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    Neste&IMD
    Report

    Neste & IMD: Partnering for renewal

    By Knut Bjarne Haanaes, Ginka Toegel, John R. Weeks and Ivy Buche
    35 pages
    March 2018
    Download full report
    PRINTABLE PDF – 14MB

    Executive summary

    When Matti Lievonen became the CEO of Neste in 2009, the Finnish oil refining company was facing strong headwinds – a sharp fall in oil prices, market overcapacity, falling margins and new carbon emissions legislation in the EU. The company’s market value dropped 50% between 2008 and 2011. Matti had to implement a radical strategic shift into renewable fuels.

    NESTE CHALLENGES OVER THE YEARS

    Neste faced multiple challenges over the next seven years to implement its renewables strategy.

    “In practice, our business based on renewable products and circular economics is eating away at our traditional business operations. This is a sacrifice that many did not believe in at first. But when it comes to the question of what kind of planet we will leave to future generations, the transition to sustainable lifestyles cannot be held back.” Matti Lievonen, President and CEO of Neste

    The L&D initiatives

    IMD and Neste collaborated on four L&D programs to enable the company’s transformation journey. The strategy implementation and organization development process required Neste to examine where it had come from, where it was at each stage and its ambition as a sustainability champion.

    Impact

    Throughout the Neste-IMD collaboration, the company has seen significant growth in its renewables business, profitability and market valuation.

    To find out more about this collaboration, please download the full report.

    Neste

    Neste’s journey from a Finnish oil refining company to the world’s largest producer of renewable diesel from waste and residues has required a bold transformation. Its renewable diesel, based on proprietary NEXBTL technology, can reduce greenhouse gas emissions by up to 90% compared with fossil fuels. Replacing fossil fuels with Neste’s renewable fuels reduced global climate emissions altogether by 8.3 million metric tons in 2017. This figure equals removing 3 million passenger cars from the roads for a full year – more than the number of cars in London, UK. Beyond road traffic, Neste brings renewable solutions to the aviation, plastics and chemical industries. Its turnover in 2017 was €13.2 billion with operating profits of €1.1 billion. For 12 consecutive years Neste has featured in the Global 100 list of the world’s most sustainable companies, ranking second in 2018.

    IMD

    IMD is a top-ranked business school, expert in developing leaders, transforming organizations and creating immediate and long-term positive impact. IMD custom programs are co-created with a select group of innovative global organizations to address their specific performance objectives. These tailor-made programs help companies to build new capabilities and address their most significant business challenges. The programs blend academic expertise with hands-on implementation and are designed for learning and business impact.

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    By Julia Katharina Binder and Knut Bjarne Haanaes
    in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 19-32 / Hoboken: Wiley, 2025
    Summary
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    Reference IMD-7-2351
    Copyright ©2024
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    Organization Nippon Telegraph and Telephone
    Industry Services, Telecommunications;Information Technology
    Available Languages English
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    Building on NTT (A), the case starts with NTT’s CEO having narrowed down strategic growth options with the board to prepare NTT for the future. Past international investments in AT&T Wireless and KPN to tap into foreign markets had resulted in billion $ write offs and stopped international acquisitions. However, after reviewing the disruptive changes facing the ICT industry and considering the shareholders’ views, CEO Miura committed to internationalization. The B case details NTT’s growth strategy focused on internationalization, while considering the need for new capabilities and technologies. It provides more insights into NTT, its opportunities and the Japanese experience with M&As and ends with Miura’s determination to quickly grow through international expansion to prepare NTT for the future.
    Reference IMD-7-2352
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Nippon Telegraph and Telephone
    Industry Services, Telecommunications;Information Technology
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    Case reference: IMD-7-2618 ©2024
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    Reference IMD-7-2618
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2619, © 2024
    Read more
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    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domest...

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    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620, © 2024
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    Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2619 ©2024
    Summary
    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
    Reference IMD-7-2619
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Global Business
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    Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons

    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
    Case Study
    Overcoming adversity through innovation – Daikin at 100 (C): China market lessons

    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domest...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620, © 2024
    Read more
    Overcoming adversity through innovation – Daikin at 100 (C): China market lessons
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620 ©2024
    Summary
    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domestic brands like Gree and Midea. Despite the initial challenges of breaking through in a fragmented and competitive landscape, Daikin’s innovative inverter technology became a distinguishing feature of its product offerings. The watershed moment in Daikin’s trajectory occurred in 2008 when it formed a strategic partnership with Gree, China’s largest air conditioner manufacturer. This collaboration enabled Daikin to tap into Gree’s expansive distribution network and manufacturing expertise, significantly enhancing its own market reach. The partnership proved mutually beneficial; Gree capitalized on Daikin’s advanced inverter technology while Daikin secured a foothold in a market driven by increasing consumer demand for energy-efficient solutions. By 2012, inverter air conditioners claimed over 60% of the Chinese market share, a figure that surged to over 90% by 2024, illustrating the success of their joint efforts. Furthermore, Daikin’s commitment to sustainability was manifested in its pioneering use of HFC-32 refrigerant, known for its low global warming potential. By openly licensing HFC-32 patents globally, Daikin not only positioned itself as an environmental leader but also fostered industry-wide innovation. This case highlights the critical importance of strategic partnerships and innovation in overcoming competitive challenges and underscores Daikin’s role as a transformative force in the global air conditioning market.
    Reference IMD-7-2620
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Global Business
    Strategy
    Browse all topics
    Related content
    Case Study
    Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons

    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
    Busting the myth of flashy innovation
    By Joep de Caluwé
    in I by IMD
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
    Strategy
    Browse all topics
    Busting the myth of flashy innovation
    By Joep de Caluwé
    in I by IMD 9 December 2024
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts. In this final article in a series of three articles, Joep De Caluwé (EMB...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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