Sustainable strategies: Integrating sustainability practices into corporate business operations : How can companies in polluting industries develop and implement profitable and sustainable business strategies? The case of: The Shipping and Cruise Line Industry

This thesis seeks to study how companies within polluting industries can develop and implement profitable and sustainable business strategies. In order to answer the given research question, the shipping and cruise line industry is the chosen industry of study, due to its air and water pollutions. Research on the field states that the strategic management process of companies within the industry is rather challengingand addresses the need for further studies. The literature identified a gap between the development and implementation phases, with the latter stated as most difficult for the strategic manager. Therefore, this thesis aims to address these challenges and related opportunities of sustainable business strategies.With the purpose of providing an insight on sustainability, profitability and the strategic management processes, a multiple-case study of three companies within the chosen industry was conducted. Primary data was obtained through in-depth interviews of the case companies and one non-profit organisation with industry-specific knowledge.The study revealed that sustainability is a considerable concern for the participating companies. Several internal and external factors were found to influence the sustainable strategy development process, such as KPIs, competence, involvement, and regulations. With regard to strategy implementation, change management, company culture, internal communication and competence on new technologies, was found to be important in the process. Further, the findings imply that governmental regulations can act as a positive driver for sustainable strategy development. However, findings reveal that the implementation of regulations into the strategy process can serve as a challenge. The data analysis identified a long-term perspective on sustainable actions as necessary in terms of profitability, and the social value should be seen in context of the financial value. Finally, the study implies that companies having a profitable and sustainable business strategy can experience a competitive advantage in the industry