Recycling

February 5th, 2023

Advanced Micro Devices, Inc

Advanced Micro Devices, Inc. is ranked as the as the world”s second largest PC chipmaker with a market share of just 17%, far behind Intel Corp. with 81% of the market (Buckman and Williams 2001, 1). However, in 2000 AMD”s sales jumped 63% to $4.6 billion, producing $983 million in net income and its first profitable year since 1995 (Streetwalker 2001, 1).

AMD owns engineering, manufacturing, warehousing and administrative facilities where it produces not only PC chips but also microprocessors, memory circuits, logic circuits, flash memory devices, telecommunication products and embedded processors (Moody”s 2000, 2520). The company”s headquarters and research and development site are located in Sunnyvale, CA, while the wafer manufacturing plants are located in Austin, TX and Dresden, Germany. The test and assembly facilities are located in Bangkok, Thailand and Penang, Malaysia. The company has also established production at the Singapore”s test and assembly facility as well as an analysis and design plant in Suzhou, China. In addition, a new plant in Japan, a joint venture of AMD and Fujitsu, called AMD Fujitsu Semiconductor Ltd. or FASB, will begin operations in the first half of 2001 (Dum 2000, 2).

AMD, like many technological multinational enterprises (MNE), prefers to locate its factories and assembly plants in technology clusters in stable and democratic countries. However, AMD knows that East Asia is one of the best places for setting up factories because of cheap wages, stable countries, proximity to suppliers and potentially large markets. In fact, six out of AMD”s nine facilities are located in East Asia and employ approximately 5,600 people.

The company”s consolidated global position produces a very interesting case. This paper will analyze AMD”s international operations, competitors, alliances, legal problems, and its relationship with stakeholders. In addition, the recent meltdown in high-tech stocks and the reduction of PC sales are provoking the semiconductor industry to diversify its business. This analysis will consider the consequences of this problem and the resulting changes in AMD”s corporate business strategies.

The personal computer microprocessor market is considered a quasi-monopolistic market in which the largest corporate buyers such as Dell Computer Corp., Compaq Computer Corp., Hewlett Packard Co. and IBM Corp buy almost solely from Intel Corp. (Mathew 2001, 1). For this reason, AMD has had difficulty introducing its microprocessors into the market. For example, in January 1994, AMD and Compaq Computers Corp. formed an alliance in which AMD Am486 microprocessors would power Compaq computers (AMD 2001, 2).

Between 1994 and 2001 AMD was not able to convince another large PC vendor to buy its microprocessors. However, in January 2001 AMD got its first contract with a major PC vendor, Micron Electronics Inc., to supply the Athlon microprocessor for the Micro Electronics” ClientPro product line (Konicki 2001, 2). In the same month, AMD also contracted to supply and introduce its first version of the Duron microprocessor for laptops to NEC Corp., Japan (Duron chips for laptops, 2001, 1)

In addition, while Intel launched the Pentium IV at the end of 2000, AMD took advantage of the transition from Pentium III to IV to try to convince several of the largest corporate buyers, which were comparing the new Intel”s Pentium IV and AMD”s Athlon, to switch to AMD”s Athlon microprocessors. Although AMD could not change any of the corporate buyers” minds, the company did prove that the Athlon microprocessor is faster, more reliable and cheaper than Intel”s Pentium IV (Letters 2001, 3).

This failure was frustrating for AMD, but this is the price a firm has to pay when attempting to enter a competitor”s market. Clearly, Intel has the first-in advantage, although AMD has a better quality portfolio with a cheaper price. However, sooner or later this trend must change because Intel”s marketing cannot hide this reality. Some laboratories have tested both AMD Athlon and Intel Pentium IV and have concluded that while Intel”s Pentium IV is not worth what it costs, AMD”s Athlon costs what it is worth. Thus, AMD does not have to attract customers by resorting to rebates and discount programs, as Intel has to do. Another weapon Intel has is to cut processor prices.

In any case, Intel does not want to lose any market share, and AMD wants to get more, so the rivalry and price war will certainly continue this year. They both know that in competitive markets, a market share lost by one company is a market share gained by the competitor. As a result, both companies are preparing to compete with one another. In fact, both AMD and Intel have increased their capital spending for 2001 by about 20% to $1 billion and $7.5 billion respectively, although PC sales growth is expected to slip to 16.6% worldwide, down from 18.8% in 2000 (Hannon 2001, 1).

AMD realized that it must diversify in order to maintain its growth rate. The AMD and Fujitsu Ltd. venture, FASB, which includes joint technological development and production of flash memory for cellular handsets, is one way to diversify. Together AMD and Fujitsu have 30% market share of the flash memories sold for cell phones. However, in the short-term FASB will not be able to supply enough flash cards to get a larger percentage of the handset market because of capacity limitations. Therefore, in the year 2000 Fujitsu converted several of its own plants to serve strictly as factories for the joint venture. FASB is also pushing as hard as it can to begin production in its new mega plant in Japan, if possible before June 2001. The main competitor in this market is again Intel, which has about 60% of the market share, so another price war may soon begin (Dum 2000, 2).

Customers neither want to depend on only one supplier nor to contribute to Intel market dominance. They want to reduce the risk of insufficient supply of chips that occurred last year. Siemens is now buying flash-memory chips from both FASB and Intel (Accord is set… 2001, 1). Besides Siemens, Sun Microsystems Inc. also decided to buy microprocessors from both AMD and Intel for its Cobalt server (Robertson 2001, 3).

In this market war neither AMD nor Intel have ever been very interested in making collaborating. However, AMD has developed other collaborations with many related companies:

In 1987 AMD and Monolithic Memories Inc. agreed to merge.
As mentioned earlier, in 1993 AMD started a joint venture with Fujitsu Ltd., Japan.
AMD collaborated with LSI Logic Corp. and Texas Instruments Inc. to create integrated solutions for digital base band processors (Dum 2000, 2).
AMD, Dupont Inc., Motorola and Micron Technology Inc. are involved in a joint venture in Texas in which they research and develop photomask technology for future generation semiconductors (Chappell 2000, 1).
On February 14, 2001 AMD, stated that it will license technology to about 100 companies including Cisco Systems Inc., Nvidia Corp. and Fujitsu Ltd. The licenses do not charge a cash fee, but they swap intellectual property (New AMD system… 2001, 1).
AMD and Motorola have a strategic alliance to research the copper interconnect technology field.
At present, AMD is looking for a partner to build in 2004 its first 300-mm factory costing about $4 billion (Advanced Micro is seeking… 2001, 1).

The usual warfare between AMD and Intel never seems to change, but analysts expect both firms to begin to collaborate soon. The small semiconductor players are now creating partnerships to improve their positions in the market. In fact, the microprocessor industry accounts for a lot of different technologies that no one company can have in-house (Dum 2000, 3)

In the last quarter of 2000, sales of Duron, AMD”s low-cost processor, were not as strong because a chipset used with the microprocessor was not readily available. Therefore, AMD decided to plan for the future and began a two-year multimillion-dollar global SAP project to provide a just-in-time (JIT) inventory program. In addition, SAP tools such as financial, supply chain, production, logistics and e-business software, would give AMD and its suppliers and customers day to day information regarding the chipmaker”s production and supply chain. This project would benefit all three parties (AMD, suppliers and customers) by avoiding upturns and downturns in demand and supply (Konicki 2001, 2).

As a technological sector firm, AMD is also deeply involved with the latest technology. For example, the company”s internal website provides employees plenty of information not only for learning purposes but also for safety purposes, such as radiation control, chemical issues, hazardous energy control and waste management issues. In each of the company”s local sites, the firm uses the latest technology in both the production area and in the corporate offices.

Although in 1976 AMD and Intel signed a patent cross-license agreement, in the late 80s AMD initiated several arbitration actions against Intel (AMD 2001, 1). The reasons for these arbitrations were Intel”s quasi-monopolistic dominance of the microprocessor market and its unfair market behavior, as fact confirmed by many other companies. The most tedious arbitration action finished in February 1994 after five years of court disputes. The judge finally ruled against Intel and awarded AMD full rights to produce and sell the entire Am386 family of microprocessors (AMD 2001, 2). Besides another court case against Intel in 1994, AMD has never been in court again. Nevertheless, AMD continues to complain about Intel”s market behavior. For example, Intel pressured IBM to backtrack a notebook microprocessor order that IBM had already booked with AMD (Mathew 2001, 2). As a result, AMD lost the contract.

The Environmental, Health, and Safety (EHS) program provides a safe work place for employees, protects the environment, prevents damage to property, enhances employee morale and assures compliance with applicable laws and regulations worldwide. The program is disseminated from the main team to all AMD”s local sites. Then, local sites apply this information and provide different services to the stakeholders surrounding each site (AMD 1999, 1).

Another task of the EHS department is to obtain the (ISO) 14001 certification from the International Organization for Standardization. By the end of 1999, AMD”s Bangkok facility had already been certified. All other AMD manufacturing facilities are expecting to achieve this certification before the end of 2001. The (ISO) 14001 certification develops standard methodology to recognize, identify, evaluate and control hazards in the workplace. The emphasis of this effort is intended to internalize those standards throughout the firm because they have not existed in the past. These standards are one way to improve the moral and physical well being of the workforce.

The safety and health policy focuses on reducing occupational injury and illness rates company-wide. To achieve this goal, each local facility must establish:

Engineering controls and tests such as leak detection, air monitoring and fire detection systems.
Emergency preparedness plans to learn what to do in case of fire, hazardous material release, earthquake and other natural disasters. .
Education empowerment at all personnel levels through the internal website and seminars.

Moreover, AMD offers additional services in different sites such as:

The Employee Development Center (EDC) in Bangkok, Thailand and Penang, China which has exercise rooms, fitness programs and relaxation rooms.
The Repetitive Motion Injury (RMI) in Sunnyvale, CA specializes in adjusting the furniture and equipment to the needs of each individual at his or her workstation (AMD 1999, 17).

The safety and health policy has had excellent results considering that in recent years less than three injury and illness cases out of every 100 employees have been reported.

In the globalization era, AMD has to adapt to different cultural environments and incorporate different cultures in the organization. AMD operates in four continents, so its work force is a mix of people, cultures and customs. One can find an American working in a Singapore assembly plant or a Bolivian working in a factory in Dresden, Germany. This diversity creates an atmosphere of synergy and creativity that encourages every employee to do his or her best.

The mix of cultures also facilitates the international communication between AMD”s locations, suppliers and customers. Under the universal employment policy and procedures that govern AMD”s practices worldwide, discrimination is not welcomed. Job applicants do not need to be concerned about age, color, ancestry, disability, religion, gender, sexual orientation, marital status or national origin (AMD 1999, 1). AMD also cares about employee morale and respect for individuals as well as individual”s values.

The environmental policy is an important part of AMD”s EHS program performance. The firm focuses on multimedia pollution prevention and resource conservation. In the last couple of years the firm has not only reduced the amount of hazardous waste generation, electricity use and water consumption but also has enhanced a successful reuse and recycling program. To illustrate, in 1999, at the Dresden factory, its own energy center was able to generate more than 100% of the power the factory consumed. At the same time, the Dresden water recycling plant recycled 20% of the consumed water (AMD 1999, 10).

Because of these and many other environmental accomplishments, AMD”s local sites have received several awards. The state of California has awarded AMD headquarters for its commitment to solid waste reduction and recycling programs for five consecutive years. The city of Austin, TX awarded AMD for its excellent compliance with wastewater treatment regulations.

AMD”s globalization emphasis has made it possible to begin building supply chain environmental management. To accomplish this project, the AMD EHS department evaluates the worldwide chemical suppliers” EHS program and collects this information to select and evaluate existing suppliers.

As AMD evaluates its suppliers, third-party firms also evaluate and audit AMD local sites. Six of the firm”s local sites that have been inspected, usually by local government environmental agencies, have not received any citations or violations. However, AMD headquarters has been inspected 13 times between 1996 and 1999. This location has received five citations related to labeling of hazardous waste. Two other sites that were inspected and received citations were the Suzhou assembly plant because of two releases of diesel fuel and the Dresden plant because of a phosphoric acid release (AMD 1999, 9-18). AMD resolved all issues to the satisfaction of the regulatory agencies without any fines.

AMD has been committed to the communities in which it operates. The firm has also been a responsible and good neighbor that has involved the local communities in its corporate contribution programs. Some of the most important contributions done in 1999 directly by the AMD headquarters were; first, a cash gift of one percent of pretax profits to nonprofit agencies and schools that serve the communities where AMD operates and second, $1 million to the Taiwanese government because of the September 21st earthquake. On the other hand, each site contributes to its own community in different ways.

For example, in 1999 AMD”s Bangkok site donated 200 computers to the community and cash to the Red Cross of Thailand to support a project that helps mothers with the AIDS virus. AMD Sunnyvale donated $600,000 to organizations and schools in the Sunnyvale area. In addition to financial donations, AMD”s workforce also participates in volunteer opportunities. Some examples are AMD”s Penang employees” blood donations to the Blood Bank Hospital of Penang and AMD”s Dresden EHS personnel factory tours and the monitoring of ecological projects with local schools (AMD 1999, 10-18).

This analysis has attempted to prove that AMD has an efficient mechanism to run a global business. The firm not only was able to become a profitable company in the fourth quarter of 2000 but also proved that it can gain more market share from all the markets in which it does business. Moreover, AMD has been a good neighbor to the communities in which it functions, satisfying many stakeholders” desires. AMD”s positive overall performance assures the company a bright path for future growth in the global economy.

February 4th, 2023

Tccc Business Strategy

This report is centered on research of The Coca Cola Company (Global) in the carbonated beverage market. Various methods and models of analysis were used in examining the company’s market position and determining its strategic competitive advantage. The Pestel model and Porter’s five forces model was used to identify the company’s opportunities and threats. The barriers to entry in the carbonated beverage market are really high which means that the threat of other companies successfully entering into the industry is low and this has been a big advantage for the company.

Brand loyalty is another. People today in general are becoming increasingly aware of a healthier lifestyle in light of new information regarding nutrition and this has been a major threat to the company and the market in general. The Company’s strategic competitive advantage stems from its three main core competences. The manufacture and distribution system of its beverages (products), branding through marketing campaigns and the innovative nature of the company in its market are all major strengths.

One thing special about the company is that it uses its resources in a way unique to its competitors and consumers see value in their product. The Coca Cola Company understands the clout of their stakeholders and they have set their strategic objectives to meet their individual demands. This message has been firmly implanted in the company’s mission statement. Coca cola competes on the basis of value added for customers. People will pay the premium over lesser brands for the coca cola product and this may be why they have chosen (from Porters model) a differentiation strategy.

This has paid off for them. Their manufacturing and distribution system has been an effective business level strategy. The Coca Cola Company and its bottlers can work together to determine local responsiveness and produce products that best suit the local tastes in that particular geographical area. Amongst other business level strategies these two would have to be the most effective. The companies structure and systems lend there hands to the successful implementation of their planning. Without which it might not have its position within the carbonated beverage market today.

Strategic Analysis External Analysis We looked at the external environment of the carbonated beverage industry using the pestel model and Porter’s five forces model to find the key trends or influences on the industry. People today in general are becoming increasingly aware of a healthier lifestyle in light of new information regarding nutrition. People are trying to eat and drink a lot healthier and as a result there has been an increase in market demand for drinks such as orange juice, water, and other healthier alternatives. This was once a threat to the business of The Coca – Cola Company.

Instead they eliminated this threat through product diversification. As you may have seen The Coca – Cola Company has a product from most drink categories. The barriers to entry in the carbonated beverage market are really high which means that the threat of other companies successfully entering into the industry is low. Virgin once tried to enter into the industry with Virgin Cola and was unsuccessful because Coke and Pepsi were already too strong. The Coca Cola Company has already well established brand awareness and distribution channels and the production costs are also substantial in the industry.

Creating brand awareness and achieving market acceptance is a very costly procedure, extensive market research needs to be undertaken to understand local tastes and preferences. The Coca Cola Company has arrangements with certain Fountain Outlets (MacDonald’s and Subway) who are contractually obliged to distribute only their drink product. There are many other fountain outlets that have existing contracts with one of the soft drink companies and this makes it harder for new entrants. The large quantity of marketing and propaganda has lead to increased brand loyalty and is a major strength for the Coca Cola Company.

It has also lead to the brand Coca Cola being perceived as the premium Cola drink. The dominance of Coca Cola can be seen by the failure of the drink Virgin Cola. Because of the limited size of the market, the growth in market share of one brand will result in the decrease of another. The Coca – Cola Company has used the large amount of resources at their disposal to wage competitive war on PepsiCo and other brands and results have shown that they have come out on top. One of the major strengths of The Coca – Cola Company is its sheer size in the industry because of which it can effectively utilize economies of scale.

TCCC concentration is on marketing the brand, new product development, researching future venture opportunities and warding off competition. Their operations take place in a very dynamic environment and therefore innovation is vital to their success. Internal Analysis The company as the leading brand of carbonated beverages has a number of core competencies which it utilizes to give it its strategic competitive advantage (SCA) in the market. The manufacture and distribution of non alcoholic beverages The process of manufacture and distribution of Coca Cola products is unique to the industry.

The Coca Cola Company has different bottling partners throughout the globe which manufacture and bottle the final product which the end consumer ultimately receives. The Coca Cola Company produces the concentrates and syrups of the products itself and then sells the rights to manufacture the products to its bottling partners. They do not control the policies and programs of these bottling partners, but they do have mutual self-interests and therefore work together to find common ground and take common action in many areas.

Through this system they can effectively devise the appropriate strategy for responding to the needs of the local environment. Branding through marketing campaigns The Coca Cola Company has put a lot of emphasis over the years on creating and maintaining its brand name through large scale marketing campaigns. They have effectively used their resources to build a brand that is unique and known on a large scale throughout the world for its quality. This has led to a brand loyalty factor. Innovation: Product, packaging, equipment and marketing Coca Cola is always bringing out new carbonated beverages.

Through the use of its resources and technology, it has led the innovation of new, improved, and different soft drinks around the world. A recent example of this from Coca Cola is “Jianchi” meaning strong inner energy in Chinese, the drink, made with fruit juices and plant extracts and available in three flavors is inspired by ancient Chinese wisdom to enhance the inner balance. The Coca Cola Company has invented a bottle which is made from a blend of petroleum-based materials and up to 30 percent plant-based materials named the ‘plant bottle’. It is a significant development in sustainable packaging innovation.

The new bottle reduces carbon emissions by up to 25 percent, compared with petroleum-based PET, and is 100% recyclable. “The Coca-Cola Company is the first company to introduce a beverage bottle made with recycled plastic has been focused on ensuring the sustainability of its packaging for decades. It has put resources behind creating packaging that is recyclable and investing in recycling infrastructure to ensure that its packages are collected, recycled and re-used”. The Company has built the world’s largest recycling plant with the ambition of reducing costs and the amount of materials in their packaging through recycling.

The packaging being lighter will also reduce the cost of fuel on delivery etc. To increase the market for recycled materials, The Coca Cola Company has also released a line of merchandise which is made from 100% recycled material. Overall the innovation of recycled packaging will reduce costs, prevent waste and maximize value over the life of the product and inadvertently adding value to the Coca Cola brand. Coca Cola won the Gold lion in the point of sale category at the 2009 Cannes lion’s international advertising festival with the “video vendor” being the latest innovation in vending machines.

The strategic objectives of The Coca Cola Company are in alignment with the demands of each of its stakeholders. Its strategic objectives are firmly bound within its mission statement showing their commitment to upholding their responsibilities to meeting the demands of all possible stakeholders. Key Strategies – Current Using Ansoff’s product / market strategies model it can be determined that The Coca Cola Company is pursuing a product development / diversification strategy. This means that their aim is to keep distributing new products into the same existing market as well as look for opportunities in new markets. An example is the release of Jianchi a new product made from fruit juices and plant extracts.

Miles and Snow’s adaptive strategies model reveals that the company is in the prospector / defender position in the market. The company is a prospector leading change in the industry through creating new products and identifying new opportunities in the market place. High innovation is key in the prospector business strategy. However it could be said that it is a defender as well in terms of the original coca cola product and its position in the Cola market. They are defending vigorously focusing on high quality and creating barriers to entry. Their position on strategy is characterized by stable growth, profits, efficiency and flexibility in a dynamic environment. Their business structure is flat / loose and authority is decentralized within the organization.

The high level of innovation can be seen through the company’s marketing at a functional level with the recent release of the new four and a half minute Music Video released by The Coca Cola Company titled – “open Happiness” which has taken marketing in the carbonated beverage industry to a new level. Coca cola competes on the basis of value added for customers. People will pay the premium over lesser brands for the coca cola product and this may be why they have chosen (from Porters model) a differentiation strategy. In the past the company has focused cost leadership however this sometimes leads to lowered market entry barriers this has led them to a differentiation strategy and a focus on pervasive penetration, preference and price related value.

Due to economies of scale Coca Cola has the opportunity to be a low cost provider and undercut Pepsi’s prices but from what we can see it chooses the differentiation strategy and distributes its products at a premium. A possible reason why they may not have chosen a cost leadership strategy is that it can generally be seen as a weak competitive advantage. Competitors may undercut you and it is easily emulated as well as difficult to sustain over time. In order to differentiate from the conventional Coke product, The Coca Cola Company has produced / innovated other such products as cherry coke, vanilla coke and diet coke and it has undertaken competitive marketing against such companies as PepsiCo and Cadbury / Schweppes to advertise how their products are so different and better in quality.

The Coca Cola Company has employed a strategy which closely resembles a multidomestic strategy. A multidomestic strategy is characterized as being “orientated towards local responsiveness”, establishing “semiautonomous national units in each country in which it operates to produce and customize products to local markets”. It does this in a unique way in collaboration with its bottling. Together The Coca Cola Company and all its bottlers form one system called The Coca Cola System. The benefit of this strategy is that The Coca Cola Company and its bottlers can work together to determine local responsiveness and produce products that best suit the local tastes in that particular geographical area.

We have seen this strategy in action with the introduction of the Coca Cola equivalent of red bull being “Mother” the energy drink being release certain regions but not others. Strategic Implementation; General Perspective Evidence of unrealized strategy The Coca Cola Company was set for the acquisition of the Huiyuan Juice business in China around March earlier this year, which looked to agree with their product development / diversification and differentiation strategy. Unfortunately the Chinese Ministry of Commerce (MOC) decided to decline approval for the proposed purchase. Coke released a statement saying: “We will now focus all of our energies and expertise on growing our existing brands and continuing to innovate with new brands, including in the juice segment. ”

The innovation of one of their newest products – “Jianchi” came approximately around this time. Apart from minor setbacks such as the failure of the Chinese juice company merger and acquisition, the coca cola company has implemented its strategies of diversification and differentiation well and this can be seen in the popularity of their products and their prosperous position in the carbonated beverage market. Key Strategic Implementation Issues Using the Mckinsey 7’s’ model we found that the three major strategic implementation issues that confront The Coca Cola Company is structure, style and systems. Structure The Coca Cola Company has in the past gone through major restructuring of its organization.

It has cut out various levels and moved to a more multi-domestic structure. A couple of years ago they restructured their operations in both North America and internationally. “Not to save pennies but to simplify decision making and expedite the speed in which we can execute”. To this day they continue to refine their business structure. In June 2009 they integrated three core functions for a new business structure: Global Business Services, Global Information Technology and Transformational productivity. This will allow the company to deliver services that are highly dependent on technology and standardized processes to its business units in a more effective and efficient way. Style

Amongst the list of The Coca Cola Company’s seven “values” includes integrity and accountability. Muhtar Kent the current CEO of the company was caught betting against the company’s stock allegedly based on insider information then claimed not to know that his actions were illegal. This does not constitute good leadership and could however be classified as an implementation issue for the company. The style of leadership a CEO shows can have a massive effect on the shared values or culture of an organization. So far there are no further signs of further situations like the one described above by the CEO and the company is continuing to improve. The signs point towards Muhtar Kent redeeming his reputation in the company. Systems

The Coca Cola Company has the largest beverage distribution service in the world. With close to 1. 6 billion servings a day consumed in over 200 countries, The Coca Cola Company has had to develop effective and efficient system to cope with the magnitude of the business. Systems are as important to The Coca Cola Company as they are to any business. The distribution system of their products is unlike any other in the industry. It ties in with their business structure closely resembling a multi-domestic organizational structure. The Coca-Cola Company frequently utilizes promotional merchandise to connect consumers with its brands. It is critical that all such merchandise make a positive impression upon consumers.

It is important that they monitor quality control not just for their concentrates and syrups but also on their promotional merchandise. The organization of The Coca Cola Company comprises many systems which enable the company to run smoothly. It takes strong successful systems for a company to survive and they can also give a company its strategic competitive advantage. However they must also be monitored and evaluated. TCCC has a triple bottom line approach to reporting and they utilize the balanced scorecard to achieve this. Evaluation of Strategy – Current / Future Efficient evaluation has been implemented through a triple bottom line reporting approach.

February 4th, 2023

Production and Operation Managemne, Case of Mcdonald

This paper aims at examining the use of teams in production and operations management. Boone and Kurtz (2011) reported that ’’the purpose of production and operations management is to oversee the application of people and machinery in converting materials into finished goods and services’’ (p. 356). Dr. Deming has developed fourteen principles for production and operations management, originally presented in Out of the Crisis, that serve as management guidelines. Organizations that follow that guideline should have more efficient workplace, higher profits, and increased productivity. According to Zupanc ( 2007) ,Dr.

Deming’s principles are: Create constancy of purpose, Adopt the new philosophy, cease inspection and require evidence,End the practice of awarding business on the basis of price tag, Improve constantly and forever the system and of production and service , Institute training on the job , Institute leadership , Drive out fear , Break down barriers between departments , Eliminate slogans, exhortations, and targets for the work force , Eliminate work standards (quotas) on the factory floor , Remove barriers to pride of workmanship , Institute a vigorous program of education and self-improvement, Everyone must undergo transformation continuously and indefinitely. (Total Quality Management, para. 5). This paper will focus on Dr. Deming 9th principle. He has advised his client to:’’ break down barriers between departments and staff area’’. In other words, he is encouraging organizations to use team work in production and operations management. It is very important for a company to use team work. Most organizations divide themselves to several departments so that work would end faster upon splitting up and distributing to several departments.

This takes the organization to better management in quality and also other profit with better planning. Thesis Statement: In discussing the use of team work in production and operation management, we shall start by describing a major global corporation ( McDonald) , next we shall describe its production or operations management, then we will describe and evaluate the company’s use of teams in production and operations management, and finally we will analyze and evaluate the company’s ability to adjust to a major economic, environmental, or natural crisis (such as the real estate crash, financial crisis, nuclear meltdown, hurricane, flood, oil spill, etc. and communicate effectively with their employees and customers about issues caused by the crisis 1. Describe a major global corporation: (1) a leading manufacturer or (2) a major retail or restaurant business. Describe the type of business, market share, financials, size, and global presence. McDonald’s is the world’s #1 fast-food company by sales, with more than 32,500 restaurants serving burgers and fries in 117 countries. (McDonald Corporation , 2009). Svoboda (2007) argued that, in 1991, McDonald owned $13 billion of the $93 billion fast food industry. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets.

Most of the outlets are free-standing units offering dine-in and drive-through service, but McDonald’s also has many eateries located in airports, retail areas, and other high-traffic locations. About 80% of the restaurants are run by franchisees or affiliates (p. 1). The sales increased by 5% in 2010, Operating income grew by 9% and the company is continuing to gain market share around the world. In addition, McDonald has returned $5. 1 billion to shareholders through share repurchases and dividends paid, and has provided a 27% return to investors for the year, ranking it third among the companies comprising the Dow Jones Industrial Average (McDonald, 2011). 2.

Describe the company’s production or operations management. Operations management can be defined as the planning, scheduling, and control of the activities that transform inputs into finished goods and services (Sloan School of management, 2009). Production and operation managers oversee the work of people and machinery to convert inputs into finished goods and services. Boone and Kurtz (2011) argued that operation managers execute four majors task, first they plan the overall production process, next they determine the best layout for the firm facilities, then they implement the production plan, and finally they control the manufacturing process to maintain the highest possible quality( p . 365).

The following paragraphs will have a look at how McDonald executes those four major operation management tasks. PRODUCT PLANNING: Production planning begins by choosing what goods or services to offer to customers. The main operation In McDonald’s Restaurants is product planning. In order to meet the needs of the customers, that are constantly changing, McDonald has to keep on adding new products to its menu. For instance, the increasing preference of consumers towards healthy food made the restaurant add healthier food items to its menu. Similarly it has to add new products for different seasons, for examples hot coffee in winter and milkshakes in summer. LAYOUT DESIGN:

Boone and Kurtz (2011) believed that an efficient facility layout can reduce material handling, decrease cost, and improve product flow through facility layout (p. 366). In McDonalds Restaurant layout designing is a very important operation. A proper layout of the equipment in the kitchen is very essential to ensure preparation of quality food in less time. It also designs its layout keeping in mind the health and safety issues. McDonald layoutis design in such a way that needs of supervision is minimised. McDonalds also sets its premises in proper manner to handle any number of customers easily. The building design is standard worldwide but it may be havesome difference in size or in exterior according to the location.

It enables them tosave time, satisfy their customers, comfortable environment for both employees and customers. McDonalds uses the same interior pattern as it’s used internationally. Itmay vary according to the premises size (Gondal, 2008, p. 8). IMPLEMENTING THE PRODUCTION PLAN: After planning the production process and determining the best layout. Organization starts implementing the production plan. According to Boone and Kurtz (2011), this activity involves; selecting the best suppliers, and controlling inventor (p. 367). Selecting best suppliers: When an organization has decided what input to purchase, it must choose the best vendors for it needs.

Their choice of a vendor will be based on the quality, the price, the delivery, and the services offered. The McDonald’s supply chain is a complex web of direct and indirect suppliers. It manages this complex system by working with direct suppliers who share their values and their vision for sustainable supply. McDonald holds them to clear standards for quality, safety, efficiency and sustainability (McDonald, 2010). It expects them to extend those requirements to their suppliers. McDonald also partner with them to identify, understand and address industry-wide sustainability challenges and achieve continuous improvement. Svoboda (2007) argued that, McDonald often holds seminars and conference for suppliers to discuss their need (p. 3).

Overall, McDonald’s and its suppliers are collectively focused on three responsibility areas: ethical, environmental and economic. Controlling Inventory According to Boone and Kurtz (2011) , production and operations managers’ responsibility for inventory control require them to balance the need to keep stocks on hand to meet the demand against the costs of carrying inventory ( p . 369 ). At McDonalds the inventory is managed on the basis of First-In-First-Out basis. This is because most of the inventory consists of perishable items. Therefore delivery of inventory happens twice or more times a week depending on the business of the restaurant.

Moreover inventory is stored in freezer with proper packaging so as to ensure freshness of the food items. All this activities comes under inventory management of the organisation. According to Kennon (2007), between 1999 and 2000, McDonald’s had an inventory turn rate of 96. 1549, incredible for even a high-turn industry such as fast food. This means that every 3. 79 days, McDonald’s goes through its entire inventory. By tying up as little capital as possible in inventory, McDonald’s can use the cash on hand to open more stores, increase its advertising budget, or buy back shares. It eases the strain on cash flow considerably, allowing management much more flexibility in planning for the long term (McDonald vs. Wendy’s, para. ) Just in time system seek to eliminate anything that does not add value in operations activities by providing the right part at the right place at just the right time (Boone and Kurtz, 2011, p. 370). McDonald’s is also uses JIT system in the sense that it doesn’t begin to cook its orders until a customer has placed a specific order. CONTROLLING THE PRODUCTION PROCESS: The final task of production and operation management is controlling the production process to maintain the highest possible quality. McDonalds put an emphasis on themaintenance of the product quality, the human resources used within the organization, its location and layout designs. They train their employees of all departments regarding their job, so they can handletheir customer and work as well which helps to maintain their status quotas (Gondal, 2008, p. 10).

McDonalds is among the companies which are partially involved in the production of goods and services, so a proper maintenance system within the organization strengthens the goodwill and reputation. In McDonalds restaurant , the operations manager develop and establishes the process of cooking food items so that food is prepared using that method which helps them to maintain the speed and the quality of the food. Moreover it also designs processes so that the health, safety and hygiene issues are taken into consideration. Also the managers keep on introducing latest equipment’s with the advancement of technology so as to bring pace, perfection and quality in the product.

Overall operations management is very important for any organisations; it contributes to the strategy and therefore helps the organisation to gain competitive advantage. 3. Describe and evaluate the company’s use of teams in production and operations management. A team is a group of people with complementary skills who are committed to a common purpose, approach, and set of performance goal (Boone and Kurtz, 2011, p. 329). A good team is said to be one where the whole of the team is greater than the sum of its parts; and this signifies that the team members are working in teamwork with each other. Many teams have worked together and the output has been lesser than teams made up of less intelligent minds.

So while a team does move towards a common goal, how well it achieves this goal depends solely on how well the team members work in collaboration with each other. According to Goldman (2008), McDonald’s owes is success to its team functionality rather than the efforts of one individual. McDonald’s does not have very highly integrated teamwork, but they would be unable to deliver their products and service without sufficient team unity and cooperation (Observation of Leadership, para . 5). Team members have one area that they focus on during their shift. If they leave their post or are not productive, other line members will not be able to accomplish their jobs and the production line will suffer.

For example, when a customer enters the restaurant places an order with the cashier, the later inputs the order into the computer and the information is displayed in the kitchen at the sandwich and grill stations. The grill worker prepares the meat and then places the burger on a bun. The sandwich maker then assembles the sandwich according to the type of sandwich and any additional requests the customer has. If the sandwich maker leaves his post, another worker has to cover for him or the entire product delivery process shuts down. Without everyone working together and having sufficient motivation to provide good and quick quality service, all members of the team fail.

As a result of one person losing motivation or failing to adequately perform his duties, customers may complain and business can be lost. Even though most employees are trained to perform multiple tasks at various stations, they are not usually able to perform all of these tasks simultaneously. 4. Analyze and evaluate the company’s ability to adjust to a major economic, environmental, or natural crisis (such as the real estate crash, financial crisis, nuclear meltdown, hurricane, flood, oil spill, etc. ) and communicate effectively with their employees and customers about issues caused by the crisis. Every major corporation faces external and internal challenges. External challenges faced by organizations can be economic, environmental, or natural.

We will take a look at the environmental challenges that McDonald has encountered and how it has been able to find solutions to those challenges. Svoboda (2007) argued that, in 1989 McDonald was facing environmental protests in the form of demonstrations, letters, and customers mailing their polystyrene clamshells back to the company. In order to take care of those protest McDonald stepped up its recycling effort by creating a joint task force with the Environmental Defense Fund (EDF) (p . 5 ). Developing a strong company-wide environmental policy, declaring that McDonald is committed to protecting the environment for future generation, was one of the first result of the task force.

McDonald has also been active in educating its customers about the company’s environmental activities and positions. There are brochures available in restaurants informing customers about McDonald position on such as ozone depletion, the rain forest, and packaging. McDonald has realized that in order to achieve its waste reduction goals, it must collaborate with its suppliers. In order to promote collaboration McDonald has developed an annual environmental conference intended to train suppliers and has included environmental issues in its annual supplier reviews and evaluations. According to Svoboda the following initiatives were proposed by the task force and had since been followed by McDonald: Source Reduction, Reuse, Recycling, and composting.

Section 40196 of the California Public Resources Code defines source reduction as any action which causes a net reduction in the generation of solid waste. “Source Reduction” includes, but is not limited to, reducing the use of non-recyclable materials, replacing disposable materials and products with reusable materials and products, reducing packaging, reducing the amount of yard wastes generated, establishing garbage rate structures with incentives to reduce the amount of wastes that generators produce, and increasing the efficiency of the use of paper, cardboard, glass, metal, plastic, and other materials (Department of Resources Recycling and Recovery, 2010 ) .

Over the past twenty years , McDonald has made substantial progress in its source reduction efforts. Svoboda (2007) believed that, McDonald’s “average meal” in the 1970s — a Big Mac, fries and a shake — required 46 grams of packaging. Today, it requires 25 grams, a 46 percent reduction. McDonald’s has also reduced the weight of packaging in its sandwich wraps, hot cups, and napkins, removed corrugated dividers in some shipping cases, and switched to bulk containers wherever possible ( p . 4 ) . Re-use is using an object or material again, either for its original purpose or for a similar purpose, without significantly altering the physical form of the object or material (Department of Resources Recycling and Recovery, 2010).

McDonald reuse options include the reuse of plastic (rather than cardboard) disposables, shipping trays for bakery items, and plastic shipping pallets that last at least three times longer than wooden pallets (Svoboda, 2007, p. 5). Recycling can be defined as using waste as material to manufacture a new product. Recycling involves altering the physical form of an object or material and making a new object from the altered material. McDonald’s tries to use recycled materials whenever possible . According to Svoboda (2007), in April 1990, McDonald’s announced the McRecycle Program, a commitment to spend $100 million annually on the use of recycled materials, especially in the building and renovation of its restaurants. In 1991, it surpassed its goal, purchasing more than $200 million of recycled materials (p. 6).

McDonald’s continued to work with suppliers to develop packaging that was consistent with curbside recycling programs, to support the recycling of material that leaves the restaurant via takeout orders. Composting is the biological decomposition of organic materials such as leaves, grass clippings, brush, and food waste into a soil amendment. Almost 50 percent of McDonald’s waste stream consists of paper packaging and food organics that could be composted. McDonald’s is reviewing the compostability of its packaging and studying materials such as the coatings used on its paper-based packaging to determine if they impair compostability. Where possible, it will replace materials that are not compostable with materials designed for compostability. Conclusion

This paper has discussed the use of team work in production and operation management, we started by describing a major global corporation ( McDonald) , next described Macdonald’s production or operations management, then described and evaluate the MacDonald’s use of teams in production and operations management, and finally we analyzed and evaluate the McDonald’s ability to adjust to a major economic, environmental, or natural crisis (such as the real estate crash, financial crisis, nuclear meltdown, hurricane, flood, oil spill, etc. ) and communicate effectively with their employees and customers about issues caused by the crisis. References Department of Resources, Recycling and Recovery. (2010). Waste Prevention Terms and Definitions.

Retrieved from Department of Resources, Recycling and Recovery website: http://www. calrecycle. ca. gov/reducewaste/define. htm Goldman. E. (2008, November) . Observation of Leadership ; Organizational Behavior at McDonald’s. Retrieved from: http://www. ericgoldman. name/non-technical/28-leadership/34-observation-of-leadership-a-organizational-behavior-at-mcdonalds Gondal. N. (2008). Operation Management Strategies ; Total Quality Management Strategies . Retrieved from: http://www. scribd. com/doc/17407126/POM-REPORT-on-McDonalds McDonald Corporation. ( n. d. ) . McDonald’s 2010 annual report . Retrieved from http://www. aboutmcdonalds. com/etc/medialib/aboutMcDonalds/investor_relations3. Par. 56096. File. at/2010%20Annual%20Report%20(print). pdf Kennon . J. (2007). McDonald’s vs. Wendy’s – A Case Study in Inventory on the Balance Sheet . Retrieved from: http://beginnersinvest. about. com/od/analyzingabalancesheet/a/mcdonalds-vs-wendys. htm Zupanc . H . ( 2007 ) . Total quality management. Retrieved from: http://www. qualitysolutions. ca/tqm. htm Sloan school of Management. ( n . d . ) What is operation management? Retrieved from the Sloan school of management website :http://sloan. mit. edu/omg/om-definition. php Svoboda . S . ( 2007 ). McDonald’s environment strategy. Retrieved from: http://www. umich. edu/~nppcpub/resources/compendia/CORPpdfs/CORPcaseA. pdf

February 4th, 2023

Sustainability Practices In The Turkish Construction Sector Environmental Sciences Essay

Abstract. The Turkish building services bunch is the thirteenth largest in the universe in footings of exports and has demonstrated really high growing of 63 % in international projects. Katsarakis et Al ( 2007 ) split this bunch into two parts and call them as the lower-quality domestic-only set of houses and the higher choice international houses. On the domestic side, there are more than 30,000 active local houses ( TCA, 2009 ) . On the international houses ‘ side, there are over 140 houses, 23 of which are among the 225 largest building companies worldwide in footings of abroad activities per ENR 2008 listing. This degree of activity, peculiarly the international activity, places upon the Turkish building bunch a duty to guarantee good working conditions for all its employees and to play a polar function in continuing the environment, extenuating bing polluted countries, salvaging natural resources such as H2O, energy and natural stuffs. This paper examines, through a literature survey, the current degree of sustainability apprehension in the Turkish building sector. The survey concludes that the degree of sustainability apprehension and hence its execution is unstructured, bit-by-bit, and inappropriate for the prima regional function that the Turkish building bunch will play. The paper concludes that a more holistic attack is required, which will necessitate political policy and larning from best pattern from other states and immensely increased instruction and preparation in the constructs of sustainability.

Keywords: Construction bunch, policy, scheme, Sustainability, Turkey

1. Introduction

Sustainability is more and more going a cardinal concern of every person. It is a concern that has grown out of a wider acknowledgment that lifting populations and economic development are endangering a progressive debasement of the Earth ‘s resources per CIOB ( 2009 ) . The building, care and usage of edifices have significant impact on our environment and are presently lending significantly to irreversible alterations in the universe ‘s clime, atmosphere and ecosystem.

Endeavoring for sustainability is a uninterrupted procedure of alteration. The building industry is confronting ever-increasing demands to better its sustainability public presentation. Sustainable development applies at the political and macro economic degree to communities. The clients and stakeholders of the building industry demand betterments of its patterns and its public image. Karacay ( 2003 ) stated that the epoch of “ more production-more ingestion ” is over and a great trade of accent should be to sustainability for uninterrupted sustainable economical growing and development.

Sustainable building is a manner for the building industry to travel towards accomplishing sustainable development, taking into history environmental, socio-economic and cultural issues. Specifically, it involves issues such as design and direction of edifices, stuffs and edifice public presentation, energy and resource ingestion – within the larger orbit of urban development and direction.

In this paper, sustainability of the substructure undertakings will be concentrated on. Recent publications related to sustainable building in the context of Private Finance Initiative ( PFI ) route undertakings ( AkbA±yA±klA± & A ; Eaton, ( 2009a and B ) ) and sustainable substructure developments in the instance of Public-Private Partnership ( PPP ) ( Eaton & A ; AkbA±yA±klA± , ( 2008 ) ) are available.

2. Sustainability

Sustainability, as stated by Werbach ( 2009 ) , is more than “ green ” ; it is concern agencies, above all, guaranting that the concern thrives in the long term and takes into history every dimension of the concern environment. Sustainability is the concern with long-run profitableness. Sustainability needs a scheme behind that includes all the supply concatenation, top direction engagement and support ; and it relates all the concern organisation. We are in an epoch that the Nature and the equilibrium in the Nature that will govern and regulate the developments in our industry. We will be concerned more than of all time in the value adding in the building concern that will be a combination between sustainability ( societal, economic, environmental and cultural ) , efficiency and effectivity. In Werbach ‘s ( 2009 ) words, “ Until the 1980 ‘s concern leaders used the word sustainability to intend a company ‘s ability to increase its net incomes steadily ( Werbach, 2009 ) .

Sustainability represents the best technology attack of all – the acknowledgment that no undertaking exists in a vacuity, but in a societal and natural context that affects the undertaking and is affected by it in bend. If we take this holistic position of technology, which involves esteeming the natural and human environment in the design, building and operation of our undertakings, we find distinguishable benefits in footings of quality, proficient inventions, and long-run societal, economic and environmental returns ( Tanal ( 2004 ) ) . Harmonizing to Werbach ( 2009 ) , a sustainable concern means a concern that can boom in the long term.

Brundtland Report ( 1987 ) , besides known as Our Common Future, alerted the universe to the urgency of doing advancement toward economic development that could be sustained without consuming natural resources or harming the environment. The study was published by an international group of politicians, civil retainers and experts on the environment and development, and provided a cardinal statement on sustainable development specifying it as “ development that meets the demands of the present without compromising the ability of future coevalss to run into their ain demands ” . The study besides suggested that equity, growing and environmental care are at the same time possible and that each state is capable of accomplishing its full economic potency whilst at the same clip heightening its resource base.

Furthermore, in the same survey it is reported that accomplishing the equity and sustainable growing would necessitate technological and societal alteration. In stead to this fact, Sage ( 1998 ) stated that sustainability necessitates the development of enlightened establishments and substructure and appropriate direction of hazards, uncertainnesss, and knowledge imperfectnesss to guarantee intergenerational equity, intergenerational equity, and preservation of the ability of Earth ‘s natural systems to function world.

As defined by Chaharbaghi & A ; Willis ( 1999 ) and presented in a study on sustainability by FIEC ( 2005 ) , sustainable development is a construct based on a construction which stands on 3 pillars, viz. economic, societal and environmental. This inter-related model is shown in Figure 1.

Fig. 1. Three pillars of sustainability ( Chaharbaghi & A ; Willis ( 1999 ) in “ Managing Knowledge in the Context of Sustainable Construction ” ITcon Vol. 11 ( 2006 ) )

3. The building industry and sustainability

Sustainable building can be defined as a building procedure which incorporates the basic subjects of sustainable development ( Parkin ( 2000 ) , Chaharbaghi & A ; Willis ( 1999 ) , Sage ( 1998 ) ) . Such building procedures would therefore convey environmental duty, societal consciousness, and economic profitableness aims to the bow in the reinforced environment and installations for the wider community ( Langston & A ; Ding ( 2001 ) , Miyatake ( 1996 ) , Raynsford ( 2000 ) ) .

Companies are the cardinal elements of modern economic life and they have an of import function in conveying about the alterations needed for sustainable development. Harmonizing to Wilson ( 2003 ) “ corporate sustainability is a concern attack that creates long term stockholder value by encompassing chances and pull offing hazards deducing from economic, environmental and societal developments. While corporate sustainability recognizes that corporate growing and profitableness are of import ; it besides requires the corporation to prosecute social ends, specifically those associating to sustainable development such as environmental protection, societal justness and equity and economic development ” . Werbach ( 2009 ) argues that, if imagined and implemented to the full, sustainability drives a bottom-line scheme to salvage costs, a top-line scheme to make a new consumer base, and a endowment scheme to acquire, maintain, and develop originative employees.

The three pillars or as named by Fiksel ( 2001 ) , the “ ternary underside line ” , economic prosperity and chance societal equity and quality of life and ecological resource saving represents sustainability as an organisational committedness to accomplishing competitory advantage through the strategic acceptance and development of ecologically and socially supportive production procedures, merchandises and services and advanced human resource direction patterns. ( Dunphy et al ( 2003 ) ) .

For those organisations prosecuting sustainability, it is cardinal to their corporate schemes and a critical ingredient in how they assess their effectivity. A survey by Dunphy ( 2004 ) states that “ sustainability consequences from activities which extend the socially utile life of organisations,

heighten the planet ‘s ability to keep and regenerate the viability of the biosphere and protect all life species,

enhance society ‘s ability to keep itself and to work out its major jobs,

keep a nice degree of public assistance for present and future coevalss of humanity ”

The building industry and the reinforced environment must be counted as two of the cardinal countries required to achieve a sustainable development in societies. It is a widely known fact that, the edifices are responsible for over 40 % of all the waste produced in the European Union.

In developing and passage economic systems, building has a immense part to the Gross National Product ( GDP ) ; but this has to be done in a more sustainable mode while bettering the quality of life and making wealth. However, sustainable building adopts different precedences in different states. There are widely different positions and readings between developed and passage and developing states. The developed economic systems are in a place to give more attending to making a more sustainable constructing stock by upgrading, by new developments or the usage of new advanced engineerings. All public procurance should be made consistent with authorities policies for presenting sustainable development, most notably in footings of waste minimisation, H2O efficiency, community regeneration and societal inclusion. In that sense, Private Finance Initiative ( PFI ) as an advanced procurance path can play a cardinal function within the industry due to the graduated table of investing involved ; the greater easiness of act uponing the little figure of histrions involved ; and the manner in which PFI contracts secure the long-run battle of contractors. However, sustainability considerations are non sufficiently embedded in the PFI procedure to guarantee consistent bringing, and success is extremely reliant on the motive and expertness of single public sector clients and private contractors ( Green Alliance ( 2004 ) ) .

Sustainability within the building industry has no clearly settled definition and no settled organic structure of bing pattern and procedures. The industry has to understand what sustainability is in its context and concentrate on creative activity, prolonging and airing of cognition for sustainable building across the multiple interest holders involved in building undertakings ( Shelbourn et al. , 2006 ) . Many building companies in the UK follow the authorities ‘s aim for sustainable development which is economic growing and prosperity, effectual protection of the environment, careful usage of natural resources ( natural resource protection and environmental sweetening ) and societal advancement.

The UK authorities has produced enterprises to title-holder sustainability within the building industry to accomplish sustainable development marks. Recent research plans such as ‘Partners in Innovation ( PiI ) ‘ ( Shelbourn et al, ( 2006 ) ) and others have been funded to back up sustainability within the building industry ( Raynsford ( 2000 ) ) . The ‘Government Construction Clients Panel ‘ ( dwelling of representatives with duty for procurance for most authorities organic structures ) besides has a mark to accomplish sustainability in each undertaking. This enables the authorities to take a prima function, and showcase good pattern in advancing sustainable building ( DEFRA, ( 2004 ) ) .

It is the writers ‘ contention that, every company in the building concern must hold a sustainability policy which will be developed and communicated within the organisation. Those policies can be Sustainability Policy, Environmental Policy, Health and Safety Policy and Sustainable Procurement Policy. The policy and rules of sustainability creates a sustainable development which is supported by a sound sustainability scheme. The purpose of such schemes is to develop a common apprehension of the sustainability issues and present effectual and targeted attacks for each stakeholder to lend to accomplishing a more sustainable building industry. In order to recognize all these policies and scheme it is perfectly necessary to hold a Board and Advisory Committee within the organisation that supports and commits to sustainability as a scheme and acts as a nexus between office and operational activities at site degree. Having set these marks fiting with the Government ‘s sustainable development, building houses must put specific one-year marks for each concern unit and each building undertaking as a whole. After that each house must besides put for his undertakings and company a sustainability appraisal standard which is linked to marks and Key Performance Indicators ( KPI ‘s ) aligned with the concern scheme of the house. These are meant to be some sporadic thoughts from the writers to the building houses that are likely to follow in execution of Sustainability Policy and Strategy in their organisations.

The experiences from some taking UK building companies have shown that there are strong concern benefits for more sustainable building. As a successful instance “ Early Solutions Together – Eastern time ” programme of Morgan-Est ( Part of Morgan Sindall ) and “ Making Tomorrow a Better Topographic point ” programme of Carillion can be named as two good illustrations of sustainable thought and execution in the UK building industry ( Morgan-Est, 2009 ; Carillion, 2009 ) . Carillion is winner of its category – Best Green Company in the UK for medium to big houses Awards in 2008 and Morgan-Est is the victor of Green Apple Award for Environmental Best Practice. This is besides demonstrated through research carried out by Sustainable Construction Task Group ( BRE ( 2001 ) , which concluded that there are clear advantages to be gained, but merely if sustainability is portion of a long-run concern program. This is reinforced by the Building Research Establishment, where research has concluded that “ aˆ¦being sustainable is every bit much about efficient profit-orientated pattern and value for money as it is about assisting the environmentaˆ¦ ” ( BRE Report ( 2002 ) ) . Such consequences have given the building industry an improved consciousness of sustainability issues. In 1999, around 150 quality of life indexs were produced to better the wellbeing of UK citizens ( Audit Commission ( 2002 ) ) . The industry has begun to acknowledge that monitoring and coverage on sustainability is a critical portion of their concern. Cardinal Performance Indicators, Environmental Performance Indicators, and the acceptance of benchmarking have become progressively common topographic point, and many companies are now bring forthing environmental and sustainability studies, with corporate societal duty going common pattern ( Movement for Innovation, ( 2000 ) , CIRIA ( 2001, 2006 ) .

Sing building in developing states, Ofori ( 2007 ) states that, an organized action should be taken to guarantee that the high volume of building that will be undertaken in the development states in the procedure of urbanisation in the ways that are socially and ecologically impact of building. He stresses that this will necessitate a wide duologue between authoritiess, building industry, academe and NGO ‘s at national and international degrees towards the development and execution programs for sustainable building.

4. Turkish building services bunch

Harmonizing to Katsarakis et Al ( 2007 ) , the building services bunch in Turkey is the thirteenth largest in footings of exports and has demonstrated a compound one-year growing rate ( CAGR ) of 63 % for the period of 2002 – 2006 in international projects. While the building services bunch represents merely the 6 % of Turkey ‘s gross domestic merchandise ( GDP ) , together with all complementary and related industries, it still accounts for 30 % of GDP harmonizing to the TCA ( 2009 ) records. Construction plays a important function in Turkey ‘s economic system using about 1.4 million people which is about 5.5 % of Turkey ‘s entire employment.

Turkish building sector is chiefly composed of Small and Medium Enterprises. This composing is really similar to the European building sector. The building sector is chiefly a domestic sector and merely 4 % is international building. The European building industry excessively is composed of about 97 % of SME ‘s. The bunch is divided into two groups: the lower-quality domestic-only set of houses and the higher choice international houses by Katsarakis et Al ( 2007 ) . These two groups portion some but non all bunch participants. On the domestic side, there are more than 30,000 active local houses. On the international side, there are over 140 houses registered to the Turkish Contractors Association, 23 of which are among the 225 largest building companies worldwide in footings of abroad activities ( ENR, Engineering News records ( 2008 ) ) . Harmonizing to a study on the web site of TCA about the Turkish Contracting in the International Market, “ in the last 36 old ages, up until the terminal of 2008, Turkish Contractors have undertaken about 5,000 undertakings in 70 states, with a combined value of some 130 billion USD. Turkey ranks among the top 12 manufacturers of edifice stuffs in the universe, with such merchandises as cement, glass, steel and ceramic tiles taking a prima function. ”

Further detailed information is provided in a publication by Yapi Endustri Merkezi ( 2007 ) as follows sing the services of the building and the related industries,

Turkey is the 11th largest manufacturer of steel in the universe and third-largest in Europe.

Turkey ranks 6th in Europe and 15th in the universe in the production of articles of steel.

Turkey is the universe ‘s richest state in marble, with a 40 per centum portion of entire planetary militias.

Turkey is the universe ‘s 5th and 4th largest manufacturer of ceramic tiles and ceramic healthful ware, severally.

Turkey is among the top glass makers of the universe.

Turkey is the 6th largest manufacturer of pigments in Europe.

Turkey is the 3rd largest manufacturer of plastic doors and Windowss in Europe.

There are 200 major technology confer withing companies in Turkey which are supplying 65 % of the proficient consultancy services realized in Turkey and 90 % of the consultancy services required by the Turkish houses abroad, harmonizing to the records of Association of Turkish Consulting Engineers and Architects ( ATCEA ) presented at their web site. Their one-year turnover is about $ 350 million, and they employ about 5,000 people.

5. Turkey ‘s place on sustainable development

Business involvement in corporate sustainability is turning in Turkey. Nemli ( 2009 ) investigated taking Turkish companies ‘ attack to corporate sustainability regarding,

Their attitudes and attacks toward sustainability,

Their chief patterns associating to environmental and societal sustainability,

The grounds why companies adopted sustainability patterns,

The grounds why companies have non adopted sustainability patterns and

Which companies produce environmental, societal or sustainability studies.

Nemli ‘s pre-research surveies showed that merely a few of these companies had formal sustainability schemes. Therefore an scrutiny of the sustainability patterns of these few companies would be more enlightening about sustainability in Turkey. The fact that there are so few companies prosecuting sustainability schemes in Turkey indicates that Turkish companies are at the beginning of sustainability execution in their concern. Nemli ‘s research was related to the fabrication companies and none of the examined companies was involved in the building sector.

Harmonizing to Turkey ‘s National Report on Sustainable Development by Ministry of Environment ( 2002 ) and besides summarized in a survey made by Ozkan ( 2003 ) , most of the environmental statute law in Turkey has been affected during the past decennary. An overall appraisal of the Turkish environmental statute law indicates that during the past two old ages, the construct of sustainability was clearly included in the Torahs and ordinances put into consequence. The undermentioned ordinances are considered to be vitally of import,

Environmental Impact Assessment Regulations,

Solid Waste Control Regulations,

Hazardous Waste Control Regulations,

Air Quality Control Regulations,

Water Pollution Control Regulations,

Waste Control Regulations,

Hazardous Waste Control Regulations.

Furthermore, the Ministry of Environment is taking farther legal steps to forestall and command environmental pollution. In this respect, the bing statute law is being reviewed as portion of the attempts to harmonise them with EU statute law. It is anticipated that this measure will lend well towards accomplishing the ends for sustainable development.

Turkey had been prosecuting policies in the countries of energy efficiency and environmentally sound engineerings, every bit good as industrial pollution control.A To accomplish sustainable energy development and energy efficiency, the Government had been beef uping attempts to develop and utilize safe engineerings, advancing research and development for appropriate methodological analysiss, raising public consciousness of the issues, and measuring environmental impacts ( A°lkin ( 2006 ) ) .A

Harmonizing to the National Report on Sustainable Development 2002, during the past few old ages at that place has been an addition in industrial preparation plans related to work safety, environmental direction systems, quality confidence, and in-service preparation. These plans have been initiated by the Union of Chambers of Commerce and Industry, stock exchanges, Small and Medium Industry Development Organization ( KOSGEB ) , the Quality Association ( KALDER ) , universities, and research establishments ( Ozkan, ( 2003 ) ) .

Recycling of edifice stuffs is a really new construct in Turkey. It is merely after the lay waste toing temblor of 1999 in the Marmara part, that some attending has been paid to the huge sum of constructing dust accumulated from the collapsed and dismantled edifices. Waste recycling is recommended and encouraged by the Turkish Ministry of Environment ( Ozkan, ( 2003 ) ) .

The Regulations for solid waste disposal go so far as to order that recycled stuffs should be preferred to new 1s. However, the waste referred to in the ordinances belongs to industrial procedures or boxing merely. Harmonizing to the National Report on Sustainability,

“ Waste direction is one of the major constituents of the execution of the sustainability rules. Industrial waste direction requires that wastes caused by industry, production and services be managed for the protection of environmental and human wellness by cut downing the loss of natural stuffs used in fabrication. Reducing the sum of waste at the beginning, waste recovery and recycling, every bit good as implementing appropriate waste disposal techniques are among the basic constituents of sustainable development. ” ( Ministry of Environment, 2002 )

Harmonizing to Turkey ‘s National Report on Sustainable Development ( 2002 ) , the type of industrial waste in Turkey as a underdeveloped state, is non much different from the type of waste encountered in the developed states of the universe. In order to quantify the sum and composing of industrial waste and to look into the attendant environmental jobs caused Turkish Statistical Institute ( TUIK ) and assorted local authoritiess and industrial organisations ( Union of Chambers of Commerce, Industry, Maritime Trade and Commodity Exchanges of Turkey, Chambers of Industry of Istanbul and Kocaeli ) have conducted independent surveies to develop industrial waste stock lists for the period of 1991-1995. Although the industrial waste stock lists of the fabrication sector for 1994-1997, prepared by the TUIK, did non cover the full state, it is the lone legitimate waste stock list informations bank that exists in Turkey. Besides the Industrial Waste Statistics of TUIK, the Ministry of Environment has besides concluded a elaborate industrial waste stock list undertaking in 2002, which encompasses the Marmara, the Mediterranean, and the Western Anatolia Regions ( Ozkan, 2003 ) .

Waste generated by the building industry has non been accounted for in the statistics for industrial or family wastes. Since information for waste produced or disposed by the building industry has non been collected by any of these bureaus, the impact of waste from building industries is besides non known. Esin and Cosgun ( 2007 ) argue that retrieving of building waste is non yet prevailing in Turkey. The primary environmental concern should be the prevention/reduction of the coevals of building waste.

Sing the sum of waste generated, Turkey declared in the 9th Five Year Development Plan that the primary mark for commanding solid waste is the decrease of the sum of waste generated ( State Planning Organization ( SPO ) , ( 2006 ) ) . One of the basic rules of the said Development Plan is “ Natural resources, cultural assets and the environment will be protected sing the hereafter coevalss, every bit good ” . The study furthermore underscores the Turkish State ‘s decision and will sing the sustainability in resource use in following diction: “ Rapid population growing and industrialisation continue to be of import factors endangering sustainable usage of natural resources. The uncertainnesss about the responsibility and authorization distribution among establishments, for the sustainable usage of natural resources while protecting the environment without adversely impacting the production procedure, could non be adequately eliminated ( Item 159, p.38 ) ” and “ More efficient production and less waste will be achieved by increasing the effectivity in natural stuff usage with the execution of environment friendly techniques in industry ( Item 463, p.87 ) ” .

6. Discussion

Turkey has a strong building sector which can easy be considered as a regional leader in quality building and building stuffs. From the literature study it is evident that Turkey ‘s building industry ‘s sustainability place is non to the full structured yet. A few writers indicate that Turkish companies are at the beginning of implementing policies for sustainability. A study done by Turk ( 2009 ) studies that out 68 companies which are members of TCA surveyed had revealed that merely 28 of them had ISO-14001 enfranchisement.

The prevailing governmental sustainability papers in Turkey is dated to 2002. Sustainability is a path that all building industries must travel through. This necessitates the industry to alter their concern scheme and organisational constructions and civilizations. This is a long-run and uninterrupted procedure that needs alteration and version of the sustainability attack to make competitory advantage over other challengers in the industry.

Global challenges associated with sustainable development are multifaceted, affecting economic, societal, and environmental concerns. These challenges have deductions for virtually every facet of a building house ‘s scheme and concern theoretical account. Most directors frame sustainable development non as a multidimensional chance, but instead as a unidimensional job, affecting ordinances, added cost, and liability.

The jobs of stuff ingestion, waste, and pollution associated with industrialisation nowadays an chance for houses to lower cost through the development of accomplishments and capablenesss in pollution bar and eco-efficiency. Investings made to protect the environment or as portion of societal duty were seen as investings that increase the overall costs and diminish fiscal return. Clean engineerings are normally more efficient therefore cut downing emanations and increasing productiveness. Reducing natural stuff usage and increasing recycling and recovery can cut down production costs. There are chances for cost nest eggs that may non go evident even though the benefits accrue straight to the company, until the company is motivated either by ordinance or concerns to better sustainability public presentation to analyze ways of turn toing these jobs and to put in the necessary research ( Nemli, ( 2009 ) ) .

The companies ‘ committedness to corporate societal duty and overall repute may be an of import motivation factor for its current and prospective employees. There is besides an insurance value associated with repute. In the event of a job, a company with a good repute can bring on more supportive responses from stakeholders. Output extends beyond organisational boundaries to include the full merchandise life cycle-from natural stuff entree, through production procedures, to merchandise usage and disposal of spent merchandises. Output therefore involves incorporating the desire of the stakeholder into concern procedures through extended interaction with external parties such as providers, clients, regulators, communities, non-governmental organisations, and the media. As such, it offers a manner to both lower environmental impacts across the value concatenation and enhance legitimacy and repute by affecting stakeholders in the behavior of ongoing operations. ( Hart et Al ( 2003 ) ) .

The industry and the disposal have to develop a macro policy which will incorporate societal, economical and environmental policies needed to accomplish a sustainable development of the Turkish building industry as a whole. A holistic sustainability policy covering the full building bunch does non be in Turkey yet. The industry needs to make a political organizational organic structure which is compatible with the demands of sustainable development and which is compatible with similar organisations across the universe. For case, The UK Government ‘s scheme for more sustainable building ( DETR, 2000 ) suggests cardinal factors for action by the building industry by widening the basic subjects. These include design for minimal waste ; thin building ; minimise energy in building and usage ; make non foul ; preserve and enhance biodiversity ; conserve H2O resources ; respect people and local environment ; and put marks, proctor and study, in order to benchmark public presentation ( Raynsford ( 2000 ) , Langston & A ; Ding ( 2001 ) , Miyatake ( 1996 ) ) . These could every bit use to Turkey.

Advanced experiments from good illustrations in other states can be adapted to the constitutions of the Turkish building sustainable development attempt. The sector requires more funding to build sustainable undertakings due to the current higher monetary value of stuffs, substructure costs and the land-use ratio. It is expected, nevertheless, that the high cost of sustainable building will worsen in line with a rise in the figure of such undertakings. Many clients and end-users are going witting of the sensitive state of affairs of the environment, and are demoing an increasing penchant for buying sustainable terminal merchandises. For illustration, sustainable lodging reduces operational costs and H2O use, and offers improved security. Meanwhile, lodging investors, though willing to establish nature-sensitive undertakings, are hesitating about the hereafter of the sustainable lodging sector given the high costs associated with it.

Sustainable development is one of the most outstanding issues which are emphasized in the Turkey. National Environment Strategy and Action Plan prepared in order to accommodate to the societal and economic state of affairss in Turkey. In the Turkish National Report ( 2002 ) , it is emphasized that in order to sum up the current state of affairs, it has benefited from the Environment subdivision of the 9th Five Year Development Plan ( 2007-2013 ) increased sensitiveness to the demand for a clean environment.

Although the environment is a moderately of import issue in Turkey, it has some advantages and disadvantages in respects to environment and sustainable development. The advantages are as stated by TUBITAK ( 2003 ) ,

Our natural resources ‘ non being wholly polluted,

The increasing consciousness of the environment particularly among the immature population,

The adequateness of scientific and proficient human resources who can work in this field make it favoured in respects of accomplishing sustainable development.

The disadvantages of Turkey in this field are,

In malice of non being wholly polluted, their is go oning pollution of natural resources,

Making usage of natural resources related to an investing for environmental betterment without taking attention of the set purposes,

Not maintaining a record of information and informations consistently related to environment,

Data which are recorded holding no criterion in footings of informations aggregation, confirmation, rating and transforming into information.

In relation to development programs and sustainable development in Turkish metropoliss, Ercoskun ( 2005 ) argues that the current development programs of metropoliss do non see urban individuality and ecological values and the regional programs do non see infinites between edifices, clime, illuming, way, air circulation, natural energy, etc. , ensuing the Turkish metropoliss to be unsustainable. Furthermore, she states that planning is one of the chief tools in Turkish sustainable development and concluding that the Turkish planning system ( Development Plans, Laws and Applications ) has to be challenged from the sustainability point of position.

Supplying sustainable development is non merely limited to direction of natural resources, providing equipment or commanding them. Persons should carry through their responsibilities as responsible citizens in order to accomplish sustainable development with respects of environmental protection. Therefore, it is imperative that persons be taught the topic of sustainable development get downing in primary school, every bit good as doing them cognizant of the environment.

February 4th, 2023

Business Ethics – impact of the stakeholders

As we all know stakeholders have a huge impact on the business but it works both ways. The business and its ethical behaviour also affect the stakeholders and the business itself. Today I am going to evaluate the impact of Sainsbury’s ethical behaviour on its stakeholders and the business. In 2007 Sainsbury has acted very unethically. They sold around 20,000 cotton bags made by well-known designer. They wanted to make it fashionable to use cotton bags. As a result ‘The Evening Standard’ has revealed that the bags were made in China and the cotton which they used to make the bags was not organic. The aim of the bag was to promote green awareness but Sainsbury has admitted that it was made using cheap labour in China and was not fair traded. In my opinion, this situation had a big impact on the organisation and its stakeholders.

At that time, in 2007, Sainsbury was doing all they could in order to become more ethical than any other supermarket. The situation described above has changed customer’s opinion about the company and definitely ruined their ‘ethical’ reputation. Customers were very disappointed as they believed that the company they use to do their shopping is ethical and do not mislead the customers. Instead, they have been lied to and they bought the bags which were not ethical. Another group of the stakeholders seriously affected by the situation were shareholders. They like to invest in the company which is profitable but they also want the company to have a good reputation. In situation like the one described above the company is losing the customers, reputation and the profit at the same time so there will be less stakeholders willing to invest in the company and the existing ones will not be satisfied because they will not earn as much as the company promised. Also, the suppliers will be affected by the fact that Sainsbury acted unethically. Read about

There are suppliers which do not want to work with businesses operating unethically. In case where Sainsbury cooperate with suppliers from other countries the company should be very strict about the rules of fair trade. On 28th of April 2007 the Sainsbury spokesman stated that the company was confident that the bags were sourced ethically and that they will take all the actions needed in order to investigate it. He has also apologised the customers for misleading them. (www.telegraph.co.uk) Another example of unethical behaviour of Sainsbury is when they mislead customers by advertising unhealthy products stating they are good for health. Sainsbury explained that the products advertised where healthier than other ones but they did not deny the fact the products were unhealthy. All they have stated was that they had less salt, sugar and fat then other ones. This situation could have a short term but serious effects on the company. It could lead to losing existing customers as they might not trust the company and their advertisements anymore. Most of their customers care about their health and they are interested in healthy products mainly to maintain well-being of themselves and their families and if the company will lie to them and provide with misleading information about the products they will simply change the company to shop with and Sainsbury will lose money and reputation.

The situation will also affect the competitors as in this case Sainsbury is acting unfairly promoting products as healthy even though the same products are not promoted this way in other supermarkets simply because they are not. At first Sainsbury might increase the number of customers because they are offering healthy products. Because of that competitors might lose some of the clients but we need to remember that at the moment when the issue was revealed Sainsbury lost some of their customers which most probably moved to their competitors. This situation also affects the UK Government as at the moment they are trying to do something about the problem and help people to eat healthier and be active. One of the Government actions is to improve labelling on food and drink among the retailers to help people make healthy choices. The Government also give people guidance on what to eat to stay healthy and how to become more active. Misleading customers and promoting unhealthy products as healthy is not helping the Government and making their actions more difficult to achieve the objectives.

When looking at the ethical behaviour of Sainsbury I also need to describe a good part of their practices and the ways that they are affecting the stakeholders and the organisation. At the moment Sainsbury do a lot of work in order to care for the environment. They are currently reducing their operational carbon by using solar panels in their stores and minimise their packing, keeping products healthy and fresh at the same time. Their main mission related to is to reduce the amount of carbon emission. Carbon emissions influence negatively on the quality of our air and increase the greenhouse effect which cause weather changes and increase in global temperature. The main proofs of their action helping the environment are their environmental awards. ‘Sainsbury’s has won both the Energy and Carbon categories in the Guardian’s Sustainable Business Awards, with judges recognising the retailer’s innovative and world-leading work’(www.j-sainsbury.co.uk).The most affected group of the stakeholders are not only customers or employees but all of the people. Carbon emission has a hazardous health effects to people. It was proven that increase of carbon emission might cause cancer and many different dangerous illnesses to people. This ethical behaviour has to be maintained in a long term. As we all know the environmental situation of UK and all the rest of the world will not get any better but people and organisations can do a lot to slow down the damage of the environment. It also affects the organisations taking care of the environment. Sainsbury is helping them in order to improve the quality of our life. ‘According to WRAP (Waste and Resources Action Programme) 18.4 million tonnes of waste, costing £17 billion is produced by the UK food and drink industry and UK households each year. Landfill space is becoming ever more scarce and expensive.

At the same time the concept of waste as a valuable resource to be reused is causing businesses to think differently about how to move beyond waste reduction to actively eliminating waste from the supply chain.’ (www.j-sainsbury.co.uk) Another, very similar behaviour of Sainsbury is making sure that they have strict policies about recycling their wastes. They make sure that their waste is recycled properly. Wrong recycling of wastes in a long term could cause running out of the resources. The owners of Sainsbury know that if everyday resources become scarce prices for the products will go up. They have a clear idea of what possible causes of not recycling could be. Sainsbury has also launched a recycling scheme which allows customers to bring their old batteries to the store.

They are ensuring that the batteries are recycled the way they should be as they know that batteries can release toxic wastes and metals into the ground water and into the air if they are not dealt with properly. One of the most important groups of the stakeholders affected by this are the local communities. Recycling the supermarket wastes properly minimize the risks of rats and mice in the area of the store. It also do good for the environment so the Government is also affected by the behaviour of the Sainsbury as they are cooperating in order to improve the environmental ‘health’ of the country. Similar to the previous behaviour of the Sainsbury it is something that has to be practiced in long term. The fact that Sainsbury case for the environment affects the organisation as it improves the image and the reputation of the company. One of the most important ethical behaviour of the supermarket is the fact that they are promoting healthy food and active lifestyle.

After their ethical issue of misleading customers in selling and advertising unhealthy products as healthy they are trying to do their best to improve and persuade people to be active. At the moment, the company do everything to promote active lifestyle and healthy, balanced diet by campaigns, offers and promotions on healthy products. They also advertise active lifestyle to children by sponsoring sport events in schools and donating money for sport equipment. They believe that ‘healthy children will become healthy adults’ and it will bring social and economic benefits. Again, one of the most important stakeholders affected by this is the Government as they are also trying to do something about unhealthy eating habit of people living in UK.

Sainsbury is also leading in providing clear nutritional information about the products enabling the customers to make informed and healthy choices. This way they are complying with the standards set out by the Government. The customers are also affected as they have a chance to improve their knowledge and the standards of their life by eating healthy and being active. The organisation is also affected as they are able to improve their profits and reputation. By doing that they also increase the number of stakeholders interested in the company. It’s a matter that Sainsbury has to take care of in a long term. It will take time to change the habits of people and if it will happen eventually Sainsbury will have to continue their actions in order to stay profitable. Another, important stakeholder affected by these actions is The British Nutrition Foundation.

They are very happy with that the supermarket is promoting and with the fact that they are helping them in meeting their objective. Recently they have stated that: “The British Nutrition Foundation actively encourages efforts to reformulate products, encourage healthier choices and improve employee health and wellbeing. We welcome this commitment from Sainsbury’s. particularly the new elements, which builds on a strong track record of initiatives over a number of years to reduce the amount of salt, sugar, fat and saturated fat in its products and to provide clear nutrition information for customers” (www.nutrition.co.uk) As we can see ethical behaviour of Sainsbury is very important for their stakeholders but it’s also important for the business itself. When a business is known for dealing fairly with all people, from its employees and customers to shareholders and suppliers, it is more possible to become successful. As a matter of fact, almost all stakeholders want to act morally right and that’s what they look for when starting their connection with the company. Businesses that operate unethically might cause their stakeholders to break the relationship with the company. People are more likely to shop in the supermarket which operates ethically.

February 4th, 2023

Sustainable Lifestyle

Sustainable living is the maintaining of one’s life or lifestyle at a steady level without exhausting resources or causing damage to the environment. It is a lifestyle that assumes continuous economic growth without irreversibly damaging the environment. Sustainable living is also a lifestyle that reduces an individual’s use of natural resource. Having a sustainable lifestyle brings about change especially in the society.

It provides us with the energy we need to be a positive force in the world. It is also about taking control of our own lives positively by getting what we need and to what we want, changing direction of the world and not destroying it, setting an intention that fosters and empowers the things we care about, which in the end gives us strength, clarity and purpose to live a better life. Living a sustainable lifestyle is more about common sense & making practical choices.

Because sustainable living is all about making choices in the modern world, it is easily accomplished by breaking down the requirements of living into the following categories: Shelter, Food, Water, Power, Transportation and Waste. These categories represent all the areas in which sustainable living choices can be made. When it comes to Shelter, smaller homes are preferable as it creates a more fulfilling sustainable lifestyle both Indoor and outdoor. Smaller homes need less utility payment because fewer materials went Into its construction and therefore fewer materials are needed to maintain It.

There would be fewer belongings, less debt and greater freedom for those who choose It. As for food, reducing consumption is the starting point towards achieving a sustainable lifestyle. According to Victoria Klein, the Author of 48 things to know about Sustainable living, “The mantra for sustainable living is: Reduce, Reuse and Recycling”. This way, we have the capacity to endure, save time, spend money wisely, and reduce waste and electricity. We would also have the ability to simplify our everyday life.

One of the challenges of living a sustainable life Is to find balance In our personal lives because for many people, sustainability Is all about balance. To find balance In our world, we must find balance In ourselves and we begin by taking care of ourselves, then our families and environment. Sustainable living Is very Important In the world we live In because there Is only a limited amount of natural sources on the earth and when It runs out, there would be none left.

For example, you don’t need to take your car If you are not going somewhere far, you don’t need to throw away your plastic bottles when you know It can still be used (by recycling), you don’t need to waste electricity during the day when you know there Is solar power (It Is sustainable)available. Changing your lifestyle to be more sustainable offers opportunities to save more money, help Increase the quality of home and possessions and contribute to a healthier style of living on the Earth.

Living sustainable meaner that whatever we do has the least Impact, the least waste and Is a cycle and meaner that can be repeated Indefinitely without cumulative damage to the world. We need to eat the right foods, educate ourselves (know little of everything) and make friends. A sustainable life Is one In which physical and spiritual health provides us with energy to affect positive change In our society. In order for us to live a sustainable life, we need to find something positive that Inspires us. Positive reinforcement to the g things that inspire us would serve as a boost when maintain a sustainable lifestyle.

February 4th, 2023

Brand Management – Equinox

Table of contents

It also results in the two gym brands capturing more of the market, with Blink members having the potential to become Equinox members in the future. With a clear target market Equinox members are typically between 28 – 48 years old and cake over $200,000 annually (Pastille, 2010) and the gyms also attract a number of celebrities. The exclusivity and high membership fees demand that Equinox Gyms set itself apart from its competitors and develops strategies to stay ahead. From the first point of contact Equinox is set as a luxury gym.

Its website features fantastic imagery and emanates class through easy navigation and detailed tours of all of its clubs including profiles of all instructors. The amenities also set Equinox apart; while each club is different as it tries to be specific to the area (Zamia, 2011) they all eater health spas with massages and the changing room facilities include hair dryers, deodorant, shampoos and conditions as well as organic towels (Equinox, n. D. B. ).

While Equinox Gyms clearly have more financial resources with its link to ‘Related’ real estate giant there are still a number of similarities between it and Less Mills that make it worthy of a comparison. Less Mills is known worldwide for its choreographed tiniest classes available across 14,000 clubs in 80 countries (Less Mills International, AAA) while Equinox have been voted by Fitness Magazine (2010) as having the best classes.

In New Zealand Less Mills has ten dedicated clubs and like Equinox, these Clubs have additional amenities such as saunas, child care facilities, physiotherapists and beauticians (Less Mills, AAA). Less Mills clubs are also arguably one of the high end gyms in both the equipment and facilities its offers and the premium price gained, so are targeting a similar market, although perhaps not quite as elite. Similarly, both gyms have a commitment to ‘giving back to the community and good causes and to the environment.

This can be seen with Equinox’s commitment to natural and environmentally friendly products such as its cleaning products, towels, locally sourced building materials, water flow reducing plumbing and recycling areas (Equinox, n. D. C). For Less Mills in New Zealand being green means tracking its carbon footprint with the goal of being restorative by 2016 (Less Mills, Bibb). Both gyms also have a strong brand identity and are focused on delivering a high quality experience and facilities to its members. In all the following examples a scale of 1-10 will be used.

This scales is used to show how effective each of the components have been to Equinox. 1 reflects very poorly while 10 is excellence.

Society and Market Environment

Environmental Awareness and Sustainability Environmental awareness and sustainability is a growing area of concern for consumers. Many consumers are now demanding more information from manufactures in regards to how they are being environmentally friendly and sustainable. The Less Mills clubs in New Zealand have this environmental focus.

There new UBS in Christopher and Hamilton are equipped with technology, which they wish to introduce to their other 8 facilities around New Zealand. On the model of 1 – 10, Less Mills would rate as an 8. The reasoning behind this is that they are the only gym in New Zealand who has this new technology (Less Mills, Bibb); 1. When a person is using the treadmill or cross-fit machine, the power which is generated from the movement of the belt creates power to run the fans in the cardiac section. Therefore the faster you run the more power the fan will have to keep you cool. 2. In their new facilities,

Christopher and Hamilton, the underlay and gym flooring made from recycled vehicle tires. On top of technological changes in these two clubs, Less Mills has also made changes internally across all aspects of their brand to be more environmental friendly. Examples include; 0 Recycling stations to reuse rubbish 0 Dual flushing toilets to save water 0 Choosing environmentally friendly products where they can 0 Low-flow shower heads to save water 0 Printer paper contains recycled content 0 Reduction of paper through online timetables only 0 Using local suppliers as much as possible (Less Mills, Bibb).

This effort to be environmentally friendly has been very effective for the Less Mills brand, when in 2006 they were awarded the Environmental Choice New Zealand award. “This programmer has been designed to an environmental labeling programmer which was created to help businesses and consumers find products and services that ease the burden on the environment” (Environmental Choice, 2013) Although Less Mills have made an effort to be environmentally friendly, there are still many ways in which they would benefit from this effort and focus.

The main issue for Less Mills is that they do not openly and biblically promote their efforts in Ewing environmentally friendly. Take for example, Equinox, they publicly advertise and promote their effort to be Equinox has an environmental focus which is why many high profiled and influential people choose to be a member. This relates back to the point where consumers want to see a change coming from those in high positions.

Combining this and their focus and efforts to be environmentally aware and friendly, Equinox becomes a main choice for those who are needed to be seen as ‘going green’, I. E. , celebrities, politicians (Daily-Mail, 2013). Less Mills would greatly benefit from a campaign which showed and highlighted heir effort and focus in being environmentally friendly. The Less Mills slogan reads “for a fitter planet”, and this slogan would be ideal to assist in introducing Less Mills stance on environmental issues.

This could be done with similarities to Equinox who used their slogan of “It’s not fitness. Its life” to represent the fact that although you may be fit and in shape, you are still not healthy in other aspects of your life. They refer to themselves a being able to get you fit but also healthy in other aspects of your life, with particular reference to becoming fit in an environmentally friendly nor and opening your eyes to the idea that people and business need to become more sustainable. Less Mills, Bibb) The Less Mills slogan can not only mean that they aim to get all humans fitter, decrease obesity and push for people to be more healthy, but it can also mean that if you become a member at Less Mills, not only are you going to achieve results for yourself, you are also helping the planet ‘Earth’ to become fitter by using Less Mills fitness products and services. Less Mills focus and efforts in being environmentally friendly and sustainable is a major point of difference (POD) for them compared to other fitness facilities within New Zealand.

To capitalist on their efforts in sustainability a marketing camp gains focusing on publicizing and spreading the word about their efforts and achievements to date will make their entire focus and effort more effective. Wooing: Technology Less Mills uses a number of technology based ways to interact and promote their products and services to the public. Their website is easy to navigate and has a links to all of their individual club websites and forums, I. E. , Christopher. Their website and Backbone page offers a detailed history of the brand and how it was founded including a timeline of when clubs where opened.

These two means of technology also offer inspiration and motivation with ideas of healthy eating, including recipes for smoothies and a FAQ page where questions can be posted and Less Mills posts a reply. Less Mills classes, such as body pump, are very popular. Included on the website and Backbone page is information about each class and what the participant will get out of a class. However, there is no information provide about scheduling of class times and how many spaces are still available. As a result Less Mills and their use of technology rates as a 6.

Although their website and Backbone pages are detailed in history and services they have to offer, they still lack some basics functions which consumers would benefit from and make their use of technology would be from the use of an application “app”. Equinox has used an app to immense success. The Equinox app is available for their members on tablets, mobile phones (phone and Android) and laptops. The main feature of this app allows members to view schedules for the personal trainers, beauticians, and other facilities that Equinox offer. They are then able to see the available times and book their appointment all by the use of this app.

Other features available on the app include:

View and book classes for the following week, e. G. Yoga or Palates.
GAPS to the nearest Equinox facility
Reserve cardiac equipment, bike or treadmill, for any time and in any of the Equinox clubs throughout America. (Equinox. (n. D. B)).

A view of the Equinox App Based on the Equinox app, and what it has to offer their members, it is clear that this is a piece of technology that would be effective to Less Mills and the services they have to offer in particular their personal training and interactive classes.

Encapsulation

Infrastructure Less Mills is a global brand. However, New Zealand is the only place in the world where there are physical Less Mills facilities. Less Mills has been able to gain a global reputation through the sale and distribution of their classes, with the most famous one being Body Pump. Less Mills distributes these classes to gyms and fitness facilities in 80 countries outside of New Zealand. (Less Mill, AAA). Less Mills approaches gyms and fitness facilities outside of New Zealand who they wish to distribute their classes too.

Their website, Less Mills international states “Less Mills has over 14 000 clubs registered with our classes, in 80 countries across the oral” (Less Mill International, 2012). The 10 clubs that are located in New Zealand are also very simple. Although their clubs are very spacious with large floor area, they offer no other services in the fitness and health industry Just as massage or physiotherapy. As result of this Less Mills and their infrastructure would only rate a 6. The main reasoning behind this mark is that there is plenty of room for them to expand. Equinox, for example, has expanded into foreign markets.

Recently as 2012 they have opened a club in London, I-J and Toronto, Canada. Equinox has chosen these giggly populated areas as a result of research which shows this is where a gap in the market occurs. In the case of Less Mills, they could expand their infrastructure in to foreign markets in the same way. By targeting areas where Less Mills classes are popular and opening a club would be their best way to expand their infrastructure into foreign markets. By collecting information and research, in much the same way as Equinox, very little risk would then occur for Less Mills and the expansion of their infrastructure. Arsenal health and wellbeing also. As a result, in all of their complexes they offer additional services including;

Studio Cycling
Palates
Martial Arts
Water workouts
Yoga
Cardiac
Conditioning
Spa Treatments – facials, massage, laser, waxing, other therapies (Less Mills, Bibb)

As a result of these other service Equinox has managed to build a substantial amount of infrastructure which has allowed them to promote themselves in other ways that traditional fitness centre such as Less Mills cannot.

Less Mills can gain easily gain more infrastructure with their clubs in New Zealand. There are other services that they could incorporate into their fitness centre, in reticular physiotherapists. It also offers another aspect to the brand and shows that not only is the Less Mills branding about fitness but also about personal health and wellbeing. As was the case with Equinox it will also give them another avenue for marketing. In order to make their infrastructure more effective, Less Mills needs to introduce other aspects of the health and fitness industry to their infrastructure.

However, it does not mean build more building and name them ‘Less Mills Physiotherapy it relates to the idea of using the space and clubs that they have already established in he New Zealand market and introduce additional services at those particular clubs. Going global must be a focus for Less Mills. They are well established in the New Zealand market with 10 clubs and their classes are well known around the world in 80 countries which equate to over 14,000 fitness and health clubs.

Due to this unique position that Less Mills classes are in, expanding and opening clubs in new and foreign markets where the classes are established is also another key way that Less Mills will be able to make their infrastructure more effective and which will enable them to continue to build the global reputation of the brand. Internal Brand Ambiance: Culture Less Mills have the vision of making exercise fun and enjoyable.

Less Mills New Zealand undertook a survey where it was found that 46% off their regular members attend one or more of the classes that they offer each week (Less Mills International, 2011) This highlights the culture of Less Mills which is based around the idea that fitness and being healthy is not long boring hours lifting weights up and down. Confidence is a major aspect of fitness and health. When it comes to going to the yam, it can be a very daunting task for those who are slightly insecure about their weight and appearances, or those who are new to belonging to a gym.

This is a driving factor behind the success of the classes they offer. It encourages people to bring along friends for not only support but to also train together and enjoy fitness a lot more. The classes are designed to be interactive and fun experiences where age, gender and fitness level is no issue. Less Mills also pride themselves on being hands on with their clients. One great and support for free I. E. , spotter (An act where someone supports the weight in case f failure by the person exercising). Personal training is also another main aspect of Less Mills.

This builds on the culture where every Less Mills staff member is there to help, support and motivate people to achieve their goals. Less Mills pride themselves on being able to take 2 clients with every personal trainer. This is a huge confidence boost for those are new to the gym and fitness or those who want to bring someone, a friend, for support. Combining the culture of the classes, the personal trainers and Less Mills staff in general, the culture at Less Mills would rate as an 8. This represents all the effort that Less Mills put in to making every member feel special, welcome and Just as important as the previous member.

They attitude to help people achieving the goals is a real positive about the Less Mills experience. The Less Mills culture compared to Equinox is every different however. The main difference is in that Equinox members are usually very high profiled or even famous as previously mentioned. As a result Equinox has developed a culture which is very professional and discrete. Their culture is based round the idea that irrespective of their status, power r position all their clients will receive the same professional assistance, advice and service. Equinox has developed this culture to specifically relate to their clients.

Equinox has developed this culture based around the idea that their clients choose to be members at Equinox due to this culture that they can offer. The culture that Less Mills have installed in their clubs and their brand is one that work for them. They are able to maintain the fun and friendly culture that they have been able to build up in an effortless manor, due to employing the right staff, having the right programmer I. . , interactive classes, and the right training for their staff to ensure that their culture continues to be a strong point of the Less Mills brand.

Additional Areas to Add Value

Corporate Responsibility Corporate or social responsibility is about organizations engaging in activities that have a positive effect on society and promote public good in an effort to ‘give back to the communities that contribute to them (Solomon et al. , 2007). Some say that customers purchasing decisions by consumers are increasingly related to their perceptions of that firm’s role in society (Keller, 2013). Worcester (2009, p 587) found that corporate and social image is integral to the success of a firm.

Furthermore, Worcester believes that a positive corporate image based on social responsibility can “enhance a company’s culture, bring cohesion to chaos, offer incentive to its people, increase its sales, help launch new products and services, and generally contribute to shareholder value. ” The Brand Safari does not feature corporate responsibility on any of its quadrants, despite the fact that it has been shown to add value to a brand. Much marketing activity has been prompted due to the increased awareness by nonusers about issues other than Just product characteristics.

Equinox has a commitment to giving back to society, as well as being environmentally friendly. Equinox is involved in three projects; ‘Cycle for Survival’, ‘The Heroes Project’ for programs for wounded soldiers and ‘Shape up NYC’ (Equinox, n. D. D). In today’s society there is much scrutiny placed around the impact of organizations on the environment. This is something that both Less Mills and Equinox take seriously and both are committed to reducing their impact and using echo-friendly materials (Equinox, n. D. ; Less Mills, Bibb). While Less Mills may be involved in other projects contributing to the community the advertisement of it is not as strong. For customers to appreciate this, and for it to add value to the brand customers need to see it. Sound corporate responsibility (and the marketing of) can ultimately lead to stronger relationships between firms and stakeholders and has the potential to increase loyalty, gain premium pricing and be seen more positively in the face of a crisis (Paella ; Shank, 2011).

Area Two: Innovation Innovation can be thought of as a process by which organizations transform ideas onto new or improved products and services in order to differentiate themselves from competitors (Version, I-Castillo ; Voss, 2012). According to Gouges ; van Rhode van Outshone (2011) is not the objective ‘newness’ that is important, but the perceived ‘newness’ to the consumers. This means that the acceptance and perception of the innovation will differ across societies and cultures.

Innovation is a component that is not on the Brand Safari Model that could be added to the ‘Encapsulation’ quadrant to add value to the brand. Version et al (2012) state that innovation is a necessity in today’s environment to stay ahead of the competition, hence the importance of innovation to an organization. It will only succeed if the new ideas can be connected with the needs of the consumers and the markets. Keller (2013) shows that an innovative corporate image has a number of benefits, such as a positive effect on corporate credibility and acceptance by consumers of brand extensions.

Likewise, Keller also believes that an innovative image is also linked to perceptions of being expert, trustworthy and likable. These beliefs by consumers ultimately add more value to the brand. Encapsulation entails getting customers used to the norms of the brand (Chose, 2013). If a norm of the brand is innovation it shows that the organization is committed to both investing in research and development and fostering a culture based on empowering employees to think ‘outside the box. Equinox gyms have been called an ‘American cult brand’ and the ‘gym for celebrities and investment bankers’ (Lording, 2013) and is selling not only fitness, but a lifestyle. According to Lording, Equinox’s selling point is its innovation and luxury, with fitness classes that are ahead of the fitness trends in a setting that sakes exercise feel like pampering. This innovative culture is fostered by management and the marketing team who have a focus on digital and social marketing (Zamia, 2011).

This e-marketing for Equinox shows with its phone app, giving members easy information as to where and when classes are occurring, and also the ‘Q-Blob which has been described by Drill (2012) as the crown Jewel of articles and blobs are subsequently created and the page has also led to an increased presence on Youth. Equinox of course, labels itself as innovative with particular reference to its fitness classes, but the organization is delivering this to embers. For example, its Kensington Club offers rooftop cycling classes (Lakehurst, 2013) and the addition of specialist organic Juice bars at its gyms (Creative Juice, n. . ). Because Less Mills has less financial resources than larger global companies a key to future success will be linked to its ability to innovate. The organization is consistently coming up with new fitness classes such as the 30 minute GRIT classes (Less Mills, coco) and have recently won an award for its new ‘Smart’ piece of barbell weight equipment (Less Mills, 20th). Areas where Less Mills can improve are through social Edie and its digital marketing and it should look at Equinox’s phone app to show where classes are located to take advantage of the number of location Less Mills classes are at.

Conclusion

Equinox can be seen as the benchmark for Less Mills and the services they offer. Equinox is able to offer their members more amenities in the fitness and health industry. Although Less Mills has classes which are known worldwide, they only have limited number of physical clubs in New Zealand. In much the same way that Equinox is expanding into new markets, Less Mills need to continue its focus and aim awards a global scale in order to make their products, services and brand better known. However the two brands do have similarities.

They are both hugely concern for the environment and pride themselves on coming up and being leaders in the health and fitness industry in regards to environment; awareness, friendliness and sustainability. They also have a huge focus and make vast and sizable contributions in giving back to the community. Equinox have several charities and events which they support on a national scale in America and Less Mills has run several events in New Zealand in particular reference to fund raising for the devastating Christopher earthquake.

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