Effects of Climatic Changes on Food Industry

This article discusses the effects of climatic changes on the food industry, including threats to business, policy and regulatory frameworks, and summaries of four types of innovation.

Running head: EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
EFFECTS OF CLIMATIC CHANGES IN FOOD INDUSTRY
Name of the Student
Name of the University
Author note

1EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
Introduction
The Food industry has faced tremendous growth and resilience in the 21st century and the
demands for the skilled employees continued to grow. The small and the medium-sized food
enterprises have witnessed the considerable development though there was an economic
slowdown [1]. The introduction of awards in the food business has encouraged the management
schools to produce more graduates those are better equipped with the aptitudes and the
competencies those are necessary for designing, managing and leading development within the
food industry. The strongest food business plans include mostly the brand cover, concept, great
sample menu, services, great services, management team, designing, market overview, marketing
publicity, effective business structure, and financial sectors. The food business allows the
entrepreneur to become the own boss of the business. The food industry is one of the permanent
fixtures in the UK’s economy and the growth has been recognized of about 5% in the year. This
business can be considered as one of the recession-proof industry as this business allows the
steady flow of the actual customers [2]. The high market demands are advantageous for the food
business industry as most time people like to eat outside, these rises the market demands of the
business. These food businesses are able to gain the popularity of providing different food
options like fast food, pizza, coffee shops, and others.
Descriptions of threats to business from climate change and policy
The food production is extremely sensitive to changes in climate change. Climate change
has proved to be the major reason for erratic changes in the weather pattern, leading intense
rainfall, frequent dry spells, anomalies in the normal temperature, extremes of temperature and
constant increasing the temperature. This has not only hampered the cropping pattern but leads to

2EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
crop damage. This has led to reducing the resilience to combat against droughts, increasing the
climate the change. The response to climate change boost production to a measurable effect on
the quality and quantity of food produced [3].
The climatic change poses the fundamental threat to the places, species and the livelihood of
people. The environmental risks for the business include the extreme temperature and the
extreme climatic conditions. These also include floods, fires, and the natural disasters and this
food business industry faces an increase in cost because of the energy management, water usage
and especially the water restrictions [4]. The extreme weather including the extreme heat, or
extreme cold, strong winds and the natural disasters like fire or the flood can affect the business
conditions. The food business not only needs to plan for those events regarding the
understandings of their employee’s obligations to the employees for managing the extreme
weather conditions. Climate change can also affect the food business by altering the long-term
weather patterns [5]. The climate change mitigation may involve the lowering of carbon
emissions for minimizing the impact of climate change in the future as shown in [5, Fig. 1]
The climatic change can bring physical damages to the restaurant buildings, supplies, and
equipment due to the result of flooding and the different extreme events, which can raise the cost
for the food industry. These events can disrupt the business by halting manufacturing or by
making it impossible for the employees get to the work. The food business around the world
needs to look for the scope of improvements for preparing for the climatic changes. The food
business organization need to prepare the business conditions regarding the investments in
resilient buildings, which can better withstand the damage from the storms, flooding, and strong
winds.

3EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
Fig 1: Impacts of climatic change on the business operations
The policy and regulatory framework have been designed to mitigate climate change for
business. The adoption of the global framework addresses the Green House Gas (GHG)
challenges under which remains the major countries emitting pollution and this global
framework is needed for reducing the emission. The goal of these programs is to stabilize and
then reduce the GHG concentrations in the atmosphere to levels is likely to reduce the
expansions of the impacts of climatic change. Therefore it is important for the climate-change
policies for including incentives for stimulating the private sector innovations and investment in
the technologies, which are needed to transition to the low-carbon economy [6]. The legislative
or the regulatory framework needs to be based on the sound science that is designed for
encouraging conservations and stimulating the private sector innovation and the investments,
which will enable the reductions in the carbon emissions to be achieved as effectively as
possible. In addition to this, all the stakeholders are needed to be involved in the development of
the framework. The organizations are moving forward towards taking voluntary steps for

4EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
reducing the GHG emissions, which should be given appropriate credit for the verifiable actions.
The public policies are needed to be clear and stable for allowing the flexible as well as
predictable approaches for achieving the reduction targets of emission. This also takes into
account the requirement of the reliable and the affordable world would supply for supporting the
economic growth. The public policies are expected to address the connection between the
climatic variations, water scarcity and the public health risks through promotions of the proper
adoption and the mitigating measures that involve the water conservations, the management
programs and the initiatives for strengthening the health systems in the targeted regions [7]. The
organization should take the proactive approach for the climatic variations by encouraging
certain business associations for helping the advance public policies to address the climatic
variations. Every organization needs to participate in the various committees and networks of the
European Federation of the Pharmaceutical Industries and Associations (EEPIA) and the
American Chamber of Commerce [8]. This will reduce the problem in both the constructive and
the meaningful ways of promoting the science-based solutions, which will lead to getting the
more secure energy supplies and the creation of the low-carbon economy [9]. Therefore, it is
crucial for every organization to follow the public policies and for mitigating the effects of
climatic variations as established in [9, Fig. 2].

5EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
Fig 2: Policies for effect of climatic changes on business
Summaries of four types of innovation
Sustaining innovations:
This type includes most of the innovations as most people are seeking to get better from
what they are already doing. Thus, most of the organization wants to improve and make
variations in the existing markets and they also have pretty clear ideas regarding the problems
those need to be solved, the skill domains that are required to solve. Thus, for such problems, the
conventional strategies like the strategic road mapping, traditional R&D labs and using
acquisitions for bringing innovative and skills, which are set into the organizations that are
usually effective. The design thinking methods including the championed by the David Kelley,

6EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
founder of the design firm IDEO and Stanford’s d. The school could be enormously helpful only
if the skills that are needed to solve the problem should be well understood [10].
This innovation type in the business needs to establish a clear sense of directions that is
the changing cultures in business includes the changing minds, which requires time. But with the
initiatives the organization needs to set the target for each and every employee in the
organization, this will speed up the production process. The organization having the clear
articulated messages will allow everyone to focus on the innovations, where it will able to
deliver the greatest value. The innovations are considered as the new dimensions of the
performances and the mission sense could clarify the performance directions and would be able
to determine the innovative ideas to be focused on. This type of innovations leads the
organization follows the open communication strategies among the organization management
and employees that will help in bringing up the trust-building relationships among them. The
organization follows these innovative principles for reducing the bureaucracy and for instilling
the sense of ownership [11]. This innovation type also enables the organization to make sure
recognition and making the reward system consistent and also develops the tolerance for the
risks and failure and also eliminates projects, which does not work out. The graph of the
disruptive innovation versus sustaining innovations have been established [11 Fig. 3]

7EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
Fig 3: Disruptive Innovation vs Sustaining Innovation
Breakthrough innovations
This type of innovations takes the current process or the present products that typically
provides greater efficiency and also helps the organization in the business market to follow the
cost-effective business innovations. These innovations also lead the organization towards
substantial improvements by opening up the new possibilities. Though it can make the food
industry at a higher risk, which would be requiring higher investments in terms of the capitals,
time and the resources. Then by making the rewards higher, this can often result in the products
or the services that would provide the important values to the customer than the existing business

8EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
market offering. But in most of the cases, it has been found out that the consumers are not that
much efficient in foretelling the future needs. Thus the organization will not be able to achieve
the innovative things if they simply ask the customers instead they are needed to make the more
appropriate innovative approaches by looking further for the afield to the adjacent industries or
the early adaptors or the experts that develop the services. Breakthrough innovations can be
referred as the game changing innovations as the large technological advances that propel the
existing services or products ahead of the business competitors. The game changing innovations
is based on the sudden changes established brings innovation for the entire system and providing
great organizational profits. This often results in research and the development labs those are
striving for the next patentable formula, technology, and devices [12].This innovations especially
explores the unconventional skill domains like adding the marine biologist to the team of the
designer chip. This innovation type provides the open innovation strategies that lead to highly
effective in such regards as this help the organization to expose the issues for the different skill
domain [13].
Incremental innovation
Incremental innovations are the series of small improvements or the upgrades, which are
made for the company’s existing services, products, processes, and methods. The alterations that
are implemented through these innovations are usually focused on the improving strategies of the
existing product’s efficiency and the competitive differentiation. Most of the enterprises use
incremental innovations, which helps to improve the product’s market position [14]. This has
also become the common tactics in the consumer's technology industry and as the company
strives for regularly improving the personal devices with the customer-friendly features. This
type of innovations are common in the enterprise that often utilizes the incremental innovative

9EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
strategies and it has become one of the major factors in determining the modern enterprises,
longevity and the success [15]. This trend has led to many enterprises that mostly puts more
focus on the incremental innovation strategy that could make the food industry benefited by the
product’s development. This type of innovations involves the modest changes that are required
for the existing products and the services. This innovation type provides the food industry a
chance to enhance the business strategies, which will keep the business competitive with the
features of the new innovative products and services. This innovation type also help the
organization to find out the key to success for remaining competitive in the business market is
that understanding the white space in the business market and also the fundamental customer
needs and also recommends the better alterations that the products and services could adopt for
meeting the requirements [16]. The major focus of this type of innovations is to meet the
customer's requirements with the new features in the present offers. The growth of the
incremental innovations has been shown [16 Fig. 4].This also helps the organization to prolong
the market life of the products or services while sustaining the competitiveness of the existing
products in the business markets and enabling the continued growth at the lower risk [17].

10EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
Fig 4: Growth of incremental innovations
Radical innovations
This type of innovations have the power of shifting the entire business industry and through the
annual competition, the radical innovations could mobilize the disruptors from all over the world
regarding the ideas to propel the business industry forward [18]. This would result in the creative
community gathered as the same passion for the innovations by introducing the dreamers to
those equipped with the necessary resources for bringing those concepts to life [19]. Radical
innovations provide the business a platform for connecting and inspiring for the desired changes.
These radical innovations could be achieved by the three levels of innovations that is
breakthrough innovation that would deliver the creative radical solution for challenging the
problem, the disruptive innovation which could create the new big market niche and developing
the game-changing innovations that will transform both the market and the society [20]. This
innovation type will help the food industry to stand out from the competition in the business
market and enabling the rapid growth and creating the high return on the investments. This
radical innovation also creates a dramatic change in the processes, products and the services that
could transform the existing business market or industries by creating new ones. The concept of
radical innovations should be understood by the business that it is about the leveraging core
competencies of the future business market that will deal with the existing technologies and for
figuring out the new applications, which will focus on the long-term goals. The radical
innovations consist of the great impact on the business market as well as the economic activity of
the firms in the business market [21].
Description of disruptive innovations to address threats to business

11EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
The disruptive innovations can be defined as the business process through which, the product or
the services could take root initially in the simple applications at the bottom of the market and
could then move the business relentlessly by displacing the established competitors. As most of
the companies tend to innovate faster than the customer needs are evolving and there are most of
the organizations those who eventually end up by producing the products or the services, which
are too sophisticated, too expensive and are too complicated for most of the customers in the
business market [21]. The companies also peruse the sustaining innovations at the higher tiers of
the business market as this has been helping them from the historical periods to succeed. This is
by charging the highest prices for their most demanding customers and the business companies
will be achieving the greatest profitability. However, the business companies unwittingly open
their door to the disruptive innovations at the bottom of the business market [22]. The disruptive
innovations allow the whole new population of the consumers at the bottom of the market to
access the business product or the services that are historically accessible to the customers with
lots of money. The characteristics of the disruptive innovations include the lower gross margins,
smaller target markets, simpler products, and services, which may not be appeared as attractive
as the existing solutions that are when compared against the traditional performance metrics [23].
Due to the lower tiers of the business markets, it offers the lower gross margins as it is
unattractive for other firms to move upward in the business market and creating space at the
bottom of the market for the new disruptive competitors to emerge in the business market [24].
The disruptive innovation helps the business like food industry to think about the innovation-
driven growth in powerful ways. Most of the leaders of the small and the entrepreneurial
companies help to praise the guiding start. In the previous business market, most of the business
organization relies on the business model innovation strategies but that type of innovations was

12EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
no longer useful for the market leaders to keep their business at the top. Thus, the business
organizations replaced the business model innovations with the disruptive models like the lean
startup, platforms and the interface business models which are providing unfair advantages
regarding the large corporations. Thus this disruptive innovations altered the threats of the
business model innovations to the opportunity by understanding the practical values of the
business models [26 Fig. 5]. Disruptive innovations also help to own the extreme competitions
regarding the exacting standards and the start-ups that embraced the business models like the
adoption to the unique circumstances [25]. This innovation type helps the business corporation to
see the market actions from the different approach that is by strengthening the business positions
in the business market. The corporations are needed to preempt the eminent disruptions and
could seek to disrupt themselves [26]. The self-disruptions would be in the form of the start-up
engagement, the corporate ventures and the in-house innovations labs for disrupting the business
industry. The disruptive innovations also help the business to cut-edge technology innovations.

13EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
Fig 5: Disruptive innovations effects on business
Conclusions
Therefore, from the above discussion, it can be concluded that the climatic variations
bring various changes to the business. Especially, the business market is getting more and more
affected due to the constant climatic variations in the place. Thus this study recommended the
needs of following the political frameworks for mitigating the climatic variations effect in the
business. The innovation strategies and the types of innovations are mentioned and explained in
this study for finding out the most innovative strategies of lowering the effect of the rapid
climatic changes. The disruptive innovation strategy could replace the threats of the food
industry with the new opportunities.

14EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY

15EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
References
1. Silanikove, N. and Koluman, N., 2015. Impact of climate change on the dairy industry in
temperate zones: predications on the overall negative impact and on the positive role of
dairy goats in adaptation to earth warming. Small Ruminant Research, 123(1), pp.27-34.
2. Portier, C.J., Thigpen, T.K., Carter, S.R., Dilworth, C.H., Grambsch, A.E., Gohlke, J.,
Hess, J., Howard, S.N., Luber, G., Lutz, J.T. and Maslak, T., 2017. A human health
perspective on climate change: A report outlining the research needs on the human
health effects of climate change. Environmental Health Perspectives/National Institute of
Environmental Health Sciences.
3. Pecl, G.T., Araújo, M.B., Bell, J.D., Blanchard, J., Bonebrake, T.C., Chen, I.C., Clark,
T.D., Colwell, R.K., Danielsen, F., Evengård, B. and Falconi, L., 2017. Biodiversity
redistribution under climate change: Impacts on ecosystems and human well-
being. Science, 355(6332), p.eaai9214.
4. FitzRoy, F.R. and Papyrakis, E., 2016. An introduction to climate change economics and
policy. Routledge.
5. Boserup, E., 2017. The conditions of agricultural growth: The economics of agrarian
change under population pressure. Routledge.
6. Sullivan, R., 2017. Corporate responses to climate change: achieving emissions
reductions through regulation, self-regulation and economic incentives. Routledge.
7. Zehr, S.C., 2016. Public representations of scientific uncertainty about global climate
change. Public Understanding of Science.
8. Klein, N., 2015. This changes everything: Capitalism vs. the climate. Simon and
Schuster.

16EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
9. Pettenger, M.E. ed., 2016. The social construction of climate change: Power, knowledge,
norms, discourses. Routledge.
10. Urry, J., 2015. Climate change and society. In Why the social sciences matter (pp. 45-59).
Palgrave Macmillan, London.
11. Reinhardt, R. and Gurtner, S., 2015. Differences between early adopters of disruptive and
sustaining innovations. Journal of Business Research, 68(1), pp.137-145.
12. Christensen, C.M., Bartman, T. and Van Bever, D., 2016. The hard truth about business
model innovation. MIT Sloan Management Review, 58(1), p.31.
13. Berndt, E.R., Nass, D., Kleinrock, M. and Aitken, M., 2015. Decline in economic returns
from new drugs raises questions about sustaining innovations. Health Affairs, 34(2),
pp.245-252.
14. Krotov, V., 2017. The Internet of Things and new business opportunities. Business
Horizons, 60(6), pp.831-841.
15. Mazzei, M.J., Flynn, C.B. and Haynie, J.J., 2016. Moving beyond initial success:
Promoting innovation in small businesses through high-performance work
practices. Business Horizons, 59(1), pp.51-60.
16. Christensen, C.M., Bartman, T. and Van Bever, D., 2016. The hard truth about business
model innovation. MIT Sloan Management Review, 58(1), p.31.
17. Souto, J.E., 2015. Business model innovation and business concept innovation as the
context of incremental innovation and radical innovation. Tourism Management, 51,
pp.142-155.

17EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
18. Lazzarotti, V., Manzini, R. and Mauri, F., 2018. Balancing actions for radical and
incremental innovations in SAES Getters. International Journal of Business Innovation
and Research, 15(4), pp.452-466.
19. Woschke, T., Haase, H. and Kratzer, J., 2017. Resource scarcity in SMEs: effects on
incremental and radical innovations. Management Research Review, 40(2), pp.195-217.
20. Coccia, M., 2016. Radical innovations as drivers of breakthroughs: characteristics and
properties of the management of technology leading to superior organisational
performance in the discovery process of R&D labs. Technology Analysis & Strategic
Management, 28(4), pp.381-395.
21. Bagga, C.K., Noseworthy, T.J. and Dawar, N., 2016. Asymmetric consequences of
radical innovations on category representations of competing brands. Journal of
Consumer Psychology, 26(1), pp.29-39.
22. Nagy, D., Schuessler, J. and Dubinsky, A., 2016. Defining and identifying disruptive
innovations. Industrial Marketing Management, 57, pp.119-126.
23. Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review, 93(12), pp.44-53.
24. Urbinati, A., Chiaroni, D., Chiesa, V., Franzò, S. and Frattini, F., 2018. How Incumbents
Manage Waves of Disruptive Innovations: An Exploratory Analysis of the Global Music
Industry. International Journal of Innovation and Technology Management, p.1950006.
25. Rieple, A. and Kapetaniou, C., 2017, August. The role of business ecosystems in the
building of disruptive innovations. In Academy of Management Proceedings (Vol. 2017,
No. 1, p. 15200). Academy of Management.

18EFFECTS OF CLIMATIC CHANGES ON FOOD INDUSTRY
26. Osiyevskyy, O. and Dewald, J., 2015. Explorative versus exploitative business model
change: the cognitive antecedents of firm‐level responses to disruptive
innovation. Strategic Entrepreneurship Journal, 9(1), pp.58-78.