Creating Green Stratigy

Creating an enterprise-level "green" strategy

In the past decade, "Global Warming", "carbon footprint" had become common terms on news and reports. In respond to critical issues that arises from world-wide climate change and natural resource deficiency, people around the world have been paying more and more emphasis on protecting environment and saving energy. Enterprises, also, are changing in ways that improve the environment. The "article creating an enterprise-level "green" strategy" introduces us the concept of "Green Strategy" how its influences on the company's business, operations, and asset strategies.

In the article, it mentions the "green strategy" have enormous potential to influence the products and services the business offers its customers. It provides couples example of how companies successes in its new products and services while they establishing green strategy. In my opinion, there are both advantages and challenges for the companies which adopt "green strategy" in its production.

Development "green" strategy, product differentiation can be easier to achieve and possibly easier to sustain. Nowadays, consumers are paying more attention on health and safety products. Green procurement is rooted in the principle of pollution prevention, which strives to eliminate or to reduce risks to human health. Therefore, market positioning on consumer safety and health can achieve appeal among health-conscious consumers. For example, the market has positioned organic food as flavorful, healthy foods that have convinced consumers to pay a premium for them. Therefore, placing "green strategy" in products and services enables firm increase profit by the increasing demands from consumers. In addition, while green products stress on environment-friendly, energy-saved, healthy and save. In consumer's perception, the company performance as a responsible member of the society in which it operates and the global community. Those companies are considered by consumer as more reliable and responsible. It builds up a stronger band name for the company. As a result, not only a specific green product will contribute profit to the company, but also the whole products associate with its company's brand name will be benefited.

However, there are challenges for companies running "green strategy" in production, especially for small to medium size enterprise. A lot of small companies think that they are too small to make green changes. The risks associate with green products development will emerge as fresh technology, new organizational skills, and process transformation needs are considered. Therefore, to establish green products will be costly and time consuming for the companies. One of the biggest barriers to companies not becoming greener is that they're not making