STRATEGIC MANAGEMENT
QUESTION 1 : Describe what is meant by ‘sustainability’ in business.
Business sustainability is defined as managing the triple bottom line - a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet.
However, this approach relies on an accounting based perspective and does not fully capture the time element that is inherent within business sustainability. These businesses create economic value and contribute to healthy ecosystems and strong communities.
Business sustainability requires Nestle to adhere to the principles of sustainable development. So, for industrial development to be sustainable, it must address important issues at the macro level, such as: economic efficiency (innovation, prosperity, and productivity), social equity (poverty, community, health and wellness, human rights) and environmental accountability (climate change, land use, biodiversity).
Company that are sustainable have been shown to attract and retain employees more easily and experience less financial and reputation risk. This company is also more innovative and adaptive to their environments.
Example
· Tech or financial firms going to a paperless office environment;
· A cell phone manufacturer pursuing a “conflict-free” mineral resource supply chain;
· A bank committing to and accomplishing carbon-free operations.
QUESTION 2 : Explain how Nestle used a ‘waste hunting’ exercise to help in its planning.
Nestle used the waste hunting exercise to reduce the excess material used in the process, waiting or delay by using seven areas of MUDA. MUDA is broken down into the seven areas that make up of mnemonic ‘TIMWOOD”.
Factor
Impact
Improvement
TRANSPORT
Moving materials unnecessarily wastes time and energy
Reduce weight/size of pieces to ease handling
INVENTORY
Too much stock increases costs of storage
Ensure suitable customer
Business sustainability is defined as managing the triple bottom line - a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet.
However, this approach relies on an accounting based perspective and does not fully capture the time element that is inherent within business sustainability. These businesses create economic value and contribute to healthy ecosystems and strong communities.
Business sustainability requires Nestle to adhere to the principles of sustainable development. So, for industrial development to be sustainable, it must address important issues at the macro level, such as: economic efficiency (innovation, prosperity, and productivity), social equity (poverty, community, health and wellness, human rights) and environmental accountability (climate change, land use, biodiversity).
Company that are sustainable have been shown to attract and retain employees more easily and experience less financial and reputation risk. This company is also more innovative and adaptive to their environments.
Example
· Tech or financial firms going to a paperless office environment;
· A cell phone manufacturer pursuing a “conflict-free” mineral resource supply chain;
· A bank committing to and accomplishing carbon-free operations.
QUESTION 2 : Explain how Nestle used a ‘waste hunting’ exercise to help in its planning.
Nestle used the waste hunting exercise to reduce the excess material used in the process, waiting or delay by using seven areas of MUDA. MUDA is broken down into the seven areas that make up of mnemonic ‘TIMWOOD”.
Factor
Impact
Improvement
TRANSPORT
Moving materials unnecessarily wastes time and energy
Reduce weight/size of pieces to ease handling
INVENTORY
Too much stock increases costs of storage
Ensure suitable customer