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In a nutshell, all steps of value creation and all organisational units should be included in sustainability management in order for it to become effective (Porter 1985; Burritt et al. 2011).
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The following example illustrates the calculation steps of sensitivity value ψ.
Vertical integration often requires only partial integration and only directly adjoining steps of the value chain are affected.
These cost components are further broken down by position for the various steps of the value chain.
Real municipalities do not necessarily cover the entire spectrum of RE, nor are local companies always fully engaged in all stages and steps of the value chain.
As explained earlier, in most municipalities in Germany, not all of the stages and steps of the value chain will be present.
Because every step of the value chain is profitable, the business model is sustainable.
Instead of developing a comprehensive plan to fight inflation, however, the government is focusing on the last step of the value chain: retailers.
Under the Olam Sustainability Standard, the company is working through each step of its value chain to identify and implement measures to deliver sustainable products across 16 products in 65 countries by 2020.
They radically optimized each step of the value chain.
Allocating the individual cost items to a step of the value chain makes it possible to determine the turnover for each of these steps.
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