MGT734 - Strategic Management: Overcoming Non-Sustainable Products

This report explores methods to overcome the challenges of using non-sustainable products in India. It analyzes the evolution of Green marketing, emphasizing events that led to environmental concerns and consumer awareness. The study identifies widespread environmental issues in India, such as air and water pollution, water scarcity, and toxic waste, which endanger the country's environmental balance. It employs VRIO analysis and organizational strategies to drive profit while focusing on opportunities like changing customer requirements and partnerships. The report also highlights the need to address threats like exchange rate fluctuations and rising raw material costs. Ultimately, the report recommends strategies for companies to adopt a positive attitude towards organizational culture, fostering green growth and sustainable practices.

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Executive summary
The aim of the report is to explore the methods to overcome the challenges of using non-
sustainable products in India. In this context, the report analysis the evolution of Green
marketing by emphasising on the events that led to the concerns of environmental issues and
brought it to the attention of the costumer. The study further explores the challenges present
within Green marketing in India and discusses the methods to tackle these issues. In this
context, the widespread environmental issues in India are related to choking of air, increasing
water pollution in the majority of the rivers, water pollution in large number of rivers,
insufficiency of water throughout the countries, and huge amount of toxic wastes are
increasingly endangering the environmental balance of the country.
Having identified the strategies that could further help in driving the profit of the company
the study used the VRIO analysis and the over strategy that is used by the organisation to
achieve the objectives. The company needs to highly focus on the opportunities including the
tending customer requirements, partnership with other organisation and they need to develop
appositive attitude towards changing their organisation culture towards growing green. They
are required to be careful in case of threats of change in exchange rates and increasing cost of
the raw materials.

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Table of Contents
Chapter 1: Overview..................................................................................................................3
Introduction............................................................................................................................3
Aim of the report....................................................................................................................3
Methodology...........................................................................................................................4
Limitations..............................................................................................................................4
Chapter 2: Emerging Issue.........................................................................................................5
Emerging Issue.......................................................................................................................5
Significant of the issue in Business........................................................................................6
Possible Impact of the issue...................................................................................................7
Chapter 3: External Analysis.....................................................................................................9
External environment scanning..............................................................................................9
STEEP Analysis.....................................................................................................................9
Industry Analysis..................................................................................................................13
Success factors to create industry Matrix.............................................................................14
Chapter 4: Organisational Analysis.........................................................................................17
VRIO framework..................................................................................................................17
Value chain analysis.............................................................................................................18
Organisational structure........................................................................................................20
Strategic Marketing Issues...................................................................................................21
Chapter 5: Application.............................................................................................................22
Strategy to address the impact of the emerging issue on Business......................................22

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Chapter 6:.................................................................................................................................23
Conclusion and recommendations........................................................................................23
Reference list............................................................................................................................24

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Chapter 1: Overview
Introduction
There is a growing Concern over environmental degradation and issues of pollution
all around the world. Since the year 1992, Rio De Janerio Earth Conference, global leaders
and topmost environmental managers have been increasingly expressing international
problems over the issues of the environment. In this context, the widespread environmental
issues in India are related to choking of air, increasing water pollution in the majority of the
rivers, water pollution in large number of rivers, insufficiency of water throughout the
countries, and huge amount of toxic wastes are increasingly endangering the environmental
balance of the country.
In this regards, environment marketing or overcoming the non-sustainable products
are the ways to address the non-sustainable marketing practices and resultant issues of
pollution. In this context, environmental marketing has emphasizes on the sustainable
marketing practices of an organisation and sustainable use of the consumer, so that it helps to
create a positive influence on the environment.
It is the customer concerns for the environmental issues that has turned in to one of
the most necessary issues in every aspect of living. Environment friendly products and
services are becoming increasingly common in people life. This is because, overcoming
usage of non-sustainable products, green lifestyles are specific choice that will help to reduce
the impact of the environment and will help in ensuring the growing consumption of
resources that is sustainable for the society.
Aim of the report
The aim of the report is to explore the methods to overcome the challenges of using
non-sustainable products in India. In this context, the report analysis the evolution of Green

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marketing by emphasising on the events that led to the concerns of environmental issues and
brought it to the attention of the costumer. The study further explores the challenges present
within Green marketing in India and discusses the methods to tackle these issues.
Methodology
In this study, methods used consists of mixed methods of engaging with the literature
review collected statistical studies and perusal of research that is present within the field
coupled with the experience of drafting issues about the organisation within the report. The
study has related to the areas of standards, accreditation and third party evaluation reports and
survey reports of the implemented organisation.
Limitations
The research report offers a comprehensive and transparent overview in analysing
broad spectrum of studies in the specific filed of environment and non-sustainable products.
The study is however, not without any limitation. In this, the important limitation is
associated with the screening or process that are more biased towards environmental issues
than the challenges faced by the green marketing issues. The second limitation of the study is
that huge amount of research on the impact of use of on sustainable products and the impact
of environmental uses that is being conducted by the standards organisation. On the contrary,
these studies may be highly projected towards the supervision of the set of activities other
than measuring the impact.
On the other hand, the objectivity of some of studies conducted here can be called for
interrogation as of when they have been performed by standards of the organisation. Most of
the research standards carried out by the organisation has been published by organisations
themselves and are not necessarily peer reviewed ones. This purpose of the research have
been taken in to note while evaluating the standards of the research and therefore, it can leave

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out the high quality research that has been carried out by the organisation. However, focusing
on the limitations of the study it can be said that the process allows the incorporations of huge
body of research will help in reducing the use of non-sustainable products by offering a
framework and audit process that can be used by the organisation.
Chapter 2: Emerging Issue
Emerging Issue
India’s remarkable growth rate has been covered by a degrading environment and
growing insufficiency of natural resources. Observing the increasing size and growing
diversity of the Indian economy, environmental risks are broadly ranging and highly driven
by prosperity and increasing poverty. In this context, in a current environmental survey over
178 countries, it has been found that India ranked almost 155th amongst the most amount of
exposure on air pollution (Rudolph, 2018). The survey also found that India’s quality of
environment in below all the BRIC countries. Moreover, according to a current survey by
WHO, across all the G-20 countries, 13 amongst all the 20 cities are seen to be India
(unesco.org, 2018). Along with this, poverty has increasingly remained to be a major cause of
degradation of resource. The causes are emerging also due to the use of non-sustainable
products such as fuel cars.
It has been found that only 5% of the marketing messages coming from the Green
campaigns are completely true and there is a huge lack of standardisation of authentic claims.
As stated by Subramanian (2018), there has been no standardisation presently placed in India
to term the product as environmental friendly. Therefore, unless the regulatory bodies are
engaged in offering proper certification there will be not reliable means for the reducing non-
sustainable products. Environmental development demands the growing participation through
change in attitude towards the degrading environment.

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Significant of the issue in Business
The planet is highly plagued by environmental issues that despite use of natural
resources and improvements of livelihood there are many poor industrial activities that
influences the business (Rudolph, 2018). Therefore, if these issues are not checked
effectively, environmental issues may negatively affect the business both in a direct and
indirect way such as disruptions in the supply chains, health issues.
Pollution
Pollution is one of the major issues in India that tends to be typical products of the
modern life. Air pollution or instance, is the outcome of the combustion of fossil fuel that
produces various gases and toxins released by the automobile factories and industries (Song
et al., 2017). In this context, India is the international host of the world environmental day
that is seen to ushering several environmental issues like air pollution and water pollution due
to issues such as use of solid management and use of fuel.
Air pollution
There has been a ban in the diesel vehicles over the period of 10 years and 15 years of
petrol vehicles from operating in Delhi NCR region in India. Therefore, it is evident that air
pollution and modern living are going hand in hand but the cost incurred in air pollution can
not be ignored. According to a study, it has been found that air pollution in the Indian
economy is $112 billion in 2005, and the loss owing to the air pollution with almost $39.4
billion in the 2013 (toyota-global.com, 2018).
It is the purchasing of green products, which shows that decision of the consumer to
buy recycled products, which are not utilised. As stated by Rudolph (2018), a consumer with
a high concerns about the environment can be illustrated as the ecologist who has grasped
their self-efficacy against the growing environmental pollution. However, the current state of

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green marketing and influence is varying in different parts of India. It has been found that
developed countries has inclined a bit towards buying of sustainable products that
comparatively less in the developing countries.
The statically evidence in the context shows that 71% of the Indians consider the
environment while buying the products, nine out of ten surveyed in this context believes that
it is their core responsibility to purchase products that environment friendly. However, Song
et al., (2017) stated that it has been found that sustainability of environment make turn in to
major challenge as India is surging along its projected growth. Secondly, a low emission
resource effective greening of the economy will be possible at a limited cost in terms of GDP
growth. Third for an environmental sustainable future India is required to value its natural
eco-friendly products and ecosystem service for informing policy and decision-making.
Possible Impact of the issue
The booming of more than 500 private sustainability standards in almost 199
countries and 25 industrial organisation, associated with inspection, certification of
procedures across all the market is turning in to new market for sustainable supply chain
management. The private sustainability standards are market-oriented tools that used for
promoting sustainable production and business activities. In this context, sustainable
standards are a set of criteria’s that defines social and environmental practices within an
industry. As stated by Pathak & Srivastava (2017), they are generally voluntary in nature and
represents that the compliance of the standards used by the industry is not a legal necessary
but rather a far-reaching reply to sustainability issues as well as growing opportunities to tap
high value market. These standards are created by private entities and industries for
promoting sustainable production of goods and business practices as well as environmental
consumption by developing market demand for sustainable products. By doing so, these
private standards specifies necessities related to broad range of sustainability metrics,

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inclusive of workers health and safety concerns, respect for the human rights and others
(Danish & Naved, 2016). Therefore, growing rise of PSS standards as a respond towards
environmental issues in India may influence the business activities and cost associated with
the products.
On the contrary, building strong brand awareness is necessary for all business
organisation. As stated by, Lebe & Vrečko (2015), social responsibility of business is the
most crucial factors that help in evoking positive brand reputation for the company. It is both
the product and the brand related activities as well as the methods of communication that
influences the perceived corporate social responsibility. As an after consequence, these issues
can be easily hindered by various product related activities such defects in products and
potential harmful use of products. In this context, three out of five CEO of the country’s
largest 1300 companies stated in survey conducted in the year 1981 that quality is changing
where only 13% of them is claimed that is declining. Focusing on these survey reports,
companies have turned their business activities to promotional methods to improve their
quality image. Such efforts are naturally evident as there is greater emphasis given on the use
of sustainable products where the most used themes reliability, durability and quality of the
producers.
As stated by Kiron & Kannan (2018), Companies such as Ford advertises quality
never goes out style, and many other advertisement claim that they produce better than their
competitors do. Therefore, these, issues of customer perceptions and increasing move
towards the use of sustainable business practices and products may influence the business
activities in India. In order to ensure the offering advertising clans companies are increasingly
developing quality in to their products and services.

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Chapter 3: External Analysis
External environment scanning
The external environment is one of the factors that cannot be controlled by any
individuals in comparison to the internal environment. However, these components are
accountable for most of the decision taken by the organisation and help in understanding the
restricting factors. Therefore, without evaluating the external environment, it is not possible
to find a successful strategy for overcoming the non-sustainable products. In this context, it is
also important for understanding the environmental cultural of the country in which the
organisation is operating. In this, the major analysis will be the political and environmental
condition governing the country that are crucial for choosing the country.
As stated by Goswami et al., (2015), the major evaluating areas of environmental
scanning will be political condition of the country, social, technological, environmental and
economic conditions of the country that influences the organisation. These factors are termed
as the micros environment analysis of the country.
STEEP Analysis
Sociological
Sociological factors of the external environment analysis consist of customer
behaviour, media news, growing ecological trends, diversity, education and growing change
in lifestyle, changes in demography, ethical factors and management styles. In this Toyota
Company works as a part of the country those employees millions of employees directly and
indirectly in different operations. As stated by Srivastava et al., (2015), the Company
manufactures various products along with changing trends. In terms ethical issues Toyota
motors is one of the strongest company in spite of huge losses they have faced due to their
productions of cars and they have repaired their cars that were having some defects in them.

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In case of conducting business in India, social lifestyle of people have changed that
has resulted in the growing purchase of automobile products, so automobile industry India
will have a growing number of consumer base to serve in India. In India, the average size of
the family is four that makes it favourable for the company to purchase four-wheeler. As
stated by Taticchi et al., (2015), growing rate of urbanisation shows that it has the fourth
largest economic growth reported by the economical index along with 85% of the cars are
financed in India. In this context, the car products process below USD 12000 accounts for
almost 80% of the market. Moreover, automobile products priced below USD 7000-12000
developed the largest segment in the passenger automobile market (Danish & Naved, 2016).
However, Weber & Feltmate (2016) states that the consumer of India is highly
discerning educated and well informed about the merging issues. It is the growing preference
of fuel effective cars and the practices of running on reduced cost that will allow the company
to grow their business in India. They are also very sensitive to price and put a lot of focus on
the value for money. Therefore, the current concerns about environmental issues will help the
company to market profitably in India. The growing preference for small and compact cars
are socially acceptable amongst all types of consumer.
Technological issues
Technological factors consists of the competition development of technology,
research funding, replacement of technology, development of technology, use of information
technology innovation and research. However, the technological investments made by Toyota
are huge and it has always been a pioneer in the field of technology. As stated by Wilhelm et
al., (2016), the company is highly popular for its initiatives of innovation, replacement
mechanism and research as well as their initiatives taken by the company to address
environmental concerns. In this context, the huge investment made by Toyota has increased