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Table 34. Business Context – Dairy Company
Case studies | 153
Community demands have not constituted a key influencing factor for the adoption of environmental strategies. Specifically, hearing processes with ethnic or local communities have not taken place with the company. Nevertheless, their community projects were developed unilaterally and corresponded to supply chain development and philanthropic activities.
Table 34. Business Context - Dairy Company. esa factors Categories Main features
Business context
Green norms Requirements from IFC for the greening of supply chain. Competitive sector Adoption of sectorial practices in sustainable packaging. Coercive No environmental permits or hearing processes apply to this industrial sector.
b) Business model:
The dynamic business model observed at Dairy Company was found to favor the adoption of efficient and innovative ways of conducting business, thus triggering processes and product innovation. Specifically, the development of green products has been supported by organizational capabilities as a mechanism to carry out innovation to achieve: 1) reputation positioning through the attention paid by the public to greener products and 2) competitive advantage by anticipating competitors in the development of new green markets such as carbon neutral products.
Business model has been supported by R&D investments and technical know-how. R&D has been present in the Dairy Company since its foundation in 1958, and it has increased over the years. The company started with the production of milky drinks in the country, then evolving towards healthy, sustainably produced dairy products. Dairy Company has developed its technical know-how by acquiring and developing complementary businesses (i.e. brands and manufacturing plants), constituting joint ventures with renowned and experienced allies (mainly French companies) and looking for financial leverage through international investors such as IFC (Revista Dinero, 2017). This type of alliances have allowed the company to manufacture value-added products (such as yogurt) and expand its dairy product operations to more than 21 towns of Colombia (Revista Semana, 2019). Successful international allies have also supported the company in
