spotlight on even the smallest, most isolated problems, givingcompanies no place to hide.This report analyzes a responsible sourcing strategy to help JBS improve competitiveadvantage and business performance through implementation of sustainable initiatives intoits rural activities. JBSs strategic approach in the direction of sustainable development willrequire deeply organizational change, where innovation and culture play important roles.This paper focuses on contextual analyses to articulate vision and targets for thedevelopment and implementation of a strategy for JBS. The strategy will enable JBS torefocus its efforts and activities, engaging the right stakeholders in the process to mitigatethe impact that its business creates throughout the value chain.4IntroductionJBS SA is the largest Brazilian multinational food processing company. Founded in 1953,the company produces fresh, chilled, and processed beef, chicken and pork, also selling byproductsfrom the processing of these meats. With more than 120.000 employees andrevenue in excess of US$ 37 billion, the company leads the world in slaughter capacity, at51.4 thousand head per day, and continues focusing on production operations, processing,and export plants, worldwide (About Us 2013).With its products present in more than hundred countries around the world, JBS hasdedicated significant attention to operational efficiency, focused on environmentalsustainability and compliance along its value chain (Sustainability, present in al ouroperations, 2012). Notwithstanding, a more effective strategy seems needed to highlight thecompanys commitment to a long-term value creation for the society and stakeholders,extending its responsibility beyond its own operations and covering the entire chain of valueof its business.Following the principle that when embarking on a strategy formulation is fundamentalanalyzing the four dimensions that are connected to real-life strategic problem situations, i.e.strategy process, strategy content, strategy context and organizational purpose (De Witt &Meyer 2010), this report will use this 4D map of strategy, to permit a clear view of thedimensions interactivity and interconnectivity, yielding a deeper comprehension of thesituation.This report will first provide a comprehensive analysis of the facts around the sustainabilitychallenges faced by JBS. Then it will construct, based on the coursework literature, areflection on the development and implementation of a value creation strategy to help JBSmitigate risks and improve its environmental performance.5Contextual analysisConsidering that strategy context is the set of the existing conditions under which strategyprocess and strategy are defined (De Witt & Meyer 2010), this section analyzes JBSbusiness environment and sustainability challenges. Strategy context can be divided into twodifferent dimensions: industry versus organizations, and national versus international,suggesting three levels of contextual environments, that is, international, industry andorganizational (De Witt & Meyer 2010 p.11).International contextIn order to adapt and thrive in more and more complex and competitive environments,organizations are focusing on finding new ways to be more profitable, and as a resultcompanies are turning to apply innovative initiatives to explore new markets as a means tocreate more opportunities.Moreover, organizations are concentrating in reducing costs and maximizing operations byredefining operational strategies and sharing organizational wide understanding of risks tomitigate the negative effects that risks can cause to their business activities (Zsidisin et al2004). JBS as a global business must be attentive to the changes and trends in this context.Industry contextIn the food industry, where large organizations are more innovative, creating different