Final Examination Business Organization And Management Scenario Planning Topic Challenges A Firm May Face In Pursuing Environmental Goals.pdf

VIETNAM NATIONAL UNIVERSITYINTERNATIONAL SCHOOL

Class code: INS201904Lecturer: Phạm Hoàng Điệp

Hanoi December 28, th, 2022

EXECUTIVE SUMMARY

Environmental and sustainability are top of the mind these days, from Volvo’srecently announced switch to electric vehicles and hybrids to reports of increasingice melt in the Arctic Sea More companies are managing sustainability to improveprocesses, pursue growth, and add value to their companies rather than focusing onreputation alone.

Businesses difficulties pursuing environmental goals:

Today's businesses need to be prepared and ready for their business systems toadapt to the "going green" movement of the world The regulatory system that hasbecome inefficient and ineffective, transformation of a business advocacy actionmodel to a sustainable model and aligning sustainability goals with their overallcompany’s goals are difficulties that most businesses encounter in an attempt tointegrate economic and environmental interests in their business This report waswritten with the objective of analyzing the difficulties that enterprises can faceduring the transition to green using the scenario planning framework In thisscenario planning, we have four scenarios of achieving environmental goals intoday's business world.

3.7 Distillation and dialogue 143.8 Validation and refinement 153.9 Interpretation and implementation 17

V INDIVIDUAL CONTRIBUTION 22

The word "sustainability" is frequently used in business to indicate that presentmethods may be maintained with only modest adjustments to balance economicprogress with related environmental and social challenges However, there areenormous issues that threaten our global society's entire viability, much aloneindividual firms or advancements Several of the most pressing issues areaddressed, including population increase, clean energy supply, fresh wateravailability, and global climate change And the purpose of this study paper is toillustrate the obstacles that businesses face when pursuing environmental goals, aswell as to propose answers for each company's unique circumstance.

KEY WORDS

sustainable development; sustainability challenges; human population; fresh water;energy; global climate change; scientists’ responsibilities; environment goals;atmosphere, saving energy.

I INTRODUCTION

The condition of the world’s environment and atmosphere are in fragile statesbecause of human industrialization For years, people remained oblivious andignorant of this fact but now it is a topic known around the world People alonehave been making small efforts to help, such as recycling, driving a hybrid car orsaving energy, but that alone cannot fix the damage done Businesses have a muchlarger impact on the environment Their changings can make a big difference whenit comes to saving the environment and creating a sustainable future This report iswritten to analyze the difficulties that businesses may encounter in the process ofgoing green using script planning framework

Air Pollution is one of the largest environmental issues being fought today(Environment Canada 2010.) Air pollution is caused mainly from emissions fromautomobiles and burning coal for electricity (Environment Canada 2010.) Theearth’s atmosphere is in a horrible condition because of human neglect and greed.Scientists confirm that global climates have undergone significant changes in thepast few years due to the condition of the atmosphere Environment Canada statesthis change has been brought on by the release of greenhouse gasses that arereleased into the atmosphere from burning fossil fuels These greenhouse gassestrap heat from the sun in the earth’s atmosphere and are causing it to heat updramatically.

Another cause of environmental destruction comes from waste The earth isbecoming overcrowded and polluted with landfills (Environment Canada 2010.).The earth’s surface is rapidly becoming covered in garbage These landfills arecutting into and polluting natural habitats, reducing the area for wildlife to live.The planet's water supply is becoming scarce This problem is going to becomevery serious and dangerous if nothing is done about it soon Fresh water isimportant to the survival of both humans and animals Polluted fresh water cancause serious harm to fish and other wildlife as water is home and a vital factor of

life to most animals (Environment Canada 2010.) Pollution and overconsumptionboth contribute to the earth’s dwindling supply of fresh water.

With the world’s environment being in the fragile state that it’s in, a lot ofpeople are concerned for our future Customers that feel this way are more likely toshop or deal with places that are taking interest in their concerns and making aneffort to help fix the world Their preference is one of the major advantages offirms becoming green at this time Many businesses are discovering that bycompeting with other businesses to be greener, they may get more clients Thiswill be one of the primary reasons for the firm to have more clients, as well asplans to expand the business for a longer period of time in the future Laws andregulations about waste and business practices are also being put into place that isforcing some organizations to be more environmentally conscious Therefore, thisreport will more clearly explain the reasons and difficulties that the company mayencounter in the process of "going green".

We believe that the condition of our earth is important and must be saved.Businesses have the largest impact on the environment, and we believe that theircontribution to saving the environment will make a lot of progress towards thatgoal We recommend that businesses go green not only because it will help theenvironment, but we think that it will improve their business and help to create asustainable future for everyone And we have the four scenarios that are based onfour difficulties that businesses currently face chasing environmental goals.

The report will be based on the current situation of the business to make plansfor changes Nowadays, there are still businesses that still keep the traditional wayof production However, a lot of organizations are implementing programs tominimize waste, minimize energy consumption and limit consumption of naturalresources A lot of companies are developing buildings that are eco-friendly Thus,we will go into detail about the most suitable plans to change for each type ofbusiness.

The final portion of the study will detail how much these firms may contributeto environmental conservation by switching from a commercial operating model toa sustainability strategy This section will include graphs showing the differencesin environmental destruction as it was in the past, before going green was popularamongst businesses, and now that businesses are trying to be more conscious of thestate of our environment This will help conclude if going green is really helping tosave our world.

II CHALLENGES A FIRM MAY FACE IN PURSUING ENVIRONMENTAL GOALS

1 Determining the question.

Business sustainability is the practice of operating a business withoutimpacting the environment negatively A green business functions in the bestinterests of the local and global environment, meaning it supports the communityand economy dependent on a healthy planet An environmentally aware businessconsiders more than just profits - it considers its impact on society and theenvironment Such a business is sustainable because it contributes to the health ofthe structure within which it operates, thereby helping construct an environment inwhich the business can thrive (University, M., 2022).

It is inevitable that making sustainability a core business strategy is nowcommonly regarded as best practice A sustainability agenda or strategy is morelikely to thrive in terms of generating values, from increased long-term returns forshareholders, lower risks, and greater connection with incoming generations ofconsumers.

But understanding the situation that the majority of businesses are only gettingto know the sustainability operating system as well as policies these days are onlyadapting to the environment's immediate problem, the leader of the agenda onsustainable business remains unknown We begin our scenario planning with afocus question which is a broad range yet a strategic topic that serves as the

scenario’s basis for accuracy and integrity: What if the integration of economic

and environmental is compelled to all business in 10-15 years? This is the

central question addressed in this study A timeframe of 10 to 15 years was chosensince it is long enough to allow for significant technological advancement whilestill being short enough to allow for some possibilities when economic andenvironmental are on the same direction as they march.

2 Contextualization

Business and environment are the world's common interests On the otherhand, those two interests seem to never be in the same direction as the majority ofthe world sees and conducts them as tradeoffs Poor environmental quality is aninescapable presence in many developing countries (NEWS, E.P.I.C., 2022).According to theecoexpert.co.uk, Energy, Transport, Manufacturing andconstruction, Agriculture, Food retail, Fashion, Technology are the top 7 pollutingindustries in the world It is essential for businesses around the world, especiallythose in the industries mentioned above to start thinking of harmonizing economicand environmental goals.

The idea that a renewed interest in environmental management will result inincreased profitability for business has widespread appeal This new vision soundsgreat, yet it is highly unrealistic based on the current state of the world'spreparation More than half of businesses face challenges in implementingsustainability initiatives Environmental costs are skyrocketing at most companies,with little chance of economic payback in sight They are the result of a regulatorysystem that has become inefficient and ineffective With little words to express, itis clear that businesses are doing better in terms of making profit without the“going green” movement in the short term and even long term if current barriersand disincentives are not removed For instance, the conventional wisdom is thatenvironmental regulations impose significant costs on private industry, slowproductivity growth, and thereby hinder the ability of U.S companies to competein international markets.

On the other hand, in one of the leading countries in sustainable development Singapore, more than half of employers do not have well-defined sustainabilitygoals or strategies for their business and 49% of businesses face challengesaligning sustainability goals with their overall company’s goals (HUB,N.T.U.C.L.E.A.R.N.I.N.G., 2022) From NTUC LearningHub’s Special Report2022 on Sustainability, it can be seen that most business leaders acknowledge thegap in expertise and skill sets around the domain of sustainability, and 36% saythat their organization needs external help in implementing sustainable goalsbeyond awareness This can be related to not just Singaporean firms but globalfirms too.

-3 External drivers

External drivers include forces outside of the organization that impacts thebusiness The six main external factors can be remembered using the PESTELacronym, which stands for political, economic, sociocultural, technology,environment, and legal factors.

a Political and legal

As political officials leave office and new ones replace them, the policies theyimplement often affect businesses in relevant industries Because of theinconsistent nature of politics, businesses monitor legislative bills closely toprepare for potential changes Policies that can have long-term effects oncompanies include:

+) Taxation,+) Tariffs,

+) Employment law,+) Competition regulation,+) Import restrictions,

+) Intellectual property law.

Companies affected by political decisions must modify their processes tocomply with new legislation and regulations but doing so can keep them inbusiness.

b Economic

The state of the economy plays an important role in every aspect of daily lifefrom the well-being of personnel to the ability of a company to thrive When theeconomy trends downward and unemployment rises, businesses may have to workharder to keep their staff and change their processes to continue earning revenue Ifthe company produces products for retail sale, for instance, they may considerlowering the price to increase sales and positively affect their revenue.

c Social Cultural

Where people live, their personal values and their socioeconomic status affectwhat, where and why people make purchases Businesses take social factors intoconsideration when developing and marketing products, and many use currentevents, movements and social issues to appeal to their customers For example, acompany that supports a women's organization may earn the trust and loyalty ofcustomers who identify as female Catering to the specific preferences andexpectations of underrepresented groups, who have more influence on the markettoday than in past years, can also contribute to customer satisfaction and businessgrowth And because each individual has a distinct concept of ethics and morality,some companies may find it challenging to balance the personal lives of staffmembers with their expectations in the workplace Employees' leisure activities,such as social media accounts, can reflect on their employer As representatives ofthe company, they have a responsibility to avoid behavior that could negativelyaffect the business Managers can address issues such as sharing classifiedinformation or the harassment of a colleague outside of work by establishingguidelines and taking disciplinary action when necessary.

d Technological

As technology continues to advance, companies can benefit from thesebreakthroughs or face challenges in competing with them For example, a companythat manufactures GPS devices for personal cars may experience a decline inbusiness because of the integration of GPS on mobile devices, but they canconfront these challenges by developing new products Other companies, such ashealth care providers, can use modernized methods to collect information fromtheir patients, keep patient records and streamline patient care.

e Environmental

As environmental awareness continues to grow, more consumers have realizedthe effects of business processes on the planet Some consumers have used theirpurchases to support companies that develop ecologically friendly practices, suchas using compostable packaging and solar energy By paying attention to theseexternal concerns and changing their operations, businesses can make changes thathelp them protect the environment, retain customers and increase revenue.

4 Ranking and ranging

Driver Relevancy Immediacy UncertaintyPolitical and

- Organizations may adopt design (ECODESN) in response to environmental regulation and incentives set by regulatory institutions such as government bodies inside the country, standards established by other firms, and directives by parent companies Such regulation and incentive take the form of formal rules, laws,

eco-Now - 10years

High