Category: Business analysis

I. Introduction

Wal-Mart Stores, Inc. stands as a behemoth in the retail industry, boasting a sprawling global presence with operations spanning over ten countries. As the company continues to strive for increased annual revenues, the effectiveness of its organizational structure emerges as a crucial determinant of success. This essay aims to delve into the nuances of Walmart’s organizational development by examining the differences and similarities in its structures across various regions, including the United States, China, Brazil, Mexico, and India. Additionally, recommendations for enhancing the effectiveness of these structures will be explored.

II. Organizational Structure of US Wal-Mart

At the helm of Walmart’s organizational structure lie the Annual Shareholders Meeting and the Board of Directors, comprising 14 members. The company adopts a divisional and geographic structure, encompassing divisions such as US Wal-Mart Stores, Sam’s Club, and Wal-Mart International. Within this framework, roles are delineated, ranging from the CEO and Senior Vice President to Regional Vice Presidents, Market Managers, and Store Managers, each tasked with specific responsibilities in driving operational efficiency and strategic alignment.

III. Organizational Structure of Wal-Mart Stores in China

The organizational structure of Walmart’s stores in China mirrors its US counterpart in many aspects, emphasizing adherence to company standards while navigating unique challenges. Despite similarities, navigating labor unions and leadership issues poses significant hurdles in the Chinese market. To adapt, Walmart has implemented unique store formats and product sourcing strategies tailored to the preferences and cultural nuances of Chinese consumers.

IV. Organizational Structure of Wal-Mart Stores in Brazil

Walmart’s expansion in Brazil showcases a blend of familiarity and adaptation. While retaining similarities with the US structure, Walmart grants increased authority to Store Managers in Brazil concerning merchandise mix decisions. Regional Vice Presidents play a pivotal role in overseeing expansion efforts in South America, ensuring alignment with overarching corporate objectives.

V. Organizational Structure of Wal-Mart Stores in Mexico

The journey of Walmart in Mexico reflects a strategic evolution marked by the adoption of a hybrid organizational structure. Initially faced with challenges in aligning corporate strategies with local market dynamics, Walmart gradually empowered local Store Managers to better cater to customer demands. This shift towards localization, coupled with leadership development aligned with US standards, has been instrumental in Walmart’s success in Mexico.

VI. Organizational Structure of Wal-Mart Stores in India

Operating in India presents a unique set of challenges for Walmart, necessitating meticulous attention to organizational structure. Store Managers and Assistant Managers grapple with complexities related to supply chain management and local supplier relationships. Adaptation to local realities is paramount, with a focus on agility and responsiveness to dynamic market conditions.

VII. Recommendations for Increasing Effectiveness

To bolster organizational effectiveness, Walmart should prioritize the empowerment of local Store Managers across all regions. Additionally, targeted improvements in organizational structures tailored to the specific needs of China and India are imperative. Introducing dedicated positions for Logistics and Distribution Managers in India and Mexico can streamline supply chain operations and enhance overall efficiency.

VIII. Conclusion

In conclusion, Walmart’s organizational development journey underscores the importance of adaptability and localization in global expansion endeavors. By meticulously aligning structures with local market realities while retaining core principles, Walmart has managed to navigate diverse landscapes with varying degrees of success. Moving forward, a continued focus on agility, empowerment, and strategic alignment will be essential in sustaining Walmart’s position as a retail industry leader amidst evolving market dynamics.

Introduction

Mission and vision statements serve as guiding principles for organizations, outlining their purpose and goals. Walmart, one of the world’s largest retailers, has a well-known mission and vision aimed at saving people money and improving lives. However, despite its positive reputation, Walmart has faced criticisms and controversies that shed light on negative aspects of its operations.

Labor Practices

Walmart has been criticized for its labor practices, including low wages, insufficient benefits, and poor working conditions for its employees. Reports have highlighted instances of wage theft, discrimination, and violations of labor laws, leading to numerous lawsuits and protests against the company.

Impact on Small Businesses

The expansion of Walmart into various communities has had detrimental effects on small businesses. The company’s aggressive pricing strategies and large-scale operations often undercut local competitors, forcing many small businesses to close down. This has resulted in the loss of jobs and economic instability in affected areas.

Environmental Concerns

Walmart has faced scrutiny for its environmental practices, including issues related to sustainability, waste management, and carbon emissions. Despite initiatives to improve its environmental footprint, the company has been criticized for not doing enough to address these concerns and for prioritizing profit over environmental responsibility.

Ethical Concerns

Walmart has been accused of unethical behavior in its supply chain, including exploitation of workers in developing countries, child labor, and violation of human rights. Additionally, the company has faced allegations of bribery and corruption in its international operations, tarnishing its reputation and raising ethical concerns.

Impact on Local Communities

The presence of Walmart stores in local communities has raised concerns about their impact on the social fabric and cultural identity of neighborhoods. Critics argue that Walmart’s dominance in the retail market leads to homogenization of communities, loss of local businesses, and decreased diversity of products and services.

Conclusion

In conclusion, while Walmart’s mission and vision statements emphasize positive values and goals, the company has been associated with various negative facts and controversies. From labor practices to environmental concerns and ethical issues, Walmart has faced criticism for its impact on employees, small businesses, the environment, and local communities. It is essential for Walmart to address these challenges and strive towards more sustainable and ethical practices to uphold its reputation and fulfill its mission of improving lives.

Introduction

Walmart, the world’s largest retailer, relies heavily on its Information Systems Division (ISD) to manage and optimize its operations. This essay will analyze the role and significance of Walmart’s ISD, examining its key functions, challenges, and contributions to the company’s success.

Overview of Walmart’s Information Systems Division

Walmart’s ISD is responsible for developing, implementing, and maintaining the technological infrastructure that supports the company’s vast network of stores, distribution centers, and online platforms. The division encompasses a wide range of functions, including software development, network management, cybersecurity, data analytics, and digital innovation.

Key Functions of the ISD

1. Supply Chain Management: Walmart’s ISD plays a crucial role in optimizing the company’s supply chain operations through advanced technologies such as inventory management systems, demand forecasting algorithms, and logistics optimization tools. These systems help Walmart minimize costs, reduce lead times, and improve overall efficiency.
2. Customer Relationship Management (CRM): The ISD oversees Walmart’s CRM systems, which collect and analyze customer data to personalize marketing efforts, enhance customer experiences, and drive sales. By leveraging customer insights, Walmart can better understand consumer preferences and tailor its offerings to meet their needs.
3. E-commerce and Digital Platforms: In an increasingly digital world, Walmart’s ISD is tasked with developing and maintaining the company’s e-commerce platforms, mobile applications, and online marketplaces. These digital channels enable Walmart to reach a broader audience, offer convenient shopping options, and compete effectively in the digital marketplace.
4. Data Analytics and Business Intelligence: Walmart’s ISD harnesses the power of big data and analytics to extract actionable insights from vast amounts of information. By analyzing sales trends, consumer behavior, and market dynamics, Walmart can make informed decisions, identify opportunities for growth, and optimize business performance.

Challenges Facing the ISD

1. Cybersecurity Threats: As a high-profile target, Walmart faces constant cybersecurity threats, including data breaches, malware attacks, and phishing scams. The ISD must continually invest in robust cybersecurity measures to protect sensitive information and safeguard the company’s reputation.
2. Legacy Systems Integration: Walmart’s extensive history and rapid growth have led to a complex IT infrastructure consisting of legacy systems and disparate technologies. Integrating and modernizing these systems poses significant challenges for the ISD, requiring careful planning, investment, and expertise.
3. Scalability and Performance: With millions of transactions occurring daily, Walmart’s ISD must ensure that its systems are scalable, reliable, and capable of handling peak loads without disruption. Maintaining high performance across a vast network of stores and online platforms requires constant monitoring and optimization.

Contributions to Walmart’s Success

1. Operational Efficiency: By streamlining processes, automating tasks, and optimizing workflows, Walmart’s ISD enhances operational efficiency, reduces costs, and improves productivity across the organization.
2. Competitive Advantage: Walmart’s robust information systems give it a competitive edge in the retail industry, enabling the company to offer innovative services, personalized experiences, and seamless omnichannel integration.
3. Customer Satisfaction: Through advanced CRM systems and data analytics capabilities, Walmart’s ISD helps enhance customer satisfaction by delivering personalized recommendations, seamless shopping experiences, and responsive customer service.

Conclusion

In conclusion, Walmart’s Information Systems Division plays a critical role in supporting the company’s operations, driving innovation, and delivering value to customers. Despite facing challenges such as cybersecurity threats and legacy system integration, the ISD continues to adapt, innovate, and contribute to Walmart’s ongoing success in the dynamic retail landscape.

I. Introduction

Walmart, founded by Sam Walton in 1962, has grown to become one of the largest retail chains globally, known for its commitment to customer satisfaction. In today’s competitive retail landscape, effective management of financial resources is crucial for sustaining operations and driving growth. This essay explores Walmart’s liquidity ratios, essential financial metrics that indicate the company’s ability to meet short-term obligations and manage cash flow efficiently.

II. General Explanation of Walmart’s Business Process

Walmart boasts an extensive retail network comprising thousands of stores worldwide, catering to diverse customer needs. Its organizational structure emphasizes efficiency and scalability, with a focus on streamlining operations across its various divisions, including Walmart U.S., Walmart International, and Sam’s Club. Understanding Walmart’s business process provides context for analyzing its liquidity ratios and financial performance.

III. How Walmart Uses Information Systems

Information systems play a pivotal role in Walmart’s operations, facilitating centralized management and coordination of key processes. From inventory management to customer relationship management, Walmart leverages technology to enhance efficiency and productivity. For instance, the barcode system enables real-time tracking of inventory levels, ensuring optimal stock levels and minimizing stockouts. Additionally, RFID technology enhances supply chain visibility, enabling Walmart to monitor product movement and improve logistics operations. Self-checkout lanes further streamline customer transactions, reducing wait times and enhancing the shopping experience.

IV. Walmart Information System Processes

Walmart’s information system processes involve robust data collection, analysis, and utilization strategies. By leveraging advanced analytics tools, Walmart gains valuable insights into consumer behavior, market trends, and operational performance. This data-driven approach empowers Walmart to make informed decisions, optimize resource allocation, and drive continuous improvement across its operations. Moreover, Walmart’s information systems contribute to improving operational efficiency and customer satisfaction, key priorities for sustainable growth.

V. Walmart Information Systems Strategy – Process Improvement

Analyzing liquidity ratios provides valuable insights into Walmart’s financial health and operational efficiency. By focusing on liquidity metrics such as the current ratio and quick ratio, Walmart can assess its ability to meet short-term obligations and manage cash flow effectively. Additionally, Walmart can leverage advancements in technology to enhance supply chain management and customer service further. Embracing innovative solutions such as predictive analytics and AI-driven automation can optimize inventory management, reduce costs, and enhance overall business performance.

VI. Suggestion for Improvement

To further enhance its liquidity position, Walmart should focus on optimizing working capital management and strengthening cash flow generation. This may involve renegotiating payment terms with suppliers, optimizing inventory levels, and prioritizing high-margin product categories. Additionally, Walmart should invest in digital transformation initiatives to enhance the efficiency and scalability of its operations. By embracing emerging technologies and fostering a culture of innovation, Walmart can maintain its competitive edge in the rapidly evolving retail landscape.

VII. Conclusion

In conclusion, liquidity ratios provide valuable insights into Walmart’s financial stability and operational efficiency. By leveraging information systems and embracing process improvement strategies, Walmart can enhance its liquidity position, mitigate financial risks, and drive sustainable growth. As Walmart continues to navigate the dynamic retail environment, strategic investments in technology and operational excellence will be crucial for maintaining its leadership position and delivering value to customers and stakeholders alike.

Hewlett Packard which is more commonly known as HP is a technology-based company that provides technology-related services to many consumers. Its consumers range from businesses to individuals or institutions and households. Its headquarters are located in California, USA but it has expanded itself worldwide where it operates in over 170 countries. It provides its customers with a variety of services from personal computers to infrastructure for IT along with printing and imaging services. The company has a mission of assisting its customers in the form of technology and services. HP has gained immense popularity and stands at the top of the world service providers. With their operations in many countries worldwide, they have included a large customer base.

In HP’s sustainability report, the president and the CEO left the message at the start of the report that their customer, consumers, and employees expect them to devise the strategies and programs necessary to maintain sustainability (Sustainable Impact Report HP, 2018). HP is known to have a leading role in sustainability as it has been practicing sustainable approaches making notable appearances when working towards suitability was not even considered cool or trendy, Nowadays business work towards sustainability to produce a notable influence in the market and gain some popularity due to the trends sustainability has been following and allowing many organizations as well to enter into this. HP has the biggest customer base due to its influence worldwide. It is recognised on all important platforms and thus the company has customers and consumers that demand that the company should be working towards sustainable approaches. Many companies are pressured by the stakeholders and their customers or consumers. To attract more customers and consumers and keep the already satisfied ones, HP takes into account the practices for sustainability approaches and thus satisfying their needs. Global trends are another external factor that allows them to shape their plans and strategies. HP is recognized as one of the most sustainable organizations and as sustainability has now become an ethical and moral responsibility it falls upon them to keep themselves in line with the new trends and changing environment. Competition is also threatening their position which is why they need to have better systems and plans for sustainable developments to keep their competitors down. To keep themselves in a strong competition environment, they work for better sustainable options that can outgrow others and thus make HP stand out. It will help them to be in the A game of the competition. HP is working for multiple causes such as helping to reduce deforestation. They are advocating for human rights and reducing the pollution produced by plastic.

The earth’s climate is changing rapidly, and with a more environmentally concerned population than ever, unsurprisingly because of this, lots of attention has been directed towards how big businesses such as Costco have an impact on our climate. Costco has been seen as a business innovator in sustainability reporting and annually publishes its sustainability reports publicly displaying its environmental impact. As new legislative and regulatory requirements are created, Costco will likely be almost completely unaffected as they already have publicly displayed goals of reducing electricity and gas consumption. Costco’s entire business model has been designed (whether intentional or not) grounded in an environmentally friendly way, as buying products in bulk reduces carbon emissions required in transportation tenfold.

One of the first things Costco has done in a step towards sustainability is limiting its usage of natural gas and electricity. Costco even ensures that its carbon footprint growth stays incredibly small compared to its business size by comparing its total carbon emissions directly to its sales growth, making it its mission to keep its CO2 growth lower than its sales growth. And since 2009 Costco has maintained this goal, on average having a growth of 7.9% in sales annually but only a total of 1.8% carbon emission growth. Another way Costco ensures that their business is sustainable is by how they go about lighting their sales floors, and their sustainable lighting efforts have resulted in them cutting their total electricity used by half over the past 11 years. They achieved this drop by using more energy-efficient LED lights as opposed to the regular bulbs they had previously used. Another method they have employed to lower their carbon footprint is to install solar panels on the roofs of all of their facilities. According to data they have fitted hundreds of facilities with new solar-powered systems and are planning on installing them in all of their stores and warehouses by 2020.

Furthermore, Costco also sets strict restrictions on their material usage with an innovative system of recycling grease from their rotisserie chicken which has reportedly recycled over one million pounds of grease that would have otherwise gone to waste. As the world progresses to become a more environmentally aware place, Costco will likely remain a front-runner in reporting the steps they have taken to reduce its carbon footprint and recycle materials. Compared to other aspects of business, sustainability assurance departments are expected to become almost three times as common within the next five years. And the conduct of Costco demonstrates this trend. But environmental issues are not the only issues Costco has taken a progressive view of; the company has very rigid human rights standards towards its suppliers. If human rights violations are discovered, the company has a pre-established system in place that ranges from contacting the supplier and demanding work condition changes, to an immediate termination of any business relationships.

A systematic investigation of suppliers should be compulsory for all businesses to prevent the continued mistreatment of workers. And because of Costco’s ever-vigilant policies, they have surely set the standard for other retail businesses. Furthermore, Costco is well documented for its generous working wages and its unheard-of freely provided healthcare. Whilst this may not be the most financially advantageous business model, it has lowered Costco’s turnover rates to just 5% which will have resulted in drastically dropped training and hiring costs. Another way in which Costco has reduced its environmental impact is through its plastic package design for many of its food items. Changes as simple as changing the shape of their walnut containers from a circle design to a square design have allowed for 50% more containers in each transportation load. In this case, sustainability and a cost reduction come in the same form and this way of thinking is what has allowed Costco to keep both its prices and its impact on the planet low. Costco is still making immense progress in its mission to become a world leader in business corporate social responsibility. Their strict margins on resource intake have forced them to innovate in every possible way to increase efficiency throughout all facets of the business. Costco has developed an inspiring model of sustainable energy and continues to ensure the safety and wellbeing of employees and customers alike.

The Coca-Cola Company is an American multinational corporation that operates in the beverage business. It manufactures, sells, and distributes syrups and finished nonalcoholic beverages. Its foundations go back to 1886 when pharmacist John Pemberton concocted a unique caramel syrup and mixed it with carbonized water in the neighborhood pharmacy in Atlanta. His bookkeeper gave the drink its name, writing it in the font that is still used to this day. After Pemberton died in 1888, Asa Griggs Candler, who had bought most of the shares of the Coca-Cola Company from Pemberton, took over the business. He, later, became its first president. Since then, the Coca-Cola Company has sold more than 10 billion gallons of its syrup. Nowadays, the company’s capital, in a fiscal year, averages 1.107 billion dollars.

The Coca-Cola Company has a culture of diversity and inclusion. This culture type is characterized by hiring employees of different races, age groups, religions, and genders. Coca-Cola has been named one of the 50 most diverse companies and has hired Lori Billingsley as the Chief Diversity and Inclusion Officer in 2018 to continue its efforts. The company hires 131,000 people in more than 200 countries. 30% of the employees working in the senior management were reported to be women, and the company aims to make it 50-50. Furthermore, some of the jobs at Coca-Cola are reserved for young talents. Moreover, Coca-Cola hires veterans and makes use of their skills.

As indicated by its sustainability report, Coca-Cola’s efforts are concentrated in many fields, including climate, waste reduction, water leadership, sustainable agriculture, and people and community. Its 2020 social initiatives include donating 14 million dollars to the Red Cross and Red Crescent for COVID-19 relief, distributing face shields to medical responders, and producing and donating hand sanitizers to medical facilities. In the Egyptian branch in particular, employees are involved in 100 village projects that aim to develop poor villages by connecting water to houses, providing medical equipment, and providing women with businesses. Concerning the green approach, Coca-Cola is employing a dark green one. Some of their green actions in 2019 include restoring 1.5 trillion liters of water (since 2012), reducing the carbon footprint of the drinks by 25% (since 2010), and making 88% of their packaging recyclable globally. Possible impacts of these initiatives on the company may include improving its public image. A percentage of people are concerned that Coca-Cola is abusing the world’s drinking water supply. Thus, its water restoration efforts as well as its provision of clean water to communities may decrease these concerns and increase trust in the company. This, in turn, may reflect an increase in revenues.

Similar to any other company, strategic management is important for the Coca-Cola Company. The company employs a concentration strategy. Coca-Cola concentrates on ‘building a total beverage company’. Coca-Cola has diversified its beverage products. It produces soft drinks (ex. Coca-Cola, Fanta, and Sprite), juices and dairy and plant-based drinks (ex. Fa!irlife), water (ex. Dasani), coffee and tea (ex. Costa Coffee) and energy drinks (ex. Monster Beverage). Moreover, it has expanded in many markets. It operates in 200+ countries, having approximately 225 bottling partners and 900 bottling plants worldwide.

In its internal environment, several strengths and weaknesses of the company can be noted. One of the obvious strengths of Coca-Cola includes dominance over the beverage industry, as seen by the number of beverage products that it produces. Moreover, Coca-Cola has an established brand that it has developed for over 100 years. For many years, Coca-Cola has been named the most expensive brand and has only been passed by several tech companies in recent years. Furthermore, it has a strong existence in most markets. On the other hand, its weaknesses include the lack of healthy products. Coca-Cola’s most famous products are soft drinks that are harmful to a person’s health. In general, the number of healthy beverages, compared to its other beverages, is minimal. In addition to the lack of healthy products, Coca-Cola has low diversification compared to PepsiCo. PepsiCo competes in the same field as Coca-Cola but has a greater variety of products.

Moving on to its external environment, there are several opportunities for Coca-Cola, as well as several factors that threaten it. One of the opportunities is that Coca-Cola could still increase the number of beverage products. For one thing, it can introduce healthy drinks and beverages to the market, as this is one area that it lacks. Additionally, it can advertise unpopular beverages and acquire small competitors. On the other hand, the main factor that threatens Coca-Cola is water scarcity. Being a company whose production depends on water as its main resource, water scarcity may significantly harm its production if the issue is not tackled. Other threats include an increase in health concerns by consumers and high competition from its main competitors, such as PepsiCo, Nestle, and others.

The Coca-Cola Company operates in more than 200 countries in five regions of the world. These five regions are North America, Latin America, Asia and the Pacific, Europe and the Middle East, and Africa. Nowadays, Coca-Cola is sold officially in all countries except North Korea and Cuba. The global attitude of Coca-Cola is polycentric. This is due to the fact the company operates with the mentality of “Think globally, act locally”. As discussed in online sources, human resource management in Coca-Cola varies from one country to another, as Coca-Cola leaves local management for the managers of each branch. In its global entrance to other markets, Coca-Cola mainly adopts the franchising system. The actual company just produces the syrup. Other companies then bottle and distribute Coca-Cola products to the local market, such as to restaurants and grocery stores. Nowadays, Coca-Cola partners with approximately 225 bottling companies.

The overall company performance of the Coca-Cola Company is outstanding. In addition, Coca-Cola has a good corporate culture. As stated by the Chief Diversity and Inclusion Officer, by bringing a diverse group of people to the table and hearing out different opinions, better results are obtained, making the company successful. Moreover, Coca-Cola has done a lot in terms of social responsibility. However, I believe more can be done in sustainability. In its sustainability report, the company has a lot of goals that, if achieved, would have a profound impact on the environment. One of these is that it aims to collect a can for each one it sells by 2030. Finally, I believe that utilizing the franchise system has significantly helped Coca-Cola achieve global reach. Without franchising, it would have had to handle bottling and distribution in 200+ countries. The only concern I might have is regarding the health issues of its products. To sum it all up, in my opinion, Coca-Cola is a model of the perfect company that startups nowadays should take as an example.

So, why sustainability? In what way is sustainability linked to the future of business? Let’s start simple. What does the abstract concept of sustainability even mean? The Brundtland report from the year of 1987 was the first to define the term. The report stated: ‘Sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. “ The term can be described in many ways however: “Living well within the limits of nature” (Mathias Wackernagel, author of Sharing Nature’s Interest” or simply put “Not cheating on our children” (former UK Environment Minister John Gummer).

Regardless of the definition, those working in the field of sustainability envision sustainability as having three major pillars: economic, social, and environmental. These three realms of sustainability are referred to as the “triple bottom line”. Businesses that practice sustainability aim to optimize all three simultaneously, as it is clear that in the long term, you cannot have one without the others. If we take the example of China: In the past decade it has reported a 9 percent economic growth. However, now China is recognizing that the environmental costs of that growth which are pollution, health problems, flooding, and resource depletion are now almost entirely wiping out the economic growth.

The three pillars of sustainability are therefore intimately intertwined. Without aiming for a healthy sustainable environment, we deplete the resources upon which our economy currently still depends and contribute to economic downfall. Without a healthy economy, unemployment is high, leading to a host of social problems. Due to the unhealthy economy, governments lose the revenues to handle the increased social problems. Consequently, without a vibrant community, we do not have active employees to work for businesses. Ultimately, people in crisis also do not have the luxury of being concerned about environmental degradation. Every business must understand these interdependencies and focus on all realms of sustainability rather than singling one out.

The major difference between sustainability and the environmental movement is that sustainability also recognizes the need for a healthy economy. The Author of Believing Cassandra, Alan AtKisson makes a clear distinction between “growth” and “development”. Growth is defined as being bigger, having increased material throughput, and having an increasingly negative impact on nature, while development is described as moving forward and getting better, without having bigger impacts on our motherly planet. Most sustainability advocates agree with Attkisson’s statement that for sustainable development to take place, growth must cease. It is clear to most that, if we, humans do not stop the growth willingly, Nature will stop it willingly. Paradoxically, however, for growth to cease, development must accelerate. For development to accelerate, the rate at which new, cleaner technologies are implemented must increase. For this to happen, a healthy economy is essential to acquire enough money to invest in these innovations.

The major questions, however, still are: Why is sustainability suddenly on the radar screen? In what way is sustainability the future of business? To answer this we must take note, that over the past century, society has increasingly raised its expectations of businesses and sustainable awareness. As to the present day, Society wants it all. The “Millennium Poll” conducted in 2008, surveyed 25,000 people in 23 countries spread over six continents. The majority of the people surveyed expect businesses to go far beyond just making a profit, obeying laws, paying taxes, and providing jobs. These people, instead expect companies and corporations to “exceed all laws, setting a higher ethical standard and helping build a better society for all.” Today there are new significant interests on the priority list. Things like fair treatment of employees, employee health and safety, ending child labor practices, elimination of corruption, and protecting the environment, top the list. All these newly prioritized interests of corporations fall under the triple-bottom-line (economic-social-environmental) framework of sustainability.

Why is sustainability the only solution to the future of business? The answer is simple, however it lies in one crucial problem. As of today, natural resources are a limiting factor. If the growth in global population continues at this rate, according to the best estimates of the UN the population will increase by three billion by the year 2050, then the natural resources, which are already dwindling, will by no means be sufficient to provide for the entire global population. According to the UN Food and Agriculture Organization, over the 1990s alone, the world lost around 64,000 acres of forestland a day, which is about 94 million hectares over the spread of the 10 years. The agricultural sector is facing problems like soil erosion, urban sprawl, desertification, aquifer depletion, and salinization leading to a significant decrease in crop yields. Meanwhile, in the fishing industry, eleven of the fifteen primary fishing grounds are already exceeding their maximum sustainable yield which will eventually lead to complete collapse. This is why sustainability is needed, why every business must implement it, and why it’s the future of business. A sustainable business model, on the contrary to most others, acknowledges the finite limits of nature. Sustainability acknowledges the need to neutralize our wastes and emissions and the urgent need to produce renewable resources and maintain critical ecosystem services.

Furthermore, it must be said that now more than ever, health concerns are rapidly rising due to the effects of pollution circulating around the globe. Studies have been conducted and have revealed that humans across the world are carrying multiple synthetic chemicals in their blood and even in their breast milk. These include things such as industrial solvents, wood preservatives, fire retardants, and of course even pesticides. Many of these are known as highly defective carcinogens or “gender benders”. They can mimic birth hormones, and cause birth defects as well as reproductive abnormalities. These health concerns can only be solved if sustainability is strictly pursued by businesses in the future.

Finally, one major problem we face in today’s world is that environmental issues are becoming entirely global. Years ago, environmental problems used to be relatively isolated. They included things like a tanker running aground, the derailing of a train filled with chemicals, an energy plant exploding or the mishandling of hazardous waste by various companies. However, if we look at our environmental problems now, we can observe that they have exceedingly increased in magnitude. Today’s problems are increasingly global and include global warming, the ozone hole, acid rain, species extinctions, the dying of coral reefs, and the destruction of rainforests. Humanity, up to this day, has not made it clear how it is planning on correcting them. Leaving these issues untouched, without providing solutions will result in the death of this planet. This is why the future lies in sustainability.

However, not all is gloom and doom. All these serious problems indirectly represent interesting business opportunities, believe it or not. Indeed, a considerable amount of the practices needed to correct and face these issues are already in existence and are only excelling. Timber companies are developing a set of sustainable forest practices. Meanwhile, marine sanctuaries have found an effective way to rebuild fish stocks. There are new smart growth practices developing plans on how to create urban environments that reduce the need for automobiles and simultaneously also improve the liability and health of the inhabitants. Furthermore, now, with organic agriculture soil gets built rather than being depleted. Today, with the help of nanotechnology we have come to find promising new products and processes including hydrogen fuel cells. It seems clear that we know what has to be done in most cases, but the longer we wait; the more constrained our options get. The trend is strongly pointing towards sustainability. Businesses can therefore either start implementing sustainable methods or get left behind.

If we look at the development of sustainability in today’s world, we can observe that it is by no means a fringe issue anymore. Have a look at the business sectors: The fastest growing segment of the energy sector is wind power, in the travel industry it’s eco-tourism, in agriculture it’s organic farming and in the investment community it’s socially responsible investments. All these trends point towards one major game changer. Sustainability. Assuming the exponential growth of these segments in their respective sectors continues, then the future of business lies in nothing else but Sustainable Development.

Introduction:

Sustainable management combines the principles of sustainability with the principles of management. The climate, present and future generations’ demands, and the economy are the three main pillars of sustainability. Because it is proactive instead of reactive, sustainable management contributes to a company’s long-term viability. It is the responsibility of a manager to invest his time in ensuring decent working conditions for the employees of an organization (Seuring, S., & Gold, S., 2013). A sustainability manager will be responsible for designing, implementing, and evaluating environmental policies for a business or organization. He or she will also oversee coordinating plans, developing budgets, and selling the company’s sustainable initiatives to sellers, clients, and coworkers. A career as a sustainability manager allows a person to make a difference in how companies, big and small, affect the environment (Baumgartner, R. J., & Rauter, R., 2017). Sustainable goals are being pursued by an increasing number of organizations across a range of fields (retail shops, food, agricultural technology, insurance, automotive, healthcare, utility, etc.). All the world’s leading sectors are known for their commitment to sustainability. But the question remains, what is the role of managers in the sustainability of an organization? To answer this question, we shall look at the function and responsibility of a manager in terms of sustainability for an organization.

For-profit and Non-profit organizations:

In general, there are two basic types of organizations: For-profit (Business) and non-profit organizations. A for-profit organization’s main goal is to make money or to take in more money than it spends. The owners have the option of keeping all the profit or investing some or all of it back into the company. Alternatively, they may choose to share some of it with workers through their compensation plans, such as employee profit-sharing (Anheier, H. K., 2000). On the other hand, a non-profit organization exists to provide a specific community service. The term ‘nonprofit’ refers to a company that is structured in such a way that profits are not distributed to the owners. In this context, ‘profit’ refers to a financial reporting term that is related to but not comparable to the concept of a revenue surplus over expenses (Cornforth, C. (Ed.)., 2002). Management in not-for-profit organizations is very different from management in for-profit businesses. In a for-profit firm, a manager’s performance is measured in terms of return on investment and corporate growth. So, is a manager in charge of leading employees toward these objectives? The goals of a not-for-profit organization are determined by the organization’s success in achieving its mission, which is to help people or positively change society. In a not-for-profit, management is likely to share, if not completely take over, much of the work that would normally be done by the board of directors (Paton, R., Mordaunt, J., & Cornforth, C., 2007). This is due to a lack of resources, as well as the fact that the charity’s mission must be driven by both the board and management. Charity boards are unable to engage in discussions about market conditions or how the market is evolving; instead, they must be honest with management about whether people are being helped or whether the good that the organization tries to accomplish is being accomplished (Hwang, H., & Powell, W. W., 2009). A manager for a for-profit manager has only one thing on his agenda; profits for the organization. All his actions and policies towards maximizing the profits (Townsend, R. C., & Bennis, W., 2007). And so here are some methods used by for-profit managers to maximize profits: Creating policies and goals for a for-profit or non-profit organization. Choosing, endorsing, and evaluating the chief executive’s achievement. Approval of annual operating plans as well as strategic direction. Responding to stakeholders, particularly shareholders and members. Regulatory audits and compliance with the appropriate authorities are required. Appointing auditors and giving final approval to the audited financial statements. Assuring the creation, maintenance, and achievement of short- and long-term plans. Improving the public image of the group (Hatten, M. L. 1982). The food and beverage industry may be the most vulnerable to climate change’s effects. Changes in weather patterns, water availability, and crop growing conditions may have long-term implications for the industry’s business and supply chain. More than 2 billion people currently live in water-stressed zones. Due to population growth and climate change, this figure is expected to increase considerably over time. The Coca-Cola Company’s executives have taken notice. Because water is the primary ingredient in nearly all their products, water quality and availability are vital to their success. Coca-Cola is working to become a more responsible global citizen by sourcing agricultural ingredients sustainably, lowering its carbon footprint, retrieving, and recycling bottles and cans, and increasing water efficiency (Walsh, H., & Dowding, T. J. (2012).

Stakeholders and their types:

In every business, some stakeholders are affected by the progress of an organization. A stakeholder is someone who has a vested interest in a company and may influence or be influenced by its operations and performance. Investors, workers, consumers, vendors, groups, ministries, and trade associations are all examples of stakeholders (Greenwood, M., 2001). Generally, the stakeholders in a business are categorized in two main ways: Inside stockholders, and outside stakeholders. Inside stakeholders are those who exist within a company. Employees and workers are another example of stakeholders that are directly impacted by a project. Outside stakeholders, on the other hand, are those who have a vested interest in a company’s success but are not directly involved in its projects. A common example of an outside stakeholder is a supplier. Further sub-stakeholders are divided concerning their positioning and interest in the organization. The different types of stakeholders are Owners, investors, suppliers, communities, creditors, trade unions, employees, media, government agencies, and customers Savage, G. T., Nix, T. W., Whitehead, C. J., & Blair, J. D., 1991). Each stakeholder has their interests and it is the job of the manager to keep these interests from colliding with each other. Managers can assist stakeholders in resolving conflict by recasting it as a problem-solving activity (Greenwood, M. (2001). They work to understand and make differences of opinion visible, carefully guiding people and groups to common ground. This is more than just an agreement. Problem-solving encourages stakeholders to commit to each other, resulting in higher buy-in and support. It’s no secret that solving problems takes time and effort. Now, the strategies proposed by Coca-Cola as a profit organization are not profitable for their stakeholders. This is an awkward position where the company must make exceptions for balancing profitability with sustainability (Gandy, D. L. (2015). Coca-Cola is working to advance its renewable energy program in the long run. The Clean Energy Toolkit has been presented by executives to local teams. This tool will assist local teams in making informed decisions about potential renewable energy investments. Coca-Cola was seeking 50 renewable energy projects in addition to the 81 that were already operational at the end of 2016.

Sustainability and Performance for an organization:

Managers are finding that the intangible indicators used to assess sustainability can also be used to assess effectiveness, or how well a business is run. A sustainable business plan would enhance all aspects of corporate activity, from managing corporate liabilities to launching new market projects. Indeed, some argue that environmental management is a good proxy for assessing overall management capabilities at both the strategic and operational levels. Environmental concerns, according to Matthew Kiernan, founder of investment research company Innovest Strategic Value Advisors, are a strong metaphor because they have ramifications for a wide range of stakeholders, from the government to investors to community leaders, and because they touch on all aspects of a business’s operations, from product design to financing. Coca-leadership Cola’s in sustainable packaging was recognized at the Green Food and Beverage Awards in 2020 when it was named ‘Sustainability Team of the Year’ and ‘Best Sustainable Packaging’ in the second category. These awards recognize their achievements in the World Without Waste journey, as well as their ongoing commitment to reducing and eliminating their overall use of plastic. In 2019 Coca-Cola was named one of the most sustainable beverage businesses in all of Europe. This was the seventh time in eight years that they have taken the first rank in Europe, and also the tenth year in a row that they were ranked among the top three most sustainable global and eurozone organizations (ZsAka, A., & Vajkai, A., 2018). So, sustainability does have great performance-enhancing applications.

Conclusion:

In conclusion, Corporate responsibility, also known as ‘sustainability,’ is an important aspect of any business’s responsibilities. It is also an opportunity for the company to create a positive image in the eyes of its clients and shareholders. As a result, an integrated sustainability program like Coca-Cola is an important and effective way to manage environmental, and economic risks. Furthermore, a proper strategy aids in exploring new opportunities, services, products, and markets for organizational expansion. The sustainability strategy used by Coca-Cola is influenced heavily by the sustainability strategies used by influential international retailers such as Wal-Mart and Marks & Spencer (White, P., 2009). It is these strategies that have helped Coca-Cola move forward as an international household name.

Reference List

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Company Overview

Tesla Inc. is an automotive and energy production company based in California, United States of America. The company specializes in electric car manufacturing with an emphasis on eventually producing affordable mass-market electric cars and hence revolutionizing the automotive industry for the better.

Founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, the company was joined by Elon Musk during its first capital raising stage allowing him to be known as one of the company’s co-founders. As of 2019, Tesla Inc’s products include the Model S, Model X, and Model 3 cars; while also accepting reservations for the Model Y and Roadster. The company also sells batteries, solar panels, and other renewable-associated products.

After being on the market for 10 years, Tesla ranks as the world’s bestselling plug-in car manufacturer with over 245,000 units delivered and an approximate 12% market share of plug-in sector sales. In the US Tesla vehicle sales increased 280% from 2017 to 2018 and over 138% in the same period globally.

Tesla has adopted a unique targeting strategy that is for the most part unique to its industry. The company emulates typical technological product life cycles to target affluent buyers initially, and then move into larger markets at lower price points. The company has products for every segment of the market to stay diverse in its sales strategy. The Roadster is low volume produced and priced at US $109,000, Model S and Model X targeted the broader luxury car market, and Model 3 and Model Y are aimed at the higher volume market of affordable consumer passenger vehicles.

External Environment Analysis

Industry Identification

The industry in which Tesla finds itself at the forefront is known as the Automotive Energy Storage Industry, a unique branch from the automotive industry as a whole, this industry is one of the fastest growing on the planet, and this can be widely attributed to the growth of renewables and a broader growth in consumer awareness surrounding major issues such as climate change and how we may wish to slow or reverse the devastating effects of global warming.

Players in the market have been on a mission to marry technologically advanced networks with supreme connectivity and storage to help store energy harnessed from renewable resources. Many industry analysts claim the missing link between intermittent power such as solar and wind, and around-the-clock reliability; is affordable storage.

The stationary battery storage market had an estimated total evaluation of US $4 Billion in 2017 and is expected to exceed $35 Billion by 2030. This industry is a rapidly growing example of how renewables are changing the market for consumer and mass-market products and services globally.

General Environment Analysis

Political Factors

Government entities are among the main societal forces that affect businesses and wider industries as policies on trade can limit companies’ revenues and industry performance as a whole. Some of the political external factors that are most significant to Tesla and the industry it resides in are government incentives for electric automobiles, new global trade agreements, and political stability in most of the business’s major markets.

Tesla has an opportunity to greatly strengthen its performance through incentives from the government, this is directly related to the low carbon output of the manufacturing and production of involved with the company’s products. Governments advocate for the reduction of the burning of fossil fuels and in most cases provide subsidies and resources for those companies with the lowest carbon footprint, of which Tesla is one. Expanding free trade agreements means that Tesla has an opportunity to expand its operations internationally through entrance into growing markets such as China, where its carbon footprint is large and personal transport usage is high. The political stability of the major markets such as the United States makes the macro environment suitable for Tesla’s competitive strategies such as market penetration. Overall, the political landscape surrounding the industry presents opportunities for Tesla to grow their already rapidly expanding company even further.

Economic Factors

Economic factors of the macro environment include conditions such as market growth, trade levels, and currency rates, for example, the solar energy market growth affects the company’s ability to sell its solar panel products. Some of the main economic factors specific to Tesla’s position are decreasing battery costs, decreased costs of renewable energy, and economic stability issues. Tesla’s business performance is highly reliant on low battery costs, this external factor directly translates to the affordability of the company’s electric automobile products, when the costs of obtaining and running batteries for the storage of renewable energy is low, then the running cost of Tesla’s cars is lower, this relationship is similar the regular cars and the price of unleaded fuel. As the cost of renewable energy such as solar energy decreases due to an expansion of investment and research into renewables, the affordability of Tesla’s renewable-based products becomes higher. As batteries and renewable energy are both direct inputs in Tesla’s operational activities, the cost of both of these being low benefits the company greatly and allows for easy growth throughout their industry, however economic stability in Asia and Europe especially threatens the company’s financial performance. Despite great opportunities for growth in these regions, economic instability caused by currency fluctuations and political feuds between neighboring countries in the EU may lead to higher barriers to entry in some of these markets.

Sociocultural Factors

Social trends and conditions focus on the company’s relevant stakeholders such as employees’ customers and investors, and how the change in their attitudes can affect the company’s overall financial performance. Tesla’s managers need to consider how the company aligns with social trends in its target markets.

Some of the main sociocultural factors affecting Tesla in its market are the growth and increasing popularity of low-carbon lifestyles, an increasing consumer preference for renewables, and improved wealth distribution in emerging markets. Analysis of these factors shows that Tesla has a great opportunity to expand its company internationally based on the rising preference for both renewables and a low-carbon lifestyle, as consumers become more aware of environmental and social consequences of their lifestyle, moving away from the traditional “economic minded” thought of traditional consumerism, both of these factors result in increased demand for Tesla’s new energy saving products, the shared values of renewables are becoming more and more sought after meaning Tesla is in a great position to grow its products with great financial benefit. Furthermore, Tesla has an opportunity to boost its performance due to the increased wealth distribution in emerging markets such as India and China. This increased wealth distribution increases the total population of potential buyers for Tesla’s products as they are considered relatively expensive and in most cases luxury goods. Based on sociocultural factors, Tesla overall has a huge opportunity to grow its business and increase its financial performance.

Technological Factors

The advancement of Tesla’s automotive and renewable energy solutions business is heavily reliant on the technologies that are available to the company. For example, the engineering technology of the company’s materials affects the overall cost-effectiveness of their energy storage products. The most significant technological factors crucial to the success of Tesla’s operations are the high rate of technological change, increased automation in business, and the increasing popularity of online mobile systems.

The high rate of technological change can be assessed as both an opportunity and a threat for Tesla. One on hand new technology can be crucial for gaining a competitive edge in the industry, and with appropriate research and development can be harnessed to create new and effective products with the ability to take over the market, on the other hand; rapidly growing technology on the renewables front means many modern technological principles and technologies themselves become obsolete very quickly, some of Tesla’s products may be in jeopardy of this as newer and more viable solutions to renewable energy problems become available. Increasing automation of business processes is an opportunity for almost any company in any sector, as it allows for maximum efficiency and often reduces costs associated with combining different sectors of the company’s operational capabilities. The increased popularity of online mobile systems is also an opportunity for Tesla as they have these systems in their automobiles, this trend gives Tesla’s products a strategic edge over most other automobile computer systems.