A. Jeff believes that the steps Donovan’s is taking to be a lean and green
manufacturer cuts into a business's bottom line. In addition, he is not sure if
he even believes in social responsibility. As the owner, he has the final say
in all decisions. He may think becoming a lean and green manufacturer will
not give the company a strategic advantage over its competitors.
B. Decision-makers in business need to understand that conserving natural
resources may create new risks but also opens new opportunities (Czinkota,
2013, para. 8). Perry’s should respond to the competition's new strategic
plan not because the competition is doing it but because it may bring in
new customers that value sustainability while maintaining current
customers. The risk financially to Perry’s is low. Perry’s already has most of
the features and has already budgeted for the automatic ink dispensers.
Adding their new sustainability policy to their website and signage at stores
would be of minimal cost. In my opinion, gaining new customers who value
sustainability with little risk is a win for Perry’s, their customers, and the
environment.
C. Sustainability can still be a strategy if competitors are also choosing
sustainability. A company choosing not to implement sustainable practices
in an industry that is rife with competitors touting their sustainability
strategy might find itself losing market share. The Millennial and Generation
Z generations are becoming the dominant generation and they are twice as
likely to be concerned about sustainability (Rafi, 2021, para. 5). Sustainable
practices can reduce costs, improve governmental and community relations
and attract talent from the millennial generation due to their concern for
the environment (Rafi, 2021, paras. 7-8).
A company can differentiate itself in other ways. Compare Tesla to Nissan’s
electric vehicle the Leaf. Both are electric cars, but Tesla is a prestige
product. From personal experience, I can tell you my husband and I would
never be able to afford a Tesla, but we were able to afford a Leaf. My
husband has sent me pictures of Teslas in parking lots but he’s never sent
me a picture of a Leaf!
References
Czinkota, M. (2013, January 13).
Global consumerism and sustainability
.
Professor Michael Czinkota; Thoughts on International Business, Marketing
and Strategy: http://michaelczinkota.com/2013/01/global-consumerism-
and-sustainability/
Rafi, T. (2021, February 10).
Why corporate strategies should be focused on
sustainability
. Forbes:
https://www.forbes.com/sites/forbesbusinesscouncil/2021/02/10/why-
corporate-strategies-should-be-focused-on-
sustainability/?sh=461383aa7e9f
