Impact on strategic decision making: capability, resources, risk and sustainability

This week’s topics

Impact on strategic decision making: capability, resources, risk and sustainability

1. Impact on strategy capability
2. Allocation of resources
3. Risk management
4. Sustainability
5. Environmental impact

What you will be able to do

• 4.2 Explain how operating in a global market impacts a business’s strategic and operational decision making.

Activity

Start with this week’s video, then discuss how they apply to this week’s topic and note one example from a real business.

Study materials

Videos

• Forward Exchange Rates · YouTube · Marginal Revolution University · 5 min · for registered students

Further resources

• Principles of Finance 2e, ch. 20.3: Exchange rates and risk · PDF · OpenStax (2026), section 20.3 on exchange-rate risk for international firms and how to hedge it; pp. 590–599 · for registered students
• Business Ethics, ch. 4.2: Sustainability – business and the environment · PDF · OpenStax (2018), section 4.2 on sustainability strategies and corporate responsibility; pp. 92–103 · for registered students
• OECD MNE Guidelines (2023), ch. II: General policies and due diligence · PDF · OECD (2023) – a step up: the international standard for responsible conduct by multinationals; pp. 14–20 · for registered students
• The Impact of Corporate Sustainability on Organizational Processes and Performance · Open-access article · Eccles et al. (2014), Management Science. Compares firms with and without sustainability policies on governance and long-run performance. · for registered students
• Risks and Global Supply Chains: What We Know and What We Need to Know · Open-access article · Baldwin and Freeman (2022), Annual Review of Economics. Clear review of supply-chain shocks, risk and resilience after COVID-19. · for registered students