In order to succeed as a business, it is vital for the business to adapt to influences, as it is an opportunity for businesses to become competitive and grow. Adapting to influences such as environmental sustainability and technology will help to improve their operations and overall business performance. By doing so, it maximises profits to encourage the growth of the business. The necessary operational strategies needed to help adapt to being environmentally sustainable and technology include the application of technology, performance objectives, new product or service design and development. Failing to adapt to these influences could potentially lead to business failure the new product or service design would affect the transformed resources as different materials are required and the transforming resources affecting the output.
Environmental sustainability refers to businesses should be shaped around practices that utilise resources today, whilst maintaining those resources for the future. Consumers are now becoming more aware of the effects of plastic materials and pollution on the environment, pressuring changes in business. The two main characteristics/features associated with environmental sustainability include the sustainable use of renewable resources and the decrease in the use of non-renewable assets. These characteristics greatly influence the facilities and materials in the operations process, improving the performance of the business in the long-term.
Environmental sustainability has a major impact on the operations process as the environment is the major source for businesses. In recent years, businesses and people have noticed the detrimental effects of using non-renewable energy and destroying the land for resources. Businesses have recognised these outcomes and have classified it as a risk, such that if the environment is not preserved now, then energy and resources will become extremely scarce. Thus, environmental sustainability has impacted the operation process, by making businesses change the utilisation of facilities and materials. Furthermore, the change in the operation process will improve business performance as the use of renewable energy is more efficient and cost-effective in the long-term. However, the use of new materials currently would be expensive, raising the cost of production in the short-term. Also, having environmentally-friendly products is more appealing to consumers, increasing sales, hence, maximising profits.
Coca-Cola is one of the most valuable brands, having a brand value of around 69 billion USD. 1.6 billion times, people consume a Coca-Cola product a day. By being so popular, the business must meet the demand, and produce billions of products each day, to ensure it is in reach of everyone. This is achieved by having many factories around the world and utilising assembly lines to increase the efficiency and productivity of production. Around 2007, Coca-Cola has recognised the environmental risks of current practices associated with the operations such as inefficient energy sources and production of plastic materials. The strategies implemented by the business include the application of energy-efficient technology and recycling and avoiding the production of plastic materials. By utilising energy-efficient resources, more energy will be used for the desired purpose, instead of being wasted, thus, decreasing the use of non-renewable energy. By having energy-efficient products, it reduces energy consumption, thus having a positive impact on the environment. Also, by recycling, it reduces the likelihood of polluting, and saves the company from the production of more plastic materials, thus, being environmentally sustainable.
Environmental sustainability is beneficial as switching from non-efficient to energy-efficient machinery is that it is cost-effective in the long-term as it does not waster energy. However, new equipment must be purchased which raises the cost of production in the short-term. Moreover, being environmentally sustainable, the business must reduce production of plastic, which is beneficial as it lowers the cost of production as it can be recycled. On the other hand, by reducing plastic materials, either the output must be reduced, or another alternative material must be utilised to sustain the output levels of production. Coca-Cola had a goal in reducing their carbon footprint in all of their business operations by 15% in 2020, whilst using 2007 as a benchmark. The comparison helps indicate their level of success in achieving their goal. The Brampton operations switched to an energy-efficient lighting system reduces energy consumption by 50% and is brighter. This helps reduce the cost of production and carbon emissions, helping to reduce the effect of climate change. Furthermore, the company had installed 1400 eco-friendly coolers at the 2010 Olympic Games, which reduced greenhouse gas emissions by 5600 metric tons which equates to taking 1200 cars off the road each year. Moreover, in conjunction with reducing the production of plastic, setting goals makes it easier for the business to track progress. Coca-Cola has a goal to recycle or recover approximately 90% of waste materials at production facilities by 2010 and has achieved this 2009. These strategies have proven to be effective, through the changes in the operation process. By changing the transforming resources of the facilities, it has reduced the level of carbon emissions, therefore, reducing the effects of climate change. Furthermore, by reusing the transformed materials, it has reduced the productions levels of plastic materials, reducing carbon emissions and the cost of production. Therefore, it is evident that businesses need to adapt to the influences to improve operations as well as business performance.
Technology refers to the design, construction and/or application of innovative devices, methods, and machinery in the operation processes. Technology is an important influence for businesses as it is continuously advancing, which makes businesses keeping up with the latest technology more important. If technology is used efficiently, the production process becomes more efficient, as well as lowers the cost of production. These characteristics heavily influence the facilities in the transformed resources and customer service. These improvements to the operation process will also improve business performance.
Technology has a large impact on the operations as it can help make the production process easier and more cost-effective. Technology is constantly improving, so adapting to leading-edge technology would make the business competitive and encourage growth. Hence, technology has a major impact on the facilities, as the new machinery would be efficient and reduce the cost of production. Moreover, customer service is also improved as the efficiency of technology is also beneficial for the consumer. Since the use of technology has improved on the facilities and customer service, the business performance will inevitably increase, hence, increasing profits and growth of the business.
Qantas Airways is an Australian airline which was founded in Queensland 1920. It has become Australia’s largest domestic and international airline, as well as one of the world’s leading long-distance airlines. Being in a technology-based industry, it is important to adapt to technological influences to remain competitive. In July 2010, Qantas had created a processing technology which automatically dropped bags. The new innovative technology has made it more efficient and enhances customers check-in experience. By using new facilities when checking in, it becomes more cost-effective and efficient. Additionally, with the increase in the population and an easier access to travel, Qantas must adopt a new product or service design and development to stay competitive.
The auto bad drop system saves expenditure on infrastructure and labour. With the new system in place, less infrastructure is needed for larger check-ins as the new technology reduces the check-in time, so there would be shorter queues. Instead, attention can be focused on improving the current interiors of the airport, saving space and land. Furthermore, due to auto bad drops, there would be less labour needed as the technology is more efficient, does not require pay, and is more productive having processed 26 million bags between July 2010 and June 2015. This will reduce the cost of production as wages are not required, making this technology a long-term investment. Moreover, the customer service is improved as the check-in times have been reduced, which increases the time spent in the lounge or relax, thus, enhancing the customer experience. Since the customers are happy, they are more inclined to reuse the airline, bring more revenue, thus maximising profits. Although the technology has many benefits, the negatives include the risk of bleeding-edge technology. When utilising new technology, the business runs a risk of having the operation process malfunction, thus causing a decrease in efficiency, as well, decreasing the level of customer satisfaction. Hence, it is evident that the utilisation of technology has improved the business performance as improves the facilities and customer service, making it an important adaptation for businesses to undergo.
In conclusion, it is important for businesses to adopt the appropriate operation strategies such as performance objectives, application of technology, creating new product or service design and development and application of technology. Businesses must recognise the importance of adapting to influences as it provides many benefits to the business.