Incorporating capitalism by firms
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Question 1
Extreme variations in climatic patterns have a significant impact on business activities. Specifically, this will affect the accessibility of materials and expenses. Prospective transportation channels are a challenge to the delivery of products, capital and labour to market places (Folk, 2018). Also, famine leads to reduced agricultural products that are availed in the market and result in dissatisfaction in demand. Additionally, increased charges in transport and electric costs that are vital in operating current business further move resources harder. For instance, temperature influences hinder construction of roads and railways, especially in humid areas. Building and maintenance of these roads are expensive ( USGCRP, 2014). Potential business operators encounter a rise in the number of hazards they face. More finances and material destruction make companies endure increased cover of these factors (Folk, 2018). For example, docking and harbouring facilities can be damaged by higher water currents and storms. To avoid this, the extra financial cost of advancing the platforms like in the Gulf Coast must be incurred (USGCRP, 2014).
Climatic changes can also be an opportunity for business investors. Reduced availability of materials and increased costs in the running and maintain productions, gives investors the chance to explore new products (Folk, 2018). Additionally, they can use alternative resources that are environmentally friendly and those that counter harsh weather conditions. For instance, producers can grow genetically modified crops that resist high temperatures and cold weather like corn varieties (Watson, 2019). This will allow them to continue advancing their business opportunities and satisfying their market gap. Therefore, they stand a chance to cater for the change in demand for food products that are not seasonal with nutritional value. In addition to the chance created to business partners, used materials can be recycled. For example, construction resources such as steel and aluminium are easily recycled and end up reducing purchasing and transportation costs that, in this case, are hindered due to uncertain climatic conditions (Anderson, 2020). There will be reduced expenses and also damages that can be incurred if these materials. These opportunities if utilized appropriately, will cover the business expenses caused by weather changes globally.
Question 2
Gross domestic product is mainly used to determine the economic position of a country and to plan economic policies of enhancing businesses. However, there are limitations of using GDP as a sole determiner in this sector. The UndergroundEconomy is regarded illegal; thus, it is not officially recorded and used to determine financial standards (Galvao & Mitchell, 2020). It is also hard to keep records of activities such as prostitution thereby overlooking such sectors. Production of products low-quality products is polluting the environment. Many businesses focus on the quantity rather than the quality of products and their effect on the surrounding. These data is not legally collected and used to determine how wealthy a country is.
Moreover, the increase in quality of produced goods and services with constant purchase prices are not used to determine financial positions. According to Galvao & Mitchell (2020), products availed in the market from private investors are not used by the government to determine GDP. It is hard to keep and maintain records from such businesses. Additionally, the market size served by the private sector is wide making it harder to record financial data. This shows that using GDP as the only tool to measure economic progress overlooks essential sectors that are heavily invested.
Other tools can be used to determine economic progress. Gross National Income determines the revenue earned by the citizens of a country in other countries in a specific period (Galvao & Mitchell, 2020). These have significant changes in the revenue collected by a country and have more relevant data that do not omit the type of business done. It encourages development by providing taxes that can be incorporated in accomplishing set governmental projects. Moreover, Green Gross Domestic Product (GGDP) can be used instead of GDP. This measures the revenue collected from manufacturing industries. It is an essential way because it protects consumers and the surrounding by ensuring that only quality products are availed.Therefore, growth is encouraged without polluted environment or consumption of harmful products. Employment opportunities will be created as the government focuses on this sector to determine financial progress.
Question 3
The tragedy of the Commons explains how unsustainability is occurring as a result of individual independence. Individuals are driven by their personal goals rather than the overall objective of all investors in a business. The main aim of those who engage in businesses is to earn huge profits. However, most of the people face challenges reaching this goal as a result of personal independence. Therefore, those who engage in such situations in business experience abnormal financial development (Sara, 2015). This is because; most investors fail to follow the set policies of running the business as a big family and only regard their interests as more important than others. Additionally, the environmental surrounding of doing the business will be unprotected. This means that low-quality products and illegal means of doing business to attain their goals.Therefore, it is hard achieving sustainability in such situations. This is because personal interests guide and control how the market operates rather than a corporate policy that suites every investor.
I=PAT Equation can also be used to show the causes of unsustainability. This focuses on three factors, namely, population, affluence and technology (Chertow, 2001).There is rapid population growth across the world that threaten the satisfaction of the goods produced. Increase in population increases the consumption rate globally. This equation indicates how individual consumption to the goods produced impact the environment severe environmental changes caused by human settlement and heavy dependency on the commodities produced. Additionally, technological impact on the surroundinghinder sustainability. Technology influences the quantity and quality of goods produced. The three factors are inter-related in that increase in population globally cause increased consumption and the technological reduction of producing commodities (Chertow, 2001). It is impossible to attain satisfaction because the rise in human affects the environment by lowering the production grounds. Technological advancement can be shaken by any change in the environment or such as this increment making it hard to be sustainable. Sustainability can be achieved if these interrelating factors are controlled to accommodate each other. Since investors cannot control population, affluence and technology, it isn’t easy to sustain the economy.
Question 4
An organization can access sustainability by following a process. Understanding what sustainability means and acknowledging its importance in a company is the first step (Cecilia, 2013). All sections of a firm should be constant to give the desired output. Therefore, it is necessary to define what benefits each segment should receive. In making procedural opinions of producing unique products in a company, the crucial factors affecting clients and the company as a whole should be considered. For instance, Coca-cola company have implemented sustainability by involving potential markets in water supply management because water is their primary raw material (Cecilia, 2013. This means that the raw materials that directly Affects the main product being manufactured should have the most significant priority to ensure it is readily available. This will ensure continued supply and steady availability of the product in the market.
Potential customers and prospective buyers should be at close contact with a company. This can be attained by using several ways of contacting clients according to the financial state of a company (Cecilia, 2013). Their views and feedback on various issues should be listened and incorporated to secure development. They can give ideas on management strategies. Also, employee involvement in vital development plans gives a chance to air their ideas to specific programs. They can instil the importance of using available resources that reduces purchasing costs. This is a critical social goal. For example, the Hewlett Packard company involves shareholders to help them in making progressive decisions (Cecilia, 2013).
Setting targets and objectives is also included in a company being sustainable. These are ways of minimizing hazards and creating opportunities. Realistic ways of attaining the set goals should be considered by the management and communicated to every staff. Market gaps and trading opportunities must be identified to ensure every chance is exploited to its maximum. This can be achieved by maximizing the reduced cost of production using available resources. Developing better innovative means of producing goods and increasing the output per worker is an added advantage to accomplishing goals. Moreover, improving financial expenditure creates sustenance by channelling money only into sectors that bring success. For instance, according to Cecilia (2013), Wal-mart used renewed power and adopted energy efficiency to reduce the cost of operation.
Another factor is establishing systems and processes. These set systems should be used as guidance in implementing every step. Procedural strategies for running the entire production and sales program must be precise (Cecilia, 2013). Various sectors that relate to implanting the targets should be aware of these rules and be advised to follow them to the betterment of the company. The management is mandated to set appropriate ways that ensure employees work towards accomplishing goals. Progressive workers involvement can be used to enhance productivity as well as maintaining interior sustainability within the business. Employees play a significant part in handling set goals; therefore, their work must be cross-checked.
Implementation of tracking progress, communication and meeting the set expectations is the last process. Determining vital participating factors to achieve the set objectives allows a company to realize the changes that need revision (Cecilia, 2013. Therefore, tracking progressive systems will be employed to avail of these factors. The information can be communicated using indicative measures. These will ensure the availability of records within the organization allows every worker to prioritize their duties and work towards achieving the mission of the company using the given guidelines. External collection of data and recording is vital for accounting the performance of the strategy. It is also useful in giving a detailed response to potential investors. This gives them the desire to continue being part of the company and its big plan. For example, companies that operate under the Global Initiative use progressive indicators (Cecilia, 2013).
Business make mistakes that hinder them from attaining sustainable strategy. According to Wood & Romain (2019), most firms assume that more manageable hazards will compensate themselves. Therefore, the companies only focus on significant share and changes. As they design the projects, they overlook them. Another mistake is involving too many people to make decisions on integration. Therefore, there are no considerations of building reliable interpretation to the principal shareholders. Also, the managers focus on making many people aware instead of designing solutions and means of achieving the strategies. According to Wood & Romain (2019), managing parties in a company also fail to incorporate desired and fruitful means and policies for long-term action.
Question 5
There are triple bottom line benefits that can be achieved in water management as a sustainable program. According to Ash (2008), water conservation is essential to businesses. Companies that have LEED certificate endure goods positions to using water. They have the priority to a water supply. This allows them to continue with production processes in their firms compared to those that do not have this certification. This is very useful as they run production without water interruptions or water shortage. Additionally, the cost of purchasing water in increasing due to water shortage. However, with this certification, low costs are incurred, thus making immediate payments to these bills. This also reduces the cost of operation to the company. Moreover, hazards c\that can occur due to water overflow or mismanagement in a company are avoided because the firm receives adequate water supply. This does not harm machinery or crops.
LEED certification portrays an excellent picture to the public by enhancing the branding name being used (Ash, 2008). This instils moral responsibility by the company to its customers; therefore, drawing them closer to purchase and value the goods produced. The company will save a lot because no pieces of machinery will be installed or employing more workers to manage this area. In addition to this, the company stands in a secure position in protecting the environment by preventing destruction. The agricultural sector mainly depends on water to grow agricultural produce. If water is mismanaged and allowed to overflow in the water plantations, crops will be damaged by the excess water. However, with a controlled supply of water to these plantations, good care to the stems and delicate roots will ensure protection to the crops.
Companies can manage water strategy by first registering to LEED certification. This ensures no worker or people within the organization regulate the water supply (Ash, 2008). This set system by LEED ensures a regulatory supply of water to companies. Therefore, the company agrees to the policies that operate between the two companies. Additionally, this will lower the incurred cost in maintaining the water supply. Irrigation will be controlled in from a different company using modern developed machines. This way, the company will have significantly contributed to managing the water strategy and reduced wastage. Since the company will not incur installation of machinery used in water supply, new business enterprises can be added. More construction can be done to the places that could previously use to cater for water storage (Ash,2008). This will create room for more production. In water management strategy, more responsibility will be to the water supplying companies to utilize the water according to the demand. This will save the general cost used by the supplying companies because once the set procedures and supplying machines are laid, the only task will be maintenance and repair.
Global Reporting Initiative is the best organization that can aid in integration in a company. This is because the organization have standard progressive strategies that widely cater most of the organizations’ needs (Cecilia, 2013). These guidelines can also be established per section within a company. This will boost the management and the output per worker as the intended goal is known. Well-developed communication platforms internally are developed to remind each member of the objectives and the procedures of attaining those goals. For instance, Wal-mart Company divides distributors with the response to their geographical position. This results in a well-designed way of meeting supply objectives, and it is the right way of measuring their progressive economically.
Question 6
Businesses can establish natural capitalism in various ways. First, firms can increase their dramatic production of natural materials (Amory & Lovins, 2007). This can be attained by making primary changes in the technology employed in production. More and more discoveries ng of power, minerals and wood are being identified to maximize their source. This will bring more savings to the company as well as more profits. Additionally, the production methods used can be changed to integrate more use of naturally occurring resources. This will reduce the cost of production by availing the processes naturally; thus, no purchasing costs endured. There will be a reduced waste, and fewer materials will be destructed. As a result, there will be no pollution to the surrounding, making the business attain one primary goal that is advocated in the company policies.
Secondly, firms can establish the use of biologically desired methods in producing goods and services. These models mainly are to be used in agricultural sectors. Models like the closed-loop system ensure little or no pollution to the surrounding (Amory & Lovins, 2007). This is achieved by recycling the nutrients to ecology with no harm. This reduces the use of harmful materials to the soil and crops. It is also vital in retaining the natural capability of reclaiming resources.
Companies can shape their problems and relate them to business methods. Traditional processing is the best approach of the business model that can be used in sales and delivery of goods and services (Amory & Lovins, 2007). This changes the view of quality from acquiring goods and services to determine prosperity. Resource productivity is another method that can be used in channelling business model solutions. In this case, individuals’ wealth is determined by continued fulfilment of that change expected value, usefulness and importance of these products. The methods are linked to the aims of the producers and potential buyers by rewarding them through the implementation of modernizations.
Finally, natural re-investment is also a way of incorporating capitalism by firms. Firms should exploit available ecosystems in sustaining and restoring resources found in these sectors. This is important to enable them to attain their production level targets (Amory & Lovins, 2007). It is also essential in exploiting biological materials that are harmless. Pressurized needs to humans like increased demand for products and their consumption and rising costs of maintaining ecologies are opportunities for businesses to thrive. Therefore, investing in these areas by potential firms is a great advantage that brings the attainment of using natural capitalism. Business must identify these gaps to meet the increased product demand and consumption best.
References
. USGCRP (2014). Climate Change Impacts in the United States: The Third National Climate Assessment. Melillo, Jerry M., Terese (T.C.) Richmond, and Gary W. Yohe (eds.). The United States Global Change Research Program. 841 pp.
Folk, E. (2018). How Climate Change Will Affect Businesses. An Article
Watson, D. (2019). Genetically Modified Crops in Agriculture. Scientific e-Resources.
Anderson. (2020). Ten most Recycled Materials
Galvao, A. B., & Mitchell, J. (2020). Real-Time Perceptions of Historical GDP Data Uncertainty (No. 35). Economic Modelling and Forecasting Group.
Sara, F. (2015). The tragedy of the Commons Theory. Definition & Examples. Retrieved from https://study.com/academy/lesson/tragedy-of-the-commons-theory.
Chertow, M. (2001). “The IPAT Equation and Its Variants”. Changing Views of Technology and Environmental Impact.
Chertow, Marian (2001). “The IPAT Equation and Its Variants”. Changing Views of Technology and Environmental Impact.
Cecilia, D. (2013). 5 Critical Steps to a Sustainable Corporate Strategy
Ash, T. (2008). Using Water Management Strategies to Boost the Triple Bottom
Amory, B., Lovins, L & Hawken, L. (2007)A Road Map for Natural Capitalism