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Chapter 4

MGMT 3020 Chapter Notes - Chapter 4: Water Security, Water Cycle, Water Scarcity

Course Code
MGMT 3020
Davar Rezania

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Chapter 4 - Kurucz
Complex Global Issues as the Context for Value Creation:
Learning portfolio: Write a one-page synthesis of chapter 11 of Chandler and chapter 4 of
Kurucz et al. Relate concepts from both chapters, by November 6 (I.e., How can you use
CSR filter to address the global issues we face).
Global Challenges: population growth, growing water scarcity, threats to food security,
diminishing fossil derived energy resources, and changing climate.
Can’t be solved by a short term political solution
Multi-sector problems, and highly interdependent and complex
Key questions for managers:
How do we begin to apprehend the major forces at work in the full picture?
How do we formulate strategic intentions towards making things better and not worse
while staying in the business?
5 Major Systematic Drivers:
1. Population growth
2. Water scarcity
3. Food insecurity
4. Energy supply constraints
5. Climate change
Population Growth: The increase in each additional billion people on earth happened
rapidly, 1 billion in 1800, 2 billion in 1900, 4 billion in 1975, etc. Population is
determined by fertility and mortality; population grows when the rate of births exceeds
the rate of death.
In 1750 there was a population boom, which occurred because of things such as
technology (driven by cheap and abundant energy)
Almost all future population growth will happen in less developed parts of the
Fertility and mortality rates are driven by cultural, economic, technological,
political and environmental forces
Water Scarcity: The global food chain, water supplies and trading systems are rooted in
the water cycle. Water can be physically scarce, or economically scarce, and 2.5 billion
people do not have improved sanitation, and 1 billion don’t have access to clean water at
Of the available fresh water for humans, 70% is used for agriculture, 20% for
industry and 10% for municipal and other water supplies
Technical, cultural and socio-political issues and challenges, shortfalls of water
will bring the potential for conflict
Food insecurity: The number of people in surfeit and those in deprivation has never been
so many. Natural disasters, long-term conflict and weak governance all contribute to the
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