Innovation and Sustainable Organisation Report - Assessment 1

This report examines the integration of innovation and sustainability within business operations, using Tesla as a primary case study. The report begins by defining sustainability and exploring the challenges organizations face in implementing sustainable practices, such as the misalignment of sustainability goals with financial decisions and consumer preferences. It then delves into Tesla's approach to generating profit while prioritizing environmental considerations, focusing on strategies like product innovation and operational efficiency. The report further explores the literature on sustainability practices, outlining key approaches such as mission alignment, stakeholder engagement, waste reduction, and measurement and certification. It identifies Tesla's key stakeholders, including the community, customers, employees, and investors. The report also discusses sustainability benchmarking, highlighting its role in assessing and improving business performance. Finally, the report references a food scandal to showcase the importance of sustainable practices.

Innovation and Sustainable
Organisation

Table of Contents
Assessment 1....................................................................................................................................1
Part A..........................................................................................................................................1
Part B...........................................................................................................................................2
Section 2- Company's approach in making profit out of 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 defined to be one of the most talked about aspects in the current business
environment. The sustainability approach emphasises on producing products and services which
are better than their previous offering and at the same time considers well-being of the
community and society which revolves around business (Schaltegger and Wagner, 2011). I have
seen that it is not an easy task for an organisation to put sustainability into practice. I believe that
the most important factor which makes it difficult to carry out sustainability practices is that they
are not included in the internal mechanism of an organisation. The practices of sustainability is
considered as a additional burden upon organisation which therefore are not easy to be
implemented. The another reason which I thinks stands crucial is that there is a misalignment
between sustainability goals of an organisation and financial decision undertaken. They are to be
brought in the project later which tend to disrupt the budget and financial planning which are
carried out by an organisation.
I think that reason which stands behind not undertaking any practices which relates to
benefits of the environment is that it is an expensive approach and organisation operating in the
market are bound to achieve profitability for their survival therefore under such circumstances,
sustainability practices are kept as secondary which makes it difficult for their implementation. I
can say that the business organisation irrespective of their size must attempt to incorporate
sustainability practices in their business strategy so that better environmental practices could be
carried out. But there is an increase in the awareness amongst the organisation and persuasion of
business is encouraging them to carry out sustainability practices as a part of their responsibility
towards the society. I believe that there is an hindrance on the part of consumers as well which
makes it difficult for organisation to carry out sustainability practices. Consumers are in a habit
of purchasing products and services which are priced competitively irrespective of identifying
the manner through which they are procured and manufactured.
The preferences and trends which are being set by the consumers makes it very difficult
to take risk and provides products and services which are environmentally sustainable (Tukker
and et. al., 2017). The consequences of repetition of such practices have made sure that huge
losses are incurred by the grounds of social and economic. There is an need for active
participation of everyone if looking to achieve certain grounds on sustainability and
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environmental welfare. I believe that poor sections of society are to considered and there should
be an attempt with which their needs and expectations are to be fulfilled. The redefinition of the
patterns of consumption have emerged to be an exclusive approach through which sustainability
practices could be implemented in the society. I can say that attention of all the concerned is
required so that a environment can be protected and preserved.
Part B
Section 2- Company's approach in making profit out of sustainability
Tesla is an American organisation which is known to produce electric vehicle, solar
panels and energy storage devices. The company is emphasizing on producing products through
giving due consideration to numerous elements on the environmental grounds. This organisation
have been reported profits in the first quarter of the 2017 which helped this organisation into
raising funds for this business (Surprise: Tesla turns a profit for the first time in three years,
2016). The approach to consider profitability is that their shift to produce products which are
focused on the mass market rather than their previous strategy of serving niche consumers. The
another approach which leads to making profits for the organisation is innovation. According to
given case study it is identified that number of institution was established for preventing
environment from exploitative activities such as; world economic forum (2013), various
statistical reports and so on. Their main objective is to create a nation free from harmful effects
and global warming by taking several initiatives. Basically Global competitiveness report 2013-
2014 highlights the economies of around 148 nation as their main motive is to encourage society
towards development. It is tend to be a risky approach but once successful in the market it can
lead an institution in making profits. For instance: the software of self-driving cars which has
been launched by organisation have emerged to be profitability and impacted their credibility in
the market for raising money from market for future endeavours.
This organisation have recently adopted a strategy which was focused on attaining
operational efficiency for an organisation and identification of approaches through which costs
can be cut down. The rise in the operational cost can be successfully countered with the cost
cutting strategies which enhances chances of an organisation in attaining profits. Therefore it can
be said that even after producing goods and services which are sustainable on the ecological
grounds this organisation is making profits. The credit for profitability attained by the business
can be innovative and operational efficiency which are undertaken by senior management
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(Ceschin, 2013). It has been identified that senior management have been confident that they
does not require additional capital for purpose of launching their upcoming electric cars named
as 'Model 3'. the report which has been released by the company for the year 2016, portrayed
GAAP profits and have been forecasted that there will be an increase in the profits of the
company by 25%. the efforts of this organisation are carried out in transition of world towards
sustainable strategy as it has been crucial in uplifting stature of the environment.
Section 3- Literature section
There can be numerous ways through which sustainability practices can be carried out in
respect to an organisation. An organisation can opt for greener technology, prefer for energy
conservation and use solar energy in fulfilment of its objectives and targets relating to
sustainability. The organisation in this sector is persuaded to stick with their principles of
sustainability so that right product could be delivered and not compromising the ability of future
generations (Pot, 2011). Mentioning some of the common approaches of which could be
undertaken by a business in fostering sustainability in an organisation are as follows:
Mission: This can be referred to an one of the crucial ways through which sustainability
can be embedded into the organisational practices and operations. The Mission of the company is
to replace with combustion engines with the electric one and to incorporate sustainability
practices in the operations which are carried out within an organisation. Considering the mission
of the company, major partnership, decisions and supply chain are formed so that target would
be fulfilled.
Stakeholder Engagement: It is extremely important to gather participation of all the
stakeholders so that maximum impact on the sustainability practices could be created. The
another benefit which can be availed is that there will be right execution of the practices and
undertaking of the organisation. Communities, employees and customers are also encouraged in
undertaking of practices which are more responsible and ethical so that welfare of environment
and vulnerable groups can be considered (Jorna, 2017).
Waste Reduction: Operational efficiency is referred to as sustainability concept which
has been undertaken by an organisation. This approach persuades employees to use resources in
an efficient manner so that there are minimum wastages. In this approach an organisation can
employ various tactics which relates to use of automation and lean production approaches so that
demands could be fulfilled in the right manner (Gopalakrishnan and et. al., 2012). The waste
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reduction approaches can be successfully carried out with the help of right allocation of
resources so that objectives of the company could be fulfilled.
Measurement and Certification: Measurement and control are referred to crucial
approaches when practising sustainability in an organisation. The features of transparency and
accountability should be practised by an organisation which assure that the operations which are
undertaken are visible to customers and communities involved. The establishment of clear goals
and objectives assure that they are measurable after regular intervals and employees are
committed in accomplishment of assigned targets (Anttonen and et. al., 2013). The organisation
is making initiatives which leads to attainment of bottom line approach and ultimately fulfilling
duty of being sustainable in operations of a business.
As per the next case study Beef scandal is determined that foods are containing meat of
horses and beef are advertising as high range of meat content in few scenario. Basically, this
sparking issues was identified in around 15 January 2013. Apart from this out of 27 nearly 23
samples of beef burgers are consuming DNA of pig also. As a result it create number of problem
for environment because it influence the overall surrounding and societal members by harming
others in several manner. For example; health issues, destroying of individual norms and so on.
Thus, governing bodies are coming with numerous of ideas and initiatives to overcome several
issues and problems which is incurred at marketplace. Their main agenda is to prevent society
from damages and issues.
Section 4- Identification of stakeholders
The stakeholders of a this business organisation stands crucial as it attempts to fulfil their
views and opinions in the right manner. The electric cars which has been constructed by this
organisation can be identified as a major approach through which negatives of combustion
engines could be countered. The major stakeholders of Tesla are as follows:
Community: The community for this organisation stands as a highest priority. The
organisation have been making numerous attempt in order to resolve ecological issues which are
persistent in the society. The offering of this organisation are ensured that there is minimum
negative impact upon the community and ecological environment (Laukkanen and Patala, 2014).
Customers: Customers are crucial as they provide a business with revenue which can be
further employed by a business in fulfilling their strategy. The company attempts to fulfil
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demands of the consumers and assure that there is minimum negative impact upon the
environment as well.
Employees: The company while constructing its corporate social responsibilities consider
employees working for the organisation as well. Employee are one of the most important
segment of an organisation as they contribute in making business a success. The company have
been taking assistance from the competitive compensation strategy so that they can be retained
with the organisation.
Investors: These are the people who have employed their money in the business and are
expecting ideal returns on the same. This organisation is known to formulate corporate social
responsibilities and constructs long term strategies which lead to transformation of auto mobile
sector. The capitalisation of business ensures that better market position in the attained.
Section 5- Sustainability Benchmark
The purpose for taking sustainability initiatives in an organisation is an attempt which
assures that a business is able to uplift its performance and at the same time mitigating impact on
the environment (Yang and et. al., 2017). The processes and products are innovated and
redesigned so that they are able to outperform existing competition. The various segment which
are undertaken in this approach revolves around opting for innovative measures along with ideal
management of resources which are available with an organisation. The benchmarking in this
domain helps in identifying whether strategies which has been employed by the business are
effective or not. The comparison of sustainability strategies by business and their comparison
with the benchmarks identifies their scope for improvement and measures through which
business performance could be improved. It is an approach through which learning could be
established from the best and factors which are crucial for business could be understood and
applied ultimately leading to better results (Chahal and Bakshi, 2015). The performance which
has been delivered by Tesla is measured against established benchmarks in Automotive segment
of the United Kingdom.
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(Source: Sustainability Report Tesla, 2017)
It can be said that carbon emission from vehicles have emerged to be one of the biggest
contributor to poor environmental circumstances. Therefore there have been numerous attempts
relating to reduce the carbon emission from the vehicles. The scenario got completely modified
with venture of vehicles from Tesla in the market. The electric vehicles which are manufactured
by Tesla results in approximately 30% less emission than conventional electronic vehicles. In a
very short time, this organisation have emerged to be a market leader and gained immense
popularity for being environmentally responsible organisation. The benchmarks in this field
states that use of green electricity will result in the 62% lesser emission in terms of carbon. There
is a still a big way to go as organisation have to minimise carbon emission by additional 32% so
that benchmarks could be achieved. For the purpose of improvement, it is essential for this
organisation to undertaken practices with assure that there is a minimum use of resources and
innovative which leads to attainment of targets.
It can be said that there are numerous challenges to which automotive sector is exposed.
The primary challenge is automotive sector undertake excessive use of non-renewable material
which is difficult to be replaced (Cooper, 2016). The another challenge to which automotive
industry have to deal with is that there is an enhanced use of water and energy in process of
manufacturing which is yet to be dealt with in an ideal manner (Castiaux, 2012). Tesla have been
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Illustration 1: Sustainability Report Tesla

using solar energy but it is yet not able to fulfil the targets established. The institution working in
this domain are considering numerous attempt such as outsourcing renewable and use of clean
technology so that benchmarks in terms of sustainability are fulfilled.
Section 6- Recommendations
The company possess all the essential resources which can help this business in attaining
superior business position in the market. The major recommendations to this organisation are:
 It is recommended to this organisation is to increase their presence in the international
market so that more and more competing organisation make attempt into minimising
carbon emission of their vehicles.
 There is an need to enhance investment relating to innovation of products so that
disruptive technologies can be detected.
 There is crucial needs to match supply of the products which can be easily met through
diversification of supply chain for this organisation.
Section 7- Conclusion
It can be concluded from the above report that sustainability is an crucial concept which
is to be practised by an organisation. It helps in uplifting stature and goodwill of an organisation
in the market along with assuring that there is minimal negative impact on the environment. This
organisation can make profits out of sustainability practices by attaining operational efficiency,
waste reduction, measurement and finally through formulation goals and objectives. This
organisation undertaken have been successful in minimising of carbon emission from its
manufactured vehicle but there is a requirement of additional efforts so that benchmarks can be
met.
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References
Books and Journal
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.
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.
Pot, F., 2011. Workplace innovation for better jobs and performance. International Journal of
Productivity and Performance Management. 60(4), pp.404-415.
Jorna, R. ed., 2017. Sustainable innovation: The organisational, human and knowledge
dimension. 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.
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.
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.
Yang, M. and et. al., 2017. Value uncaptured perspective for sustainable business model
innovation. Journal of Cleaner Production. 140, pp.1794-1804.
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.
Castiaux, A., 2012. Developing dynamic capabilities to meet sustainable development
challenges. International Journal of Innovation Management. 16(06), p.1240013.
Cooper, A., 2016. Governing global health: challenge, response, innovation. Routledge.
Online
Surprise: Tesla turns a profit for the first time in three years. 2016. [Online]. Available through:
<http://www.latimes.com/business/autos/la-fi-hy-tesla-earnings-elon-musk-20161026-
story.html>.
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Appendix
Week 1 In the first week, I attempted to gain familiarity with the concept of the
sustainability and identified its importance in the present environment.
While identifying the various aspects of the sustainability, I have identified
that vehicles have emerged to be one of the biggest concern of the
environment and needs to be countered. The lecturer informed us about
importance of carrying out such practice in real life and making individual
contribution so that environment could be preserved for longer period.
Week 2 Now that I have possess an ideal of what sustainability is and attempted to
practice in real life situation which is being informed by our mentor as well.
The lecturer informed us to carry out sustainability practices in real-life so
that inclusive participation is to be fulfilled. Considering the condition of
the environment, I have started to car pool with my friends so that our
practices leads to minimum negative impact on the environment and fulfil
our work as well. He stated that we have to choose an industry and attempt
to create a project on the same as well. I chose Automotive sector because
of my love for the cars.
Week 3 The lecturer in this week persuaded us to carry out some research online
and identify ways through which we can individually contribute to
formation of a breathable environment. I was going through a newspaper
looking to conduct a mini-research on the topic of sustainability and found
an article of Elon Musk, an innovative autocar manufacturer. I was
fascinated with the kind of thinking he possess and manner in which he
contributing to the sustainability.
Week 4 This is the week which I decided to continue my research upon the topic of
sustainability with the special consideration to the brand Tesla. I was very
attracted to the fact that this organisation is delivering customers
requirements at the same time prioritising on the upliftment on the
community. I discussed with my supervisor with the focus and he allowed
to form a project on the same as well. The reason which I think is that this
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brand fits in the tag of providing green technology to consumers and not
offering those same products with an aim to earn profits.
Week 5 I attempted to collect as much relevant data as possible from the various
journals, book, articles and annual reports which have been published by
company itself. The last week for the submission of the report was about to
come which persuaded me to began screening of data and preserve the most
suitable ones. I had a word with supervisor relating to the project and he
stated that he had high expectations from me as the company itself is very
special in consideration to the Automotive industry. I was nervous as well
as excited for this undertaking which I attempt to complete at the end of this
week.
Week 6 This is the week in which I have to present the report to the supervisor and
in the front of the class as well. I was scared as my friends have already
presented the draft to supervisor and I was more than a day late than them. I
was on the rush to pile up the file and ask supervisor for corrections. I was
confident to an extent that my project will be appreciated by the people
witnessing. The final day was here when I have to present the project and I
believe that it went fine. It could have been better but lacked due to less
confidence and experience of speaking on-stage. The reason being I refrain
from undertaking such projects and endeavours. The information collected
by me could have been better as suggested by supervisor as it relied heavily
on the internet. I can finally say that it was a decent experience and I known
the manner through which I have to contribute in protection and
preservation of environment.
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