This document discusses the concept of sustainable business and its impact on business operations. It explores relevant theories and models and evaluates sustainable business strategies. The case study of Amazon is used to illustrate these concepts.
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Dynamic Perspectives on Sustainable Business
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Table of Contents INTRODUCTION..........................................................................................................................4 MAIN BODY..................................................................................................................................4 Critically analysis business sustainability and their impact on business operations..................4 2. Critically evaluate a range of relevant theories and models....................................................7 Propose and critically evaluate appropriate sustainable business strategies.............................10 CONCLUSION.............................................................................................................................12 REFERENCE.................................................................................................................................13 INTRODUCTION
Sustainabilityreferstomeetingneedswithoutcompromisingtheabilityoffuture generation to meet their needs and the sustainable business is one where profitability, concern for environment and social commitment are in harmony. Running sustainable business means using of own resources economically as well as reducing negative impacts on environment. Dynamic perspective on sustainable business offers various opportunities of business growth with strategic insight on knowledge production, innovation and disruptive technologies. In order to explore all these things a company Amazon is selected, which are approaching to measure and reduces the carbon emission in their operation for sustainability. This is an American multinational company which focus on E- commerce, cloud computing and digital streaming. It was founded by Jeff Bezoz in Bellevue, Washington in year 1994. this company starts as on online marketing for books as well as expended to sell electronic software, video games, furniture foods and so on. The following report carried out discussion about key sustainability concerns and impacts of business activities on these concerns. In addition, evaluation of relevant theories and models is also included. Lastly, appropriate sustainable business strategies is evaluated. MAIN BODY 1.Critically analysis business sustainability and their impact on business operations. Sustainability in business is related to gaining of momentum both in practise and profile. Sustainability is part of core business strategies as It has a impact on the way business organisations are functioning (Shea and Jurow, 2020). The main focus is on the stability of organisation, the way they are responding to different environmental and social issues as a fundamental component of the success of business for future. There are many different types of sustainability trends that are affecting the process of strategic responses and leading towards building up of value for the organisation. Energy is a concept that is focussed on use of low carbon agenda. Food production is related to meeting of basic needs, improvement of quality and further building of resilience in situation of climatic disruption and the changing demand of the external environment. Water scarcityis also a issue where there is a need to evaluate the sources of food, energy and water for the purpose of ensuring clean water sources. Protection of biodiversity is also necessary for survival & well being as humanity is driven by global extinctions.
Changing demographicsis also a issue that arises because of increasing population growth, ageing populations in developed countries & middle classes who have labour, migration, social and development implications. Geopolitical stabilityis also a global issue that is prevailing as a part of key stability issue in the external environment. Organisations are looking for using some measures to define and then communicate their objective of the way they can serve society in a more better manner. With application of suitable sustainable development measures can lead to enhancing of the market share, improvement of productivity and staff retention(Cosenz, Rodrigues and Rosati, 2020). In context of Amazon is supporting amazon web services by use of 100 percent energy sources in short term and at 50 percent by end of 2017. there are presently 10 renewable projects in process that are generated over 2.6 million megawatt hours of energy annually when completed. Amazon is also utilising the recycled energy for their newest building by capturing the heat that is created by data centres everyday and piping in the buildings. Amazon is focussing on use of meticulous packaging to ensure that there is safe delivery system and there has to be no damage the product which is a primary goal of any e commerce company. For achievement of this there is focus on avoiding the use of plastic because it takes 1000 years to decompose. Amazon is focussing on building up of committed workforce for development of a sustainable business for their customers and whole plane. In year 2019 main co founded a climatic pledge that they are willing to use a net zero carbon emission across their business by the year 2040(Bejinariu, 2020). It is a 10 years Paris agreement that is focussed on development of a ambitious workforce that is highly committed towards achievement of their laid goals. Sustainability is wider and broader concept in order to ample numbers of tools and techniques which are utilised by organisation in order to easily attaining goal and objectives of company.Itincludestheyareimpactonorganisationstructureaswellastoplevelof management developing effective strategies in order to smoothly run the business activities. Sustainability is important factor because gaining competitive advantages which result as very tuff competition at marketplace. It involves various measure which are used by organisation in order to dealing with complex environment, social market and technology. It is essential for each
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and every organisation in order to survive and sustain for longer period of time. It is necessary to analysing business environment due to know about the customer taste, preference and market trends. It considered as various factors which are implemented in order analysing performance of employees as well as providing positive working environment which result as improving business activities(Schaltegger, 2020). It includes organisation applied strategies regarding products and services which result as providing eco-friendly products which cannot harm for the environment. It is process which refers to organisation implementing effective strategies in order to providing unique products and services in order to smoothly run the business activity as well as attracting large numbers of customers. In context of Amazon, it includes evaluating the whole business environment so organisation using various strategies in order to promoting the products and services so used as advanced technology. It considered as using various digital platform due to promote products and services such as social media like What's app, you tube, Instagram, Facebook and many others (Barbosa,Castañeda-Ayarza and Ferreira, , 2020). It is essential for organisation to promote the products and services in order to targeting large numbers of customersaswellasattractingmorecustomers.Sustainabilitypaysvitalrolebecause development in essential in internal and external of organisation. Internal of organisation refers to providing training of employees in order to enhancing their skills and knowledge which result asefficiently and effectivelyperforming business operation as well as smoothly run the business functions. In addition to this, It involvesHRdepartmentplaysvitalrolein organisation they are are support for business sustainability because employees are valuable assets of the organisation in order to perform various activities. It involves they are analysing the performance of employees and accordingly providing training (Schneiderand Clauß,2020). Employees performing effectively so enhancing business sustainability and survive for longer period of time in the market. It considered as manager of Amazon used various tools and techniques in order to know about the market condition and situation and accordingly serves the best services for customers. It includes they are providing facility of online delivering products and services in order to organisation used effective distribution strategy and logistic system so it helps to enhancing sustainability and survive longer period of time in the market(Zhai and et. al., 2018). It is one of the leading E-Commerce company of UK and provides wide range of products and services as well as delivering best services for customer so it is major factor of sustainability.
2. Critically evaluate a range of relevant theories and models Triples bottom line:Triple bottom line refers to a framework that incorporates three dimensionof performance social, environmental and financial. It is different from traditional reporting framework as it includes ecological or environmental factors that become difficult to assign specific measurement(Keeys, and Huemann, 2017). This is also commonly called three Pspeople,planetandprofits.Thismodelisadoptedbysomecompaniesinabroader perspectives in order to create greater business values. It is a sustainability based methods which focus on economic, social and environmental. Environmental: This model is especially used by those companies which are operating the business by considering sustainability of environment in relevance to this amazon company is also operating their business by approaching and reducing the carbon emission into their operation. They are on the path to powering their operation with 100 % renewable energy by 2025. They are seeking to develop totally electric delivering cars and plan to invest $ 100 million in reforesting projects across the world. Additionally they are launching climate Pledge Fund in order to back the visionary companies which services and products facilitate the transition to low carbon emission. All these are the efforts that are imposed or will impose by amazon company in order to address the sustainability of environment(Kendrik and et. al., 2020). By this they will effectively able to carry out their operation. Social factor influenced by changing behaviour and preferences of consumers. As the chosencompanyareperformingtheiroperationbyconsideringallpointsofsustainable environment in that situation consumers who are lovers of nature and have concern related with environment willinfluenced more and prefer to buy their products. By this market shares and revenue generation of company will also increased and as well as will able to improve the experiences of consumers by putting such efforts(Fallon-Byrne and Harney, 2017). Financial:Amazon company are launching various product that facilities the transition to low carbon emission and due to which the consumer base will increased and that ultimately influences the revenue generation of company CSR( Corporate social responsibility):It refers to a management concepts in which companies integrate social and environmental concerns in their business operations and then interact with their stakeholders. In context of amazon company they maintained corporate social responsibility initiatives in order to target the interests of their main stakeholders groups.
Generally the e- commerce companies are facing problems or pressure in various types of stakeholders along with their interest(Rasoolimanesh and et. al., 2020). Amazon's corporate social responsibility program are structured to address and satisfied the interest of following stakeholders : Consumers:It has been found that consumers are the most important part of company and due to which they give highest priority to them as a important stakeholder group. This considered the consumers as a primary determinant of their E commerce business success because these stakeholders are the main sources of incomes for company. Such types of priority agree with the mission and vision statement of company too. In which the interest refers to fair prices, concerns of nature, online security in transaction, conveniences of services. Amazon satisfied all of these needs of consumers by emphasis on service & technologies(Haseeb and et. al.,2019).Forexamplescompanyusesvariousadvancedapproach&communication technologies in order to secure transactions for efficient purchase and delivery process. Employees:Amazon values their employees and considered as a significant determinant of organisational performance & CSR policies along with program. This mainly reliesin offering competitive compensation & career development. Employees of company are important as they supports to company in order to gain competitive advantages based on Amazon's organisational culture(Suriyanti and et. al., 2020). This facilities the development of new idea in order to increase the productivity. Chosen company satisfied the interest of these stakeholders by leadership development and an appropriate compensation policed according to the high growth rate of company. For example company provides high compensation, especially for IT personnel directly in developing and maintaining the technologies. Communities:Amazon company maintain their CSR programs for their communities. These stakeholder are important as they influence consumers perceptions on company good and services. They develop support like education, healthcare and environmental consumptions. In relevance to this company, by amazon smile, a percentage of sales revenue are donated to consumers chosen charitable companies Business ethics:Business ethics refers to a performing business operation by considering all policies, rules and obligation that are imposed by the government. It is a study of specific business policies & practices related potentially controversial subjects that involves corporate governance, insider trading, discrimination, CSR and fiduciary responsibility. Business ethics
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comprises of all these values and principles which aids in guiding the behaviour of company. In this business unit need to maintain all needs of stakeholders and their desires in order to make profitability. In order to maintain these balance, sometimes company need to required trade-off in order to compete with these scenarios rules principles that are formed within company. In 201 there was a article in Seattle times that revealed about the poor treatment of some of the Chinese workforce of amazon(Aquino, Lück and Schänzel, 2018). It described the way there were use of temporary & contract workers for violating the Chinese law. Employees were also spending waiting time and over timethat as up to 100 hours exceeding the legal limits and wages were also below the average for area. Amazon is also working at worst rating because of environmental reporting according to the sustainability report in July in 2019 that provide no information about the impact of textiles or electronic products that were used in clothing. There were also polices that required to be made on the way toxic chemicals are being used in their production of clothings for which no information was found. So all these are some of the ethical measures that have to be focussed by amazon in order to deal with the negative impact on their existing brand image because of such issues. Role of market:Sustainability marketing refers to a promotional activity related with the environment and socially responsible products, practices and brand values. Business units sue sustainable marketing for a specific products time sensitive cause or even as their business. In context of amazon company they are approaching to measure & reduces the carbon emission in to their operation in order to take account sustainability. In order to maintain the sustainability it is vital for marketers to use all that process which are in favour of nature in order to carry out their promotional activities(Urbaniec, 2018). In context of amazon company, they are trying to delivering their all services or goods by electrics cars in order to reduces the carbon mission as well as facilities that products which transmits low carbon emission. By doing this they are considering both social and environmental factors as most of the peoples in the world have concern towards environmental so all these efforts of company influences those consumers which is good for both company and nature. If consumer base increase then revenue generation and market shares of company will automatically increased.
3. Propose and critically evaluate appropriate sustainable business strategies. Amazon is one of the organisation that focuses on making their business sustainable. It is analysed from the current scenario of business environment that sustainability is the key factor in business. Because due to the continuously raising in pollution in environment, it becomes necessary for organisationthat they should focus on factorsthat affectson society and environmental issues(Sunder and et. al., 2019). Organisations should understand the needs and requirements of society because it is they use natural resources of society so it becomes the duty of organisation that they should focus on sustainable business. In the ongoing trend, it is analysed that organisation use this as a strategy because it helps to attract customers through their positive position in market. Business development can be taken place when organisation adopt sustainable business strategy. Sustainable business strategies is a tool in which organisation convert their structure from unsustainable to sustainable one. It can not easily take place that means it require a pathways in which organisation plan that how they can transform their business into sustainable one(Otto, 2019). For making a strategy there are some important elements that should be considered by company: It is important to organisation that they firstly understand the real scenario that means they should know the local and global sustainability issues that can be affected on organisations' operations. After identification of issues now it is the time to make long term ambitions through make clear visions about organisations. Now make plans that implemented for achieving the ambition of organisation. Timescale is very important that helps to complete the work on time because after lapse of time there is no importance of that work. Communication is the step where strategy can be informed top employees so that they can take actions accordingly. It is analysed that Amazon took many steps or initiatives for making their business sustainable. They take initiatives for current and future situations that focuses on reducing production waste and energy consumption. Those initiatives are mentioned below that helps to understand how they make their organisation sustainable:
Energy Consumption:They already take initiatives for sustainable business as they run their 10 projects of renewable resources and targeted to use 100% renewable resources for short term period and try to reduce at 50% in long term period. Packaging: Amazon using 100% recycled packaging so that they can increase more eco- friendly delivery. They eliminate excess packaging i.e. they cut 55000 tons waste in 2016. Transportation:Amazon reducing carbon gas emissions with the help of launched drones for delivery of products. They are power generated batteries that reduce carbon emission in environment(Tan and Xu, 2018). Importance of sustainable business strategies: Competitiveadvantage:Sustainablebusinessstrategyhelptotakecompetitive advantage in market. Because for that reason organisation can take easily their stand in frontofothercompetitorsandprovethemthattheyaredifferentiatefromother organisations. Every organisation wants that they enjoy competitive advantage so that they can take decision regarding prices of products and services and they can create monopoly also. Sustainable growth: Growth is very important element in the organisation because of that reason they can run their business face challenges that come under in their paths. With the help of this strategy they can achieve sustainable growth that no other organisation can easily attain that. It is one of the biggest advantage of this strategy. Reduction of waste: This strategy really helpful in reducing the waste in organisation because it helps to understand the optimum utilisation of resources(Roberson, Holmes IV and Perry, 2017). Reduction in production cost: When organisation reduce their waste then it directly reduced their production cost of goods and services. Organisation can adopt many strategies for reducing their production cost but it is the most effective one. Increase profitability:The basic and main objective of every organisation is that they earn maximumprofitsintheir business. It canbe done throughthe reducingof production cost that increase the margins of profits. Change Driver:It becomes one of the organisation i.e. change driver. In simple words, it isanalysedthatorganisationscanbecomethosewhosetsstandardsforother organisations that become very good point for their success and growth in market place.
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It is analysed that how much organisation need to be sustainable from the above discussion. So those organisations who are not interested in sustainable business strategy they can face many problems in their near future such as legal actions by government, threat of substitute, low growth, risk in success, etc. An organisation can be become sustainable if they follow some following strategies: Go paperless:It is one of the effective factors in which organisation can sustain their business by remove papers and use digital technology for all work. It depends on the nature and size of the business such as Amazon can easily adopting this techniques in their organisation(Stankevičiūtė and Savanevičienė, 2018). Reducetheuseof plastic:Plasticisbecomethemosthazardouscomponentin environment that damage very badly. So it is very important for organisation that they find ways in which they can reduce the use of paperwork. Recycling: It is the important step in which organisation should use those resources that can be recycle so that their waste reduce. It refers to the reuse of materials that already use before. Ethical Procurement:It is very important for organisation that they produce their goods and services ethically right. That means they can be allowed by government and not become the reason of damaging environment. All above mentioned factors should be considered in their strategy so that organisation can develop or create best strategies for their organisation. It is very important for Amazon that they should take care each and every points so that they can achieve their goals and objectives with optimum use of resources and attain sustainable growth(Pimonenko, 2018). Sustainability is becomes the compulsory factors in the success and growth of organisation so they should take wise decisions regarding sustainable business strategy. CONCLUSION From above discussed report it has been analysed that sustainability plays vital roles in business unit in order to create long term value by considering all aspects related with the ecological, social and economic environmental. For which company needs to operates their business by addressing all these concepts and facts which are related with the sustainability. With the help of various theories and model companies can full fill this objective.
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