Reference no: EM132164138
Module Overview
In this module, you will learn about the challenges in applying the value-chain model in a business. You will also learn how you can address these challenges and add value through economic and sustainable business practices.
Whether defining sustainability in the relatively narrow scope of the natural environment or taking a broader view and including social responsibilities such as poverty eradication, the challenge to maintain a sustainable business is growing ever more complex.
For example, a company using a manufacturing method that is environmentally unsafe will have to change its methods if it is to remain competitive and even viable in today's marketplace. Any change that company makes to become more sustainable also affects that company's value chain.
An example of this is gasoline. Gasoline powered cars pollute the environment, and at the same time deplete oil reserves. One way that the value chain was changed to respond to this issue was with the addition of ethanol as 10% of the fuel mixture. The environmental benefit of this ethanol mix is that it burns cleaner and less crude oil ends up in each tank of gas. Auto manufacturers had to change their manufacturing and tuning of engines to efficiently burn the reformulated fuel.
Another example of the relationship between sustainability and value chain is bottled water. There has been considerable debate regarding whether or not plastic bottles commonly used for bottled water are environmentally friendly. General consensus is they are not.
To remain sustainable, bottled water manufacturers made changes in the way they produce plastic bottles. Some made a switch to more environmentally friendly plastics while others changed the weight of their bottles, resulting in production that used less plastic and rendered thinner bottles. Regardless of how each manufacturer approached its sustainable solution the value chain for each also changed.
Module Readings
Complete the following readings early in the module:
Module overview
Assigned Reading:
From the Argosy University online library resources, read:
Lawler, E. E., III, & Toole, E. (Eds.). America at work: Choices and challenges. Gordonsville, VA: Palgrave Macmillan.
McGrath, R. G., & MacMillan, I. C. (2009). How to rethink your business during uncertainty. MIT Sloan Management Review, 50(3), 25-30.
From the Internet, read:
Internet Center for Management and Business Administration, Inc. (2002). The value chain.
Assignment: Discussion-Waste Reduction
Industries adopt waste minimization techniques that lead to significant resource savings and cost reductions.
This assignment emphasizes the basic concept of sustainability within business.
Tasks:
Research the topic of waste reduction and identify a company that has proactively reduced the waste associated with its products. You can take examples from your own work experiences or from other real-life market situations.
You can also consult sources such as the Wall Street Journal, Financial Times, Bloomberg Markets, the Economist, US News and World Report, and the Argosy University online library resources.
Respond to the following:
Analyze the sustainable approach to waste reduction developed by the company you selected. Include the following:
Its products
Previous methods of production
The way it implemented sustainable methods
Diversification, if any, into new products
Your rationale for how this company still made profits
Evaluate other businesses that might benefit from the waste reduction measures of this company.