Ocean Spray Environmental Risk Management Case Introduction

1
Ocean Spray Environmental Risk ManagementCase
Introduction

• Professor Doug Cerf
• Donald Bren Graduate School of Environmental
  Science and Management
• Environmental Risk Management (ESM 286)
• Winter 2008

2
Governance

• Governance makes decisions that define
  expectations, grant power, or verify performance.
  It consists either of a separate process or of a
  specific part of management or leadership
  processes. Sometimes people set up a government
  to administer these processes and systems.
• In the case of a business or of a non-profit
  organization, governance develops and manages
  consistent, cohesive policies, processes and
  decision-rights for a given area of
  responsibility. For example, managing at a
  corporate level might involve evolving policies
  on privacy, on internal investment, and on the
  use of data

3
Management Issues

• Environmental Risk Management and
• Environmental Governance
• Ocean Spray
• The cooperative
• Evaluate the case from Ocean Spray Managements
  point of view

4
Back of the envelopeStakeholder analysis

• A description of the stakeholder including the
  names of the groups/people that makes up that
  stakeholder.
• Determine on a scale of one (weak) to five
  (strong) the relative strength of the stakeholder
  (ie in other words how much influence does the
  stakeholder have over the firm). Justify your
  ranking.
• Determine on a scale of one (weak) to five
  (strong) the relative strength of the reciprocal
  relationship between the firm and the stakeholder
  (ie in other words how much influence does the
  firm have over the stakeholder). Justify your
  ranking.
• Determine on a scale of one (adversarial) to five
  (cooperative) the nature of the relationship
  between the stakeholder and the firm. Justify
  your ranking.
• Identify the two most important issues to the
  firm regarding this stakeholder. If appropriate
  state the issues as questions.
• Briefly describe a strategy recommendation for
  the firm to deal with each stakeholder that you
  identify

5
Porters Five Forces
6
Case Analysis Overview

• The growers Co-op has developed a careful and
  effective system of environmental governance and
  management.
• Is this the proper strategy?
• Is this enough given the wetland capacity issue?
• Ocean Spray has limited influence over operations
  (growers)
• We will answer these questions at the end of our
  discussion of this case

7
Issues

• What will future pesticide regulation bring?
• Re-authorization of clean water act by congress
  is immanent

8
How direct is the environmental risk?

• Freeport
• Tailings, Overburden etc.
• DuPont case
• Indirect human health risk
• Ocean Spray
• Direct human health risk from a food product

9
Case Questions

• How does concern about the environment affect the
  economics of Ocean Sprays business?
• Evaluate the environmental management practices
  of Ocean Spray. In particular, do you think that
  Ocean Sprays managers should (a) try to assert
  more control over the practices of the growers,
  or (b) get more directly involved in the public
  debate over reauthorizing the Clean Water Act?

10
Case Questions

• Are there opportunities or institutional
  arrangements that will allow for the expansion of
  cranberry bogs in wetlands? Should there be?
• Can Ocean Sprays environmental program be a
  competitive advantage for the organization?

11

• Small group discussions
• temporary teams