When and why does it pay to be green?

Environmental policy; innovation; Porter hypothesis; environmental regulation; pollution; capital market; green products.

When and why does it pay to be green ?

The conventional wisdom about environmental protection is that it comes at an additional cost on firms imposed by the government, which may erode their global competitiveness. However, during the last decade, this paradigm has been challenged by a number of analysts. In particular, Porter (Porter, 1991; Porter and van der Linde, 1995) argues that pollution is often associated with a waste of resources (material, energy, etc.), and that more stringent environmental policies can stimulate innovations that may compensate for the costs of complying with these policies. This is known as the Porter hypothesis. In fact, there are many ways through which improving the environmental performance of a company can lead to a better economic or financial performance, and not necessarily to an increase in cost. To be systematic, it is important to look at both sides of the balance sheet.First, a better environmental performance can lead to an increase in revenues through the following channels: i) a better access to certain markets; ii) the possibility to differentiate products and iii) the possibility to sell pollution-control technology. Second, a better environmental performance can lead to cost reductions in the following categories: iv) regulatory cost; v) cost of material, energy and services (this refers mainly to the Porter hypothesis); vi) cost of capital, and vii) cost of labour. Although these different possibilities have been identified from a conceptual or theoretical point of view for some time (Reinhardt, 2000; Lankoski, 2000, 2006), to our knowledge, there was no systematic effort to provide empirical evidences supporting the existence of these opportunities and assessing their “magnitude”. This is the objective of this paper. For each of the seven possibilities identified above [i) through vii)], we present the mechanisms involved, a systematic view of the empirical evidence available, and a discussion of the gaps in the empirical literature. The objective of the paper is not to show that a reduction of pollution is always accompanied by a better financial performance, it is rather to argue that the expenses incurred to reduce pollution can sometime be partly or completely compensated by gains made elsewhere. Through a systematic examination of all the possibilities, we also want to identify the circumstances most likely to lead to a “win-win” situation, i.e., better environmental and financial performance.ENVIRONMENTAL POLICY;INNOVATION;PORTER HYPOTHESIS;ENVIRONMENTAL REGULATION;POLLUTION;CAPITAL MARKET;GREEN PRODUCTS

Improved Portfolio Choice using Second-Order Stochastic Dominance

We examine the use of second-order stochastic dominance as both a way to measure performance and also as a technique for constructing portfolios. Using in-sample data, we construct portfolios such that their second-order stochastic dominance over a typical pension fund benchmark is most probable. The empirical results based on 21 years of daily data suggest that this portfolio choice technique significantly outperforms the benchmark portfolio out-of-sample. As a preference-free technique it will also suit any risk-averse investor in e.g. a pension fund. Moreover, its out-of-sample performance across eight different measures is superior to widely discussed portfolio choice approaches such as equal weights, mean variance, and minimum-variance methods.second-order stochastic dominance, portfolio choice, portfolio measurement

When and Why Does It Pay To Be Green?

The conventional wisdom about environmental protection is that it comes at an additional cost on firms imposed by the government, which may erode their global competitiveness. However, during the last decade, this paradigm has been challenged by a number of analysts. In particular, Porter (Porter, 1991; Porter and van der Linde, 1995) argues that pollution is often associated with a waste of resources (material, energy, etc.), and that more stringent environmental policies can stimulate innovations that may compensate for the costs of complying with these policies. This is known as the Porter hypothesis. In fact, there are many ways through which improving the environmental performance of a company can lead to a better economic or financial performance, and not necessarily to an increase in cost. To be systematic, it is important to look at both sides of the balance sheet. First, a better environmental performance can lead to an increase in revenues through the following channels: i) a better access to certain markets; ii) the possibility to differentiate products and iii) the possibility to sell pollution-control technology. Second, a better environmental performance can lead to cost reductions in the following categories: iv) regulatory cost; v) cost of material, energy and services (this refers mainly to the Porter hypothesis); vi) cost of capital, and vii) cost of labour. Although these different possibilities have been identified from a conceptual or theoretical point of view for some time (Reinhardt, 2000; Lankoski, 2000, 2006), to our knowledge, there was no systematic effort to provide empirical evidences supporting the existence of these opportunities and assessing their “magnitude”. This is the objective of this paper. For each of the seven possibilities identified above [i) through vii)], we present the mechanisms involved, a systematic view of the empirical evidence available, and a discussion of the gaps in the empirical literature. The objective of the paper is not to show that a reduction of pollution is always accompanied by a better financial performance, it is rather to argue that the expenses incurred to reduce pollution can sometime be partly or completely compensated by gains made elsewhere. Through a systematic examination of all the possibilities, we also want to identify the circumstances most likely to lead to a “win-win” situation, i.e., better environmental and financial performance. La vision traditionnelle au sujet de la réglementation de l’environnement est qu'elle représente un coût additionnel pour des firmes, ce qui peut éroder leur compétitivité globale. Cependant, pendant la dernière décennie, ce paradigme a été remis en cause par un certain nombre d'analystes. En particulier, Porter (Porter, 1991, Porter et van der Linde, 1995) argue du fait que la pollution est souvent associée à un gaspillage des ressources (matériel, énergie, etc.), et que des politiques environnementales plus strictes peuvent stimuler les innovations, ce qui peut compenser les coûts entraînés par ces politiques. Ceci est connu comme l’hypothèse de Porter. En fait, il existe plusieurs raisons pour lesquelles l'amélioration de la performance environnementale d'une firme peut s’accompagner d’une meilleure performance économique ou financière, et pas nécessairement d’une augmentation de coût. Pour être systématique, il est important de regarder les deux côtés de l’état des produits et des charges. Tout d’abord, une meilleure performance environnementale peut mener à une augmentation des revenus par les canaux suivants : i) un meilleur accès à certains marchés, ii) la possibilité de différencier des produits et iii) la possibilité de vendre la technologie de dépollution. En second lieu, une meilleure performance environnementale peut mener à des réductions de coûts dans les catégories suivantes : iv) coût réglementaire, v) coût en ressources, énergie et services (ceci se réfère principalement à l'hypothèse de Porter), vi) coût en capitaux, et vii) coût du travail. Bien que ces différentes possibilités aient été identifiées d'un point de vue conceptuel ou théorique depuis un certain temps (Reinhardt, 2000 ; Lankoski, 2000, 2006), à notre connaissance, aucun effort systématique n’a été fait pour fournir des évidences empiriques soutenant l'existence de ces opportunités et évaluant leur importance. C'est l'objectif de cet article. Pour chacune des sept possibilités identifiées ci-dessus [de i) à vii)], nous présentons les mécanismes impliqués, une description des évidences empiriques disponibles, et une discussion des lacunes de la littérature empirique. L'objectif du texte n'est pas de prouver qu'une réduction de pollution est toujours accompagnée d'une meilleure performance financière, il est plutôt de montrer que les coûts encourus pour réduire la pollution peuvent parfois être compensés, en partie ou complètement, par des gains effectués ailleurs. Par un examen systématique de toutes possibilités, nous voulons également identifier les circonstances pouvant mener à une situation « gagnant-gagnant », c’est-à-dire, une meilleure performance environnementale et financière.environmental performance, environmental regulation, environmental innovation, capital cost, Porter hypothesis., performance environnementale, réglementation environnementale, innovation environnementale, coût du capital, hypothèse de Porter.

The positive impact of product range optimization in the private label of a multinational retail company

The purpose of this project is to demonstrate the positive impact of Product Range Optimization (PRO) tool in the leverage of SONAE MC private label brands (PLBs). Having in mind the core construct of relationship marketing, the project also investigates the secondary constructs of advocacy, attachment, credibility, image and familiarity within each SONAE MC PLB so as to identify improvement points. The ultimate path to PLBs success is drawn through the application of various marketing mix measures. A questionnaire was conducted to a quota sample of SONAE MC shoppers to ascertain consumer perception over Continente, Continente Equilíbrio, Continente Seleção and É Continente brands. The questionnaire was delivered through Google Forms from August to September of 2017 and responses were gathered mainly resorting to digital communication platforms. From the initial sample of 557 respondents, 534 were considered valid and later inserted into SPSS 24 for data analysis purposes. Quality, value for money and price are the most privileged factors in a PLB. Continente PLBs offer appear as the best for consumers in the Portuguese retail market. Although the best SONAE PLBs score occurs for brand advocacy, consumers find it more difficult to believe in online advocacy initiatives’, such as blog suggestions. The development of national and regional products is said to generate brand attachment towards a PLB. Credibility and image seem to be more important to enhance advocacy through PLBs. This project delivers a vital contribution not only for SONAE MC - through the identification of several performance improvement points for its PLBs - but also to the overall supermarket retail service - by providing in-depth analysis on PLBs relevance for the current marketplace and introducing the ultimate tool to create a strong brand portfolio.Este projeto tem como objetivo demonstrar o impacto positivo da ferramenta Product Range Optimization (PRO) na alavancagem das marcas próprias da SONAE MC. Através do conceito central marketing relacional, o projeto investiga também os conceitos secundários advocacia, ligação, credibilidade, imagem e familiaridade em cada uma das marcas próprias da SONAE MC de modo a identificar eventuais pontos de melhoria. O caminho para o sucesso das marcas próprias é traçado através da aplicação de várias medidas no âmbito do marketing mix. Foi realizado um questionário aos clientes da SONAE MC para averiguar a percepção do consumidor relativamente às marcas próprias Continente, Continente Equilíbrio, Continente Seleção e É Continente. O questionário foi divulgado através da ferramenta Google Forms em plataformas de comunicação digital nos meses de agosto e setembro de 2017. Da amostra inicial composta por 557 entrevistados, 534 foram considerados válidos e posteriormente inseridos no sistema SPSS 24 para análise dos dados. Qualidade, value for money e preço são os fatores mais privilegiados numa marca própria. A gama de produtos marca própria da SONAE MC é eleita pelos consumidores como a melhor no mercado de retalho Português. Apesar de as marcas próprias da SONAE obterem a sua melhor pontuação no conceito advocacia, as iniciativas online neste âmbito (como sugestões em blogs) não aparecem como credíveis. O desenvolvimento de produtos nacionais e regionais aumenta a ligação com a marca própria em questão. A credibilidade e imagem da marca influenciam positivamente e em grande escala a advocacia das marcas próprias. Este projeto oferece uma contribuição vital não só para a SONAE MC - através da identificação de vários pontos de melhoria ao nível do desempenho das suas marcas próprias - mas também para o mercado de retalho em geral - realizando uma análise aprofundada sobre a relevância das marcas próprias na conjuntura atual e apresentando uma ferramenta essencial para a criação de um portfolio de marcas próprias exemplar

Creating learning solutions for executive education programs

Executive education is both a growing and increasingly competitive industry. The traditional business school, once a dominant player in this space, now faces competition from sophisticated and focused consultants and for-profit training specialists offering a variety of face-to-face and on-line instructional vehicles. An abiding question has become ever more prevalent for business schools – are executive education clients getting meaningful, long-term value for their significant investments? Demonstrating value and building capabilities is different for a generic, open enrolment course than for a custom program. This paper proposes a solutions-based approach to the development and implementation of customized executive programs, arguing that the tailored customer focus and the operational rigor of a solutions perspective leads to sustainable and measurable client value both at the individual and corporate level. A case study involving a global high technology company is used to demonstrate the steps required to apply a solutions roadmap. The results show that a solutions approach – carefully and collaboratively undertaken in selected settings – can provide considerable benefits to both client and provider. Further research is proposed to validate and develop the learning points

Research on Business Model of Self-operated Import E-commerce Based on Value Network ——A Case Study of KAOLA.COM

From the perspective of value network, the paper takes KAOLA.COM as an example to analyze the business model of self-operated cross-border e-commerce. It tries to propose a research framework including value proposition, value creation, value realization and value support based on the summary of relevant theory. The paper analyses the development status and the value business model of KAOLA.COM，and puts forward some advices optimizing the value network of China's self-operated cross-border e-commerce，it includes : (1)segment customer , combining online and offline.(2) control the genuine strictly, strengthening the supply chain management.(3) expand the category, achieving the third party income.(4) improve customer relationship, accelerating layout of overseas warehouse. The purpose of the research is to provide reference for optimization and development of self-operated cross-border e-commerce. Keywords: Value network; Self – operated cross-border e-commerce; Business model; KAOLA.COM

Own brand product development: optimization of the development process

The main purpose of this study was to optimize the process of developing and launching new own brand products in the Perishable Commercial Department from a large retail company in Portugal. Specifically, study the process currently in use and identify its weakest points, in order to make it faster and more efficient. Data selection was carried out and a methodology for its analysis was established, in order to achieve the company’s goals and concerns, namely, the importance of launching the best products as quickly as possible to the market.O grande objectivo deste projecto consistiu em optimizar o processo de desenvolvimento e lançamento de novos produtos de marca própria na Direcção Comercial de Perecíveis de uma grande empresa de retalho em Portugal. Mais concretamente, estudar o processo actualmente em prática e identificar os seus pontos fracos, de forma a torná-lo mais rápido e eficiente. Foi necessário proceder a uma selecção dos dados a utilizar, estabelecer uma metodologia de análise e ir ao encontro dos interesses e preocupações da empresa, nomeadamente a importância de lançar os melhores produtos da forma mais rápida possível para o mercado

The Swiss black swan bad scenario: is Switzerland another casualty of the Eurozone crisis

Financial disasters to hedge funds, bank trading departments and individual speculative traders and investors seem to always occur because of non-diversification in all possible scenarios, being overbet and being hit by a bad scenario. Black swans are the worst type of bad scenario: unexpected and extreme. The Swiss National Bank decision on January 15, 2015 to abandon the 1.20 peg against the euro was a tremendous blow for many Swiss exporters, but also Swiss and international investors, hedge funds, global macro funds, banks as well as the Swiss central bank. In this paper we discuss the causes for this action, the money losers and the few winners, what it means for Switzerland, Europe and the rest of the world, what kinds of trades lost and how they have been prevented