Strategic Market Management

Question 1

What does Rory Sutherland discuss in terms of competitive advantage?

Answer 1

He says that if you base your business success on a technical gizmo then your competitive advantage will be limited to only a few years. However if your brand rests on a solid understanding of unchanging psychological truths about human nature, then you have a completely enduring competitive advantage.

Question 2

Who is the Elusive Green Consumer and what can be done to target sustainable market behaviours? (5)

Answer 2

The Elusive Green Consumer (from HBR reading) is a consumer that says they want sustainable products but they don’t tend to buy them.

There are 5 approaches to target these behaviours:
1. Use social influence: make people’s commitments to eco-friendly behaviour public
2. Shape good habits: break bad habits and then encourage good ones
3. Leverage the domino effect: people like to be consistent so if they adopt one sustainable behaviour they are often apt to making other positive changes in the future
4. Decide whether to talk to heart or brain: emotional appeal or rational appeal
5. Favor experiences over ownership: “experience or sharing economy” where companies offer experimental options as alternatives to material goods

Question 3

How did the R-ladder come about?

Answer 3

The R-ladder improves on the original 3Rs from the 1970s (reduce, reuse, and recycle)

Question 4

What are the 6 R-ladder circular economy strategies?

Answer 4

R1: Refuse and rethink
R2: Reduce
R3: Reuse
R4: Repair and refurbish
R5: Recycle
R6: Recover

Question 5

What is greenwashing?

Answer 5

When a company or organization spends more time and money on marketing itself as being sustainable than on actually minimizing its environmental impact

Question 6

Does Lego contribute to greenwashing? Why or why not?

Answer 6

No, because their efforts to help tackle the environmental impact of their toys is outstanding and even if a company can’t do all steps towards environmental improvement, it doesn’t mean they are greenwashing.

Question 7

What are the 2 main issues facing companies that want to implement sustainable strategies?

Answer 7

Companies can take action without requesting consumer behaviour change, but this limits its impact. But on the other hand, demanding consumer behaviour change is a risk.

1. Say Do Gap: the dilemma of reported concern or intentions not being followed up in action, ie. People say they want sustainable products but don’t actually buy them
2. Affordability: not everyone can afford (price, time) to be green

Question 8

Explain how the Burger King Whopper Lottery Ticket game is a good example of a gamified lottery?

Answer 8

The Burger King Whopper Lottery Ticket game where it was a lottery-style competition. Fans could win up to 1M with their own Whopper creation which in turn creates a lottery ticket.

It made it fun for customers to participate in this game while also spending money on Whoppers at BK.

Question 9

What is the overarching goal of game designers? (1)

Answer 9

To get you and keep you in a flow state.

Question 10

What are the characteristics of a flow state? Consequences?

Answer 10

Characteristics:
1. Intense concentration on the present activity
2. Merging of awareness and action
3. Loss of reflective self-consciousness

Consequences:
1. Others needs are ignored
2. Subjective experience of time is altered - “where did the time go?”

Question 11

Explain the Fogg Behavior Model

Answer 11

B = MAP

B stands for behavior
M stands for Motivation
A stands for Ability
P stands for Prompts

This model shows that these 3 elements (MAP) must converge at the same moment for a behavior to occur. When a behavior does not occur, then one of those 3 elements are missing.

Question 12

How does the Fogg Behavior Model represent various behavior changes?(5)

Answer 12

1. It shows how motivation can change over time (Ex. Someone wants to move jobs and is taking a new course in coding. At first their motivation is high, then it dwindles over time)
2. It demonstrates competing motivations (Ex. X is not motivated to wear a mask because it’s uncomfortable, but then their grandma makes a comfortable mask and tells X to wear one to protect her from Covid so X is motivated to wear a mask)
3. It demonstrates how motivation and ability change when you start tiny (Ex. X begins learning a new instrument and practices for 10 mins everyday. After a while he challenges himself to learn harder songs and is able to successfully so his motivations increase)
4. It demonstrates how simplicity changes behavior. (Ex. X doesn’t have time to make herself eat healthy after a long day of work so X resorts to unhealthy quick and easy dinners. One day at the grocery store, X finds pre-cut veggies that just need to be heated up. This makes X’s life easier and now she eats more veggies)
5. It demonstrates it’s effect on groups (Ex. Stanford wants to increase alumni contributions so it waits to prompt its alumni to donate until Stanford has good press, and does not ask while in a recession or in bad publicity)

Question 13

Are there any instances where the three elements of Fogg’s Behavior Model do not need to occur?

Answer 13

Yes. For example if a person is very motivated to perform a behavior, they may be able to overcome lack of ability or lack of a prompt. Or if something is very habitual and does not need conscious effort then there is no need for a motivation or prompt.

Ex. Brushing teeth every night before bed is habitual and even though someone may not be particularly motivated to do it, they will still do it because they don’t even think about it.

Ex. Someone may be forced to give a presentation at work even though they aren’t comfortable public speaking. They do this anyways because they don’t have a choice.

It could also come down to the person’s personality, environment and cultures.

Personality: some people prefer routine and habits come easily

Environment: some people are surrounded by others who influence them to want to perform a behavior

Culture: some people will just do something because of their culture, ie. it can be considered rude to refuse food in some cultures so they will eat anyways

Question 14

What part of the lecture was Fogg introduced?

Answer 14

Gaming and gamification.

Think Duolingo

Question 15

Who coined the word “gamification” and what does it mean?

Answer 15

Nick Pelling coined the word “gamification.”

Definition: A technique for making mundane things fun. It allows companies to tap into the stimuli that our brains naturally respond to and exploit them to incentivise behavioral change at scale

Question 16

What makes Duolingo effective at gamifying the learning of a new language?

Answer 16

Repetition, streaks, leaderboard, sense of loss for streaks keep you motivated, loss aversion, community feel, rewarding sounds for getting things right

Question 17

Another great example of gamification is Roblox - why?

Answer 17

Roblox is a content platform that gamifies games by making User Generated Content (UGC). Since it doesn’t make any of its own content, the monetization potential is huge as it creators a loop from UGC -> players engage with content -> which incentivizes creators to create more

Question 18

What is a market assessment?

Answer 18

It presents a qual and quant view of what value could be captured from consumers (or businesses)

Question 19

What is segmentation?

Answer 19

A way of moving from total market, right down to an individual consumer (and levels in-between)

Question 20

What is the correct terminology for B2C categories vs. B2C markets?

Answer 20

B2C categories consist of goods & services

B2C markets consist of people in places

Question 21

Who proposed market segmentation in 1956 and why?

Answer 21

Wendell R. Smith proposed market segmentation to complement the emerging trend of product differentiation.

Question 22

Why is segmentation important?

Answer 22

It helps companies to sell more products and services by creating value for the consumers or businesses most likely to need/want them

Question 23

What are the 4 different segmentation types?

Answer 23

1. Demographic
2. Behavioral
3. Geographic
4. Psychographic

Question 24

What are demographic segmentation examples?

Answer 24

• Gender
• Age
• Ethnicity
• Nationality
• Education level
• Occupation
• Income

Question 25

What are geographic segmentation examples?

Answer 25

• Locations
• Climate, topography
• Population density
• Urban/suburban/rural
• Language
• Cultural norms

Question 26

What can we conclude from simple segmentation? What is the main drawback?

Answer 26

It’s easy to make simple segments based on age, gender, etc. but it doesn’t tell us WHY and its the WHY that gives us value

Question 27

What are the 5 segmentation rules? A segment must be:

Answer 27

1. Measurable
2. Large enough to generate sufficient revenues
3. Stable/Consistent
4. Homogenous - expected to respond similarly
5. Accessible

Extra: Segments in a market strategy CAN be defined by mixing segmentation types (Ie. demographic + geographic) but the segments MUST NOT overlap (ie. should be mutually exclusive on at least on variable)

Question 28

What are some examples of behavioral segmentation?

Answer 28

• Need/occasion
• Habitual
• Seasonal
• Why? What? How much & when?

Question 29

What are some examples of psychographic segmentation?

Answer 29

• Personality traits
• Values
• Lifestyle
• Interests/opinions
• Social status
• Goals/priorities
• Attitudes/beliefs

Question 30

What does the STP approach stand for/mean?

Answer 30

STP stands for Segment, Target and Position.

Meaning 1. Identify customer segments; 2. Select target segments; 3. Position against competitors

Question 31

Example Case Study of STP - Explain Apple’s STP

Answer 31

Apple positions itself as a lifestyle business, targeting audience segments with a keen design aesthetic and are well-off. Apple follows a “closed” software ecosystem with an emphasis on security. In doing so, it creates an aura of exclusivity (it is far from exclusive in practice) that makes customers feel privileged to own Apple products. Apple’s brand name has become synonymous with expensive, high-performance, luxury gadgets.

Question 32

What are the 5 core principles of the Jobs To Be Done Framework and who wrote it?

Answer 32

JBTD focuses on identifying the specific “jobs” that customers want to get done, rather than simply focusing on product features or specifications. Written by Clayton Christensen.

Core Principles:
1. Customers hire products to get jobs done: The framework emphasizes understanding the underlying motivations and goals that drive customer purchasing decisions

2. Jobs are functional, social and emotional: Jobs encompass not just functional needs but also social and emotional aspirations. Ex. Customers may seek products that enhance their status, provide social connection, or fulfill emotional desires.
3. Jobs are dynamic and context specific: The “jobs” that customers want to get done can vary depending on situation, context and personal circumstances.
4. Products are competing for attention: Therefore, understanding the specific “jobs” that customers want to get done helps companies differentiate their products and capture attention
5. JBTD drives innovation: By focusing on jobs that customers want to get done, companies can identify unmet needs and opportunities for innovation.

Question 33

Segmentation =
Targeting =

Answer 33

Segmentation = defined segments (no overlap)

Targeting = What “Job” needs to get done?

Question 34

What is cohort analysis?

Answer 34

A technique used to analyze the behavior of groups of users over time.

Often used to track the engagement and retention of users.

Question 35

What are 6 truths that led to cohort analysis emerging?

Answer 35

1. Users needs and wants differ
2. Users needs change over time
3. We cannot understand all of the needs of all of the users
4. Our competitors will react
5. Our design variables are infinite
6. Our resources are limited

Question 36

What are the main differences between Philanthropy/Charity vs. Corporate Social Responsibility (CSR) vs. Sustainable Living from a company perspective?

Answer 36

Philanthropy/Charity - GIVING: this is one way giving (Ex. Toms giving shoes away alleviates the problem, but does not create ownership of the problem by the person suffering or provide the means for them to solve it themselves)

CSR - DOING: running the company’s operations in a responsible and sustainable way (Ex. Eliminating plastic waste, palm oil deforestation, providing local farmers with fair pay, etc.

Sustainable Living - ENABLING: aims to tackle the underlying root causes - a potent driver of social change and category growth (Ex. Unilever USLP program)

Question 37

What is the Risk-Relevance Curve (aka Stakeholder Positioning Model) and who wrote it?

Answer 37

Peter Horst wrote the Risk-Relevance Curve which is used to support discussion on positioning.

It highlights the challenge that large brands/companies grapple with - relevance to the mass market or position with an identity-driven segment.

Question 38

What are the 5 components of the Risk Relevance Curve?

Answer 38

1. Values: most conservative stance a company can take - bottom of curve; where a brand chooses not to engage publicly but does introspectively define the values and beliefs that guide actions
2. Purpose: the strategy of aligning with a higher cause that is positive, green and largely uncontroversial
3. Issues: where a brand engages with a more timely and tension-filled issues- but stopping short of a polar yes vs. no stance
4. Position: highest on the curve; where a brand goes all the way out on a limb of a polarizing debate and takes an unequivocal stance
5. “Head in Sand”: Not even on the relevance curve; it’s the one place where no company or brand should be; this is where leaders don’t even do the work to quietly define their values and beliefs

Question 39

What is woke washing and where/how does it fall on Horst’s Risk Relevance Curve?

Answer 39

Woke washing is when a corporation says or does something that signals their advocacy for a social cause but also continues to cause harm to vulnerable communities. This can fall in the Purpose section of the curve.

Ex. Unilever - history of sexist advertising (Ie. Axe commercials); detergents and other household products are often harmful to the environment and make use of non-recyclable plastic bottles, etc.

Question 40

What are the definitions of red and blue ocean strategies and who coined the terms?

Answer 40

Chan Kim and Renee Mauborgne coined the terms to denote the market universe.

Red Ocean: all the industries in existence today - the known market space where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market; quite cutthroat and competitive, hence red ocean

Blue Ocean: All the industries not in existence today - the unknown market space, unexplored and untainted by competition; it is vast, deep and powerful in terms of opportunity and profitable growth

Question 41

5 Red Ocean characteristics:

Answer 41

1. Compete in existing market space
2. Beat the competition
3. Exploit existing demand
4. Make the value-cost tradeoff
5. Align the whole system of firm’s activities with its strategic choice of differentiation or low cost

Question 42

5 Blue Ocean characteristics:

Answer 42

1. Create uncontested market space
2. Make the competition irrelevant
3. Create and capture new demand
4. Break the value-cost tradeoff
5. Align the whole system of a firm’s activities in pursuit of differentiation and low cost

Question 43

What are the fundamental differences between red and blue ocean strategies?

Answer 43

Red ocean strategists focus on building advantages over the competition, usually by assessing what competitors do and striving to do it better. Here, grabbing a bigger share of a finite market is seen as a zero-sum game in which one company’s gain is achieved at another company’s loss. They focus on dividing up the red ocean, where growth is increasingly limited.

Blue ocean strategists recognize that market boundaries exist only in managers’ minds, and they do not let existing market structures limit their thinking. To them, extra demand is out there, largely untapped. The crux of the problem is how to create it. This, in turn, requires a shift of attention from supply to demand, from a focus on competing to a focus on creating innovative value to unlock new demand. This is achieved via the simultaneous pursuit of differentiation and low cost.

B.O. Ex. Netflix after DVD-by-mail went to online streaming platform; Cirque du Soleil - traditional circus vs. theater circus

Question 44

What are the 4 characteristics of a strategy canvas and what is it trying to achieve?

Answer 44

1. Eliminate
2. Reduce
3. Raise
4. Create

A strategy canvas is used to analyze and compare marketing offerings and determine if there are blue ocean strategy opportunities for a company.

Question 45

How do you create a meaningful competitive strategy canvas? (4 steps)

Answer 45

1. Find a target market and segment its needs
2. What are the “jobs to be done” - customer’s goal
3. Find competing alternatives to the customer’s next best choices
4. Design a better offer and establish competitive advantages

Question 46

What is the “chasm” and who coined it?

Answer 46

Geoffrey Moore used the word “chasm” to describe the gap between early adopters and the mass market. It’s hard to cross because if you can’t reach mass market to achieve economies of scale, then you get stuck.

Early adopters are the first group of people to adopt a new product or service and they tend to be more willing to take risks and experiment with new things.

The mass market is more conservative, budget conscious, and need more convincing that a new product or service is worth adopting.

Question 47

How do you know if you’re in the chasm?

Answer 47

When the early adopters market is saturated but the mainstream market is not ready to buy

Question 48

How does the chasm present a Catch-22?

Answer 48

1. Mass market pragmatists don’t usually buy until a company is established but companies only become established when pragmatists buy
2. Pragmatists don’t trust early adopters, but the only reference group a company has at this point is early adopters

As a result:
The market stalls, revenue declines, firm loses money, and VC become impatient

Question 49

How do you cross the chasm? (2 methods)

Answer 49

1. D-Day Method:
   - Select point of attack
   - Attack with overwhelming force
   - Move outward from the point of attack to other targets and capture the center
2. Bowling Pin Method:
   - Select a point of attack (beachhead segment - big enough to matter, but small enough to lead)
   - Attack with overwhelming force on a specific target
   - Offer the whole product as a complete solution to their needs
   - Assemble all necessary partners for the end-to-end solution; move outwards from the point of attack to other targets to capture the center (bowling pin effect)

*Beachhead has reference value for other segments. Beachhead pins should knock down either new segments or new applications for the existing segment

Question 50

Who came up with the Innovation Adoption Curve and what is it?

Answer 50

Everett Rodgers came up with the curve framework and Geoffrey Moore inserted the chasm into the curve.

The IAC model divides the population into 5 different categories based on their willingness to adopt a new innovation:

1. Innovators: early adopters; risk takers; most influential group but smallest
2. Early adopters: more risk tolerant than the early majority; opinion leaders
3. Early majority: more cautious than early adopters; need to see evidence of innovation success
4. Late majority: resistant to change, need to see widespread adoption first

Question 51

What is the Whole Product Solution and what does it solve?

Answer 51

The Whole Product Solution (WPS) aligns with the expectations of customer segments by having:
1. Core product
2. Actual product
3. Augmented product
4. Potential product

The WPS concept solves the gap between the promise made to a customer and the product’s ability to fulfill the promise by augmenting the product with ancillary products and services

Question 52

Why isn’t crossing the chasm intuitive for firms? (3)

Answer 52

1. Firms and marketers want to hedge their bets and target as many segments as possible
2. Firms spread themselves too thin which costs more and confuses early adopters
3. Firms spend too much on advertising or promoting an imperfect or incomplete product by throwing money at advertising that isn’t effective

Question 53

What are the 3 steps to successfully crossing the chasm?

Answer 53

1. Focus exclusively on one beachhead segment that you can dominate
2. Use a complete product for your beachhead segment (Whole Product Solution WPS)
3. Your head pin (beachhead) should influence other adjacent segments (the bowling pin effect)

Question 54

What is the futures cone and who created it?

Answer 54

The futures cone explores alternative futures around which scenarios can be constructed and cross-compared.

It was created by Joseph Voros.

Question 55

What are the 6 zones in Voros’ Futures Cone?

Answer 55

Starting from the center of the cone moving outwards -

1. Projected Future: the singular default, business as-usual, “baseline” - this is the most probable future
2. Probable Future: those we think are “likely to” happen, usually based on current trends
3. Preferable Future: those we think “should” or “ought” to happen or also what we think “should not” happen –> We need to overcome our biased value judgements
4. Plausible Future: those we think “could” happen based no our current understanding of how the world works (in relation to science and laws of nature)
5. Possible Future: those that we think “might” happen based on some future knowledge we do not yet possess but which we might possess someday –> We need to think more radically about the future
6. Preposterous Future: “impossible” and “won’t ever happen” –> We must get out of our comfort zones!

Question 56

What is a wildcard event? What is another name for it?

Answer 56

Also known as a “black swan” event, a wildcard event is an outlier, as it lies outside the realm of regular expectations because nothing in the past can convincingly point to its possibility - It carries an extreme impact

Despite its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable

Wildcard events don’t have to be negative but they typically change the trajectory of the future

Question 57

What are some examples of wildcard events?

Answer 57

• Natural disasters
• Covid-19
• Death in family
• Winning the lottery
• Getting your dream job

Question 58

What are some examples of other industries outside of automotive that make use of future visioning concepts?

Answer 58

Architects, airplanes, fashion, etc.

They use the preferable future push technique with their signaling because these types of projects are often very expensive up-front costs so they need to start signaling early so that consumers buy into it (ie. conditioning and buying themselves time because there is a lot of money at stake)

Question 59

Why do first-mover’s category-creating products and services often fall short of expectations? (4)

Answer 59

1. Failure to understand what customers value
2. Failure to realize the extent to which people are locked into familiar behavior patterns
3. Failure to explain the benefits of changing (or pitfalls of not changing) behavior
4. Failure to provide meaningful incentives to deviate from habitual behaviors

Question 60

What happened with Beyond Meat?

Answer 60

Beyond Meat tried to be a first-mover into the non-meat food space and gained huge traction but ended up stuck in the chasm because it targeted a small market, it was still priced high so hard to get traction from new buyers, and then the traction it gained off the bat subsided.

People wanted to buy in at first because we want to invest and try hyped things, but it didn’t last.

Question 61

What are some of the differences between first-movers and imitators?

Answer 61

First-movers protect innovation (intellectual property) with patents; benefit from publicity (hype/press coverage); move quickly up the experience curve; digital FM attract investment to scale; digital DM also benefit from user/customer lock-in effects to own
–> Predominantly demand side (sales) advantages

Imitators benefit if the company is a major brand that has a fast-following; tear down competitor products to understand how to replicate/improve; benefit from a lower cost to enter, start higher on the experience curve; invest in solutions that anticipate next phase of user/customer needs
–> Predominantly supply side (cost) advantages

Question 62

Which is the most relevant to portfolio decision making within the growth-share (BCG) matrix - cash flow or profit?

Answer 62

Cash flow

Question 63

What level of cash contribution is typically generated by a Star product?

Answer 63

Second highest - high but not highest

Question 64

Is a Dog product expected to turn around within a short timeframe - Y/N?

Answer 64

No

Question 65

Which is the ideal sequence according to the reading?

a) question mark > star > cash cow
b) star > question mark > cash cow
c) cash cow > question mark > star

Answer 65

Answer: a

Question 66

What is the BCG Matrix (same as Growth-Share Matrix)?

Answer 66

It is a strategic management tool used to evaluate and manage a firm’s product portfolio.
It contains 4 quadrants:

1. Cash Cows
   - Products that have high relative market share and a low market growth rate
   - These generate a lot of cash, but require little investment
   - Companies should focus on “milking” cash cows to generate cash for other parts of the portfolio.
2. Stars
   - Products that have high relative market share and a high market growth rate
   - Stars are high-growth investments that require a lot of investment
   - Companies should focus on investing in stars to maintain their market share and leadership position
3. Question Marks
   - Products that have a low relative market share and a high market growth rate
   - Question marks are high risk, high reward investments
   - Companies should carefully evaluate question marks to decide whether to invest in them to turn them into stars or to divest them if they are not able to achieve a stronger market position
4. Dogs
   - Products that have a low relative market share and low market growth rate
   - Dogs are low-growth investments that may actually be draining cash
   - Companies should consider divesting dogs if they are not able to turn them around

Question 67

What are the limitations of the BCG Matrix?

Answer 67

1. It’s static - it represents only a snapshot view (point in time)
2. The market growth rate can be defined in multiple ways so it’s best to use a forecast view
3. Defining the market is critical
4. Identifying the closest competitor can be tricky
5. Without a view of the product lifecycle, deciding what actions to take with Question Marks is challenging
6. Some industries have limited market share data available
7. It focuses on financial measures such as market share and cash flow, but does not consider other factors like customer satisfaction and innovation

Question 68

Is history/historical data/trends the best way to forecast?

Answer 68

If the industry is very predictable then yes. But it really depends on the category because if its very dynamic and unpredictable, then no.

Question 69

What is the product lifecycle framework?

Answer 69

It is a model that describes the stages of a product’s life, from its introduction to the market to its eventual decline

Question 70

What are the 4 main stages of the Product Lifecycle Framework?

Answer 70

1. Introduction - Question Mark
   - Focuses on educating the market about the product’s benefits and create awareness
   - Sales strategy is focusing on early adopters and price skimming
   - Profitability is low due to high marketing and R&D costs
2. Growth - Star
   - Focuses on accelerating sales and market share
   - Increases marketing efforts to reach a wider audience
   - Sales strategy is focusing on new customers and price penetration
   - Profitability is increasing with higher sales and lower marketing costs
3. Maturity - Cash Cow
   - Focuses on maintaining sales and profitability
   - Marketing efforts now are about targeting existing customers and promoting new features
   - Sales strategy focuses on repeat customers and price maintenance
   - Profitability is at its peak due to high sales and stable costs
4. Decline - Dog
   - Focuses on maximizing sales and optimizing costs
   - Reduction in marketing efforts and focuses on maintaining brand awareness
   - Sales strategy focuses on existing customers and price promotions
   - Profitability is decreasing due to declining sales and increasing costs
   * You can prolong getting to this stage by introducing variants or updates of the product going into decline (ie. Nintendo Switch)

Question 71

What is the experience curve?

Answer 71

For companies, the more products they produce, the more experience they have making it and the more efficient they become (experience is about knowhow + cost.) This means that the cost of producing each unit of the product decreases, which lowers prices for consumers.

This is a powerful tool for companies to gain a competitive advantage because by producing more of a product, they can lower their costs and charge lower prices (cost economies of scale.) This can help them to gain a larger market share and be more profitable.

Question 72

Does following a blue ocean strategy require you to be a first mover? To what extent do you agree or disagree?

Answer 72

No I disagree, following a blue ocean strategy does not require you to be a first mover.

It can be very beneficial to be the second in the industry because you can see how the first mover did, learn from their mistakes and make necessary improvements, therefore I think a “fast follower” can still achieve a blue ocean

Question 73

Can a company/brand be in multiple spots on the Risk Relevance Curve?

Answer 73

As a brand, no! You can move position over time, but a brand must choose its position and stick to it on the curve.

As a company, yes. This is because they have different brands within their umbrella and these brands can fall on different positions on the curve. For example, Unilever falls on multiple spots on the curve based on their brand.

Question 74

If a company focuses on a specific issue but ignores all other social and economic issues, then will it still be on the issues position spot on the Risk Relevance Curve?

Answer 74

Yes. For example, Pepsi focuses on suicide prevention primarily and does not address any other social or economic or sustainable issues. However, it still falls on the issues spot on the curve because there are too many issues in the world that not every company can cover them all.