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SD Vision - Halyps Cement

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14<br />

ronmental issues is high and will affect<br />

the way companies think about their<br />

strategies. Combined with the control<br />

of resources I mentioned above, these<br />

will lead to highly volatile pricing and<br />

resource availability. Unless carefully<br />

evaluated and incorporated into corporate<br />

planning, these factors could seriously<br />

threaten a company’s competitive<br />

advantage.<br />

Given the slow pace of economic<br />

recovery, how are companies facing<br />

the challenge of sustainable development?<br />

Companies must rethink their normal<br />

planning approach. “Business-as-usual”<br />

will not combat rising prices and growing<br />

uncertainty driven by increasing use<br />

of the planet’s resources, especially by<br />

developing countries. Strategies should<br />

consider all possible scenarios, commodity<br />

price fl uctuations, and the impact<br />

that greater or lesser degrees of volatility<br />

can have on business. Techniques for<br />

planning under uncertainty are still in<br />

their infancy, although the recent crisis<br />

has boosted this trend and companies<br />

are beginning to apply them, for example<br />

stress tests in banks. However, they<br />

are far from common and still have a<br />

long way to go.<br />

Becoming environment-friendly can<br />

lower costs because companies end<br />

up reducing the inputs they use. In<br />

addition, the process can generate<br />

additional revenues from better<br />

products or enable companies to<br />

create new businesses. Would you<br />

treat sustainability as innovation’s<br />

new frontier?<br />

I believe that a critical competitive factor<br />

in the future will be the productivity<br />

of resource utilisation. In tomorrow’s<br />

world, productivity in general will be<br />

important, productivity of labour and of<br />

capital – and not just for banks. Productivity<br />

of resource utilisation will also become<br />

essential and innovation is key.<br />

Many companies are already moving<br />

in this direction. For example, UPS has<br />

saved 2% on its fuel costs by using a<br />

software that helps plan delivery routes<br />

with fewer left turns, which consume<br />

more fuel than right turns. Similarly,<br />

Apple has created ways to reduce waste<br />

in its products. Since launching the

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