Innovation and Sustainable Organisation

This report analyzes the concept of sustainability in business organizations, focusing on the case study of Audi, a leading luxury car manufacturer. It examines Audi's sustainability offerings, identifies key stakeholders, and benchmarks the company's performance against industry standards. The report concludes with recommendations for Audi to further enhance its sustainability initiatives.

INNOVATION AND THE
SUSTAINABILE
ORGANISATION

Table of Contents
ASSESSMENT 1.............................................................................................................................1
PART A...........................................................................................................................................1
Section 2- Sustainability offerings of company and its impact on environmental sustainability
.....................................................................................................................................................2
Section 3 – Literature section .....................................................................................................3
Section 4- Identification of stakeholders.....................................................................................4
Section 5- Sustainability Benchmark..........................................................................................4
Section 6- Recommendations......................................................................................................6
Section 7- Conclusion.................................................................................................................6
REFERENCES................................................................................................................................7
Appendix..........................................................................................................................................8

ASSESSMENT 1
PART A
Sustainability is referred as the development which aims to meet the requirements of
present generation without any compromise with the ability of future generation to satisfy their
needs. In case of current business environment, it is the most talked and considered aspect.
Approaches associated with sustainability focuses on manufacturing those services or products
which are better than previous offerings without harming nature and resources in any manner. As
per my studies, it is not possible for business organisations to accept sustainable approach. As
these practices can increase the efforts and costs of business firms, most of the organisations
feels reluctant in implementing sustainability approach in their organisational structure. Beside
this, I feel that another reason for which organisations fails to meet sustainable aspects is due to
differences in sustainable goals and organisational objectives. I believe that in order to
implement sustainability in a proper manner, business organisations are required to carried out
research and development so that pre-outcomes of these activities can be acknowledged.
I believe that performing only those activities which will not harm environment is a
costly approach and it is not possible for business organisations to adopt those initiatives. This is
because main aim of business organisations is to earn high profits and revenues if they want to
sustain a strong presence in marketplace. According to me, this is the reason activities related
with sustainability are considered as secondary but not as a priority. I feel that business
organisations are required to adopt sustainability practices even if it will cost them high. This is
because spending on these practices will be a short term loss for company but as people are
getting more concerned about environment, these practices will benefits the firm in sustaining a
strong brand image. As per my opinion, this will benefits the company in gaining high revenues
and profitability. Also, following sustainable and environment friendly approaches is under
Corporate social responsibility which must be followed by every organisation in order to work in
a ethical manner.
I think other reason due to which organisations are not actively participating in
sustainability is consumers itself. This is because consumers want to access advanced and
modern products that will be better and economical than previous ones. They do not want to
spend high and do not bother about manufacturing processes. In order to get advantage over rival
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companies, every business organisation strive to produce products in less cost and pursue those
activities which harms environment in direct or indirect manner. As per my opinion, this is the
reason environment is getting degraded day by day. In this regard, if people wishes to have
environmental and sustainable welfare, active participation of organisation, consumers and
government is required. Also, to achieve sustainability I think that poor section of society and
their needs must be given more consideration. I feel that there are some exclusive approaches
that can be adopted by business organisation so that sustainability can be implemented properly.
PART B
Section 2- Sustainability offerings of company and its impact on environmental sustainability
Audi is a Germany based organisation which specialises in designing, manufacturing,
marketing and distributing luxurious vehicles. As sustainability is becoming more and more
important, Audi is also emphasizing on adopting those activities which will be beneficial for
environment. In this context, management in Audi believes that sustainable actions means that
considering the long term and immediate consequences of the decision taken by company.
Organisation feels that other than economic success, social responsibility and environmental
capability is equally important. In this regard, Audi has initiated the goal of achieving CO2
neutral mobility. This will benefits in reducing CO2 emission in a considerable amount. Each
model of Audi will promise lower consumption than the previous model. To prove its point,
company has launched 112 model versions which have less than 140 gram CO2 emission per km
and more than 40 models with less than 120 grams CO2 per km. It is said that Audi has achieved
its sustainable targets of 2020 in 2012 i.e. much before the expected time. In 2017, Audi has set
another sales record. Company delivered around 2 million vehicles (Audi publish first corporate
responsibility).
For quarter2 A5 model of Audi was quite popular. In 2017 sales revenue of company was
5.1 billion pounds which help company in raising funds for their business operations. Approach
used by company in achieving this success is innovations due to which company receives
competitive advantage over rival companies. As per the case study, it can be said that there are
different organisations which are working to prevent environmental pollution like world
economic forum (Anttonen and et. al., 2013). Main objective of this firm is to prevent nature
from global degradation and harm. In this context, global competitiveness report 2013-2014
claims that out of all nations, 148 countries aims to take society towards development. It is a risk
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taking approach but getting success will results in high profitability for business organisations
for a long time period. For example, Software of Auto driving cars have helped companies in
gaining superiority in market.
In this regard, management of company has adopted the strategic goal of qualitative
growth. Also, company has demanded its suppliers to strictly adhere the sustainable principles
and environmental standards. Now company has a mission of reducing 40% CO2 emission by
2020 as compared with 2010 products. From 2012, 100 percent of electricity which is usd by
company is produced from regenerative sources. Company is also working on generating e-gas
so that consumption of fossil fuels which harms environment can be reduced. The efforts of Audi
carried out in transition of world towards sustainable strategy is an important step in preserving
environment.
Section 3 – Literature section
There are different measures by which sustainability can be implemented in an
organisation. A company can go for energy conservation and green technology along with use of
solar energy and panels. This will benefits the company in attaining their aims and objectives
along with implementation of sustainable approaches (Castiaux, 2012). This will help the
company in offering desired product to this generations without compromising with the needs of
future generation. To incorporate sustainability there are some aspects that can be adopted by an
organisation. These aspects are mentioned below:
Mission: It is an important way by which a company can adopt sustainability in its
activities and operations. In this regard, mission of Audi will be to replace its combustion engine
with electric engines. To achieve targets, company and its major partners have taken decisions in
the favour of sustainability (Cooper, 2016).
Stakeholder Engagement: It is essential for Audi to have major stakeholders in its
favour, if company wishes to implement sustainable practices. Also, stakeholder engagement
will benefits the company in taking and executing right decision which will be beneficial for
both organisations and environment. Customers, communities and employees must also
motivated in undertaking these practice so that unified efforts can be carried out (Gopalakrishnan
and et. al., 2012).
Waste Reduction: In order to reduce waste, company is required to enhance its
operational efficiency. It will motivate the employees in using resources in an optimal manner
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and wastage can be minimised considerably. In this context, Audi can adopt six sigma and
automation so that desire of company and demand of customer can be fulfilled desirably (Jorna,
2017).
In this regard, Audi can also adopt circular economy model which will benefits the
customers in attaining inventive and long lasting product. It will also reduce environmental
impact by shortage in waste of resources, less demand of raw material, reduction in green house
emission. This model will also benefit the company in eco-designing and reusing of the products
that will enhance economy innovation and growth (Laukkanen and Patala, 2014).
Section 4- Identification of stakeholders
In this business organisation, stakeholder posses a vital importance. The strategy of
company to produce electric engine will be a big approach by which negative aspects of
combustion engines can be reduced. Stakeholders of Audi are stated below:
Community: It is considered as a major stakeholder of company. In this regard, company
has taken different attempts so that ecological issues can be resolved properly. As company is
offering cars with CO2 neutral mobility, it is contribution in preserving environment.
Customers: These are important stakeholders as they help the company in achieving
revenues and profitability due to which further business strategy can be implemented. Company
is required to fulfil the expectation of customers without harming nature and environment
(Ceschin, 2013).
Employees: Audi while formulating its CSR are required to consider employees which
are working for the organisation. Workers are essential segment of the company as they helps in
achieving success. Company is using compensation strategy to retain them for long time.
Investors: These individuals have invested their money and expects that they will receive
high returns. Audi has developed CSR and other strategies that has transformed auto mobile
sector toward sustainable growth which will benefits the company in high return.
Section 5- Sustainability Benchmark
The main purpose of company to adopt sustainable initiatives is to assure Audi is in
favour of preserving nature and will follow those procedures that will results in sustainable
growth. Company is going to adopt sustainable approach in its process and products so that
competitive advantage over rival companies can be attained. This require optimal utilisation of
resources. Implementing these strategies will helps in understanding if these strategies are
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impactful or not. Comparing sustainable strategies with the benchmark will help the company in
finding scope for improvement. This approach will helps in identifying those factors that will
take business towards the better outcomes. Performance of Audi is compared in Automotve
segment of UK.
It is stated that carbon emissions from vehicles is the biggest threat toward sustainable
development. Hence, business organisations adopts different measures so that emission from
vehicles can be reduced. The vehicle that are already made by Audi assures 30% less emission of
carbon and company assures that in 2020, vehicles with 40% less carbon emission will be
launched in market. This will benefits the company in becoming market leader along with being
environment friendly (Chahal and Bakshi, 2015). As company is using electricity made form
regenerated resources, overutilisation of limited resources have reduced considerably. For
purpose of getting improvement, it is vital for Audi to undertake practice which ensure that there
will be minimum use of resources and more innovation that leads to attainment of targets. Audi
is considering numerous attempt like outsourcing renewable resources and use of green and
clean technology so that benchmarks in context with sustainability can be fulfilled desirably (Pot,
2011).
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Section 6- Recommendations
As company has access to all resources which can benefit it in attaining high growth.
There are some recommendations which can be given to the manager of company which are
mentioned below:
 It is recommended to the manager that company is require to enhance their presence in
international market so that Audi can give more attempts towards carbon emission
minimising in order to give tough competition to rival companies (Schaltegger and
Wagner, 2011).
 There is a need to increase investment related with innovation of products or services so
that technologies which are disrupted can be detected easily.
 There are crucial requirements to match supply of products that can be easily met by
supply chain diversification.
Section 7- Conclusion
From above discussed report, it can be concluded that sustainability is a vital aspect
which is required to be followed by every organisation. It will enhance brand image of company
along with decreasing the negative impact on environment. These practices will benefits the
company in gaining long term benefits. Company in auto mobile sector can achieve
sustainability through reduced carbon emission but to meet benchmarks additional efforts are
required.
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REFERENCES
Books and Journals
Anttonen, M. and et. al., 2013. The other side of sustainable innovation: is there a demand for
innovative services?. Journal of cleaner production. 45. pp.89-103.
Castiaux, A., 2012. Developing dynamic capabilities to meet sustainable development
challenges. International Journal of Innovation Management. 16(06), p.1240013.
Ceschin, F., 2013. Critical factors for implementing and diffusing sustainable product-Service
systems: insights from innovation studies and companies' experiences. Journal of
Cleaner Production. 45, pp.74-88.
Chahal, H. and Bakshi, P., 2015. Examining intellectual capital and competitive advantage
relationship: Role of innovation and organizational learning. International Journal of
Bank Marketing. 33 (3), pp.376-399.
Cooper, A., 2016. Governing global health: challenge, response, innovation. Routledge.
Gopalakrishnan, K. and et. al., 2012. Sustainable supply chain management: A case study of
British Aerospace (BAe) Systems. International Journal of Production Economics. 140
(1), pp. 193-203.
Jorna, R. ed., 2017. Sustainable innovation: The organisational, human and knowledge
dimension. Routledge.
Laukkanen, M. and Patala, S., 2014. Analysing barriers to sustainable business model
innovations: Innovation systems approach. International Journal of Innovation
Management. 18 (06), p.1440010.
Pot, F., 2011. Workplace innovation for better jobs and performance. International Journal of
Productivity and Performance Management. 60(4), pp.404-415.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment. 20(4),
pp.222-237.
Tukker, A. and et. al., 2017. System innovation for sustainability 1: Perspectives on radical
changes to sustainable consumption and production. Routledge.
Yang, M. and et. al., 2017. Value uncaptured perspective for sustainable business model
innovation. Journal of Cleaner Production. 140, pp.1794-1804.
Online
Audi publish first corporate responsibility. 2019. [Online]. Available through:
<https://www.audi-mediacenter.com/en/press-releases/audi-publishes-its-first-
corporate-responsibility-report-2274>
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Appendix
Week 1 In my first week of work, I have tried to gain some familiarity with the
concepts which are related with sustainability. Also, I have identified the
importance of sustainability in context with present environment. In
identifying the different aspects which are associated with sustainability, I
have acknowledge that vehicles especially luxurious cars have became a big
concern for the environment and it is important for business organisations to
to counter its negative impact and transform into more sustainable approach.
This lecture tells us about the merit of carrying out sustainable practices in
real life so that business organisations can acquire high returns and
profitability. This will benefit the company in preserving environment for a
long time span due to which future generations will not face issues of due to
shortage of resources and materials.
Week 2 Now I have idea about sustainability and ideals of sustainability. It is easier
for me to understand those aspects which will help me in implementing it in
real life. This can be accomplished by gaining guidance of my mentors
which can help me in getting informed about the changing aspects due to
sustainability. This lecture informed me in carrying out sustainable practices
so that inclusive participation can take place. As per the condition of
environment and ecology in recent times, me and my friends have decided
to car pool so that minimum use of gas and petroleum will take place. This
is a good initiative in order to reduce the negative impact of fossil fuels on
environment. It is said in the case study that we are required to choose a
specific industry and required to create a project on that specific topic. Due
to my interest in luxurious cars and vehicles, I have chosen the the topic of
Automotive sector.
Week 3 Lecture in this week motivate and encourage us to perform research through
online means along with identification of ways by which we all can
individually give our contribution towards sustainable and healthy
environment. In this regard, I have searched different newspapers so that a
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mini research can be carried out in context with sustainability and found an
article related with Audi which is a luxurious car manufacturer. I was
impressed with the strategies of company to reduce carbon emission by 40%
by replacing combustion engine with electric engine. There were some
another aspects that were written in that article that will helps in preventing
the environment from harmful environmental practices.
Week 4 In this week, I have decided to work on the topics related with sustainability
by giving special consideration towards Audi and its aspects in related with
sustainable development and environment protection. I was very impressed
and attracted with the fact that the company which I have chosen is
providing the products which are expected by customers along with giving
priority to the sustainability and environmental concerns. In this regard, I
have undergone some discussion with my supervisors and mentors and they
suggested me to initiate the same project. The reason for which I consider
that this company is providing green technology to their customers is that
the new initiatives carried out by the, will not harm environment in any
manner.
Week 5 I have tried to collect relevant data from different sources. In this regard I
have tried to collect data from different sources like internet, books,
journals, annual reports that was published by the concerned company to
acknowledge their investors, customers and other share holders about their
practices. As last week to submit the data was coming near by, this
persuaded me to began the screening of information and data so that the
most relevant and desired information can be secured and saved. I have
some conversation and chat with my supervisor about this topic and project.
My supervisor told me that he have very high expectations from me as the
company I have chosen for this project is a renowned company. While
initiating my work on this project, I felt very nervous and excited both at the
same time as this project helps me in understanding about cars and
environmental aspects at the same time.
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Week 6 This is the final week in which I have to submit my report to my supervisor
and my classmates. At first, I was not confident is representing my report as
I haven't submitted any finding or draft of the project to my supervisor. Due
to this, I was feeling nervous if my teacher will like my findings or not. I
was in rush and due to which I didn't have enough time to ask my
supervisor to tell me what further improvements I can carried out in this
project. But due to my dedication and hard-work, I was very confident that
people will like my efforts and this project. On the day when in represent
my report in front of entire class and people, I think that I have done an
appreciable job. I could have done better but due to shortage of time and
nervousness there were some aspects which I missed. Also, I have some
issues in performing at stage. This is the reason I feel reluctant in taking part
in such activities. The data and information which I have collected could
have been better and in more depth I had carried out more research on
internet. In my opinion, it was a good experience and this research will help
me in performing my future researches with professionalism and accuracy.
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