BUS7B26 Emphasising the Environment Assignment Sample 2023
Introduction
It is important for every organisation to develop a sustainability strategy so that they are able to work in sustainable manner. The strategy consists of several actions and measures which are taken to protect environment (Vogt, 2019). Besides that, it drives out performance by engaging with external and internal stakeholders. There are certain elements of strategy which are followed. Thus, having an effective strategy creates a good reputation in market. Also, it is responsibility of firm to contribute towards CSR.
In this report it will be described about what are challenges faced by Costa Coffee and to plan a sustainability strategy for them. Besides that, it will be discussed how to execute strategy and what will be the benefit of it to company.
The organisation’s sustainability strategy and the challenges faced by the organisation
Costa Coffee is the second largest coffeehouse chain around the world, headquartered in Dunstable, England. It was founded in 1971 by Bruno and Sergio Costa. It offers variety of products such as coffee, sweet snacks, sandwiches, tea, and iced drinks. In 2016 the revenue generated by firm was 153 million. The company has 18,412 employees to manage its operations at global level. Sustainability is vital component as it shows to what extent organisation contributes in protecting environment. It also states their action of corporate social responsibility. Every firm contributes towards CSR (Smith, 2019). It is done to solve social issues, improve lifestyle of people and many other things. Now a days, the focus is on maintaining sustainability. This is done to create positive brand image and to sustain in market for long term. There are several environmental issues which are being faced by organisations. Therefore, they have to ensure sustainability is maintained to solve issues.
It is analysed that Costa Coffee is having sustainable strategy in which there are many initiatives. They are explained under their strategy:
Costa Coffee sustainability strategy
The company is having commercial farming strategy which main objective is to reduce waste and solve challenges. There is rainforest alliance formed which is NGO. It works with various stakeholders to protect biodiversity. In 2017 Costa Coffee developed a roaster whose main aim was to facilitate zero waste. There is rainwater harvesting system implemented through which water is saved. In order to conserve energy there are eco pods built. So, it has enabled in creating coffee shops that are sustainable in nature and consume low energy (Ho and Nguyen, 2018).
Another strategy of Costa Coffee is they are using paper cups instead of plastic. Hence, it has enabled in saving a lot of plastic. In addition, the cardboard is recycled to make paper cups. Therefore, in this way environment is saved and sustainability is maintained. Moreover, it has led to creating a positive impact of company in market.
In managing waste firm is working with recycling company that is bio bean. It converts coffee ground into coffee logs. This log is then sent to store. The food waste is decomposed into plant where it is converted into bio gas. Costa Coffee has partnered with Veolia that recycle plastic and cardboard. Even coffee pods are recycled by them to protect environment. There is strategy to reduce carbon footprint by mapping it. For that target of zero emission is set to be achieved till 2050 (Grabs, 2020).
Hence, this is overall sustainable strategy of organization in which they have focused on all areas. The main aim is to protect ecosystem by reducing carbon footprint. In addition, several campaigns and programs are launched to maintain sustainability.
Challenges faced by Costa Coffee
It has been evaluated that there are several challenges which is faced by Costa Coffee in their sustainability strategy. Due to the challenges they are not able to focus on sustainable goals. Thus, the challenges are mentioned as below:
The major challenge which is faced by Costa Coffee is that they are using child labor in plantation. So, this is social issue due to which strategy is not implemented properly. Besides, child labor is used in different countries and in rainforest alliance where company grow coffee beans on lands. Therefore, due to that life of children and their family is highly impacted. This issue is observed in African nations.
Along with it, challenge which is faced by Costa Coffee is growing of coffee beans is affecting on soil fertility. It has led to degrading fertility of soil due to which plantation is impacted. Also, it is resulting in deforestation as well (Davis and Lughadha, 2019). Apart from it, in coffee production there is high use of water. So, water scarcity is emerging as challenge for firm. The polluted water is entering it into fresh lakes which is resulting in diseases. Coffee farming needs a lot of resources and for processing of seeds as well. The depletion of resources and fertile land is challenge faced by Costa Coffee.
There is thin plastic layer in paper cups which is known as polyethylene. So, even by using paper cups there is still use of plastic by Costa Coffee. So, this is issue which is faced by them. The recycling is not effective on removing plastic from cup. Therefore, use of paper cups is still polluting the environment to a great extent. Hence, this challenge is being faced by Costa Coffee.
The paper cups used by Costa Coffee usually have a thin lining of plastic (polyethylene) which prevents the spill from the paper cups
The environmental issue raises in this case as it becomes difficult to separate polyethylene from the paper cups at the time of recycling
It is found that use of plastic is highly affecting on soil and marine life. So, this is challenge faced as company is not able to completely stop use of plastic. In some or other products plastic is used. Hence, it is highly making it difficult to remove plastic. Along with affecting the soil, these plastics impose a significant impact on marine life as well (Adams and Ghaly, 2017).
Plan of sustainability strategy
It is found that the sustainability strategy developed is not effective. So, there is need to develop a sustainable strategy by Costa Coffee so that goals are attained in effective way. Moreover, it will provide a framework through which sustainability can be maintained. Strategy will provide direction and contain set of actions to be taken. Thus, it is as below:
Purpose – The purpose is to attain sustainable development goals and to reduce carbon footprint up to 30% till 2030.
Objective – The objective is to use resource based theory within strategy. The theory states that company need to look inside to find source of competitive advantage. Costa Coffee should revolve evolve resources which they possess. The theory will help in enhancing capability of resource utilization. The strategy will include many things which are described as below:
Costa Coffee will use cups and straws that are made from bamboo and reusable glass cups. For that they will produce cups on their own. This action will be considered as a good gesture for sustainability (Van der Vossen, 2015).
In packaging of cups there will be no use of plastic in it instead paper bags and cardboards are used for it. The investment to be made in it will be 1 million.
The use of resource based theory will allow to recycle all cups so that resources are utilized in efficient way. There is no wastage of resources as well. The cups then will be redesign with different patterns and preference of customers.
There will be water harvesting system installed in firm through which water is saved. It is expected that in processing coffee beans also water will be reused.
In Costa Coffee stores and outlets there will be use of energy efficient software to conserve and save energy. The goal is to convert 20-30% stores into energy efficient ones.
How to implement strategy and benefit to organization
It is necessary to implement strategy in effective way to achieve goals. But if execution is not proper than it will result in brining challenges. Due to that, the company performance will be affected as well. So, it requires proper planning in that. There can be 6 step process followed to execute strategy. It is specified as:
Defining strategy framework– In this cascade model can be used by Costa Coffee which shows focus area, objective, value of strategy (Ponte, 2015). Thus, it will provide a framework of how to execute it.
Build plan – In this a plan can be developed on how to execute strategy. The plan will make it easy to proceed in step by step way. In plan culture, roles, short term goals, can be included.
Define KPI– The KPI’s can be defined through which progress is measured. It will enable to maintain focus on objectives to be attained. The KPI’s will measure result in various areas of strategy.
Dealing as usual– The strategy should be implemented as usual. This means that there should not be any changes made into it. So, it will help Costa Coffee to move forward in smooth way. All staff must be made aware of strategy goals and objectives. Therefore, it will align strategy with people and to execute it in effective way.
Implement continuous strategy reports– It is a step in which the reports should be prepared of strategy progress. In report there is need to mention certain things that are simplicity, accountability and conclusion. The report will provide brief overview of how strategy implementation is going on (Lilavanichakul and Parthanadee, 2019).
Align performance review with strategy– This is last step in which performance review should be combined with strategy. It will show how well strategy has performed in Costa Coffee. Moreover, each one will have access to strategy. It will also be analyzed that how well each department has contributed in attaining goals and objectives of strategy.
Therefore, these are some steps through which strategy will be implemented. It will enable in making it easy to execute strategy. Furthermore, KPI will enable in maintaining progress of strategy.
Costa Coffee will highly benefit from strategy in various ways. First is that there will be less use of plastic cups due to which less expenses will occur. Hence, it saves cost of firm. Furthermore, it will help in reducing price of coffee by which more customer can be attracted. It will result in generating more sales and revenue.
- The strategy will help in using reusable cups with customize design. So, through this company can gain competitive advantage in market by offering unique services (Lemeilleur and Saes, 2020).
- The use of customize cups will benefit Costa Coffee to offer products to target market which are environment friendly. In this way, more customers can be attracted leading to more profits. Also, use of Rcups will allow to reduce cost of cup and increase efficiency of delivery coffee.
- Costa Coffee will be able to attain their sustainable goals till 2030 and emerging as a successful brand in the market. This will benefit in increasing profitability as well.
- The organisation will easily be able to expand in other markets with good reputation and image.
- Therefore, in this way strategy will benefit organisation in market.
Conclusion
It can be summarised from report that it is Costa Coffee sustainable strategy consists of many initiatives such as use of rainwater harvesting system, eco pods. Furthermore, they use paper cusps instead of plastic ones. There are different challenges faced by firm like child labor in plantation, coffee beans is affecting on soil fertility, use of polyethylene in paper cups, impact of plastic on soil and marine life. The sustainable strategy includes use of cups and straws that are made from bamboo and reusable glass cups, to recycle all cups to ensure no wastage of resources, use energy saving software in stores. Moreover, strategy can be implemented by using 6 step process. The strategy will benefit Costa Coffee to use reusable cups with customize design, offer products to target market which are environment friendly, attaining sustainable goals till 2030.
References
Adams, M.A. and Ghaly, A.E., (2017). Determining barriers to sustainability within the Costa Rican coffee industry. Sustainable Development, 15(4), pp.229-241.
Davis, A.P. and Lughadha, E.N., (2019). High extinction risk for wild coffee species and implications for coffee sector sustainability. Science Advances, 5(1), p.eaav3473.
Grabs, J., (2020). Assessing the institutionalization of private sustainability governance in a changing coffee sector. Regulation & governance, 14(2), pp.362-387.
Ho, T.Q. and Nguyen, T.T., (2018). Eco-efficiency analysis of sustainability-certified coffee production in Vietnam. Journal of cleaner production, 183, pp.251-260.
Lemeilleur, S. and Saes, M.S.M., (2020). Coffee farmers’ incentives to comply with sustainability standards. Journal of Agribusiness in Developing and Emerging Economies.
Lilavanichakul, A. and Parthanadee, P., (2019). An Analysis of Sustainability Indicators on A Thai Arabica Coffee Value Chain. Panyapiwat Journal, 11(1), pp.139-154.
Ponte, S., (2015). Standards and sustainability in the coffee sector. International Institute for Sustainable Development. Available at http://www. iisd. org.
Smith, K., (2019). Conservation and Caffeine: The History of Coffee Tourism and Sustainability in Costa Rica. Undergraduate Thesis, Southern Illinois University, Carbondale, IL, USA.
Van der Vossen, H.A.M., (2015). A critical analysis of the agronomic and economic sustainability of organic coffee production. Experimental agriculture, 41(4), pp.449-473.
Vogt, M., (2019). Juggling sustainability certifications in the Costa Rican coffee industry. In Sustainability Certification Schemes in the Agricultural and Natural Resource Sectors (pp. 230-258). Routledge.
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