Sustainable Enterprise Report: Carpet Corporation Group Analysis

This report examines the economic sustainability of the Carpet Corporation Group, a Malaysian-based carpet manufacturer. The research focuses on the company's current position within Dunphy's sustainability model, identifying it as a reactive minimalist (Phase 3). The paper investigates the three dimensions of sustainability: socio-cultural, economic, and environmental, with a specific emphasis on economic sustainability. The objective is to determine how Carpet Corporation can enhance its economic sustainability through improved risk management, waste reduction, and market leadership, ultimately aiming to transition towards a transformative futurist state (Phase 6) as described by Dunphy. The methodology involves secondary data analysis from the company's website and research papers on similar companies. The report highlights challenges such as effective risk management, waste reduction, and fostering a constructive organizational culture. The study emphasizes the importance of a robust sustainability monitoring system, including relevant, reliable, and easily understandable indicators. The analysis aims to provide insights into how the Carpet Corporation can achieve long-term economic growth by addressing these key areas and adapting to market dynamics.

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Sustainable Enterprise MITHM

1.0Abstract
The objective of this doing the research is to find out ways through which companies can engage
in sustainable business. The paper will look into the three dimensions through which a business
entity or a company can achieve sustainability in its operations. The three dimensions are Socio-
cultural, economic and environmental. In a more specific way the paper will zero in on economic
sustainability dimension with regards to Carpet Corporation Group. The objective will be to find
out ways through which the Carpet Company can achieve economic sustainability. The paper
also to show Carpet Corporation Company can move from Dunphy Phase three where it
currently falls as reactive minimalist to Phase six where the company will achieve transformative
futurist state as described by Dunphy sustainability model. The research will utilize secondary
data from the company website and information available from researches done on similar
companies on how they can achieve business sustainability following Dunphy model.
2.0Introduction
Sustainability monitoring system refers framework that keep track of and measures business
operations of a company. The system varies from one industry to another given that companies
do not operate under similar conditions or market forces in the world of business. However all
the sustainability monitoring systems should be smart which means they should be relevant to
the industry upon which they are being applied and that they should be measurable. The world of
today is increasingly facing sustainability challenges in that resources continue to become scarce
with time thus forcing companies with intention to remain relevant and afloat in business to
device ways through which they can continue to operate even in the face of more scarce
resources. A good example of how resources have become limited is depletion of raw materials
in the case of manufacturing and processing industry. (Qi, Shen & Dou, 2013) The paper will use
Carpet Corporation Group as a case study to for this research.
3.0Literature review
A good monitoring system should have certain characteristics that will make sure the system is
reliable and effective for the company to achieve its targeted sustainability state. The most
critical attribute of a good monitoring system is that it should be able to measure and report on an
output which touches on the critical strategic objectives of the company. The system must ensure

that all the strategic objectives of the company are at the center of its measurement and reporting.
Company objectives is fundamental to growth of the company if the measurements and reports
generated by the monitoring system do not take into account the company objectives then the
company will be evaluating itself in wrong direction which may eventually derail the business
activities of the company. The system should also be able to indentify key issues and the root
cause of the problem of the company. This characteristic enables the management of the
company and those charged with the responsibility of ensuring that the company activities are
sustainable an ample time to device means of correcting the problems or challenges as raised by
the system. If the root causes of the problem are not indentified then the issue may take time
before it is resolved and the solution may come late for it to assist the company resolve its
challenges with minimum effects on its business operation. The system should also be result
oriented and that the information it uses to measure the outputs is available and can be verified
by the company. (Quaddus & Woodside, 2011) This attribute is important in that if the
monitoring is results oriented then it will serve as an encouragement to the employees of the
company when they see that the system is responding accordingly to their efforts and inputs.
Thus a monitoring system has to be alive to the fact that employees of the company would to see
their efforts bearing results so that they can continue even further to put in place measures that
will lead to the company being more sustainable in business. The information used by the system
should also be reachable and verifiable so that the output of the system would not seem abstract
in the sense that no one can confirm that indeed the output of the system is real and is measured
using information emanating from the company. (Rosing, Scheel & Scheer, 2015) This gives
impetus to the monitoring system output. The system should also be able to update regularly and
effectively support the policy reform process of the company. When the system is able to
regularly update itself and provide reports from time to time the company will be able to monitor
its business operation more closely to be able to rectify any issue in good time that may be
derailing the company from the path towards sustainable business. If the reports come in late
then the company may not achieve the desired level of sustainability in business because of the
inappropriate timing of the implementation of the mitigation and corrective measures. The
system should also be able to indentify responsible persons upon which the report touches on in
one way or another to avoid confusion and delay in naming appropriate persons to take action.
The system should also report its finding in a constructive manner so that no one in the company

will feel victimized by the system thus going into defensive mode that would further the overall
objective of the company in achieving sustainable business. (Kourdi, 2012)
The above monitoring system indicators should have a number of features that will enable the
system to be effective and reliable to lead the company into desired level of sustainable business.
One of these is that the indictors have to be relevant in that it shows aspects of the company that
needs to be known by the management or concerned people for appropriate action to be taken.
Without relying relevant data or information then the whole system will not be effective as
desired. (Epstein & Rejc, 2015) The indicators should also reliable in that this information
should trustworthy and that all the stakeholders in the company believe in the output or measure
provided by the system. The indicators should also be easy to understand by all the relevant
personnel in the company. This makes it easy for employees of the company to act on the
information and data provided by the system. The indicators of the system should also be based
on data which are accessible. In any business set up the data or information used to should be
accessible to all the relevant stakeholders for the purposes of verification and ascertaining that
the system is responding to real issues within the company.
The problems phased by the Carpet Corporation Group with regards to economic sustainability
ranges from lack of effective risk management system, waste reduction and management
measures, providing leadership in the global Carpet Market and creation of constructive culture
in the organization where the organization employees are positively encouraged to contribute to
the company innovation and reforms without being victimized or over looked. If the company
can resolve the above economic sustainability areas highlighted then the company will be set to
attain high level of sustainable economic growth in business.
Overall, a good monitoring system should be able to have the characteristics discussed and the
features of the indictors elaborated for it to be effective to the company applying or using the
system. Companies that utilize such kind of systems are likely to post impressive results when it
comes to achieving the sustainability goals that the company put in place in order to operate a
more sustainable business that will overcome the challenges posed by the market and other
forces within the business environment. (Halkias & Thurman, 2016)

4.0The Enterprise
Carpet Corporation Group is a Malaysian based carpet manufacturing and supply company that
mainly specializes in beautifying homes and commercial spaces with quality and affordable
carpets that meets individual customer taste and aesthetic preferences. The company supply
chain network is extensive and has structures in place to ensure that it serves it market
effectively. The company also boasts over 300 major dealers within Malaysia and two major
warehousing points in the country’s capital Kuala Lumpur. The company has put in
considerable efforts to ensure that it keeps up with the latest technology in the weaving industry
by acquiring latest model of the Van De Wiele weaving machine that produces carpets with high
density lush of up to 3 million points. The company has also acquired Neumag machine that has
high capacity 2 extruders that extrude solution dyed pp yarn. In addition to these technological
advancements Carpet Corporation Group acquired super beaming machine that produces high
quality ground - warp beams. Therefore it can be said that the company has improved in terms of
technological advancements that serves the customers well and ensures that the process of
manufacturing is sustainable as it guarantees clients top quality carpets which in turn will likely
make the company attract and retain large number of clients for continued business. ("Carpet
Corporation Group", 2018)
The company has significantly moved away from hand knotted carpets to woven carpets which
can be mass produced using the machines. The mechanization of the weaving process in the
Carpet production has largely reduced the price of Carpets thereby expanding Carpet market
around the world. Although hand knotted carpets still exist around the world this market has
continually shrunk to the point of serving only the extra luxurious market around the world.
Carpet Company has extensive catalogue of products that mainly specializes in boardroom
carpets for commercial spaces. The commercial market is characterized by high demand for the
products because most of the boardrooms of the companies around the world are carpeted and
this would be changed from time to time as the company continues to associate itself with
affluence and looking more attractive. The company has continually placed itself in a good
position to be able to supply targeted carpet markets in the world by investing millions of funds
to improve on the logistics and raise production capacity to be able to serve targeted markets.
Thus in terms of business development the company ensures that it targets a certain market that

has capacity to grown and invest towards ensuring that the company is able to serve this market
in a more sustainable manner that ensures continued business for the company. The company has
also targeted both domestic and export market that expands the market share of the company.
This expanded market is a good strategy that will enable the company to remain in business
should any of the markets develops challenges that may negatively affect company business. In
overall the company has both in place measures that ensure that it remains in business
sustainably in wake of new challenges in market which puts them in Dunphy phase 3 as reactive
minimalist. ("Carpet Corporation Group", 2018)
5.0Methodology
Secondary data was collected through studying of the company website as well as other research
papers that studied the concept of business sustainability using Dunphy sustainability model. The
data were carefully analyzed such that only relevant data to the company used as case study were
adopted and used to make observations and conclusions.
6.0Sustainability dimensions
6.1 Social-cultural dimension
There has been increased acceptance and use of carpets globally because they make homes and
offices look better. In some parts of the world Carpets are part of the ancient culture where
homes are decorated with carpets that give them aesthetic value. The product is also currently
being used widely in commercial areas where companies continue to make efforts to impress
their customers and boost the company profile in the market. This culture change is set to widen
the market for carpets around the world as more companies and homes are installed with carpets
of different types. Since carpet is largely a product of Wool, Cotton and refined wood cultural
factors that affects availability of these materials is also going to affect sustainability of carpet
business around the world. (Halkias & Thurman, 2016)
6.2 Economic dimension
Global business is currently being faced with pressure resulting from increased competition,
reduced availability of raw materials and the general raise in the cost of doing business. For any
company to be sustainable in business it has to ensure that all the economic factors that influence

the business operations of the company can be sustained for long period of time such that the
company can remain in business for the foreseeable future. Adoption of new technological
advancements in the company is one of the key sustainable economic indicators. Technological
advancements have the ability to reduce the cost of production, improve quality of the products,
shorten production line among other benefits that ensure the company business is viable and
sustainable. (Eweje & Perry, 2012)
6.3 Environmental dimension
Carpet processing and manufacturing is a deep industrial process that has a lot of industrial
effluence that has to be treated before being released to the environment. (Thangavel, 2016)
Carpet Corporation Group should ensure that its industrial process are sustainable environmental
in such as way that its industrial effluence do not damage the environment has the company will
be risking heavy penalization from the concerned authorities which may render the whole
business unsustainable. The company activities should be aligned in such as way that it does not
negatively affect the supply of the raw products that are needed by the company to manufacture
new carpets. (Hardisty, 2010)
7.0 Specific sustainability area – Economic dimension
The table below shows summary of indicators that can be used to monitor economic
sustainability dimension in relation to Carpet Corporation Group.
Indicator Name Definition Measurement Limitations
Technological Incorporation of the Acquisition of new -High initial cost

advancements latest technology in
processing and
manufacturing of
carpets
machines and latest
production models.
- May require
additional manpower
which raises cost of
production.
Effective risk
management system
Compliance with
relevant legislations
Score on compliance Cost that maybe
incurred in pursuit of
compliance.
Waste reduction and
reorganization
Effective utilization of
resources
Number of initiatives
taken to manage this
indicator
High initial cost
Market Leadership Pursuit of the strategic
potential of
sustainability
Number innovative
products launched
R&D may take
considerable time
before innovative
product is discovered.
Creation of
constructive culture in
the company.
Positive work
environment.
Policies in place that
support this indicator
Non-compliance to the
policies
In order for Carpet Corporation Group to move from Dunphy Phase 3 to 6, sustainable economic
dimension has to be addressed effectively in addition to the remaining two sustainable
dimensions.
7.1 Dunphy Phase 3
Although the company currently falls in Dunphy phase 3 the company should still work on
technological advancements and risks management aspects of Dunphy phase 3. Technological
advancements is key indicator in showing how the company would be sustainable economically
in it business. The company should make a point of investing further in bigger capacity machines
that will allow the company to expand its market beyond it traditional markets in Malaysia and
some parts of the Asian continent to other new markets such as America, Europe and Africa.
This will ensure that company does not depend only in mainly one market that puts the company
at risk of reduced sales should this one main market experience economic challenges such as

what was experienced during the recent global economic melt-down. The company should also
put in place effective risk management practices that ensure that company complies with all the
regulations guiding carpet business in all her markets as well as the prospective markets. This
should be emphasized especially when the company expands its market globally. Non
compliance to regulations is a risky venture that is likely to see the company charged with heavy
penalties that may cripple business operations of the company. At the moment the company has
not put in place a robust compliance framework that will shield the company in international
markets understandably because the company has not ventured into this market. But with the call
to expand its market and operation Carpet Corporation will have to ensure that its risk
management practices takes into account all the new regulations and expectations from the new
markets. (Freedman & Jaggi, 2010)
7.2Dunphy Phase 4
Waste reduction and reorganization is another indicator of sustainable economic dimension. The
company should consider methods of reducing wastes such as recycling and repurposing. The
recycling process has the ability to ensure the company uses fewer raw materials to manufacture
carpets that in the long run ensure that the company does not incur huge cost to produce carpets.
The reduced cost of production will in turn enable the company to have bigger profit margin and
hence improved profitability for expansion and improved remuneration for employees. The
company should also reorganize its operations to improve efficiency and do away with industrial
process that do not have significant effect on the end products of the company.
7.3Dunphy Phase 5
Market leadership is also an important indicator of sustainable economic dimension. The
company should invest in Research and Development (R&D) department whose main mandate is
to come up with innovations that will make company products more attractive to the consumers.
There is a positive correlation between consumer behavior and innovative products that attract
customers in the market. The company should therefore come up with more new quality products
that will set standard in the market and improve the brand of Carpet Corporation Group. Once
the company has a strong brand in the market then it will likely continue to make improved

amount of sales driven by the demand created in the market by the consumers who known to
prefer good quality brands in the market. (Steger, 2016)
7.4Dunphy Phase 6
The company should also create a constructive and positive culture in the within it’d workforce
so the talents and innovations can be tapped by the company from the employees. When
employees are constructively criticized they feel motivated to continue improving in terms of
suggesting better ways of doing business given that company appreciate the efforts and offers
help by pointing out areas in the new ideas that needs improvements. With this culture the
company is likely to get impressive and quality innovations at minimum cost given that these ate
the employees of the company. At the moment Carpet Corporation has not paid enough attention
in creating positive environment among its workforce regarding product innovation. The
company needs to put policies in place that will encourage its employees to come up with ideas
that can redefine the company operations and business instead of waiting for the company to
come up with new ideas about new products and operation of the company business. (Halkias &
Thurman, 2016).
8.0 Conclusion
In conclusion, Carpet Corporation should ensure that the aspects of economic sustainability as
discussed in the paper are addressed in order for the company to have more sustainable business
operations. The concept of economic sustainability is key to the expansion of the company
activities to other untapped global carpet market outside the traditional Asian market for the
company. The Company can choose to implement the issues on step by step basis to avoid
plunging the company into serious budgetary constraints that may cripple the business operation
of the firm.

5.0References
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