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Business Sustainability

In: Business and Management

Submitted By akpatel23
Words 747
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Business Sustainability: a business doing what is does while taking in the needs of it’s stakeholders.
Stakeholder: anyone who has an interest and can be influenced by your company
Primary Stakeholders: employees, customers, owners.

Sustaining the availability and quality of resources into the future
--Sustaining itself: manage in an efficient way; long term time horizon
--always need human and natural capital

Pillars of Sustainability:
--Four Pillars
-Environmental Responsibility
-Social Equity
-Economic Health

People, Planet, Profits but also Culture
-Culture: traditions, way of living, values
-5th dimension: Governance: how are decisions being made within a system.

Economics (basic review)
--Microeconomics (individual decision making)
--Macroeconomics (aggregate decisions made by all; impact on broader economy. Functioning of the entire economy

Economic Systems:
-Traditional: localized region
-Planned: socialism, communism
-Market: capitalism
-Mixed: capital/communist-individual decision making w/some control by the government.

Macroeconomics and Sustainability
==Gross Domestic Output: the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, typically one year
--GDP doesn’t measure: distribution equity, pollution, social factors, production efficiency

--to try and capture elements the GDP doesn’t
--Genuine Progress Indicator
--GPI: adds to GDP
--Social indicators, economic indicators, environmental indicators
--subjective values (criticism re: GPI).
Human Development Index
--accounts for quality of life, cost of education, Life expectancy,
Challenges in Modern Market Economies
--buy whatever we want
--compare $ for price/value
--motivation to take risks/find a need

--too much choice, too much information
--less true innovation
--perfect competition rarely exists

Fundamental concepts in economics: supply/demand

Level of income in relation to the price of the good;
What is the likely demand: is it elastic? Think about Rejuvenate.

Fixed costs vs marginal cost; marginal revenue (cost to produce ea. Add’tl unit)
Amount of goods produced: intersection of MC and MR

Externalities: any cost (pos/neg); business or individual generates that is felt by the society as a whole. Doesn’t impact the business.

Input resources needed:

Service: Medication/Intravenous fluids demand/price, availability, material safety.
--Consent, Liability, Malpractice insurance, Staff training/qualifications,
--Staff, Materials, Medication

--ongoing wedding market
--need overconsumption
--robust wedding budgets --cultural environment that celebrates marriage.


Waste generated:
Service: medication waste (sharps, unused medications, supplies)
--Car pollution, carbon footprint

Environmental impact: medication waste goes to a landfill;
Social impact: ethical debate regarding medical necessity and potential harm, supporting alcohol abuse.


Company’s economic goals

Product conception and design

Raw Material





Waste discharged into the environment from material extraction and processing, packaging, transportation, etc.

Sustainable Operations Lecture:

-Define operations management for manufacturing and service enterprises
-Examine techniques for increasing operational efficiencies
-Review strategies for greening the supply chain

We will use the Black Fly Case as an example.
What happens after your consumers use your services
Value added: the value created by an organization through it processes.
Gross Income = Sales-Cost of Goods Sold

How do operations differ for manufacturing and service enterprise
--more intangible with manufacturing vs tangible service products
--Easier to measure quality and efficiency w/service enterprise
--Manufacturing output is standardized; Service enterprise is not necessarily standardized.
--Manufacturing you can “store” your output; Service enterprise is not “stored”; can’t hold onto it for a later time; devalues.
--Service enterprise-employee interaction with customers; Manufacturing has less customer interaction.
--Timing: transportation of goods; manufacturing before; service-is at the time.

Competitive Strategy
-Differentiator: offering a product higher quality and cost vs competitor
-Cost leadership: not much difference; competing on price.

Core competencies: focus on activities that add value
“Make” is the activities that we do; “Buy” is the products that we need to buy in order to “make”

Different Organization Systems (manufacturing oriented)
-Fixed position: bring all materials to one place; transformation happens (construction projects: bring concrete, rock, steel and all operations happen at the single site)
-Process: activities have to happen in a sequence (Batch processing). ie: physical plant

Lean Thinking: applies to service and manufacturing organizations.
--What is the value
--Quality, Price, Demand

What is “waste”
--Anything that does not add value is waste
- 7 kinds of waste
---transportation waste
---Waiting around waste
---Overproduction waste
---Defect waste
---Inventory waste
---Motion waste

5 principles to Lean
--Identify customers and specify value
-Identify and map the stream (what stages are value added/which stages produce waste)
-Create Flow by eliminating waste
-Respond to customer pull
-pursue perfection: continuously improving

Value Stream for Black Fly: not enough information…...

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