Resource Depletion & Sustainability Assessment

This assignment focuses on two key aspects of sustainability: resource depletion and overall sustainability assessment. It requires an exploration of various methods used to quantify resource depletion within the framework of Life Cycle Assessments (LCAs). Additionally, it delves into the realm of sustainability assessment by examining how Input-Output analysis can be employed to evaluate the triple-bottom-line impacts of consumption and investments.

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Sustainability marketing.
By
[Student’s name]
Course
Institution
Date

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Table of Contents
Introduction.................................................................................................................................................3
Background of the organization..................................................................................................................4
Automotive industry analysis......................................................................................................................5
Sustainability concepts................................................................................................................................5
Triple bottom line....................................................................................................................................5
Managing sustainability...........................................................................................................................5
Communicating sustainability..................................................................................................................6
Supply chain sustainability......................................................................................................................6
Biomimicry framework............................................................................................................................7
Footprint concept....................................................................................................................................7
Cradle to Cradle concept.........................................................................................................................8
Environmental factors.................................................................................................................................8
Environmental pollution..........................................................................................................................8
Depletion of resources............................................................................................................................9
Fuel consumption..................................................................................................................................10
Climate change......................................................................................................................................10
Potential impacts of sustainability issues on the organization..................................................................10
Increased costs......................................................................................................................................10
Poor quality products............................................................................................................................11

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Poor community relations.....................................................................................................................12
Potential impacts of the sustainability issues on the society.....................................................................12
Air and water pollution..........................................................................................................................12
Unemployment......................................................................................................................................12
Managing sustainability in the organizations............................................................................................13
The 4P’S Model..........................................................................................................................................13
The products..........................................................................................................................................13
Place......................................................................................................................................................14
Promotion..............................................................................................................................................14
Price.......................................................................................................................................................15
The 4Es framework................................................................................................................................15
Supply chain management....................................................................................................................16
Marketing communication....................................................................................................................16
Conclusion.................................................................................................................................................17
Recommendations.....................................................................................................................................18
References.................................................................................................................................................19

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Introduction.
Business are established for purposes of providing products and services in exchange for
revenues that enable the business meet its financial obligations. The products and services of the
company are availed to the market through marketing. Due to dynamics in business environment,
there is the need for most organizations to adopt sustainability marketing. Sustainability
marketing refers to embracing sustainable business practices that enable the organization to
create long term values (Zeriti, et al.2014, p.50). These practices are both socially and
environmentally friendly and they enable the organization and the community to enjoy a lot of
benefits. This report is written to highlight how BMW Group is practicing sustainability to
enhance its operations, the factors that influenced the need for sustainability marketing, the
impact of the sustainability issues and the plans to manage sustainability marketing within the
organization.
Background of the organization.
Bayerische Motoren Werke (BMW) Group is a German company established in 1916. The
company operates in automobile industries, and it produces both motorcycles and motor vehicles
that are sold all over the world (bmwgroup.com). BMW is one of the largest manufacturing
companies in Europe manufacturing luxury vehicles as it has 30 production locations within 14
countries, employing about 106,000 employees. BMW Group requires a larger number of
employees to perform different tasks in the firm and also ensure the people in the surrounding
community are employed.
The company has three brands which include BMW, MINI, and Rolls-Royce. The products of
the company include BMW X1, BMW X3, BMW 6 series among others series. The company
manufactures touring vehicles, racing and sports cars and motorcycles and luxury vehicles. The

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supply chain of the company starts from research and development where the company
researches what the market wants. The company then procures the needed materials from the
trusted and selected suppliers who are committed in environmental sustainability and this is
achieved through collaboration. The company then manufactures the motor vehicles and
motorcycles with the best design that will attract many customers. Through outbound logistics
the manufactured are transported to the showrooms in different parts of the world where
customers can access them easily, hence creating the needed convenience.
BMW Group is a member of the U.S Environmental Protection Agency (EPA) which recognizes
companies which have put a lot of effort in conserving the environment by the production of
environmentally responsible products (bmwgroup.com). It is also a member of South Carolina
Environmental Excellence Program. In 2012, the company received an award for being the
world’s most sustainable automotive company. The company has held this fete for eight years
and it was recognized by Dow Jones Sustainability Indexes and it is the only automotive in this
list.
Automotive industry analysis.
Automotive industry due to much competition has found itself in a position where it does not
care about environmental sustainability. This is because the industry stakeholders are trying as
much as possible to minimize costs that reduce their revenues. These practices have led to
production of poor vehicles that consume a lot of fuel that emit carbon monoxide in to the
atmosphere. Unlike, BMW Group which is committed to producing vehicles that conserve the
environment, the other companies in automobile industry practice green washing through
advertisements

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Sustainability concepts.
Triple bottom line.
This concept enables the organization to measure performance in three different aspects which
include environmental factors, social factors, and financial factors (Kucukvar, et al.2014, p.236).
In environmental factors, the organization should ensure that it does not pollute the environment.
In social factors or people, the organization should ensure that it provides employment to the
people in the community. The profits or financial criteria is where the business should make
profits and reduce cost.
Managing sustainability.
During the transition period, due to various factors, some consumers can revert to the old ways.
The transition process requires time and resources to be successful (Hofmann, et al.2014, p.166).
Business owners should be aware of the need for change so that they can provide the needed
support and time to make the process a success. The consumers can be educated on the
importance of conserving the environment.
Communicating sustainability.
This concept highlights strategies and actions taken by organizations so that other stakeholders
can see that the company is advocating for environmental responsiveness through promotions
and advertisements (Grunert, et al.2014, p.180). The organization may be in the real sense not
putting any effort to move to the sustainable practices that conserve the environment. In this
case, BMW Group has conducted green washing because its i3 model of vehicle advocates for
production of vehicles that conserve the environment. BMW Group has been fighting European
Union tirelessly to ensure that the body does not enact laws that limit car pollution levels. As for
fair trade, BMW Group has put in place measures that will ensure that it is fully committed to
responsible and lawful conducts. They have ensured that customer complaints are well

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addressed. To fully practice fair trade, BMW competes for customers on the basis of the products
but this is just green washing as the company sometimes produces low quality products that does
not match the price and this is not fair trade. BMW can ensure sustainability by producing cars
that conserve environment and are of high quality like BMW i3.
Supply chain sustainability.
There is need to incorporate environmentally sound aspects in the supply chain to minimize
environmental costs, waste costs, and risks costs (Beske, et al.2014, p.139). By doing so,
companies will be able to receive raw material that enables production of environmentally
responsible products. This will be achieved through collaboration with the supplier to ensure that
the company gets the needed material in time. Through collaboration, BMW Group will be able
to assure the customers and members of the public that environmental sustainability cars can be
availed to the market in time.
Biomimicry framework.
This concept advocates for organizations coping systems, models and natural elements to solve
complex human problems (Lurie-Luke, 2014, p.1499). The designed models resemble the natural
ones and they are used to solve sustainability challenges that human beings are not capable of
solving without involving natural organism. The designed structures take the role of the living
organisms. BMW Group is using biomimicry concept to develop head gears that will help to
protect the workers and this will help to minimize injuries and improve their welfare and that of
the society biomimicry.com, 2016). The level of biomimicry in automotive industry is rising
only that the projects are not implemented like the BMW’s jellyfish biomimicry to help control
traffic in many cities.

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Footprint concept.
Automotive industry has had a lot of impact on footprints which comprise of ecological, water
and carbon. Automotive industry uses a lot of resources such as copper, iron and water and this
is causing depletion of resources. Automotive industry also emits a lot of carbon into the
environment leading to global warming.
Ecological footprint helps to measures the land used to produce the resources needed for
manufacturing of the vehicles and the waste produced. BMW Group has helped in reducing
ecological footprint by embracing innovative technology to enhance efficiency which helps in
reduction of the resources consumed and also minimizing waste produced. Carbon footprint
measures the amount of carbon emitted to the atmosphere by the vehicles (Gaussin, et al.2013,
p.520). BMW has manufactured electric cars that use renewable sources of energy and this has
helped to minimize the carbon footprint. BMW has also started car sharing program which will
minimize the number of cars on the roads and this will also minimize carbon emission into the
atmosphere. Water footprint is used to measure amount of water used in manufacturing different
products. BMW Group is minimizing water footprint by recycling and reusing products which
helps in saving the water that could have been used to manufacture the recycled components.
Cradle to Cradle concept.
This framework advocates for total elimination of waste as it designs packaging products that
ensure that the purchased product is useful including the package. The framework advocates for
the design of systems and products which are powered using renewable energy (Silvestre, et
al.2014, p.40). It perceives human model systems as natural processes and it is very efficient in
conserving the environment. BMW Group is using this concept and it has manufactured BMW i3
using this concept and this has helped in environment sustainability as this car can be recycled
and the process was successful.

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Environmental factors.
The company operates within an environment which has a lot impact on the organization
operations. Some of the environmental factors that have forced BMW to adopt sustainability
marketing include
Environmental pollution.
Automotive companies produce products which include motorcycles and motor vehicles which
emit a lot of harmful gases into the atmosphere. The emitted gas pollutes the atmosphere as the
harmful gases cause hazardous health complication that affects the community (Triassi, et
al.2015, p.1220). This implies that the government will spend a lot of money in helping the
affected individuals. This will lead to government increasing the tax rates and other avenues of
collecting tax so that they can finance the increased expenses. The increased taxes will reduce
the profits of the company and this will lead to reduced return on investment. BMW Group to
avoid the high taxes due to air pollution decided to adopt sustainability marketing which
advocates for production of automobiles that emit less fumes into the environment (Li, et
al.2014, p.850)
Environmental pollution forced BMW to start manufacturing vehicles that can be recycled and
reused to avoid polluting the environment. Although this design is very expensive, it offers a
sustainable method of reducing environmental pollution which has long-term value to the
organization.
Depletion of resources.
The excessive use of raw material leads to reduced resources. If the trend is not checked, this
leads to depletion of resources that are used for the production of the automobile. BMW

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Company realized that without employing efficiency in the use of resources, the company would
miss the raw materials for production in the near future (Klinglmair, et al.2014, p.585).
Depletion of the raw materials such as copper will put the company out of business and this is
more costly than practicing sustainability marketing which advocates for the efficient use of
resources and minimizing the wastage of resources. This is because due to wastage of resources,
in the near future, the resources will be scarce and the company will end up paying more to
purchase the products. This will increase the cost of operations and can even result in loss and
minimized profits.
Depletion of resources threat forced BMW to adopt methods which will enable the company to
restore efficiency in the utilization of the resources of the company (Doell, et al.2014, p.5701).
This method will help the organization to have a sustainable way of conserving the available
resources as vehicles that are manufactured by following models and systems will help BMW to
minimize wastage of scarce resources.
Fuel consumption.
BMW manufacture vehicles which consume a lot of fuel because of the powerful engines. This
increases the maintenance costs of the vehicles. The cost of energy in most countries where
BMW sells its products have gone higher due to various factors which cannot be avoided
(Wackernagel, and Rees, 2014, p.503). Without opting to practice sustainability practices which
could help reduce energy consumption, BMW could have lost large market share to its
competitors. This forced BMW to start producing solar-powered vehicles that can help to
recharge the vehicles. The company also saw the need to start producing electric cars which use
renewable sources of energy and minimize the use of fuels which increases pollution.

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Climate change.
Climate has changed all over the world due to various aspects such as global warming. The
climatic change affected BMW Company because it had to modify the materials for
manufacturing the vehicles to be used in different nations which have different climatic
conditions. BMW had to come up with the sustainable way of manufacturing the vehicles that
will endure the climate. The effects of the climate change include fading color of the vehicles
due to sunny and rainy weather in some countries (Tilman, and Clark, 2014, p.520). This
affected the sales of the company as people started to have perceptions that the firm was
producing low-quality products that did not satisfy the needs of the customers.
Potential impacts of sustainability issues on the
organization.
The sustainability issues facing the organization can affect its performance to a larger extent if
they are not addressed effectively. The impacts of the sustainable issues include;
Increased costs.
Environmental pollution will cause harm to the environment, and the government has a
responsibility of ensuring that people live in safe conditions. The introduced methods and safety
measures to secure the citizens require a lot of resources (Chava, 2014, p.2230). This will imply
that the taxation rate for companies contributing to the pollution will be increased to ensure that
government has the needed resources to take good care of its citizens. This will lead to reduced
profits because the company will spend a lot of resources fixing the problems that have been
caused by harmful emissions from the vehicles.
BMW will also be forced to contribute funds towards projects that minimize the effects of global
warming caused by the increased emission of carbon dioxide in the atmosphere. The projects
include foundations committed to enabling forests to thrive to minimize the effects of global

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warming. The increased costs will force the firm to increase the selling price, and this will result
in reduced sales and loss of market share.
Poor quality products.
Due to depletion of resources, the company may BMW may find itself producing poor quality
goods that do not satisfy the target market and the customers. This is because the organization
may lack the needed material to produce vehicles. Continued depletion of resources will also
force the company to be eliminated from the industry by the competitors and this will have a lot
negative impact on the organization (Lanaj, et al.2014, p.15). Depletion of resources will make
the materials for manufacturing vehicles such as copper and iron to become scarce. Due to forces
of supply and demand, the cost of the materials will be very high and this may force the
company to use the minimal material to save the cost of production. This will result in the
production of poor quality goods that may fail to attract the needed market. This will force the
customers to shift to other manufacturers of vehicles who can avail quality automobiles, and the
company will lose its customers to competitors.
Poor community relations.
Companies which produce automobiles or other products that contribute to the pollution of the
environment has a poor relationship with the community. This will have adverse effects on the
operations of the company because the firm depends on the community for the provision of some
services which are very important in enabling the organization to function efficiently
(Anguelovski, and Alier, 2014, p.170). Due to poor relations, BMW may not be able to enough
supply of labor from the community. This will force the company to experience high labor costs
because of labor importation. Poor relations will prevent the company from having the goodwill
that can enable it to sell its vehicles.

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Potential impacts of the sustainability issues on the
society.
Air and water pollution.
The manufactured vehicles emit harmful gases into the atmosphere which leads to air pollution.
People breathe the polluted air and this may lead to hazardous health problems which can even
cause death if the pollution is extreme. The emitted gases which comprise of carbon dioxide lead
to global warming which has led to climate change (Tilman, and Clark, 2014, p.520).. This
climatic change has affected many people who depend on the weather for economic activities
such as agriculture. This leads to food insecurity in many nations and eventually famine and
drought. Air pollution also leads to the formation of acidic rain which leads to the destruction of
valuable properties.
Unemployment.
Sustainability issues facing the BMW also causes unemployment to the community. Due to
depletion of resources which leads to increased cost of operations, the company opts to downsize
its working force to control the increasing costs. This leads to people of the community lacking
employment opportunities because the firm cannot sustain a large working force. This will lead
to low standards of living and poor community welfare.
Managing sustainability in the organizations.
BMW has been facing many sustainable issues which can cripple its operation if the issues are
not addressed using the right activities. The sustainability is aimed at ensuring that the firm can
safeguard and protects the aspects of the environment and also ensure that the company
commands the needed market share for its products, expand the business and generate high
profits. The activities include employing the right marketing mix for marketing the vehicles.

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The 4P’S Model.
The products.
BMW is committed to manufacturing high quality vehicles which will help in enabling
environmental sustainability. The sustainability marketing employed by this firm include
ensuring that the company uses innovative technology that will improve the efficiency of
manufacturing the vehicles. The company manufactures the vehicle that will ensure the company
reduces resource wastage during the manufacturing of the vehicles (Huang, and Sarigöllü, 2014,
p.120). The innovative technology employed ensures that the vehicles can be recycled and
reused which helps to reduce the carbon footprint as this puts the salvage vehicle to good use
instead of dumping it leading to land pollution.
The vehicles are designed to ensure that they consume less fuel, and this leads to reduced use of
fuels. This in return results to reduced carbon dioxide which leads to air pollution. BMW Group
has also embraced innovative technology to manufacture electric cars which do not use fuels
which pollute the environment. The electric cars are more silent than the cars that use engine
combustion fuels and this leads to reduced traffic noise which helps in environmental
sustainability (Lorenz, et al.2014, p.1683). Due to campaigns that advocate for environmental
sustainability, this company will be able to sell the vehicles.
Place.
BMW Group vehicles are available everywhere to create the needed convenience by customers
(Khan, 2014, p.95). Availing the vehicles when needed by the customers at the right place and
time enables the company to advocate for environmentally sustainable vehicles because of the
trust and good relations between the customers and the company. BMW distributes it vehicles to
all places where customers look for the vehicles and this increases the chances of selling more.

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The company has also established charging stations in various cities to ensure that users of
electric vehicles do not face any inconveniences (Lorenz, et al.2014, p.1683). This move will
help them capture a large market for the electric cars which conserve the environment. BMW
Group has also rolled out another project which will enable car sharing. The car-sharing program
involves electric cars which are placed strategically in cities to ensure that people can access
them. This program will help to reduce the number of cars on the roads using fuel, and this will
help to reduce the carbon emissions into the environment.
Promotion.
Promotion helps BMW Group to have its vehicles recognized all over the world and this helps to
boost its sales which leads to increased revenues and profits. Promotion consists of public
relations, sales promotion, endorsements, special offers, and advertising. Public relations helps
the company to showcase its products through press releases, seminars and sponsorship deals
(Hanssens, et al.2014, p.540). This will help the company to highlight the importance of using
vehicles that conserve the environment. Advertising uses the media such as television
advertisement, social media advertisement, print media adverts and radio commercials. These
avenues enable the company to tell the public why they should purchase the vehicles. The
company uses such avenues to promote electric vehicles that advocate for the reduced use of
carbon-fueled vehicles.
Promotion enables BMW group to sell many vehicles that conserve environment because adverts
play a great role in influencing customers to buy. Adverts help the company to sell the vehicles
even if they are expensive because, through sales force and endorsements, the public are
enlightened on the importance of using vehicles that are environmentally sustainable as they help
to create the long-term value to the customer, organization and the society.

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Price.
Manufacturing environmental sustainable cars is very costly and this forces BMW Group to sell
the products at a very high price. The company has run a very aggressive promotions that have
helped the company to sell by persuading the target to buy the expensive cars that conserve the
environment and improve their welfare and avoid the cheap cars which pollute the environment
(Huang, and Sarigöllü, 2014, p.120). The high value price is associated with good quality and
this has enabled BMW Group to sell the electric cars.
The 4Es framework
This framework helps organization influence behavior of consumers towards sustainability
practices. BMW Group used this model to ensure that many customers can see the benefits of
sustainability. Enable involves making the practices easier. BMW build charging stations that
could make it easier for users of electric car and encourage people to buy them. Encourage
involves advocating for benefits of the sustainability practices Fischer, D., 2013, p.150). BMW
through communication marketing ensures that customers know the benefits of using
sustainability practices. Engage entails getting people involved in the process. BMW provides
incentives such as solar powered cars that will help to save on energy consumption and the car
sharing program which enables many people to drive the cars. Exemplify involves leading by
example and BMW has used celebrities to promote the sustainability cars and many people
purchase the vehicles due to peer pressure.
Supply chain management.
These refer to how the products are availed to the right market. Supply chain plays a major role
in customer satisfaction as they help to avail quality products to the market at the right quantity
at the right time and place (Pagell, and Shevchenko, 2014, p.50). The supply chain should ensure
that the company procures materials from suppliers who are committed to ensuring that

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environment is conserved. This will help the company to get the needed material to manufacture
the products which will help in enabling sustainability marketing. The supplier should supply
materials that are less risky and help to reduce the waste cost and this will be achieved by
collaborating with the suppliers.
Marketing communication.
This involves branding, packaging, online presence, PR activities, direct marketing, and
sponsorships. This involves branding and packaging the vehicle in a way that will help to
position it in a better position than those of the competitors. This is done by experts so that
customers and members of the public will want to be associated with such vehicle. This
positioning will help the firm to sell many vehicles as it highlights the importance of
environmental sustainability by use of messages that are well structured (Bacile, et al.2014,
p.120). For the case of the electric cars, the company conducts customer education that helps to
enlighten customers on how the cars are operated and where to charge the cars if they are not
solar powered.
BMW Group has taken advantage of social media to conduct the marketing communication.
Social media enables the company content to spread and reach many people within a very short
period. Surveys, online polls, and contests also help in communication sustainability as they help
the firm to collect views of different people and what they prefer. This enables BMW Group to
produce vehicles that are desired by the customers who want to conserve the environment.
Marketing communication will help to change the perceptions of the customers by persuading
them to take the companies viewpoints. This is usually done by storytelling what the vehicle can
do and make one feel. This will cause the consumers to want to experience such encounters and
they end up purchasing the vehicles. The company uses opinion leaders and opinion formers to

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convey the persuasive messages (Bacile, et al.2014, p.120). Opinion leaders are people with
great influence over the purchasing behaviors of the consumers. Opinion leaders are usually
celebrities and their followers will want to purchase the same car as them and this helps the
company to sell more. Opinion formers are experts and their opinions have a lot of influence on
the purchasing power of many consumers. The opinion formers help BMW Group to sell the
manufactured vehicles.
Conclusion.
Every organization needs to identify strategies that will enable it to achieve its main goals and
objectives and still ensure that the environment is protected. The organization needs to identify
factors affecting the sustainability and formulate the strategies. Marketing mix which comprises
of product, price, promotion and place play a critical role in ensuring that consumers adopt
products which satisfy their needs and conserve the environment. Other aspects include supply
chain management and marketing communication.
Recommendations.
To encourage people to adopt products that ensure environmental sustainability, organization
need to look for ways to make the products cheap. This is because consumers view such products
as being very expensive. This can be addressed by practicing fair trade and ensure clients get
value for their money. BMW Group should ensure they practice cradle to cradle concept to
manufacture vehicles and should not revert to old ways so as to lead by example. BMW should
also not fight bodies such as EU which are trying to fight environmental pollution. This means
that BMW should stop using green washing practices and stick to sustainable cars such as i3.
The last recommendation is that the government should legislate laws that do not enable

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businesses that pollute the environment to operate. Through this legislation, harmful fumes will
not be emitted and this will ensure environmental sustainability.

SUSTAINABILITY MARKETING 20
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