Strategic Management And Sustainability Assignment Sample

Introduction Of Strategic Management And Sustainability

While sustainability focuses on addressing current demands without compromising the future, strategic management entails developing and putting into practice long-term strategies. The critical point is in creating cost-effective advantages, resolving environmental and social challenges, and integrating sustainable practices into strategic decision-making (Bogers, et.al. 2019). The global consumer products company Unilever, which is well-known in the field of the food and beverage industry, has become known for its commitment to sustainability. It has established imposing goals to improve its environmental and social sustainability. Examining Unilever's sustainability practices and initiatives provides invaluable information for food and beverage companies looking to boost their competitiveness while implementing sustainable improvement ideas.

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Organisations can gain practical information on incorporating sustainable development into their business operations by examining Unilever's efforts in environmentally friendly purchasing, waste reduction, greenhouse gas emissions, and new product development. Unilever's dedication to corporate social responsibility and collaboration with stakeholders also offers recommendations for establishing ethical work rules of conduct, ethical obtaining, and neighbourhood involvement. These findings enable organisations in the food and beverage industry to align their strategies with sustainability, improving their reputation, reducing costs, and promoting a future that is more environmentally conscious.

Relevance of sustainability/sustainable development, focusing particularly on its impact on organisational strategy

The alignment model of strategic management can be used to analyse the significance of sustainability and sustainable development within the food and beverage industry, particularly concerning Unilever's organisational strategy. To achieve strategic objectives, this version of the model emphasises aligning an organization's internal resources and capabilities with external circumstances (Sabherwal, et.al. 2019). The three sustainability pillars of social, economic, and environmental can be used in the alignment model to examine the effect of sustainability on Unilever's organisational strategy.

Social Impact:

Unilever's commitment to sustainability has resulted in a significant social impact. Unilever has prioritised social responsibilityto improve community well-being, advance ethical business conduct, and promote inclusion. Through initiatives like the Unilever Sustainability Strategy, the organisation has sought to improve earnings, advance equality for women, and support small-scale agricultural producers. These initiatives have not only strengthened stakeholder associations but additionally helped Unilever gain prominence and draw in socially conscious customers (Alejandrino, Mercante and Bovea, 2021). Unilever has examined the importance of social impact in fostering long-term success by integrating sustainability into its organisational strategy.

Financial impact:

Unilever's organisational strategy has been impacted financially by sustainability. Unilever has reduced costs, increased operational effectiveness, and opened up new markets by incorporating sustainable practices into its business operations. As an illustration, through its environmentally friendly purchasing regulations, Unilever has focused on responsible raw material sourcing, reducing supply chain threats, and improving overall performance. The company's commitment to reducing waste and energy use has resulted in significant reductions in expenses and resource optimisation (Purvis, Mao and Robinson, 2019). Additionally, Unilever's focus on packaging that is environmentally conscious and plant-based replacements, among other sustainable product advancements, has allowed it to capitalise on the expanding demand for sustainable goods and expand into new geographical territories.

Environmental impact:

Unilever's sustainability initiatives have had a significant effect on the environment. Unilever has handled significant environmental challenges in its food and beverage company operations by incorporating environmental issues into its organisational strategy. Unilever has committed to reducing its impact on the environment, including greenhouse gas emissions, consumption of water, and waste production under its sustainable development initiative. Unilever has made significant progress in minimising its negative environmental impact by requiring energy from renewable sources remedies, improving packaging materials, and encouraging sustainable farming practices (Alejandrino, Mercante and Bovea, 2021). These initiatives not only contribute to the preservation of natural resources but also appeal to environmentally conscious consumers, strengthening Unilever's brand image and market position.

The alignment Modelof strategic management has been crucial to Unilever's initiatives in sustainability. Unilever has successfully incorporated sustainability into its organisational system by aligning its internal capabilities and resources with the social, financial, and environmental pillars of sustainability (Mensah, 2019). This strategic approach has not only produced excellent social and environmental consequences but has also given Unilever a competitive edge, improved financial outcomes, along with more favourable stakeholder engagement.

Critically analysing the sustainability barriers, paradoxes and challenges

Industries such as those in the food and beverage industry, encounter a variety of sustainability challenges, paradoxes, and challenging circumstances as they work towards sustainable development. Due to the complexity and interdependence of social, economic, and environmental factors, certain challenging circumstances continue to exist (Van der Byl, Slawinski and Hahn, 2020). By carefully examining these issues, the study will comprehend the unique challenges that firms confront and investigate the way Unilever, as an example within the foods and beverages industry, has tackled them.

Sustainability Barriers:

• Opposition to alternatives: Implementing sustainable practices typically requires modifications to organisational culture, technology, and methods of operation. Change aversion may hinder progress and make it challenging to integrate sustainability within an organization's strategy. For instance, conventional methods of production and established supply chains in the food and beverage industry are capable of supporting the adoption of more sustainable practices.
• Short-term imagining: Many groups placed short-term financial benefits ahead of long-term sustainability goals. As money invested in sustainable practices may also take time to provide economic benefits, this focus on quick profits might undercut sustainability efforts (Karki, Bennett and Mishra, 2021). To get using this obstacle, one needs to adopt a longer-term perspective and increase consumer acceptance of the cost of sustainable practices.

Sustainability paradoxes:

• Boom vs. sustainability: Companies frequently need to strike a balance between their objectives of growth and profitability and sustainability standards. The conflict between theassembly's rising customer demands and reducing environmental impacts gives birth to these contradictions (Benton and Bailey, 2019). For instance: Unilever has overcome this difficult situation by emphasising sustainable growth through innovative products and the use of green resources. The reason for these sustainable lifestyle organisations, which are performing better than the remaining components of the portfolio, shows how sustainability and expansion are compatible.
• Consumer behaviour: By considering consumer behaviour, the long-term obligation is likewise reinforced. Despite the rising demand for sustainable products, price and convenience continue to play a significant role in how consumers choose what to buy. This conflict of interest offers an opportunity that allows companies to educate and influence consumer behaviour towards more environmentally friendly choices (Van der Byl, Slawinski and Hahn, 2020). Unilever has taken up this objective by implementing marketing strategies that draw attention to the sustainable features of its products, raise consumer awareness, and affect purchasing choices.

Circumstances that necessitate sustainability:

• Supply chain complexity: Organisations in the food and beverage industry frequently deal with complicated delivery systems involving numerous stakeholders, including producers and importers as well as distributors and retailers. It may be challenging to ensure sustainable practices along the entire supply chain because organisations must handle issues like accountability, fair trading, and responsible purchasing (Hahn and Pinkse, 2022). With initiatives like the Sustainable Agriculture Code, partnerships with suppliers, the promotion of environmentally friendly farming practices, and increased supply chain transparency, Unilever has taken addressed the task of sustainability.
• Limited natural resources and changing climates: The food and beverage industries heavily rely on natural resources, such as land,water, and energy. The manufacturing sector, accessibility, and the nutritional value of components face huge obstacles as a result of weather change and the lack of valuable resources. Unilever has committed to reducing its negative environmental impact by targeting disposal technologies, greenhouse gas emissions, and water usage (Karki, Bennett and Mishra, 2021). Their environmentally friendly lifestyle programme specifies certain goals to reduce the effects of climate change and maintain resources throughout the supply chain process.

Discussing strategies that organisations can apply to achieve sustainable development

Organisations in the food and beverage industry have an important opportunity to achieve long-term success by putting diverse strategies into practice and adopting new business trends, processes, and technology. These strategies enable businesses to address social and environmental problems while promoting the creation of long-term wealth. Unilever, a leading example in the sector, has taken advantage of these opportunities to improve its organisational structure and commitment to sustainability.

Sustainable practices Sourcing and supply Chain Management: Sourcing that is environmentally friendly and supply chain management are two strategies for attaining equitable growth in the food and beverage industry. Organisations can implement environmentally friendly purchasing procedures, educate small-scale and nearby farmers, and encourage fair trade practices (Martin-Rios, Hofmann and Mackenzie, 2020). Unilever has carried out initiatives like the Agricultural Sustainability Code of Conduct, which promotes environmentally friendly farming methods, minimises the negative environmental effects associated with the agricultural production process, and promotes farmers' incomes. Organisations may support sustainable development while maintaining the accessibility of top-notch components by establishing transparent and ethical supply networks.

Product innovation and the renewed economy: Product development is crucial for long-term progress. Organisations may improve environmentally friendly products and packaging, reduce waste production, and support the concept of a renewed economy. Unilever is taking on this opportunity by beginning joint ventures with sustainability residential companies that emphasize ethical sourcing, less harm to the environment, and increased social impact. Unilever's initiatives to minimise the use of plastic, which have included the introduction of recyclable and disposable containers, serve as an example of their commitment to a sustainable economy (Sanchez?Planelles, Segarra?Oña and Peiro?Signes, 2022). Organisations may reduce the impact they have on the environment, improve resource efficiency and satisfy the increasing demand for environmentally friendly goods by implementing such practices.

Energy conservation and renewable power sources: Using energy conservation and sources of sustainable energy is another way to achieve long-term sustainability throughout the food and beverage industry. Organisations can implement energy-saving policies, improve manufacturing strategies, and make investments in renewable energy technologies. Unilever has established significant targets to cut greenhouse gas emissions and increase the use of renewable energy sources (Martin-Rios, Hofmann and Mackenzie, 2020). For example, they have set up solar panels at manufacturing facilities and engaged with renewable energy projects. Organisations can mitigate the effects of climate change, reduce operating costs, and improve the sustainability of their operations by lowering their use of fossil fuels and implementing renewable energy sources.

Collaboration and stakeholder involvement: Collaboration and stakeholder involvement are essential for achieving equitable growth throughout the food and beverage industry. Organisations can collaborate with offerings, consumers, governing bodies, and NGOs to address mutual sustainability challenges and promote collaborative action. Through collaborations with organisations like the Alliance for Sustainable Packaging and the Forum on the environmentally friendly introduction of Palm Oil, Unilever has actively participated with stakeholders (Kostiuchenko and Zakorko, 2019). Organisations can exchange best practices, drive across-the-industry modifications, and promote creativity for environmentally friendly development by collaborating with stakeholders.

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Conclusion

The study, which centres on Unilever as an example, emphasises the importance of environmental sustainability and long-term enhancement within the food and beverage industry. Organisations have an opportunity to drive long-term cost reduction while also solving social and environmental critical problems when strategic management and environmental responsibility converge can be taken into consideration. By incorporating durability into their organisational strategy, organisations may strengthen their ability to compete across the market, satisfy customer demands, and contribute to a future that is more environmentally friendly.

The great difference that can be achieved has been shown by Unilever's sustainability strategy and practices. Unilever has successfully incorporated longevity within its organisational strategy through environmentally friendly acquisition and supply chain management, new product development and renewedinvestment in economic procedures, power efficiency and the use of renewable energy sources, cooperative collaborations, and consumer learning. Unilever has been able to establish a cost, improve logo recognition, and support environmentally friendly development as a result of these initiatives.

The study goes on to emphasise that for organisations within the food and beverage industry, sustainability is not only an ethical obligation but additionally an operational need. Customer choices are changing, as well has been a rising desire for goods made responsibly and ecologically. Groups that do not comply and adopt sustainable practices can additionally encounter legislative difficulties, a shortage of popularity, and negative publicity.

Recommendations

The following recommendations can be given for organisations to deal with the three pillars of sustainability in light of thestudy done on Unilever and the significance of longevity throughout the food and beverage industry:

• Social sustainability: Such organizations should implement ethical labour practices and ensure the well-being of staff members. Organisations need to give careful consideration to how their supplier networks manage individuals (Mensah, 2019). Fair salaries, secure working conditions,accessibility to health services and social advantages are all part of this. Periodic reviews and approvals may assist assure social norm compliance and create a productive working environment.
• Financial sustainability: Organizations dealing with food and beverages should adopt symmetrical accounting principles. Organisations should implement interconnected monetary network practices to minimise waste and improve the effectiveness of assistance. This will be carried out by initiatives including package take-back programmes, product redesign for recycling, and collaborations with recycling facilities (Purvis, Mao and Robinson, 2019). By staying in communication and recycling materials, organisations can lower prices, enhance support management, and generate new revenue sources.
• Environmentally Sound Practices: Organisations must make investments in renewable energy sources and establish objectives to lower their carbon impact. This might be accomplished by using energy-efficient technology, streamlining transportation and supply chain processes, and shifting to energy sources that are renewable (Mensah, 2019). Additionally, organisations must actively disclose and manage their water consumption, promote sustainable agricultural methods, and lower waste output through decomposition and dumping practices.

References

Books and Journals

• Alejandrino, C., Mercante, I. and Bovea, M.D., 2021. Life cycle sustainability assessment: Lessons learned from case studies. Environmental Impact Assessment Review. 87. p.106517.
• Benton, T.G. and Bailey, R., 2019. The paradox of productivity: agricultural productivity promotes food system inefficiency. Global Sustainability. 2. p.e6.
• Bogers, M., Chesbrough, H., Heaton, S. and Teece, D.J., 2019. Strategic management of open innovation: A dynamic capabilities perspective. California Management Review. 62(1). pp.77-94.
• Hahn, T. and Pinkse, J., 2022. A paradox approach to sustainable product-service systems. Industrial Marketing Management. 105. pp.182-189.
• Karki, S.T., Bennett, A.C. and Mishra, J.L., 2021. Reducing food waste and food insecurity in the UK: The architecture of surplus food distribution supply chain in addressing the sustainable development goals (Goal 2 and Goal 12.3) at a city level. Industrial Marketing Management. 93. pp.563-577.
• Kostiuchenko, N.M. and Zakorko, A.A., 2019. Transnational companies' strategic planning in the context of the Global Sustainable Development Goals.
• Martin-Rios, C., Hofmann, A. and Mackenzie, N., 2020. Sustainability-oriented innovations in food waste management technology. Sustainability. 13(1). p.210.
• Mensah, J., 2019. Sustainable development: Meaning, history, principles, pillars, and implications for human action: Literature review. Cogent social sciences. 5(1). p.1653531.
• Purvis, B., Mao, Y. and Robinson, D., 2019. Three pillars of sustainability: in search of conceptual origins. Sustainability science. 14. pp.681-695.
• Sabherwal, R., Sabherwal, S., Havakhor, T. and Steelman, Z., 2019. How does strategic alignment affect firm performance? The roles of information technology investment and environmental uncertainty. MIS quarterly. 43(2). pp.453-474.
• Sanchez?Planelles, J., Segarra?Oña, M. and Peiro?Signes, A., 2022. Identifying different sustainable practices to help companies to contribute to sustainable development: Holistic sustainability, sustainable business and operations models. Corporate Social Responsibility and Environmental Management. 29(4). pp.904-917.
• Van der Byl, C., Slawinski, N. and Hahn, T., 2020. Responsible management of sustainability tensions: A paradoxical approach to grand challenges. In Research Handbook of responsible management (pp. 438-452). Edward Elgar Publishing.

Online

• The Impact of Employees' Perceptions of Strategic Alignment on Sustainability. 2020. (Online). Available through: <https://www.mdpi.com>. Accessed on 27/06/2023.