Explore every episode of the podcast HBR On Strategy

When Ferrari, the Italian luxury sports car manufacturer, committed to achieving carbon neutrality and to electrifying a large part of its car fleet, investors and employees applauded the new strategy. But among the company’s suppliers, the reaction was mixed. Many were nervous about how this shift would affect their bottom lines. Harvard Business School professor Raffaella Sadun and Ferrari CEO Benedetto Vigna discuss how Ferrari collaborated with suppliers to work toward achieving the company’s goal. They also explore how sustainability can be a catalyst for innovation in the case, “Ferrari: Shifting to Carbon Neutrality.”

While many teams and organizations engage in scenario planning, most don’t go far enough. Arjan Singh, consultant and adjunct professor at Southern Methodist University, says a more disciplined approach, borrowed from the military, can help leaders truly test how their strategies, operations, and tactics hold up against competitors, shifting market dynamics, and unexpected events. He’s helped hundreds of companies identify risks and find new ways to innovate by leading them through corporate war games, and he explains his process and results. Singh is the author of the book "Competitive Success: Building Winning Strategies with Corporate War Games."

Rafi Mohammed, founder of the consulting firm Culture of Profit, says a crisis or recession is not the time to panic and slash prices. He says leaders should instead reevaluate their pricing strategy—or develop one for the first time—to better respond to customers during the slump and keep them when the economy recovers. Since this conversation took place in 2020, the crisis you'll hear them referring to is—obviously—the Covid-19 pandemic. But these lessons apply well beyond that moment—to any period of economic instability. Mohammed shares examples of companies across a variety of industries that created effective price strategies in response to the Covid-19 pandemic. Mohammed is the author of "The 1% Windfall: How Successful Companies Use Price to Profit and Grow" and the recent HBR article, “Setting a Pricing Strategy Amid Ever-Changing Tariffs."

Climate change is causing severe weather, dangerously elevated temperatures, and water shortages around the world. Meanwhile, firms are struggling to reduce their carbon emissions while adapting their operations to these new conditions. To address both challenges at once, Harvard Business School professors Forest Reinhardt and Michael Toffel have proposed an unconventional path forward: learning from the climate change strategies of the U.S. Navy. They argue that the Navy’s scientific and sober view of the world’s changing climate offers insight that can also apply to the private sector. In this episode, you’ll learn how to balance mitigation activities in the shorter term with long-term investments that will help your organization adapt to future changes. You’ll also learn how climate change could shift demand in your markets and reshape shipping routes and affect your supply chains.