Environmental Strategy
Topic 6.1.12 • Assessment Quiz
Section A: Precision Definitions
AO1 Knowledge • 2 marks each • 10 marks total
Define 'Environmental Audit'.
What is 'Greenwashing'?
Define 'Carbon Footprint'.
What is a 'Sustainable Supply Chain'?
Define 'Circular Economy'.
Section B: Strategic Application
AO2 Context • Variable marks • 17 marks total
SCENARIO:
An airline invests $50 million in lighter carbon-fiber seats to replace traditional seats across its fleet.
Is this investment primarily Environmental or Economic in nature?
SCENARIO:
The same airline from Question B1 implemented the lighter seats.
Explain TWO benefits the airline gains from this environmental investment.
SCENARIO:
A luxury car manufacturer must choose between: (A) Investing $200m in electric vehicle technology, or (B) Investing $80m in making current petrol engines 15% more efficient.
Which option better demonstrates environmental responsibility?
SCENARIO:
A coffee chain switches from plastic to biodegradable cups, increasing costs by $0.15 per cup. They serve 10 million cups annually.
Calculate the annual increase in costs from this environmental initiative.
SCENARIO:
A textile manufacturer in Bangladesh faces pressure from European clients to reduce water pollution from fabric dyeing processes. Compliance requires $5m investment in filtration systems.
Explain why this manufacturer might view environmental standards as both a 'cost' and an 'opportunity'.
Section C: Strategic Evaluation
AO3 Analysis • AO4 Evaluation • 70 marks total
Examiner Guidance for Section C:
- • Use the AJIM Framework for evaluation questions (Answer → Justify → It Depends → Most Important Factor)
- • Build chains of analysis showing cause → effect → consequence → financial impact
- • Avoid "balanced" conclusions - demonstrate weighted judgment
- • Use specific business examples to support theoretical arguments
Evaluate whether environmental sustainability is primarily a constraint or an opportunity for businesses in the 21st century. [20 marks]
Analyse the potential conflicts between environmental objectives and short-term profit maximization for a publicly-traded manufacturing company. [12 marks]
To what extent can environmental strategy create competitive advantage in mature, price-sensitive markets? [16 marks]
Analyse how the adoption of circular economy principles affects a company's operations management and supply chain decisions. [12 marks]
Evaluate the view that environmental regulations are more important than consumer preferences in driving business environmental strategies. [20 marks]
Cambridge International AS & A Level Business (9609)
Topic 6.1.12: Environmental Strategy • Strategic Cost-Benefit Analysis
Remember: Environmental strategy is evaluated on strategic merit, not moral virtue.
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