Sustainability at Kreem Cafe: Change Management & Natural Step Model

This report discusses the implementation of a sustainability management system, specifically The Natural Step, within Kreem Cafe, a small cafe in New Zealand. It outlines the four core principles of The Natural Step and how they can be applied to reduce resource exploitation, minimize waste, and improve organizational efficiency. The report assesses the potential economic, environmental, political, cultural, and social impacts of adopting this model. It also examines the implementation of change processes using Kotter's and Kubler-Ross' models, highlighting the importance of addressing employee resistance through communication and demonstrating the benefits of change. Furthermore, the report emphasizes the role of corporate governance in supporting sustainability and addresses the challenges posed by stakeholder engagement, proposing solutions to overcome these barriers. The analysis is supported by academic references, adhering to APA style, as required by the assignment brief.

Running head: BUSINESS SUSTAINABILITY
Business Sustainability
Name of the student
Name of the engagement
Author note

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Table of Contents
Introduction......................................................................................................................................2
Sustainability management system..................................................................................................2
Implementation of the change process............................................................................................4
Merits and demerits of change management process......................................................................5
Ways to overcome resistance to the change from the employees...................................................5
Importance of corporate governance/leadership of Kreem Cafe to The Natural Step.....................6
Sustainability-Stakeholder challenge barrier of Kreem Café..........................................................7
Ways to resolve sustainability-stakeholder challenge barrier.........................................................8
References:....................................................................................................................................10

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Introduction
Sustainability is one of the major issues being originated in the recent time. This is due to
the reason that current trend of rapid exploitation of natural resources is rapidly depleting the
chances for future consumption. Thus, it is important to have effective sustainability
management system to enhance the sustainability in the business process (Strezov, Evans &
Evans, 2017). There are different types of sustainability management systems are available and
they are having different utilities. In the following sections, implementation of sustainability
management system will be discussed on Kreem café. It is a small size café in New Zealand and
thus they do not have initiated any sustainability management systems.
Sustainability management system
Sustainability management system is being initiated by the business organizations in
order to have sustainable business process in the long term. In addition, initiation of the
sustainability management system also helps the business organizations in reducing the cost of
operation by having more savings and less wastage (Johnson, 2015). It is recommended that
Kreem café should initiate The Natural Step in their business process. This is due to the reason
that this model has given an overall view about what should be done by the organizations in
order to be sustainable. Kreem café will find it easier to align their u requirements according to
the model.
The natural Step is having major four elements. The firsts step states that Kreem café
should not exploit natural resources especially the non-renewable natural resources. It is
recommended that Kreem café should use more renewable sources for their energy purposes
(Seuring & Gold, 2013). The next step states that Kreem café should also follow sustainability in

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their production process by producing according to the market need. Thus, they should not have
more surplus and wastes in their production process. The next step states that the natural
resources to be used should be used in more sustainable manner. This includes using the non-
renewable sources of energy and resources such as non-vegetarian products in more sustainable
manner. The last step states that Kreem café should also concentrate on their organizational
efficiency and technological development that will help them in extracting the maximum benefits
from the available resources (Johnson & Schaltegger, 2016).
Thus, it can be concluded that the major advantage to be gained by Kreem café from
implementing The Natural Step model is effectively aligning their business requirement with that
of the sustainability. This is due to the reason that The Natural Step has given an overview rather
being specific (Helbing, 2013). This will help Kreem café to modify according to their
requirements. In addition, this model will also help Kreem café in considering all the relevant
aspects such as resources and organizational capability. Thus, Kreem café will be sustainable
from different aspects. Kreem café will have holistic sustainability with the help of this model.
Possible Impacts of The Natural Step
There will be number of impacts of this model on five pillars of sustainability. For
instance, The Natural Step will have somewhat negative economic impact in the short term and
positive impact in long term. This is due to the reason that initiation of sustainable practices will
cause added cost for Kreem café while in the long term, it will save fund for them by reducing
surplus and wastages (Barnett & Morse, 2013). In terms of environment, the impact will be
positive due to the reason that exploitation of the resources will get reduced by having more
sustainable practices. In terms of political, the impact will be positive due to the reason that

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Kreem café will face fewer regulations by having more sustainable practices. In terms of
cultural, the impact may be negative due to the reason that initiation of the sustainable practices
may generate resistance from the side of the involved stakeholders. In terms of social factors,
impact will be positive due to the reason that society will be benefited from the conservation of
the natural resources.
Implementation of the change process
According to the Kotter’s change model, there are majorly 8 steps that should be
considered in initiating change process. Thus, in order to implement sustainability practices in
the business process, Kotter model states that Kreem café should create the requirement and
urgency among the employees (Pollack & Pollack, 2015). They should be made aware about the
importance of adopting sustainable process over their existing process. In addition, it is stated
that Kreem café should also create a vision or target for their involved stakeholders that will be
followed in the entire change process. Employees should also be communicated about the
advantages to be gained from the initiation of the change process of adopting sustainable
business practices. This will reduce the probability of resistance from the side of the employees.
Lastly, it is also important for Kreem café to evaluate the effectiveness of the change process in
the long term.
On the other hand, Kubler-Ross model of change states that employees go through
mainly five stages in accepting the change. Thus it is important for Kreem café to determine
these stages of the employees (Smaldone & Uzzo, 2013). It should also be noted by the
management of Kreem café that change process should be implemented based on these mental
stages of the employees. This will ensure that change process will be sound and effective.

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Merits and demerits of change management process
Both the Kotter and Kubler-Ross model stated specific stages that will help Kreem café
to break down the entire process in fewer parts. Steps stated on both the change process are easy
and simple to implement. Thus Kreem café will be more effective in implementing these steps.
Both these models have considered the mental state of the stakeholders and thus the probability
of emergence of resistance is less for Kreem café. On the other hand, the major disadvantage is
mismatch between theoretical and practical situations. Thus, Kreem café will find it difficult to
match the theories stated with their actual situation.
Ways to overcome resistance to the change from the employees
Implementation of the change is a very important factor for the café as it will help them
to become more sustainable. However, there will be many resistances to the change from the
employees of the organisation. This is because a sudden change in the organisation can be very
challenging and scary for the people who work there (Battilana & Casciaro, 2013). Change
would mean that the employees would have to bring change in their habits as well. There might
be many people who might not hold the attitude to accept the change and might give negative
behaviour if the change is implemented. The manager would have to make the employees accept
the change before it is implemented in the organisation, as the acceptance would make the
change successful and productive. The employees would have to get out of their comfort zone
and change their view about the change for them to accept it and work with it. Therefore, the
manger would have to follows certain strategies so that they are able to overcome the resistance
and the negative attitude of the employees towards the change. Firstly, the manager would have
to communicate with the staff regarding the importance and the benefits of the change (Lozano,

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2013). If the employees do not know the advantages of the change, then it will be difficult for
them to accept it. The right reasons for the change have to be communicated with the staff so that
they understand the importance for their participation and acceptance of the change. Secondly,
the manger would have to make sure that the employees understand their own benefits through
the change and not just of the café. If the staffs know that the change will benefit them as well,
then they might give positive reaction towards the implementation of the sustainable change.
Lastly, the manager could provide data to the employees which will show them the profit that the
café might get if the sustainable change is implemented. Even though resistance is an emotional
factor, some logical explanation of the change will help the students to see the advantages of the
change towards the sustainability of the system (McKay, Kuntz & Näswall, 2013). Even though
there are many other ways that the resistance can be overcome, communication is the most
important factor which can change the views of the staff.
Importance of corporate governance/leadership of Kreem Cafe to The Natural Step
Corporate governance is important for the sustainability of any organisation not only for
the prosperity of the company but also for the responsibility that the company has towards the
people of the organisation and the shareholders. With the development of the market there are
various practices which has come into light which makes it necessary for every organisation to
focus on the sustainable management systems along with the integration of corporate governance
(Crane & Matten, 2016). Similarly corporate governance and leadership of Kreem Cafe is
important to the sustainability management system, the natural step. This is due to the following
reasons. Firstly, corporate governance will help the café to increase their productivity through
the sustainable measure of the management system. The proper focus of corporate governance on
the café will help them to produce more products and also give them the ability to sustain the

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needs of the customers. Secondly, corporate governance along with the sustainability
management system will be able to make cost effective changes within the café (Mason &
Simmons, 2014). Thirdly, corporate governance and leadership will help in the proper
management of the sustainable management and thereby provide economic benefits to the café
and provide to its development. Lastly, the sustainability management system if aligned with
corporate governance of Kreeme Café will help them to manage their environmental strategies
and adopt environmental practices for the business (Baumgartner, 2014).
Sustainability-Stakeholder challenge barrier of Kreem Café
Stakeholders are the most important part of any organisation. They are the people who
are directly or indirectly affected by the operations, objectives and policies of an organisation.
They hold a portion of an organisation and have monetary participation in the organisation.
Stakeholders are of two types such as internal and external (Lawrence & Weber, 2014). The
three main stakeholders of Kreem Café are the customers, suppliers and the owners. These three
groups of people are the ones who will be the most affected in case any issues arise within the
café or even if something good happens to it. There can be many challenges or barriers that the
café can face during the implantation of their sustainability management system. However, one
of the challenges that could become a barrier in the implementation of the sustainable
management system is the lack of cost effectiveness. This challenge could be a big hindrance for
the three stakeholders of Kreem Café and hence could create issues during the implementation of
the system. For the customers the new change or implementation system could be an issue as it
might increase the cost of the products that they are purchasing. Due to the changes that would
occur in the café, the management might have to raise the price of the products that they are
selling which will create and impact on the customers and this might create dissatisfaction

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among them (Epstein, 2018). The suppliers would also be impacted due to the change and might
be a barrier for them, as the management might try to purchase the raw materials for lower cost
due to the rise in their internal cost because of the change. If the management is not able to
convince the existing suppliers to lower their cost, then they will search for other suppliers who
can give them the materials at their desired cost. The owners are the ones who are the most
affected due to the barrier of the change as they have to bear the cost of the change if they are not
able to incur it from the other aspects of the business. The sustainability management system, if
implemented in a proper way will require a huge expense on the part of the café for it to be
effective in the later stages (Heinrichs, 2013). Every system requires a maintenance after the
implementation stage and the process would require a moderate budget in the initial stage.
Therefore, even though the system would be a sustainable process, it could become a challenge
during its implementation.
Ways to resolve sustainability-stakeholder challenge barrier
The challenge has to be overcome by the management of the café since the effect of the
challenge on the stakeholders of the café could create issues for them. There could be two ways
to overcome the challenge of the high cost that would be required for the sustainable change. The
two ways are sustainable sponsorship and crowd funding. Sustainable sponsorship means the
different opportunities that would be determined by the café to sponsor their sustainable
management system (Li, Wu & Ding, 2013). This sponsorship can be derived from different
organisations who would be interested in funding the café regarding the change that they wish to
implement. The sponsor would only invest if they see any benefit on their part. Therefore, the
café owners would have to explain to the sponsors about the benefits that they might gain from
the investment. The second way to overcome this challenge is crowd funding which means to

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gather the fund through the organisation of events where important people or delegates will be
invited and they will give funds for the change (Belleflamme, Lambert & Schwienbacher, 2014).
The café would have to organize events for a cause which will attract the attention of the
delegates and they will be willing to pay for the change. These two types of solutions would be
helpful in overcoming the challenge as the stakeholders would not be impacted if the change is
implemented within the café.

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