initiatives (2023) https://www.tatapower.com/sustainability/sustainability-tata-power.aspx . Accessed Nov 2023

Tata Power Sustainability Report (2022) https://www.tatapower.com/sustainability/sustainability-tata-power.aspx . Accessed Nov 2023

The Economic Times (2022a) Dalmia cement's sustainable manufacturing journey: a model for responsible production. https://brandequity.economictimes.indiatimes.com/news/marketing/future-today-dalmia-cement-unveils-new-brand-positioning-campaign/71170024

The Economic Times (2022b) Godrej consumer products: a champion of sustainability in India. https://www.godrejcp.com/sustainability . Accessed Sept 2023

The Economic Times (2022c) ITC: a pioneer in sustainable sourcing. https://ciosea.economictimes.indiatimes.com/tag/sustainability . Accessed Nov 2023

The Economic Times (2022d) Tata power leads India's renewable energy charge. https://economictimes.indiatimes.com/topic/tata-power-renewable-energy . Accessed Nov 2023

The Economic Times (2023a) Dalmia cement: a pioneer in sustainable cement manufacturing. https://economictimes.indiatimes.com/dalmia-bharat-ltd/stocksupdate/companyid-1846307.cms . Accessed Aug 2023

The Economic Times (2023b) Tata power's renewable energy journey: a model for sustainable growth. https://economictimes.indiatimes.com/industry/renewables/tata-power-solar-bags-project-worth-rs-1731-cr-from-nhpc/articleshow/91588398.cms . Accessed Oct 2023

The Role of Dalmia Cement in Promoting Sustainable Cement Manufacturing in India (2022) https://www.cleanenergyministerial.org/content/uploads/2022/03/dalmia-dalmiapuram-india.pdf . Accessed Sept 2023

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Marwah, A.K. (2024). Case Studies in Sustainable Business Management in India. In: Kulkarni, S., Haghi, A.K. (eds) Global Sustainability. World Sustainability Series. Springer, Cham. https://doi.org/10.1007/978-3-031-57456-6_11

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• MCQs – Nature & Significance of Management
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Case Study – Business Environment

Welcome to study research . This time all-important case studies inform of questions and answers.

CASE STUDY – BUSINESS ENVIRONMENT

For class 12 cbse students of business studies..

Q1:  Anil a marketing manager of a car manufacturing company is of the view that in case of construction companies and automobiles manufacturers , low longer term rates are beneficial because they results in increased spending by consumers for buying homes and cars on borrowed money. Identify and explain the component of business environment that Anil is referring in the above case.

Q2:  In an interview , an interviewer asked the interviewee regarding the need of considering the changes of environment . In reply one of the interviewee replied,” Every business should consider the changes going on in inflation rates before taking any financial decisions because inflation rates result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries to employees.” Interviewer liked the answer . Interviewee has put emphasis on the understanding of only one of the element of business environment. Identify that Element of Business environment.

Q3:’  Atul has got tremendous feedback from public for his newly started Gym plus gym related goods store which is a one stop solution for health conscious people. When asked about his success story then Atul said that the health and fitness trend has become popular among large number of urban dwellers. This has created a demand for products like organic food, diet soft drinks, gyms, bottled water and food supplements. that is why I thought of starting this business. Identify the dimension of business environment whose understanding has helped Atul in garnering the success,

Q4: Asia who is working as a advertisement advisor with one of the consumer goods manufacturing company is of the view that nowadays in order to inform and persuade the potential buyers to buy the product new and modified ways should be adopted by the companies to advertise their products. That is like CD-ROM’s , computerised information kiosks and internet/ world wide web multimedia pages highlighting the virtues of products. Marketing team really appreciated her idea. Identify the element of business environment on which Ashia has put the emphasis.

Q5: Ananya ‘s grand father while telling her about the past of Indian economy told her that even after opening up of our economy in 1991, foreign companies found it very difficult to cut through the bureaucratic red tape to get permits for doing business in India. Sometimes it took months to process even their application in process. As a result these companies were discouraged from investing in India but the situation has improved overtime. Identify the Element of business environment which was the cause for discouragement to foreign companies based on above case.

Q6: While doing labelling of the products companies have to write down certain statutory warnings over it. Understanding of which environment helped them taking above action Identify.

Q7:Identify the importance of Understanding business environment in the following cases:

(a) Maruti Udyog became the leader in the small car market because it was the first to recognise the need for small cars in an environment of rising petrol prices and a large middle class population of India.

Answer: It enables the firm to identify opportunities and getting first mover advantage.

(b) If  an Indian firm  finds that a foreign multinational is is entering  the Indian market with new varieties. On the basis of above information the Indian firms can prepare themselves to meet the threat by adopting such measures as improving quality of the products , reducing cost of the production , engaging in aggressive advertising and so on.

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• Making the Business Case
• Partnerships
• Hierarchy of Controls and Total Worker Health ®
• International Symposium
• NIOSH WellBQ

At a glance

Total Worker Health ® approaches benefit workers and organizations. Businesses and employers can use helpful approaches, like flexible work and supportive supervision, to benefit workers and the bottom line. Avoid harmful work factors, like unpredictable, demanding schedules.

Today's employers face new, complex challenges in addition to well-known workplace safety and health concerns. Leading health conditions contributing to medical costs and lost productivity for U.S. employers include:

• Musculoskeletal disorders
• Other chronic diseases 1

Chronic diseases and injuries cost U.S. employers more than half a trillion dollars in lost productivity each year. 2 The economic impact of preventable workplace injuries in 2018 alone was an estimated 170.8 billion dollars. 3

Comprehensive efforts to promote worker well-being and reduce safety risks can reduce costs and improve productivity and performance indicators. 4 5 Approaches that improve workplace policies, programs, and practices can lead to better retention rates and improved productivity. Examples of these approaches are described below.

Helpful approaches

Comprehensive programs.

L.L. Bean is an outdoor clothing, shoe, and equipment company. They reported a positive return on investment in a comprehensive worker well-being program. Results ranged from $1.70 to $5.30 saved for every dollar invested. 6

Flexible work

A study of workers showed that more time-flexible work policies were associated with multiple positive outcomes. Workers reported an increase in loyalty to their employer and fewer stress symptoms. Policies were also associated with lower costs to employers, as workers were more present and missed fewer deadlines. 7

Paid sick leave

A NIOSH study found that workers with paid sick leave were 28% less likely to get nonfatal injuries on the job than those without. 8 Another study found that providing paid sick leave could have saved employers $0.63 to $1.88 billion in reduced absenteeism costs per year. 9

Supportive supervision

Workers with supportive supervisors report less pain, more sleep, and have lower risk of cardiovascular disease. 10 11 A NIOSH study found that supervisor support might help prevent reduced engagement resulting from job insecurity. Supervisor support increased the odds of engagement among workers with job insecurity by 13%. 12

Supporting work-family needs

Workers in an intervention that increased control over work and improved supervisors' support for work and family reported:

• Better sleep
• More time with their children
• Better mental well-being for caregivers
• Improved schedule control
• Reduced cigarette smoking
• Lower work-family conflict 6

Harmful work factors

High work stress.

Research shows that high stress levels can lead to high blood pressure, heart disease, and diabetes. This is especially true over prolonged periods of time. Workers who report stressors like high job demands, with low levels of decision-making power have an increased frequency of heart disease. 13 Work-related stress can also lead to depression. Depression contributes to absenteeism, workers going to work sick, disability, and unemployment, which lead to higher costs for employers. 14

Job insecurity

Studies show that downsizing and job insecurity are associated with:

• Poor physical and mental health,
• Absences due to sickness, and
• Increased use of disability pensions. 14 15

A NIOSH study found that job insecurity decreased the odds of engagement of workers by 37%. 12 A NIOSH Science Blog highlights more ways economic security affects worker well-being. This includes the link between economic factors, like job insecurity, and negative health and psychological outcomes. 16

Unpredictable, demanding schedules

When job demands exceed the time available to complete those tasks, it can result in increased anxiety, fatigue, burnout, and depression. It can also lead to decreased job and family satisfaction, lower organizational commitment, and higher absenteeism. 17 Having control over one's work (how, where, and when people work) is beneficial for work-family balance and worker well-being. 18

How to measure success

Studies evaluating comprehensive workplace health initiatives have shifted their focus from return on investment to value of investment. 19 20 Value of investment looks at outcomes like workplace program participation rates, higher worker morale, lower turnover, and injury risk. 21

One Minneapolis-based company, TURCK, measures success through turnover, employee satisfaction, and engagement. 6 Since 2010, turnover rates at TURCK have stayed around 1% to 4%. This is much lower than industry averages of 11% to 13%. When surveyed, 93% of employees strongly agreed with the statement: "I give my best effort every day."

• CDC [2018]. Workplace health strategies. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, https://www.cdc.gov/workplacehealthpromotion/health-strategies/index.html .
• IBI [2020]. Cost of poor health infographic. Oakland, CA: Integrated Benefits Institute, https://www.ibiweb.org/resource/cost-of-poor-health-infographic-2019-data .
• NSC [2020]. Work injury costs. National Safety Council, https://injuryfacts.nsc.org/work/costs/work-injury-costs .
• Grossmeier J, Fabius R, Flynn JP, Noeldner SP, Fabius D, Goetzel RZ, Anderson DR [2016]. Linking workplace health promotion best practices and organizational financial performance. ACOEM 58 (1):16–23.
• Loeppke R [2008]. The value of health and the power of prevention. International Journal of Workplace Health Management 1 (2): 95-108.
• Hudson H, Nigam J, Sauter S, Chosewood CL, Schill A, Howard J [2019]. Total Worker Health. In: Goetzel R, Roemer E, Kent K, and McCleary K, eds. Integration of workplace prevention programs and organizational effectiveness. Washington, DC. American Psychological Association.
• Halpern [2005]. How time-flexible work policies can reduce stress, improve health, and save money. Stress and Health, 21: 157-168. https://doi.org/10.1002/smi.1049 .
• Asfaw A, Pana-Cryan R, Rosa R [2012]. Making the case for paid sick leave. NIOSH Science Blog, https://blogs.cdc.gov/niosh-science-blog/2012/07/30/sick-leave/ .
• Asfaw A, Rosa R, Pana-Cryan R [2017]. Potential economic benefits of paid sick leave in reducing absenteeism related to the spread of influenza-like illness. J Occup. Environ. Med. 59(9):822-829.
• O'Donnell EM, Berkman LF, Subramanian SV [2012]. Manager support for work/family issues and its impact on employee-reported pain in the extended care setting. J Occup Environ Med 54(9): 1142–1149.
• Berkman LF, Buxton O, Ertel K, Okechukwu C [2010]. Managers' Practices Related to Work–Family Balance Predict Employee Cardiovascular Risk and Sleep Duration in Extended Care Settings. Journal of Occupational Health Psychology 15(3): 316–329.
• Asfaw A and Chang C [2019]. The association between job insecurity and engagement of employees at work. J Workplace Behav. Health 34(2):96-110.
• Theorell T, Jood K, Jarvholm S, Vingard E, Perk J, Ostergren PO, Hall C [2016]. A systematic review of studies in the contributions of the work environment to ischemic heart disease development. Eur J Public Health 26 (3):470–477.
• Schnall P, Dobson M, Landsbergis P [2016]. Globalization, work, and cardiovascular disease. Intl J Health Serv 46 (4):1–37.
• Howard J [2016]. Nonstandard work arrangements and worker health and safety. Journal article. Am J Indust Med 60(1):1-10, doi: 10.1002/ajim.22669.
• Pana-Cryan R, Ray T, Bushnell T, and Quay B [2020]. Economic security during the COVID-19 pandemic: A healthy work design and well-being perspective. NIOSH Science Blog, https://blogs.cdc.gov/niosh-science-blog/2020/06/22/economic-security-covid-19/ .
• Duxbury L, Lyons, S, and Higgins C (2008). Too much to do, and not enough time: An examination of role overload. In K. Korabik, D. S. Lero, and D. L. Whitehead (Eds.) Handbook of work-family integration (pp. 125-140.) Burlington, MA: Academic Press.
• Kelly EL and Moen P (2007). Rethinking the clockwork of work: Why schedule control may pay off at work and at home. Advances in Developing Human Resources, 9, 487-506.
• Goetzel R, Fabius R, Fabius R, Roemer EC, Thornton N, Kelly RK, Pelletier KR [2016]. The stock performance of C. Everett Koop Award winners compared with the Standard & Poor's 500 Index. JOEM 58(1):9–15.
• Cherniak M [2013]. Integrated health programs, health outcomes, and return on investment. JOEM 55(12):S38–S45.
• Goetzel R [2016]. The do's and don'ts of workplace health and wellbeing programs: why building a culture of health is a true differentiator. Virgin Pulse, http://community.virginpulse.com/goetzel-building-a-culture-of-health.

National Institute for Occupational Safety and Health (NIOSH)

The Occupational Safety and Health Act of 1970 established NIOSH as a research agency focused on the study of worker safety and health, and empowering employers and workers to create safe and healthy workplaces.

Total Worker Health

Public health.

Summer of 2023 was hottest in 2,000 years, study finds

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An extreme summer marked by deadly heat waves, explosive wildfires and record warm ocean temperatures will go down as among the hottest in the last 2,000 years, new research has found.

The summer of 2023 saw the temperature in the Northern Hemisphere soar 3.72 degrees above the average from 1850 to 1900, when modern instrumental recordkeeping began, according to a study published Tuesday in the journal Nature. The study focused on surface air temperatures across the extra-tropical region, which sits at 30 to 90 degrees north latitude and includes most of Europe and North America.

June, July and August last year were also 3.96 degrees warmer than the average from the years 1 through 1890, which the researchers calculated by combining observed records with tree ring records from nine global regions.

Aggressive and impactful reporting on climate change, the environment, health and science.

Jan Esper, the study’s lead author and a professor of climate geography at Johannes Gutenberg University in Germany, said that he was not expecting summer last year to be quite so anomalous, but that he was ultimately not surprised by the findings. The high temperatures built on an overall warming trend driven by greenhouse gas emissions and were further amplified by the onset of El Niño in the tropical Pacific.

“It’s no surprise — this really, really outstanding 2023 — but it was also, step-wise, a continuation of a trend that will continue,” Esper told reporters Monday. “Personally I’m not surprised, but I am worried.”

He said it was important to place 2023’s temperature extreme in a long-term context. The difference between the region’s previous warmest summer, in the year 246, and the summer of 2023 is 2.14 degrees, the study found.

The heat is even more extreme when compared with the region’s coldest summers — the majority of which were influenced by volcanic eruptions that spewed heat-blocking sulfur into the stratosphere. According to the study, 2023’s summer was 7.07 degrees warmer than the coldest reconstructed summer from this period, in the year 536.

“Although 2023 is consistent with a greenhouse gases-induced warming trend that is amplified by an unfolding El Niño event, this extreme emphasizes the urgency to implement international agreements for carbon emission reduction,” the study says.

The sweltering summer temperatures contributed to scores of heat illnesses and deaths, including at least 645 heat-associated deaths in Maricopa County, Ariz., where Phoenix saw temperatures of 110 degrees or hotter for a record 31 consecutive days.

Wildfires exacerbated by high temperatures raged across Canada and sent hazardous smoke down the East Coast of the United States and across the Atlantic. Meanwhile, ocean temperatures off Florida soared above 101 degrees , the temperature of a hot tub.

Climate & Environment

Warmest April on record extends planet’s hot streak to 11 months

With an average surface temperature of 59.05 degrees, the month was about 0.25 of a degree warmer than the previous hottest April, in 2016.

May 8, 2024

Multiple climate agencies, including the National Oceanic and Atmospheric Administration and the European Union’s Copernicus Climate Change Service, have declared 2023 the hottest year on record globally.

Notably, Copernicus found that the summer months of June, July and August last year measured 1.18 degrees warmer than average — still hot, but not nearly as warm as the study’s findings for the Northern Hemisphere’s extra-tropical region.

That region was especially hot in part because it is home to so much land, which warms faster than oceans, said Karen McKinnon, an assistant professor of statistics and the environment at UCLA who did not work on the study. (June, July and August are also winter months in the Southern Hemisphere.)

McKinnon said the study’s findings are not unexpected, as there was already good evidence that the summer of 2023 was record-breaking when compared with measurable data going back to the mid-1800s. But by going back 2,000 years, the researchers also helped illuminate “the full range of natural variability that could have occurred in the past,” she said.

She noted that tree rings can serve as a helpful proxy for climate conditions in the past, as trees tend to grow more in a given year if they receive the right amount of warmth, water and sunshine. But although last year’s heat was undeniable, the study also underscores that the summer temperature in this region was notably higher than the global target of 2.7 degrees — or 1.5 degrees Celsius — of warming over the preindustrial period, which was established by the Intergovernmental Panel on Climate Change in 2015.

It also notes that some recent research has found the data used to calculate that baseline may be off by several tenths of a degree, meaning it could need to be recalibrated, with the target landing closer to an even more challenging 1.6 or 1.7 degrees.

“I don’t think we should use the proxy instead of the instrumental data, but there’s a good indication that there’s a warm bias,” Esper said. “Further research is needed.”

World & Nation

The planet is dangerously close to this climate threshold. Here’s what 1.5°C really means

Every bit of planetary warming will have impacts beyond those already occurring, including biodiversity loss, longer heat waves and extreme rainfall.

Feb. 1, 2024

McKinnon said there is always going to be some degree of uncertainty when comparing present-day temperatures to past temperatures, but that the 1.5-degree limit is as symbolic as it is literal. Many effects of climate change, including worsening heat waves, have already begun.

“There are definitely tipping points in the climate system, but we don’t understand the climate system well enough to say 1.5 C is the temperature for certain tipping points,” she said. “This is just a policy goal that gives you a temperature change that maybe would be consistent with averting some damages.”

In fact, the study’s publication comes days after a survey of 380 leading scientists from the IPCC revealed deep concerns about the world’s ability to limit global warming to 1.5 degrees. That report, published last week in the Guardian , found that only 6% of surveyed scientists think the 1.5-degree limit will be met. Nearly 80% said they foresee at least 2.5 degrees Celsius of warming.

The report caused a stir among the scientific community, with some saying it focused too heavily on pessimism and despair. But Daniel Swain, a climate scientist with UCLA who participated in the survey, said its findings are worthy of consideration.

“There are many kinds of scientists, myself included, who are very worried and concerned and increasingly alarmed by what is going on and what the data is showing,” Swain said during a briefing Friday . “But if anything, I think that really results in a stronger sense of resolve and urgency to do even more, and to do better.”

Indeed, while scientists continue to weigh in on whether — or how quickly — humanity can alter the planet’s worsening warming trajectory, Esper said he hopes the latest study will serve as motivation for changing outdated modes of energy consumption that contribute to planet-warming greenhouse gases.

“I am concerned about global warming — I think it’s one of the biggest threats out there,” he said.

He added that he is particularly worried for his children and for younger generations who will bear the brunt of adverse climate outcomes. There is a strong likelihood that the summer of 2024 will be even hotter, the study says.

“The longer we wait, the more extensive it will be, and the more difficult it will be to mitigate or even stop that process and reverse it,” Esper said. “It’s just so obvious: We should do as much as possible, as soon as possible.”

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More to Read

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Climate change supercharged a heat dome, intensifying 2021 fire season, study finds

April 22, 2024

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Hayley Smith is an environment reporter for the Los Angeles Times, where she covers the many ways climate change is reshaping life in California, including drought, floods, wildfires and deadly heat.

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