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MNG10253 Sustainable Business Management
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MNG10253 Sustainable Business Management
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Course Code: MNG10253
University: Southern Cross University
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Country: Australia
Question
Part A: Organisation, boundaries of your study, input-output chart
1. Briefly describe the organisation including size, location, products and/or services provided, provide an overview of the relevant production and/or operating systems and explain your connection to this organisation.
2. Select a segment of the organisation which you will transform into a sustainable business segment. This segment may be a department of the business, or a functional entity within the business, or a product or service which the company provides, or (part of) the organisation’s production, operating or administrative system.
Using an appropriate diagram, show your organisational segment and the key service and production functions which support the provision of the organisation’s product or service to customers. Note that every organisation requires human resources; staff facilities; cleaning; numerous administrative and managerial support services as well as purchasing, accounting and distribution services; capital equipment and premises from which they operate.
Which of these support functions are included and which are excluded from your sustainability transformation?
3. Prepare an input-output chart which identifies all major resource and energy inputs and pollution and production outputs at each separate stage in the production and distribution systems within your organisational segment. You are not required to include actual quantities of inputs and outputs. Draw boundaries around your chosen business segment clearly showing these inclusions and exclusions from your study.
4. Utilising your input-output chart identify the major causes of unsustainability with direct reference to specific inputs and outputs at critical stages along the production, operating and distribution cycles.
Part B: Improve sustainability performance
5. Drawing on the principles of industrial ecology, cradle to cradle design, waste equals food, biomimicry and natural capitalism design a closed loop production system for your organisational segment, product or service to achieve sustainability in the long term. (10 marks)
6. Draft 5 specific recommendations for transformation to sustainability applying the principles of eco-efficiency, dematerialisation and conservation of resources to reduce the unsustainability of your organisation’s operations.
Note that in total in this report you must make 15 recommendations (i.e. 5 draft recommendation in Question 6 and all 15 detailed recommendations in Question 7) in the following performance categories –
Management of land and biodiversity on which business premises are located;
Water management;
Energy and carbon management;
Supply chain and transport management;
Waste, pollution and recycling management.
Recommendations must apply sustainable business principles, be specific, targeted at the unsustainable aspects of your chosen business and linked to the organisation’s industry sector and its specific products and services. Significant detail must be provided to demonstrate that each recommendation is viable for your business from a sustainability perspective, although you do not need to establish that the organisation has sufficient financial resources to implement your recommendations. You do not need to estimate the cost of any of the recommendations, however if this information is readily available you may include it.
Part C Recommendations for sustainability and social impact
7. Provide all 15 specific and detailed recommendations for transformation to sustainability taking account of the feedback that was provided in part B, question 6.
8. Discuss the major social impacts which your organisation has and make recommendations how it can improve its social performance. Note that this social analysis can be focused at the organisational level. Your suggestions may remove existing negative social impacts and/or improve positive social impacts.
Answer
Sustainable Business Management
Part A:
Description of the organization
The Moose Creative Management Pvt. Lid., popularly known as moose toys is referred to an Australian owned toy design, development as well as distribution company which was founded in the year 1985. Moose products are sold in more than 85 countries and the company is currently considered to be the fifth largest toy manufacturer of Australia and fourth largest in the United States. In the year 2016, ‘Shopkins’, the product line of the mentioned company has been provided with the best toy brand in LasVegas. Apart from Shopkins the product line of Moose toys includes Mighty Beanz, Beads, Aqua Sand, The Trash Pack, The Grossery Gang, Little Live Pets, Betty Spaghetty and Fur Babies World. The toys of Shopkins mainly include miniature item characters. The chief materials used by the company to manufacture toys include cloth and plastics. Other material used for manufacturing the dolls include stone includes wood, cornhusks, wax, porcelain and celluloid (Doppelt 2017). Being the operational manager of Moose Toys, Brisbane branch, my purpose of conducting the research is to understand the sustainability issues faced by the company and provide recommendations in order to eradicate the identified issues. Considering the fact that the environmental concern of the population of developed countries like Australia have got enhanced due to the rapid environmental degradation resulting from unsustainable business, conducting a sustainable business has become highly crucial not only for obtaining the good will of the consumers but also for enhancing the consumer loyalty and early revenue of the mentioned organization.
Selection of the segment
The Moose Company deals with manufacturing the toys and delivering the same to retail shops along with directly sell the toys to the consumer through their own store outlets. Considering the fact the company is facing several sustainable issues associated with their manufacturing of toys, the segment selected for transforming into sustainable business includes the manufacturing department.
Figure: Section of departments and segments of operations
Source: (created by author)
For sustainable development, multiple departments of the organization will be involved namely Human Resource Management, Logistics, Manufacturing, Research and development and cleaning department. Logistics department can improve the sustainability of the business by increasing the inbound material quality. Research and development can increase the quality of the product prototype to minimize the production time emission. Manufacturing department can utilize most efficient production cycle to reduce emission, waste and by-products. The HRM can train the employees and aware them about the environmental efficiency in the business process and how to minimize the negative impacts of the respective operations.
Preparation of an Input-output chart
The following table represents the names of input, output and by-product materials with their collective percentage. The productive outputs indicate the output materials, which can be recycled or reused. The by-products are not reusable and cannot be recycled. However some of the by-products can cause direct environmental pollution and some are bio-degradable materials. Therefore, the study will only includes the by-products which are not productive outputs. The productive outputs are excluded from this sustainability study.
Inputs
Productive outputs
By-products
Name
Percentage
Name
Percentage
Name
Percentage
Electric
10
Plastic Caps
25
Disputed products
10
Petroleum
5
Plastic Structure
20
Solid waste
5
Row plastics
30
Painted body
25
Chemical waste
5
Paint
15
Packaging
10
Carbon emission
10
Plant machinery
5
Outbound products
10
Synthetic waste
20
Furniture
2
Thermal energy
5
Bio-degradable material
10
Vehicle
5
Automation
5
GHG emission
10
Input lines
2
Thermal emission
10
Output lines
2
Synthetic waste
20
Extrusion lines
2
Land
5
Organic materials
2
Synthetic Materials
5
Water
5
Identification of major causes behind lack of sustainability
The chief reason behind the lack of sustainability of the mentioned organization includes ineffective waste management system, inefficient plastic recycle process, high amount of non-degradable byproducts from the manufacturing system and high carbon a well as thermal emission during the production procedure. When it comes to waste management of the mentioned company, the origin of the system includes production of too much waste. Being a highly popular company, a huge number of toys are manufactured by Moose toy per day. Among the total amount of wastes, more than 60 percent of the wastes are non-biodegradable (Kurdve et al. 2015). These wastes include plastic materials, wires and batteries. Due to ineffective waste management system, the company is imposing several impacts on the environment of Australia. For instance, the huge amount of plastic waste generated are either dumped in the dumping ground or thrown into water bodies. This in turn, is impacting the life of aquatic animal adversely along with enhancing water population and water borne diseases. Along with that plastic wastes along with wires and batteries being non-degradable material are reducing the quality as well as fertility of the soil.
Part B:
Designing a closed loop production system for the organizational segment
As per the industrial ecology, the output materials should have the consumable materials for nature that will further help to grow natural resources. These natural resources can be collected for further industrial use in toy factory. Therefore, the close loop production system must ensure the quality of the disposal that should be bio-degradable (Doppelt 2017). Apart from that industrial ecology will help the factory to reduce its waste by recycling the reusable products. It needs a filtration and separation procedure after the manufacturing process. This process will separate the main products, reusable waste and non-recyclable disposals.
On the other hand, waste equals food model allow the industrial operation and product cycle to ensure that the disposed materials is biologically degradable. This properties help the by-products to be consumable as a food products after the decomposition and bio-degradation. Cradle to cradle design enable the product cycle management to balance the post processing natural cycle of the materials and the industrial collection and use of materials from natural and artificial resources (Kurdve et al. 2015). For this the close loop should ensure that the by-products are taking time to be naturally recycle for reutilisation. For maintaining natural capitalism, the used and consumed products will be collected from the human society. It will help to reduce the resource utilisation while increasing the waste management efficiency. Therefore, it will help to increase the business capital by reducing the operational costs.
Figure: Close loop production cycle
Source: (created by author)
From the close loop cycle which is plan considering principles of industrial ecology, cradle to cradle design, waste equals food, bio-mimicry and natural capitalism, it has been clear that the ultimate operational sustainability can be increased though abiding by this closed loop structure. In this structure, after the manufacturing process the filtering and separation process is used to separate recyclable wastes and products from the outputs. However, the cycle should be ensure that the non-recyclable disposals are biodegradables (Hörisch, Freeman and Schaltegger 2014). After the separation, the reusable materials are recycled. At the same time, the used material is also collected from the human disposals. These materials are also recycled to be reusable. The post consumed materials and the reusable by-products both are recycled for making reusable resources. On the other hand, the disposals are followed a natural degradation procedure to be the natural resources for industrial use. All these components and operational cycles can collaboratively work to make a sustainable close loop production system .
Recommendations or transformation to sustainability
In order to deal with the above mentioned sustainability related issues, the Moose Toys company needs to follow the bellow mentioned recommendation.
According to researchers, Eco-efficiency has been proposed to be one of the chief tools to promote a transformation from unsustainable development to sustainable development (Starik and Kanashiro 2013). It is based on the concepts of creating more goods as well as services while using fewer resources along with creating less waste and pollution. In order to ensure an eco efficient waste management, Moose toys can recycle its wastes. The method involve in recycling the waste includes separation of recycle and non-recyclable wastes. Considering the fact that majority of the plastic wastes are recyclable, recycling will not only ensure eco efficient sustainability but will also reduce the manufacturing costs of the student. Effective usage of plastic recycling tool can enhance the efficiency of the waste management system.
The term dematerialization is defined as the reduction of total material as well as energy while manufactuization of a product or service in order to reduce the environmental impact of the same. According to the researchers, a close relation exists between dematerialization and recycling of products (Baumgartner and Rauter 2017). For instance, if plastic waste products are recycled and used for toy manufacturing purpose, the overall usage of plastic of Moose toys will get reduced considerably. Apart from that the resources can be saved while extraction of materials, by improving the eco-design of the products or by implementing technological innovations during the production process.
In order to reduce carbon footprint, the management can initiate test project together with the suppliers in order to create best solution to access the impact of carbon emission during the manufacurization process.
In order to reduce the wastage of water during manufacturing of toys, the management should regularly monitor and eradicate pipe leaks and improve water performance in the supply chain. Beside that the manufacturing staffs of the Moose Toys Company should be trained in order to use water efficiently and reduce unnecessary usage of water. Along with that, recycling and reusage of water should also be enforced in order to ensure effective water management.
In order to reduce thy usage of non-degradable products, the management can replace the raw materials with their biodegradable alternatives. For instance, instead of using plastics, bioplastics that are being made from natural materials like cornstarch can be used. This plastics, made from Polyactide acid (PLA) is not only biodegradable but also saves up to two third of the energy that is needed to make traditional plastic (Doppelt 2017). Thus this plastics can also help the management of the Moose toys in reducing their carbon emission. In spite of the fact that the usage of bioplstics will enhance the manufacturing cost of the company by a little, usage of the material has the potential to enhance its consumer base and goodwill.
Part C:
In this part, 15 recommendations addressing the issues discussed above have been discussed.
Management of land and biodiversity on which business premises are located
In order to reduce the impact of waste material in aquatic animals, the Moose Toys Company should reduce dumping of waste in water bodies like river and seas.
In order to eradicate the issue of infertility of the soil due to non degradable waste, the management should separate degradable as well as non-degradable wastes prior to dumping (Kurdve et al. 2015). Secondly, a specific non-fertile area will be selected for dumping non-degradable wastes.
Majority of the non-degradable wastes should be recycled with the help of various recyclable tools in order to reduce the usage of non-degradable raw materials and manufacturing costs of the mentioned organization.
Water management
The first step that the management needs to take in order to manage and reduce the water usage of the company is to develop a problem statement along with an achievable goal. For the Moose Toys company the goal associated with water management should be to reduce wastage of water and achieve cost saving. The second step includes measuring the monthly water consumption of the company. This can be done by installing meters as well as taking regular reading of the regular water usage (Baumgartner 2014). The next step is to implement water saving practices that includes creating a monitoring as well as control system to regularly report the progress, motivating the department and facilities an incorporating reward system.
In order to enhance the efficiency of the staffs to manufacture toys while ensuring lower consumption of water and eradication of unnecessary usage of water, the management should incorporate effective training session for the same. Besides that staffs should be educated about the importance of water management and how scarcity of water can adversely affect the environment.
Finally, effective water recycling tools can be used in order to recycle waste. According to researchers, 86 percent of the total water which is considered as waste water are recyclable unless they have gone through human or animal bodies (Hörisch, Johnson and Schaltegger 2015). Thus the water recycling process can be used by the Moose Toys Company, in order to ensure lower manufacturing cost.
Energy and carbon management
The first step that needs to be taken by the management of the Moose Toys is to organize regular meeting with the suppliers in order to find out the best way to reduce carbon emission during the manufacturing process.
Secondly, reduction of energy usage can effectively reduce the amount of emission of carbon from toy manufacturing companies. According to researchers, old and inefficient tools are more likely to consume more energy compared to machines and tools built with the help of latest technologies (Leppelt et al. 2013). Considering the fact that toy manufacturing involves usage of a large number of tools, the management should assess the state of each of the machines used and replace the same with machines that are being built with the help of latest technologies. In spite of the fact that the process will not be cost effective, in the long run, usage of effective tool will not only enhance the sustainability of the company but will also enhance the production rate of the company in the long run.
Finally, in order too ensure reduction of energy wastage the moose origination should install energy efficient lighting and assure that the lights are switched off while out of use either manually or through automatic sensors. Moreover, for heating purposes, the company should invest on energy efficient heating technologies like heat pump or condensing boilers while manufacturing the toys.
Supply chain and transport management
Another way of reducing the carbon footprint is to reduce traveling frequently. Being a well renowned organization, the managers of the Moose Toy company often needs to travel at different destination in order to confirm deals with the suppliers of raw materials or to eradicate issues that have originated while ensuring effective communication with the management (Johnson 2015). However, these types of trips have the potential to enhance the emission of carbon in the air and this in turn can impose negative impact on the environment. Hence in order to reduce traveling without hampering the reason behind it, the mentioned organization can implement virtual communication techniques like video conferencing.
According to researchers, several business trips at the present time don’t need to occur and could reasonably and effectively be replaced with either audio or video conferencing (Hesselbarth and Schaltegger 2014). Hence in order to reduce carbon footprint, the Moose Toys Company should implement video conferencing in their business travelling polices ad procedures that will confirm whether the travelling is highly required or not.
Considering the fact that a large portion of carbon emission is the result of supply chain, the management needs to manage the emissions from the production, transport, use and disposal of the good. N order to reduce carbon emission due to supply chain, Moose toys can use sustainable procurement principles like purchasing eco level products only.
Waste, pollution and recycling management
In order to manage the waste products effectively, the company should separate non-biodegradable wastes from bio-degradable wastes. This process will help the company to locate which portion of the waste can be recycled and further used for production purpose. Major amount of the biodegradable products can be recycled (Jacobs, Chase and Lummus 2014).
In order to ensure an effective recycling process, the mentioned organization should implement various recycling tools that are available in the market.
In order to reduce the generation of waste, the management of Moose toys should implement technologically advanced machineries that has he potential to convert majority of the raw materials into final products.
Social impacts of Moose toys and recommendation to eradicate the issues
Considering the fact that a huge amount of waste material is generated by the mentioned company on regular basis, the social impact of moose toys is ineffective. In spite of the fact that that the mentioned organization is highly famous for its product quality and variety, lack of sustainability is imposing negative impact on the competitive advantage as well as reputation of the company (Hörisch, Freeman and Schaltegger 2014) . Thus the consumer base of the company is getting reduced gradually. Secondly, due to excessive generation of plastic wastes, the irrigation system of the local community is getting adversely impacted. Along with that due to high generation of carbon, a good number of individuals receding in the locality are suffering from heart and lungs related issues. Apart from that several water borne diseases are getting spread due to dumping wastes in the local water bodies. All these in turn are impacting the yearly revenue of the company to a great extent.
In order to deal with the issue the management of Moose toys should promote the steps taken by them towards sustainability in order to make the consumers aware of the fact and retain consumers. Secondly, the management should conduct campaign in the locality to find out majorly affected individual and provide them with financial support for their treatment (Seuring and Gold 2013). This tactics has the potential to attract the attention of the consumers and enhance the goodwill of the company.
Reference list
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability management to develop a sustainable organization. Journal of Cleaner Production, 140, pp.81-92.
Baumgartner, R.J., 2014. Managing corporate sustainability and CSR: A conceptual framework combining values, strategies and instruments contributing to sustainable development. Corporate Social Responsibility and Environmental Management, 21(5), pp.258-271.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Hesselbarth, C. and Schaltegger, S., 2014. Educating change agents for sustainability–learnings from the first sustainability management master of business administration. Journal of cleaner production, 62, pp.24-36.
Hörisch, J., Freeman, R.E. and Schaltegger, S., 2014. Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization & Environment, 27(4), pp.328-346.
Hörisch, J., Johnson, M.P. and Schaltegger, S., 2015. Implementation of sustainability management and company size: A knowledge?based view. Business Strategy and the Environment, 24(8), pp.765-779.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Johnson, M.P., 2015. Sustainability management and small and medium?sized enterprises: Managers’ awareness and implementation of innovative tools. Corporate Social Responsibility and Environmental Management, 22(5), pp.271-285.
Kurdve, M., Shahbazi, S., Wendin, M., Bengtsson, C. and Wiktorsson, M., 2015. Waste flow mapping to improve sustainability of waste management: a case study approach. Journal of Cleaner Production, 98, pp.304-315.
Leppelt, T., Foerstl, K., Reuter, C. and Hartmann, E., 2013. Sustainability management beyond organizational boundaries–sustainable supplier relationship management in the chemical industry. Journal of Cleaner Production, 56, pp.94-102.
Seuring, S. and Gold, S., 2013. Sustainability management beyond corporate boundaries: from stakeholders to performance. Journal of Cleaner Production, 56, pp.1-6.
Starik, M. and Kanashiro, P., 2013. Toward a theory of sustainability management: Uncovering and integrating the nearly obvious. Organization & Environment, 26(1), pp.7-30.
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