Reference no: EM132164078

Module Overview

In this module, you will learn about the challenges in applying the value-chain model in a business. You will also learn how you can address these challenges and add value through economic and sustainable business practices.

Whether defining sustainability in the relatively narrow scope of the natural environment or taking a broader view and including social responsibilities such as poverty eradication, the challenge to maintain a sustainable business is growing ever more complex.

For example, a company using a manufacturing method that is environmentally unsafe will have to change its methods if it is to remain competitive and even viable in today's marketplace. Any change that company makes to become more sustainable also affects that company's value chain. An example of this is gasoline. Gasoline powered cars pollute the environment, and at the same time deplete oil reserves.

One way that the value chain was changed to respond to this issue was with the addition of ethanol as 10% of the fuel mixture. The environmental benefit of this ethanol mix is that it burns cleaner and less crude oil ends up in each tank of gas. Auto manufacturers had to change their manufacturing and tuning of engines to efficiently burn the reformulated fuel.

Another example of the relationship between sustainability and value chain is bottled water. There has been considerable debate regarding whether or not plastic bottles commonly used for bottled water are environmentally friendly.

General consensus is they are not. To remain sustainable, bottled water manufacturers made changes in the way they produce plastic bottles. Some made a switch to more environmentally friendly plastics while others changed the weight of their bottles, resulting in production that used less plastic and rendered thinner bottles.

Regardless of how each manufacturer approached its sustainable solution the value chain for each also changed.

Module Readings

Complete the following readings early in the module:

Module overview

Assigned Reading:

From the Argosy University online library resources, read:

Lawler, E. E., III, & Toole, E. (Eds.). America at work: Choices and challenges. Gordonsville, VA: Palgrave Macmillan.

McGrath, R. G., & MacMillan, I. C. (2009). How to rethink your business during uncertainty. MIT Sloan Management Review, 50(3), 25-30. (ProQuest Document ID: 224971863)

From the Internet, read:

Internet Center for Management and Business Administration, Inc. (2002). The value chain.

Assignment: Required Assignment 2-Implementation of Sustainability in an Organization

All consumers and firms affect sustainability in different ways, either directly or indirectly. In practicing sustainability, a firm could create value for consumers, investors, and other stakeholders, such as the community in which the firm operates within its value chain.

In addition, a firm engaging in good sustainable practices can fulfill the needs of its customers, earn a profit, and preserve the environment. This assignment will allow you, as a consumer, to explore how you can impact sustainability.

Instructions

Tasks:

Propose a sustainability investment plan to improve the performance of your work group or organization or an organization you hope to work for.

The investment can be made in human resources, in expansion of tangible or intangible assets toward new uses, or in capital equipment or new technology.

Analyze how the investment plan achieves the following:

Contributes to the mission of the company

Expands rewards for all major components of the value chain, which should include the company, employees, suppliers, and customers

Generates wealth or value and is sustainable over time

Evaluates and anticipates risks associated with the investment

Organize your work to create a 2- to 3-page professional memo in a Microsoft Word document outlining your investment plan to the director and an 8- to 10-slide Microsoft PowerPoint presentation script with complete endnotes explaining your recommendations to employees in your work group.

Follow APA standards for citation of sources.