Case Study Report Assignment Sample

Introduction    

Every organization needs to maintain its activities to manage environmental issues. In this report, the study is going to discuss sustainability strategy and challenges faced by Lipton. There is a requirement for an effective sustainability strategy in order to maintain environmental issues. The organization faces multiple environmental challenges such as Corporate Social Responsibilities issues, carbon footprint challenges, climate change, product delivery, and supply chain issues. Appropriate strategy and planning of work support an organization to increase productivity level and develop future opportunities. The study is going to discuss the implementation of a sustainability strategy and its benefits for Lipton.

Sustainability strategy and challenges faced by the organization           

Lipton is one of the famous British tea brands and the authority of the organization is focused on providing appropriate services to their customers. The organization faces multiple challenges on the matter of environments such as plastic pollution, product delivery, and supply chain. As per the opinion of Petersen and Brockhaus (2017), there is a requirement for healthy relationships with stakeholders and customers to improve services. The major challenges faced by the organization are plastic pollution. The management of their organization should focus on sustainability strategy in order to provide effective services and reduce the impact of environmental challenges.

The challenges of product delivery and supply chain can reduce the number of potential customers in Lipton. As per the opinion of Dahlmann, and Bullock (2020), positive customer service assists an organization to increase the number of new customers and improve customer retention. Appropriate delivery of products to the customer and a healthy relationship with suppliers can assist Lipton to increase the number of future opportunities and maintain sustainability. The major challenge faced by Lipton is plastic pollution (lipton.com, 2021). The authority of Lipton needs to focus on plastic pollution in order to maintain brand popularity and sustainability. Global Alliance for Incinerator Alternatives (GAIA) marked Lipton as top plastic polluter.

In the present scenario, majority of customers prefer sustainability in products and are concerned about environment. The image of plastic pollution can decrease the popularity and brand image in the market. As per the opinion of Nur et al. (2021), trust and brand loyalty plays a significant role in the development of an organization. The authority of Lipton needs to focus on its strategy and monitor the entire process of work. Innovation and implementation are essential in the development of an organization. As stated by Forcadell et al. (2020), there is a requirement for update and implementation of strategy in order to reduce the impact of environmental challenges. It can be stated that based on the above discussion the major environmental challenge faced by Lipton is plastic pollution. Since the majority of customers are concerned about the environment, the image of plastic pollution decreases the brand loyalty and popularity of the market.

Lipton is unable to provide effective service such as product delivery on time, engaging customers, and maintaining a healthy relationship with suppliers due to the pandemic situation. The impact of environmental challenges can reduce the number of customers of Lipton and reduce sustainability effectively. Organizational sustainability is essential in the development of an organization. The management of Lipton needs to update its work process and build a healthy relationship with suppliers in order to maintain sustainability and reduce the impact of plastic pollution (lipton.com, 2021). There is a requirement to identify the impact of environmental issues in Lipton due to which the theories of stakeholder and corporate social responsibility are defined below:

Stakeholder theory

Stakeholder theory is focused on the management of an organization and ethics of business. The theory supports an organization to analyze the relationship of a business with its investors, communities, employees, suppliers, and customers. Stakeholder theory states that an organization needs to focus on every stakeholder effectively and provide values in order to maintain a healthy relationship. As per the opinion of Freeman et al. (2020), healthy relationships with stakeholders assist organizations to increase the number of future opportunities and maintainability. The theory of stakeholder can support Lipton in focusing on all stakeholders effectively and understanding value stakeholders in the organization (lipton.com, 2021). Since the authority of Lipton faces challenges regarding product delivery and supply chain, Lipton can maintain sustainability and healthy relationships with suppliers.

Carroll’s CSR pyramid

Carroll’s CSR pyramid is focused on four levels to fulfil the responsibilities as philanthropic, ethical, legal, and economic. As per the opinion of Alfakhri et al. (2020), every organization needs to understand the responsibilities of environmental, ethical, philanthropic, and economic. There is an importance of Carroll’s CSR pyramid in organizations to focus on CSR holistically. There are multiple advantages of Carroll’s CSR pyramid such as enhancing profit, sustainability, developing positive relationships, building customer trust, encouraging personal and professional growth. Since Lipton is facing environmental challenges like plastic pollution and product delivery, the theory can assist Lipton in maintaining sustainability, and increasing profit. This theory can assist Lipton in focusing on environmental, ethical, philanthropic, and economic responsibilities effectively to enhance the rate of profit and build customer trust.

Figure 1: Carroll’s CSR pyramid

(Source: Alfakhri et al. 2020)

Planning for sustainability strategy           

The authorities of Lipton need to focus on their manufacturing process of tea in order to reduce the impact of plastic pollution. The environmental strategy of reducing plastic waste can assist the organization in reducing the impact of plastic pollution and enhance brand popularity. As per the opinion of Schmidtova and Formanek (2019), there is a requirement for a healthy relationship with suppliers in order to get enough materials on time. The authority of Lipton needs to focus on the actions of packaging, production, and manufacturing to implement the strategy of reducing plastic waste.  The management of Lipton needs to suggest their customers bring own environmental bags. This will be effective environmental advice as plastic bags are banned in the market.

In case the customers bring their own thermos to the tea shops of Lipton, the management is able to reduce plastic footprint. As stated by Rodrigues, and Franco (2019), effective planning and strategy can assist the organization in reducing the impact of plastic pollution and maintain sustainability. The authority of Lipton can use cardboard over cups, bags, or plastic bottles. It would be easy for Lipton to recycle cardboard over plastic and manage the balance of environments (lipton.com, 2021). The management of Lipton needs to focus on sustainability of products and reduce the impact of pollution in order to engage the popularity of the brand.

The authority of Lipton should suggest their buyers avoid the usage of straw and the authority need to stop providing plastic straws to their customers. Lipton is focused on providing and offering family-size boxes with almost 40% fewer materials of packaging. The offer of family-size boxes assists the organization in reducing the usage of plastic. The authority of Lipton can use up cycling glass containers on the matter of storage foods to avoid plastics. As per the opinion of Chofreh et al. (2018), reducing the usage of plastic can assist an organization to maintain environmental sustainability. Therefore, the strategy of Reducing plastic waste can support Lipton in reducing the usage of plastic effectively as well as increase brand trust. Hence the management of Lipton needs to focus on reducing plastic waste strategy and the relationship with suppliers in order to maintain sustainability.

Figure 2: Sustainability goals

(Source: Borrelle et al. 2020)

The management of Lipton needs to focus on UN sustainable goals such as good health and well-being, affordable and clean energy, reduce equality, industry, infrastructure, and innovation. As stated by Borrelle et al. (2020), effective goals assist an organization to increase the level of productivity. The sustainability strategy of reducing plastic waste and effective relationships with suppliers can assist the organization in achieving the goal of affordable and clean energy. Lipton needs to focus on its production and manufacturing process to achieve the goal of good health and well-being. Since the authority of Lipton will monitor the entire process of work, they can reduce inequality and develop infrastructure, innovation, and industry.

Implementation and benefits from the strategy   

A sustainable strategy can support Lipton in reducing the impact of plastic pollution and build a healthy relationship with stakeholders. As stated by Zheng and Suh (2019), there is a requirement for an effective business strategy in order to maintain a healthy work environment and quality of products. The authority of Lipton and the group of Unilever can decrease the harm of plastic in their shops by following the strategy of reducing plastic waste. As stated by Saleh et al. (2020), the strategy can reduce the usage of plastics in Lipton stores effectively. In case Lipton follows the strategy of reducing plastic waste, after that there will be a strategy of either no plastic, better plastic, or fewer plastics to decrease the harm of plastics.

The authority of Lipton can focus on paper bags to offer products to their customers. Since customers prefer sustainability in products, Lipton can be able to maintain customer satisfaction by maintaining sustainability in its products. As per the opinion of Oliveira et al. (2019), the sustainability strategy can assist Lipton to focus on its challenges and risks such as environmental risks, strategic risks, and services risks. The strategy of reducing plastic waste can support team members and employees of Lipton to be aware of the concept of plastic harm and plastic waste. There is a requirement to monitor the entire work, prices such as production, implementation, and manufacturing to understand the current challenges faced by the organization.

Effective analysis of services and work processes assists to understand current condition of an organization. Therefore, the sustainability strategy of reducing plastic waste can support Lipton to increase the rate of profit, rescue the impact of plastic pollution, develop brand popularity, and build effective relationships with suppliers. The major challenges faced by Lipton are delivering products and plastic pollution. As per the opinion of Guandalini et al. (2019), stakeholders play a critical role in the development of an organization. There is an importance of healthy relationships with stakeholders in the development of an organization and maintaining healthy relationships with suppliers (Krdžalić. and Hodžić, 2019). In case Lipton can build a healthy relationship with suppliers, the authority can get enough materials on time.

There are multiple benefits of sustainable strategies such as promoting a better economy, developing sustainable growth, and developing brand image. As stated by Caldera et al. (2019), an appropriate brand image assists an organization to improve customer retention and increasing the rate of sales. Based on the above discussion it can be stated that the strategy of reducing plastic waste can support Lipton to avoid the usage of plastic and focus on the usage of paper. The sustainability strategy can assist the organization in focusing on social activities to decrease the impact of pollution. The Implementation of a sustainable strategy can assist the organization in increasing and developing services and building effective trust with customers. As stated by Caldera et al. (2019), loyalty and trust are necessary for the development of an organization. Hence, Lipton can reduce the impact of pollution and improve services by implementing a sustainable strategy.

Conclusion

Based on the above discussion it can be concluded that sustainability in products and services plays a significant role in the development of an organization. Nowadays, people are concerned regarding the sustainability of the environment and reducing the impact of pollution. Lipton is a popular tea brand in the market and there is a requirement of an effective sustainable strategy to increase the rate of profit. The management of Lipton needs to focus on their entire process of production in order to reduce the pollution of plastic. Implementation and innovation of strategy assist an organization to maintain customer satisfaction and improve services.

The theories of stakeholder and Carroll’s CSR pyramid can support Lipton to build a healthy relationship with stakeholders and understand responsibilities effectively. There is a requirement to indemnify the risk factors and challenges such as market risk, and environmental risk to improve services and implement strategies. Hence, it can be stated that based on the above discussion the strategy of reducing plastic waste can assist Lipton in improving services.

References

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