Contemporary Developments in Business and Management Assessment 2022
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MANAGEMENT REPORT- CODA PLASTICS LIMITED By [Name of Student] Contemporary Developments in Business and Management Assessment 2019 [Professor] University of Sunderland London [Word Count: ] October 08, 2019
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Management Report2 Contents Company Profile:.........................................................................................................................................4 Introduction:...............................................................................................................................................4 Literature Background:................................................................................................................................4 Task 1- External Factors Affecting Coda Plastics Limited:............................................................................6 Political Factors:......................................................................................................................................6 Economic Factors:...................................................................................................................................7 Social Factors:..........................................................................................................................................7 Technological Factors..............................................................................................................................7 Environmental Factors:............................................................................................................................7 Competition:............................................................................................................................................8 Task 2- Corporate Social Responsibility and Sustainability:.........................................................................8 2.1 Coda Plastics’ Policies and Operations Concerning Social Responsibility and Sustainability:................9 2.2 Effectiveness of Organizational Response:..........................................................................................12 Recycling:...............................................................................................................................................12 Quality Controls:....................................................................................................................................12 Environment Friendly Products:............................................................................................................13 Market Position:....................................................................................................................................13 Recommendations:....................................................................................................................................14 Bibliography...............................................................................................................................................15
Management Report3 EXECUTIVE SUMMARY The report basically applies the theoretical knowledge of business management to the operations of Coda Plastics limited organization in order to assess its performance and recommend some better operational options. Coda Plastics Limited is a UK based private limited company that produces a wide range of plastic packaging products. The report in first place gives a theoretical background of the frameworks that may be used to assess all the possible external factors that may have an impact on the operations and performance of an organization. These frameworks include Pestle analysis, SWOT analysis and the Porter’s five forces analysis. When applied these frameworks on the Coda Plastics organization, they helped to identify that the external factors that hold an impact on its operations include uncertain political conditions due to brexit deal, falling exchange rates and slightly rising interest rates, increasing public awareness regarding going green, dynamic technological requirements and the imminent threats of climate change. Next section of the report deals with the theme of social responsibility and sustainability and its relevance to the operations of Coda Plastics limited. Coda plastics have implied the policy of recycling its entire plastic wastes, using compostable raw material for its major products and high quality controls to make itself socially and environmentally more responsible. At organizational level its policies seem very effective but it can further enhance its role in maintaining sustainability at a larger scale by further increasing its use of recycled material in production, private- government partnership to ensure better tax legislation to promote recycling at national level and investing in better waste collection and management technologies.
Management Report4 CODA PLASTICS LIMITED- MANAGEMENT REPORT Company Profile: Coda Plastics limited is one of the top plastic manufacturers of United Kingdom that has been remarkably serving the market since 40 years. It is a globally recognized and award winner organization that is producing a variety of plastic packaging products including plastic caps and closures, plastic bottles, specialty plastics and standard plastic packaging. The Coda Plastics ltd. carries on all the activities ranging from product design to the creation of final product on a global scale. It has worked in collaboration with large international organizations e.g. Bob Martin, Revlon, Cussons Carex and ST. Tropez etc.(Coda Plastics, 2019). Introduction: This report will highlight all primary external business environment factors that cast an impact on the organizational policies and performance and then it will followup with the theme of corporate social responsibility and sustainability and their relevance to the operations of Coda plastics limited. It will also explain that how effectively these policies have been applied by the company and what impact they have had on the surrounding environment. Literature Background: Before proceeding towards all the external business environment factors that may have an impact on the policies and decisions of Coda Plastics Ltd, it is necessary to go through a theoretical background of all the relevant frameworks of management theory that have been given by the
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Management Report5 scholars to analyze all the possible external factors that affect any business organization. All business organizations operate in a highly dynamic environment in which a number of elements keep on changing that are beyond the control of any single business organization. All those things in this environment that cannot be held under control by any organization but it have to respond to those changes are considered as external factors. These changes can either be positive and can be considered as opportunities or negative that can be considered as threats. The framework of SWOT analysis given byAlbert Humphrey is partially functional to analyze these external factors categorizing as opportunities and threats. But more comprehensive and workable framework that was designed to provide a holistic picture of the external business environment is PESTLE analysis framework given by Francis Aguilar. It explains in details all the possibly affecting political, economic, social, technological, and legislative as well as ecological elements present in the business environment. In PESTLE, political factors include all the conditions that are produced by the government regarding tax, laws and political stability. The economic factors include all the possible changes in the interest rates, exchange rates, growth rate, inflation and unemployment. Social factors will include the tastes and trends of the population surrounding the business organization, their lifestyles and the demographics. Technological factors comprise any changes in the pace of research and development, Information and Communication technologies, automation and e- commerce.Ecological/Environmental factors that may affect the operations of any organization include two aspects i.e. the physical conditions with which a business organization is supposed to deal for example the climate change or weather and the green credentials that are pollution and recycling(J. and Paul, 2014).
Management Report6 Another important aspect of the external business environment that possesses a challenging effect on any business’s operations is the “Competitiveness”. To detect the level of competition in any industry, M. Porter in 1979 presented a five forces model that provides a clear picture of the extent of competition that a business will have to face the expected level of profitability for the business organization in that environment. These five forces include; threat of new entrants in industry, bargaining power of suppliers, bargaining power of buyers, threat of substitutes and the rivalry among existing competitors(Grundy, 2006). Now all these theoretical frameworks will be collectively considered to analyze all the existing external factors that may have an impact on the performance of Coda Plastics limited so that a clear picture of the organization’s position in the industry may be interpreted in the industry of rubber and plastic products. Task 1- External Factors Affecting Coda Plastics Limited: In this section, only the major factors that significantly impact the Coda Plastics’ policies and performance will be discussed in detail: Political Factors: Currently, the most important ongoing political scenario that will impact the organization’s performance and operations is the uncertain conditions of Brexit deal that is being negotiated between UK and the EU. The Coda Plastics ltd is UK based and imports its materials from Europe and around the world. The possible changes in tariffs will affect the cost of production of the company. In case of no Brexit deal, the fees and tariffs of World Trade organizations will be applicable to the entire plastic import and export of the company with EU(Brexit and the plastics industry, 2018).Another important political factor in the legislation of UK that have had a sharp
Management Report7 impact on UK’s plastic manufacturers is the tax levies on the use of single use non- biodegradable plastic packages has also lowered the demand of plastic manufacturer’s products. Economic Factors: Due to the political and legislative uncertainty, the projected economic conditions and their impact on Coda Plastics is also marred by unpredictability. However in past few years the UK’s economy showed a slight slump from 2013 to 2017 and consumption showed a dynamic pattern of rise and fall respectively increasing and decreasing the sales revenue of the company. The exchange rates also fell making the plastic exports cheaper hence lowering the organization’s profits. The interest rates surged slightly after 2017 adding to the cost of capital of Coda plastics. Social Factors: In past few years, the imminent threats of climate change and awareness campaigns have triggered a social outcry for clean and green products and production processes. Recyclable packaging is being preferred over environment degrading non-recyclable plastics. Due to which Coda Plastics had to make major changes in their production processes and waste handling to achieve the target of almost 0% wastes in their production processes. Technological Factors: Due to a quick shift towards energy efficient and environmental friendly plastic products, the company had to invest heavy amounts in compatible new machinery to compete in the global market. These changes are likely to continue at a faster pace in the future as well hence a continuous technological upgrade process is mandatory. Environmental Factors: On 26thApril, 2019, a UK plastic pact was established that aimed to eliminate the use of unnecessary one time plastic packaging by the year 2025. It is likely that this pact will trigger
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Management Report8 new and unique business models in UK and the plastic industry will be completely transformed in coming years as it will not only lessen the environmental footprint of the industry but will also bring some economic opportunities with it. Following the environmental requirements of the pact the Coda Plastics Limited company has labeled itself as an environmentally responsible organization. It started a sophisticated recycling system. The rising water pollution has also obligated the plastic businesses to be cautious of keeping the oceans plastic free(Cotter, 2019). Competition: Currently, the UK’s plastic industry is the global leader due to which it has made the competition and innovation fierce. There are almost 5200 plastic manufacturing firms. The supply chain is complex hence reducing the bargaining power of suppliers. Due to these industry conditions, despite of being a leading plastic manufacturer, the Coda Plastics Ltd is required to play actively in the market and bring continuous innovations keeping in view the changing trends both in the product design and the production process in order to sustain its position. Task 2- Corporate Social Responsibility and Sustainability: In this age of imminent climate change threat, social responsibility and sustainability has become a vital area to work on for all large business entities. Social responsibility means that any organization that works in a social environment must consider vigilantly the rights and welfare of its surrounding society while performing its business activities. It also implies that the business should maintain a smooth balance between its economy and the ecosystem. It should try its best that the welfare of the society and environment is not compromised while struggling to achieve economic prosperity. Sustainability is a slightly different term. It ensures that the needs of current generation are not being fulfilled at the cost of the needs of future generations(Orlitzky, M. and D.A., 2011).
Management Report9 Here, the plastic industry is one of the most affected areas. If the plastic packaging is properly disposed of or recycled, its impact on environmental degrading can be mitigated to a large extent.Plastic pollution is rapidly afflicting the land and most importantly the oceans. The chemical structure of some of the plastic packaging also makes them non-biodegradable and they are stuck in our natural environment, stifling the wildlife of oceans as well as the human life. However, most of the UK firms are vigilant in their social obligations including Coda Plastics Limited. A testimony to this fact is that almost 98% of the plastic waste that is stuck in the oceans comes from outside the UK. Hence the increasing public awareness among general public about environmental degradation has limited the demand of plastic products. Moreover, the taxlevies on the use of one time use plastic bags have further stalled the demand of plastic sacks and bags. In order to combat this falling demand of the plastic packaging products, Coda Plastics Limited has adopted a very comprehensive policy of saving the environment from the ills of plastic waste. In these policies, the company sounds very socially responsible and follows a clear cut sustainability plan. 2.1 Coda Plastics’ Policies and Operations Concerning Social Responsibility and Sustainability: Coda Plastics Limited has been acting socially responsible since a long ago. It has achieved the target of almost 0% waste in its production process by reusing its own plastic waste in its products. Not only this, Coda Plastics also buys wastes of other companies in order to recycle it in their own PCR production process. The sustainability policy of Coda Plastics is very clear with a goal of minimizing the impact of plastic on the environment. Not only this, Coda Plastics
Management Report10 is also striving to be energy efficient by the use of solar panels in the office facilities. In a word, they aim to be as green as possible in their production processes. The company is pursuing following four environmental and sustainability goals in its operations. 1.The use of solar energy in production 2.Use of hybrid and electric cars to minimize carbon emissions 3.Zero percent waste in manufacturing process 4.Lightweight and practical product design Coda plastics produce high quality healthcare plastic products e.g. white room injection moulding due to which it is rated AA Accelerated Facility by the BRC in East Anglia. All the hygiene standards are strictly being followed. The plastic assembly is completely robotic and automated hence hygiene is not compromised at any stage. This high consideration given to hygiene in its production process delineates its social responsibility with regard to public health. According to the statistics collected by the Coda Plastics, UK annually uses almost 5 million tons of plastic. And 29% of this consumption is recycled by the plastic industry overall. To give a boost to this percentage, Coda Plastics is efficiently playing its part. It recycles the plastic waste in three stages. In first stage, all the plastics are separated according to the type of polymers. Secondly, the sorted plastics are cleaned and shredded. In the final step, the shredded plastic is converted into the liquid by heating and then converted into the plastic pellets. Coda Plastics see the issue of plastic pollution as a matter of improper disposal rather than the plastic itself. Last year when the government announced a war on the plastic wastes followed by Theresa May’s anti-plastic speech, Coda Plastics called the entire plastic waste related reporting ill-informed and misjudged. It called for the elimination of littering and a holistic national action plan to put
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Management Report11 in place for proper recycling and disposal of plastic wastes. It also promulgated through its official blogs that more sophisticated recycling infrastructure should be kept in place at a national level to combat the overall environmental issues. Taking the lead in this stance, Coda plastics produce its standard “Of the Shelf” packaging from the recyclable plastics that are also extracted out of the company’s own PCR or recycled wastes. The company also uses four basic tips to produce more environmental friendly packaging that meticulously tackle all the possible harm that may be cast an impact in the environment. These include: 1.Uses of the right material i.e. easily recyclable 2.Reducing the product weight as it will require less resources and lesser amounts of carbon will be produced while transporting the products for distribution. 3.Reducing the components of plastics to make them easily recyclable 4.Proper labeling to spread a general awareness of recycling process and minimize the practice of littering. The Coda plastics also launched Compostable Coffee Capsules in collaboration with CCC in the current year that are totally compostable in high quality soil within the short time period of 6 months without contaminating it with micro plastic particles. This launch will change the picture of single serving coffee market. According to the statistics gathered, 60 billion coffee cups are utilized every year out of which a miniscule of less than 1 billion is recycled every year. 25% of these products use poisonous aluminum materials. Coda Plastics Limited has taken a total shift from these materials to game changer compostable plastics. The material used in their production are home compostable, vegan as well as competitive in their price and design(Coda Blog, 2018).
Management Report12 The company’s operational and product outlook clearly shows its commitment to the social responsibility and sustainability requirements. However it still acknowledges that there is still more to be done to fight the plastic pollution at national and international level as well. 2.2 Effectiveness of Organizational Response: The effectiveness of Coda Plastics Limited policies and procedures with respect to fulfilling its social responsibility and sustainability can be analyzed clearly by several aspects. Major achievements in this regard are as follows: Recycling: In Coda plastics, the entire wastes of the manufacturing process are recycled and they achieve almost 0% waste level. Moreover, 30% of the production of company is already made out of the recycled material. Not only this, they are also purchasing the waste materials from other companies to play a greater role in saving the environment. Not only this, but it also ensures cost of production in long run as the investments in new and innovative recycling technologies is already made. These activities are though very much affective at the corporate level and are required to be followed by other plastic and rubber industry firms as well. But there is still a need to curb the menace of plastic pollution at a bigger scale i.e. national and international. Because in 2017, when china imposed a banon the import of certain types of plastic waste, it created a havoc in the UK plastic industry as it had no other options to get rid of huge amounts of plastic wastes. Quality Controls: The effectiveness of high quality controls of the company in order to ensure safer products can be ascertained by the BRC ratings of the Coda Plastics Limited. BRC sets the global standards for quality products and it has accredited the Coda Plastics with AA ratings with respect to
Management Report13 hygiene. The company is trusted by several global partners on its quality standards. The company has also won awards for its responsive and innovative activities towards the changing requirements of the era. Environment Friendly Products: The Coda plastics have time by time launched various types of products that are environment friendly i.e. either they are easily recyclable or compostable. Compostable Coffee Capsules is one of the exemplary projects in this regard.Moreover, the company has also adopted the policy of a lighter product design in order to minimize the required resources and the environmental cost of transportation. All these projects that cast an image of green manufacturer of the Coda Plastics Limited have gathered hail from the clients as well as the public. Market Position: With regard to the image of an environment friendly organization, Coda Plastics limited has earned good name in the UK plastic industry. Its quality and designs are well trusted by its clients. The company is exempt from audit as it is a private limited company and according to the UK legislations, private companies are not required to perform annual audit however its known net worth is£2.8 million. Its profits also seem satisfactory despite the continuous heavy investments made in innovative and sophisticated recycling technology. Although the Coda Plastics manufacturer is not a behemoth in the UK’s plastic and rubber industry but the company’s social responsibility and sustainability policies are effective enough to win the public trust.
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Management Report14 However, environmental issues and public welfare are broad scale issues and are required to be dealt collectively by all industrial partners. But on organizational level Coda Plastics Limited is quite effectively performing and is expected to do better in future as well. Recommendations: The Coda Plastics Limited is already playing well in the areas of social responsibility and sustainability. However there is also a room for improvement on a larger scale. Following are the areas that can be further developed and enhanced for general welfare: 1.First of all, the Coda plastics can further enhance the share of the plastic products that are manufactured from recycled material i.e. currently 30%. Increasing the percentage of these products can further reduce the cost of resources used in the production and make a greater share in reducing the plastic pollution in UK. 2.The Coda plastics should more strongly put forth its stance of proper plastic disposal against the notion of anti-plastic sentiments rising in the general public. It can further launch campaigns for the general awareness of the fact that the problem of waste will not be resolved by implying a ban on the plastic packaging rather it would further exacerbate the condition of waste disposal issues. It may launch online campaigns for proper disposal of the plastics rather than their abolition. 3.Coda Plastic Ltd. May also take a lead in persuading the government to install more sophisticated waste collecting and recycling infrastructure at national level as the discrepancy between the waste collected and the waste recycled is quite large. Alone in UK, only 45% of the overall waste collected is being recycled. Moreover, the governments should also be forced to provide certain tax exemptions on the manufacture
Management Report15 of products that contain a certain amount of recycled material used in it. The biodegradable plastics should also be exempted from the government taxes. However, the tariffs on the import of certain raw materials still remain uncertain due to the vague consequences of brexit or no brexit deal. Private and government partnerships can also work in developing a recycling infrastructure. 4.Coda plastics limited can also invest more in innovative technologies of municipal waste collection especially from oceans, management and separation of the collected waste. It should also make efforts to collect the plastic wastes from landfills before they enter into the oceans rather than purchasing the waste of other companies. This will help minimize the environmental impact of littering practices. It will be more helpful because corporations are now a days more vigilant in disposal of their plastic wastes specifically in UK due to the public outcry of rising environmental degradation. The individuals involved in litter are basically adding to the greater amounts of waste plastics in natural habitats. Following these recommendations will help Coda plastics ltd. to play a more efficient role in social wellbeing and sustainability issues.However, the organization is also currently environmentally and socially very responsible and the effectiveness of its sustainability policies is remarkable. Bibliography Brexit and the plastics industry(2018), [Online], Available:https://www.bpf.co.uk/eu/home.aspx [October 2019]. Coda Blog(2018), [Online], Available:https://www.coda-plastics.co.uk/blog/[October 2019]. Coda Plastics(2019), October, [Online], Available:https://www.coda-plastics.co.uk[2019].
Management Report16 Cotter, B. (2019) 'Ethical Problems with Plastic in the Ocean'. Grundy, T. ( 2006) ' Rethinking and reinventing Michael Porter's five forces model.',Strategic Change, no. 15(5), pp. 213-229. J., C. and Paul, D.a.T.P. ( 2014)Business analysis techniques. Orlitzky, M., S. and D.A., D.S.a.W. (2011) 'Strategic corporate social responsibility and environmental sustainability.',Business & society, no. 50(1), pp. 6-27. ________________