Climate change regulations pose significant challenges to firms that produce large volumes of carbon emissions. Accordingly, firms in the trade-exposed emission intensive industries are critical regulatory stakeholders. Following the Australian Government's ratification of the Kyoto Protocol in 2007, the proposed installation of an emission trading scheme is one of several business concerns as the government seeks to implement climate change policies and regulations. In this study, we investigate some of the major concerns that confront emission intensive businesses, and ask what the critical issues are for firms as a consequence of climate change policy implementation and what this means for their strategies. The study uses a concept mapping and analysis technique to reveal that future emission trading systems and business performance impacts resulting from emission reduction initiatives represent serious strategic concerns to stakeholder firms. Adaptable business strategies offer a potential solution to these perceived concerns and problems.

Recent climate change projections and a push towards a universal agreement on carbon emission reductions suggest that firms will need to respond to future regulatory changes. This paper employs an influencing strategies lens to examine how large-scale firms might respond to future climate change regulations. The study uses a structured qualitative methodology to explore and explicate the strategic responses from 21 international firms to the proposed emissions trading scheme outlined in Australia's Garnaut Climate Change Review. The results of the analysis show that firms can use pre-emptive influencing strategies in attempts to shape and mould regulatory design parameters, secure high levels of transitional economic support, and shift the balance of public policies and expenditure. Complementary defensive strategies may also target policy makers and regulators with some of the potential negative consequences of the new regulations.

This fifth edition of 'Strategic Management: Thinking, Analysis, Action' reflects the combination of the major thoughts I have had about the teaching and practice of strategy and strategic management over the 25 years I have been working in this area. This is the eighth major strategy textbook I have authored over that period. It reflects the stream of thinking of all its predecessors. I have tried to capture the developments that I have seen and experienced in my thinking, research and consulting, as well as to highlight those issues that will influence strategic thinking and practice in the future.