Sustainable Operations Management Assignment Sample

 Introduction

Management of operations that improves business performance and increases sustainability is an essential discussion as it sheds light on the overall structure and functions of an organization. At present, companies have been found to indulge in several types of activities reflecting different sectors where they operate (Ritter and Pedersen, 2020). In this context, it is essential to assess the capacity of the operations in improving the performance with the inclusion of sustainability. The present study, in this respect, conducts a comparative study on the operations management and performance of organizations reflecting a high performing company and a low performing organization. Apple Inc and Lenovo Inc have been chosen as the higher performing and low performing companies and the report has highlighted the operations of the firms with respect to sustainability and innovation. Furthermore, the differences between the operations of the concerned companies have been analyzed finding out the ways of improvement. However, recommendations for the low-performing firm has also been included that can help the firm in improving its operations and performance in future years.

Business performance of Apple Inc based on operations

Apple Inc is a US-based multinational technology firm that manufactures designs and markets personal computers, smart phones, wearable and accessories and tablets and also indulges in providing range of services to the customers (Apple, 2022). The product list of the company includes Apple watch, TV, iPhone, iPad and Mac that are enriched with high operating systems. The company has been observed to work hard on improving the environmental sustainability thereby contributing positively to the society.

Environmental sustainability

Environment is an essential element that organisations require to manage so as to obtain better operating conditions that can improve the performance of the business. As per the words of Arora and Mishra (2020), it is essential for companies to take up measures and structure business operations in a way that it helps in building up a sustainable environment. In addition to this, it has been stated by the author that with the present turbulent changes, it has fallen important for organisations to set up special strategies that protects the environment thereby adding benefits to business operations. Following this view, it came within understanding that in order to maintain stability in the market, it is essential for organisations to maintain the sustainability of the environment thereby adding value to the society as well as the firm. In other words, it can be stated that organisations are required to protect the environment so as to benefit themselves concerning performance and operations.

Figure 1: Environmental strategy of Apple Inc

(Source: Conn, 2020)

In this context of discussion, Apple Inc has been found to achieve the situation of being a “carbon neutral” company concerning its operations worldwide (Conn, 2020). In addition to this, the company has been able to use recycled materials for manufacturing products reflecting 40% recycled content used for Macbook Air, and 99% recycled tungsten are used for Apple watch series 6 and iPhone 12. Furthermore, in 2021, the company has been found to indulge more into collaboration with the aim fighting against the climate change reflecting the collaboration with the Conservation international and Goldman Sachs.  The company has been found to set up a specific strategy with respect to environment that has severely helped the firm in maintaining a sustainable environment. The three pillars of the environmental strategy of Apple reflect the “climate change, resources and smarter chemistry” (Apple, 2020). In this context, the company has been focusing on becoming carbon neutral across the entire footprint by 2030.

Upon further look into the “environmental sustainability”, it has been observed that for climate change, the company has set up strategies such as “low carbon design, energy efficiency, renewable electricity, direct emissions abatement, and carbon removal” (). In this context, it has been found that the newly opened headquarters in California is 100% powered by solar panels reflecting the use of renewable energy (Conn, 2020). Furthermore, concerning resources, the firm has set up the strategy of using only recycled and renewable materials for making products and packaging purposes. However, the company has also prioritised on focusing innovation thereby ensuring the products that are provided to the customers are recyclable and are better for environment.

Innovation

Innovation is the key to business success at present days with the help of technology. As per the opinion of Coccia (2018), technological innovation helps a company in improving the product features and also improves the service system thereby creating value for organisations in the global market. Depending on the opinion, it can be stated that in order to survive and better the performance, it is important for organisations to look forward to innovation and incorporate the same by setting up particular strategies. Concerning the five competitive objectives as given, flexibility with the inclusion of innovation has been the operation of Apple. In this area of discussion, it has been evident that Apple Inc has been highly focusing on incorporating innovation reflecting the products they are providing. Concerning the annual reports of the firm, it has emerged that the firm focuses on making people’s life better by providing them intuitive and smart products (investor,apple, 2021). Moreover, with the “people first” strategy, the company has been effectively incorporating innovation within its business culture thereby improving the overall performance around the globe.

The concerned firm has been found to have an increased sale of its products which led to the increased revenue earnings of $260 billion in 2019 (Podolny and Hansen, 2020). In this respect, it has been found that for improving the innovation process, the company set up the strategy of aligning it with the corporate culture, along with the recruitment of highly skilled employees with respect to technological skills. In 2018, Apple has been found to top the list of 50 innovative companies concerning the magazine published by fast company. Apple, with the help of skilled employees and analysing the market demand, have been found to deliver products like iphone, ipad and Macbook which are considered to be tech outfits of the world at present (). This, in turn, however implies that the discussed firm has exceptionally worked on its innovative operations reflecting its positive contribution to the revenue earnings. However, it can be stated that with the innovation strategies and approaches, the firm has been exceptionally performing in the global market reflecting high competitiveness.

Business operations of Lenovo Inc reflecting performance

Lenovo is a Chinese-American multinational technology that deals with manufacturing, designing and marketing of personal computers, consumer electronics, and other technology related services (Lenovo, 2022). The company is considered to be the fourth largest company with respect to smart phones and world’s largest company with respect to personal computers. The organisation has been found to indulge into environmental activities with the reflection of business activities starting from operations to recycling solutions.

Environmental sustainability

Sustainable environment has been one of the major goals of the firm reflecting the high concerns about the society. In this case, it has emerged that in order to maintain a sustainable environment, the company has segregated the activities into different parts that represents: “environmental affairs policy, environmental management system, commitment to sustainability, efforts in combating climate change, achievements to minimize waste and water usage, and partnerships with environmental third parties” (Lenovo, 2021). Furthermore, the organisation has been found to even categorise the activities based on its different operations. Concerning the product aspect, the company has decided to focus on packaging, product energy, and materials used for manufacturing products thereby setting up specific objectives and targets. In 2020-21, relating to packaging, the company has targeted achieve a 5% reduction in weight concerning at least one product (Lenovo, 2021). Moreover, the company has also focused on using 100% biodegradable packaging system reflecting the usage of packing materials that consists of more than 60% recycled content.

Upon closer look into product energy and materials, it has been noticed that the company has set up a target of reducing the greenhouse gas (GHG) emissions by 2029-30 and also ensure that all the products of the company contains the carbon footprints (). On the other hand, it has been evident that the company has also looked forward to strategies that can help in reducing the wastes thereby increasing the recycling rate by 90%.

Furthermore, the discussed firm has also been found to focus on the supplier environmental performance as well. With the target of “require water and waste public goals for at least 85% of Lenovo direct suppliers based on procurement spend”, the firm has exceptionally looked after the supply chain sustainable operations. Moreover, in 2021, the company has been found to indulge more into collaboration with the aim fighting against the climate change. In 2020-21, relating to packaging, the company has targeted achieve a 5% reduction in weight concerning at least one product. The company has also focused on using 100% biodegradable packaging system reflecting the usage of packing materials that consists of more than 60% recycled content.

Reference List          

Apple, 2020, Environmental Progress Report, Available at https://www.apple.com/in/environment/pdf/Apple_Environmental_Progress_Report_2021.pdf [Accessed on 10/02/22]

Apple, 2022, Apple at work, Available at https://www.apple.com/in/business/ [Accessed on 10/02/22]

Arora, N.K. and Mishra, J., 2020. COVID-19 and importance of environmental sustainability. Environmental Sustainability, 3(2), pp.117-119.

Coccia, M., 2018. Classification of innovation considering technological interaction. Journal of Economics Bibliography, 5(2), pp.76-93.

Conn. R, 2020, SIX SUSTAINABILITY INITIATIVES APPLE IS DOING TO SAVE THE ENVIRONMENT, Available at https://www.appleworld.today/2020/12/30/six-sustainability-initiatives-apple-is-doing-to-save-the-environment/ [Accessed on 10/02/22]

Investor.apple, 2021, ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, Available at https://s2.q4cdn.com/470004039/files/doc_financials/2021/q4/_10-K-2021-(As-Filed).pdf [Accessed on 10/02/22]

Lenovo, 2021, Environmental Targets, Available at https://www.lenovo.com/us/en/sustainability-targets/?orgRef=https%253A%252F%252Fwww.google.com%252F&referer=https%3A%2F%2Fwww.google.com%2F [Accessed on 10/02/22]

Lenovo, 2022, Our Company, Available at https://www.lenovo.com/in/en/lenovo/our-company/#:~:text=Lenovo%20is%20one%20of%20the,and%20fourth%20largest%20smartphone%20company. [Accessed on 10/02/22]

Podolny. J.M, and Hansen. M.T, 2020, How Apple Is Organized for Innovation, Available at https://hbr.org/2020/11/how-apple-is-organized-for-innovation [Accessed on 10/02/22]

Ritter, T. and Pedersen, C.L., 2020. Digitization capability and the digitalization of business models in business-to-business firms: Past, present, and future. Industrial Marketing Management, 86, pp.180-190.