Harvard Case - Vancouver: The Challenge of Becoming the Greenest City
"Vancouver: The Challenge of Becoming the Greenest City" Harvard business case study is written by Pascual Berrone, Joan Enric Ricart Costa, Maria Luisa Blazquez. It deals with the challenges in the field of Strategy. The case study is 16 page(s) long and it was first published on : Jun 20, 2014
At Fern Fort University, we recommend Vancouver adopt a multi-pronged approach to becoming the greenest city, leveraging a combination of strategic alliances, disruptive innovation, and sustainable business models to achieve its ambitious goals. This strategy will focus on building a resilient and sustainable business ecosystem while simultaneously fostering innovation and entrepreneurship within the city.
2. Background
The case study 'Vancouver: The Challenge of Becoming the Greenest City' highlights Vancouver's ambitious goal of becoming the greenest city in the world by 2020. The city faces numerous challenges, including:
- Environmental sustainability: Reducing carbon emissions, managing waste, and protecting natural resources.
- Economic growth: Balancing environmental sustainability with economic development and job creation.
- Social equity: Ensuring that the benefits of green initiatives are distributed fairly across all segments of the population.
The case study focuses on the efforts of the Vancouver City Council, the Vancouver Greenest City Action Plan, and various stakeholders, including businesses, NGOs, and citizens, in pursuing this ambitious goal.
3. Analysis of the Case Study
To analyze Vancouver's situation effectively, we utilize a combination of frameworks:
a) SWOT Analysis:
- Strengths: Vancouver's strong commitment to environmental sustainability, a vibrant and diverse economy, a highly educated population, and a strong public transportation system.
- Weaknesses: Lack of political consensus on certain green initiatives, limited access to affordable green technologies, and a dependence on fossil fuels for energy production.
- Opportunities: Growing global demand for sustainable products and services, advancements in green technologies, and increasing public awareness of climate change.
- Threats: Climate change impacts, competition from other cities pursuing similar goals, and economic downturns.
b) Porter's Five Forces:
- Threat of new entrants: High due to the city's attractive business environment and the availability of green technologies.
- Bargaining power of buyers: Moderate, as consumers increasingly demand sustainable products and services.
- Bargaining power of suppliers: Moderate, as Vancouver relies on a diverse range of suppliers for green technologies and services.
- Threat of substitute products: Moderate, as alternative technologies and solutions for achieving sustainability emerge.
- Rivalry among existing competitors: High, as other cities globally compete to become leaders in sustainability.
c) Value Chain Analysis:
Vancouver's value chain can be analyzed by identifying key activities contributing to its sustainability goals:
- Inbound logistics: Sourcing sustainable materials and products.
- Operations: Implementing green manufacturing processes and energy-efficient operations.
- Outbound logistics: Utilizing sustainable transportation methods for goods and services.
- Marketing and sales: Promoting sustainable products and services to consumers.
- Service: Providing ongoing support and maintenance for sustainable technologies.
d) Business Model Innovation:
Vancouver needs to explore business model innovation to achieve its sustainability goals. This includes:
- Shifting from a linear to a circular economy: Focusing on resource recovery, reuse, and recycling.
- Developing new business models: Promoting green entrepreneurship, supporting green startups, and fostering collaboration between businesses and NGOs.
- Leveraging technology: Utilizing AI and machine learning for data analysis, optimizing resource use, and developing smart city solutions.
e) Corporate Governance:
Vancouver needs to strengthen its corporate governance framework to ensure that sustainability is integrated into all decision-making processes. This includes:
- Setting clear sustainability targets: Defining measurable goals and tracking progress.
- Establishing a sustainability council: Bringing together key stakeholders to provide guidance and oversight.
- Implementing transparency and accountability: Reporting on sustainability performance and engaging with stakeholders.
4. Recommendations
1. Strategic Alliances:
- Form strategic alliances with leading green technology companies: Collaborate on research and development, pilot projects, and technology transfer.
- Partner with other cities pursuing similar goals: Share best practices, collaborate on joint initiatives, and leverage collective bargaining power.
- Develop public-private partnerships: Engage businesses in the development and implementation of sustainable solutions.
2. Disruptive Innovation:
- Invest in research and development of disruptive green technologies: Focus on areas like renewable energy, sustainable transportation, and waste management.
- Support green startups and entrepreneurs: Provide funding, mentorship, and access to resources.
- Create innovation hubs: Foster collaboration and accelerate the development of green technologies.
3. Sustainable Business Models:
- Promote the adoption of circular economy principles: Encourage businesses to reduce waste, reuse materials, and close the loop on resource cycles.
- Develop green supply chains: Prioritize sustainable practices throughout the entire supply chain, from sourcing to manufacturing to distribution.
- Implement green pricing strategies: Incentivize sustainable consumption through pricing mechanisms that reflect the environmental impact of products and services.
4. Digital Transformation:
- Leverage digital technologies for data collection and analysis: Use AI and machine learning to monitor environmental performance, optimize resource use, and identify areas for improvement.
- Develop smart city solutions: Integrate sensors, data analytics, and communication technologies to manage traffic, energy consumption, and waste disposal.
- Create a digital platform for citizen engagement: Provide citizens with access to information, tools, and opportunities to participate in sustainability initiatives.
5. Basis of Recommendations
These recommendations are based on a thorough understanding of Vancouver's strengths, weaknesses, opportunities, and threats. They align with the city's mission to become the greenest city in the world, consider the needs of both external customers and internal stakeholders, and acknowledge the competitive landscape.
Key assumptions:
- Continued public support for sustainability: The recommendations assume that Vancouver's citizens remain committed to environmental sustainability and are willing to support initiatives that promote green living.
- Availability of green technologies and financing: The recommendations assume that green technologies continue to develop and become more affordable, and that funding sources are available for research, development, and implementation.
- Collaboration and cooperation: The recommendations assume that various stakeholders, including businesses, NGOs, and citizens, are willing to collaborate and cooperate to achieve common sustainability goals.
6. Conclusion
By adopting a multi-pronged approach that combines strategic alliances, disruptive innovation, and sustainable business models, Vancouver can achieve its ambitious goal of becoming the greenest city in the world. This strategy will not only enhance the city's environmental sustainability but also drive economic growth, create jobs, and improve the quality of life for its citizens.
7. Discussion
Alternatives:
- Focusing solely on government-led initiatives: This approach may be less effective in driving innovation and achieving widespread adoption of sustainable practices.
- Adopting a purely market-based approach: This could lead to uneven distribution of benefits and exacerbate existing inequalities.
Risks and Key Assumptions:
- Political will: Maintaining political support for sustainability initiatives over the long term is crucial.
- Economic downturn: Economic challenges could hinder the implementation of green initiatives.
- Technological advancements: The success of the strategy depends on continued advancements in green technologies.
Options Grid:
| Option | Advantages | Disadvantages | Risks |
|---|---|---|---|
| Strategic Alliances | Leverage expertise, resources, and networks | Potential for conflicts of interest | Dependence on partners |
| Disruptive Innovation | Drive technological advancements, create new markets | High risk of failure | Need for significant investment |
| Sustainable Business Models | Promote long-term sustainability, reduce environmental impact | May require significant changes to existing business practices | Potential for resistance from stakeholders |
| Digital Transformation | Enhance data collection, analysis, and decision-making | Potential for data privacy concerns | Need for skilled workforce |
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and responsibilities for each recommendation.
- Establish a dedicated task force: Bring together key stakeholders to oversee the implementation of the strategy.
- Monitor progress and adapt as needed: Regularly assess the effectiveness of the strategy and make adjustments based on feedback and changing circumstances.
By taking these steps, Vancouver can transform itself into a global leader in sustainability, setting an example for other cities around the world.
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Case Description
The case describes the Greenest City 2020 Action Plan that the City of Vancouver formally launched in 2011 and whose aim is to make Vancouver the greenest city on the planet. Gregor Robertson, mayor of Vancouver, is the main champion of the ambitious strategic plan. While he has had past success as a social entrepreneur and has implemented several green urban initiatives in his role as mayor, he struggles with some areas and aspects of the plan. Moreover, a recent report indicates that the reputation of the city has fallen. In the context of the imminent elections, Robertson is questioning the true value of the plan as a valid vehicle to improve the Vancouverites' quality of life and as a tool to attract voters.
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