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. aa 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. aa 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
. aa Forbes:
https://www.forbes.com/sites/forbesbusinesscouncil/2021/02/10/why-
corporate-strategies-should-be-focused-on-
sustainability/?sh=461383aa7e9f
