BUS102 Management Principles Report Sample

BUS102 Management Principles Report

Word Count: 2000 words (not including reference list or title page)

Structure: The report should provide the following information -

Title Page- Give a title to your report, student name, number.

Executive summary

This is a synopsis of the overall eco-friendly environmental plan outlining the major content areas and recommendations covered in the plan. Be sure to mention the existing organization’s name.

Table of Contents with page numbers

1. Introduction

•Introducing eco-friendly environment and its importance

•Introducing and background information of the existing organization and

2. Problem Statement

• Statement of the problem of eco-friendly environment of the existing organization.

3. Objectives

• Clearly articulate the main objectives of the eco-friendly environmental plan.

4. Findings

• Present the insightful findings from the research.

5. Analysis and Discussion

• Analyze and present the information, followed by a thorough discussion.

6. Solutions/Recommendations

• Provide the solutions or recommendations. They need to be SMART (specific, measurable, attainable, relevant, and time-bound)

7. Conclusion

• Conclude the report by providing a concise overview that covers all the information presented.

References

Include at least 5 peer-reviewed academic references with corresponding full references in your List of References.

Referencing Style: American Psychological Association (APA)

Word Limit: 2000 words

Solution

1. Introduction

An eco-friendly environment promotes sustainability and minimises pollution to protect biodiversity and conserve natural resources. Renewable energy sources utilisation along with recycling materials, reducing waste, and adopting different green practices in daily life helps to mitigate climate change and maintain a healthy planet for future generations. The importance of an eco-friendly environment is adopting the ability to improve water and air quality, support sustainable economic growth and enhance public health (Ahirwar et al. 2020). At the time eco-friendly practices are maintained by all individuals then a harmonious relationship between nature and humans is maintained that promotes the well-being of all living beings.

Figure 1: Company logo
(Source: ikea.com, 2024)

Ikea was founded in 1943 by Ingvar Kamprad in Sweden. This company is a global leader in furniture and home goods. Previously the business was a mail order business but after some time they opened showrooms for improving offline business. The eco-friendly products along with modernist design and DIY assembly model provide great impact in the business market (ikea.com, 2024). Over 400 stores are present worldwide of this company. Starting from home accessories to furniture this company maintains diverse customer needs and unique requirements of the market. The unique blend of affordability functionality and quality is present in the company through which this company became a global leader.

2. Problem Statement

Despite being a well-known company for MBA assignment expert in the business market IKEA faces significant challenges to maintain sustainability. Resource intensity, supply chain complexity, waste management and carbon footprint are some of the main issues faced by the company.

This company is a global retailer so the demand for raw materials, water and energy is substantial. The production process of furniture requires a good amount of food plastics and metals. For this requirement, deforestation, high energy consumption and mining impacts are present in the environment. At the time all these issues are increasing continuously as the use of renewable resources needs to be done to improve material sources and energy efficiency in the business. This company needs to maintain eco-friendly practices for all the suppliers (Rame, Purwanto & Sudarno, 2023). The diverse and extensive supply chain of this company is present in different countries. Each country has different standards and regulations. To mitigate this type of complexity in their supply chain continuous monitoring and support systems need to be done.

Waste reduction and recycling promotion is also very important for IKEA. From the manufacturing process, this company produces a significant amount of waste regarding packaging and customer use. The product design needs to be done to improve the longer life cycle minimising packaging and enhancing recyclability. Maintaining a partnership for initiatives like take-back programs can help to reduce Waste generation. Improving the carbon footprint is also very important for this company. Optimising their shipping routes, increasing the use of renewable energy sources and more fuel-efficient vehicles can improve greener logistic solutions to reduce the transportation need and carbon footprint.

3. Objectives

● To enhance sustainable sourcing by 100% by the year 2030

● To promote renewable energy use by 100% in all operations by 2030

● To achieve a climate-positive footprint by reducing carbon emissions by 2030

● To improve the waste management process, higher recycling rates and improving zero waste to landfill

● To improve circular economy design principles to improve repair and recycling

● To improve the education and engagement among stakeholders to promote sustainability practices among suppliers, employees, and customers

4. Findings

Manufacturing and transportation systems create a high carbon footprint

IKEA faces significant challenges regarding their carbon footprint for its transportation and manufacturing. The global supply chain of the company requires extensive travel for which heavy emission of different harmful gases is done in the environment. The shipment of raw materials and finished goods along with delivery to the customers also increases the carbon footprint of the company. Energy-extensive materials used in the manufacturing process such as plastic metals or particle boards accelerate greenhouse gas emissions. All these issues need to be improved in logistics by investing in the utilisation of renewable energy transportation and investing in fuel-efficient transportation (Perlangeli & Rea, 2023). This process helps to enhance the manufacturing efficiency of IKEA. Adopting sustainable materials and sustainable processes can also help to reduce the negative environmental impact of the company. At the time all the strategic development is done in IKEA the minimisation of carbon footprint can be achieved significantly.

In retail storage considerable energy utilisation

The storage facilities and large retail stores also significantly impact the environment. The devices used for heating lightning and cooling require substantial energy and that comes from non-renewable sources. The fossil fuel reliance exacerbated huge greenhouse gas emissions (Upadhayay & Alqassimi, 2020). To improve the situation IKEA needs to invest in renewable energy solutions like wind power energy and solar energy. LED lighting and the efficiency of better insulation can be improved by the smart energy management system. Improving efficiency and maintaining a sustainable energy source can be a crucial step for reducing the carbon footprint and promoting overall environmental sustainability.

Improving utilise Renewable energy sources

Ikea invests in wind farms and solar panel installation on their store rooftops. The substantial potential for improving energy use and energy generation needs to increase investment in renewable energy projects. The solar and wind energy across different locations helps to improve sustainability. The existing structure can be used for better insulation, high energy-efficient lighting, and advanced HVAC systems. The commitment to IKEA regarding sustainable practices along with minimising environmental impacts can be promoted through this process.

Unsold product and packaging waste generation

IKEA provides flat-pack packaging in which huge amounts of cardboard plastic and other materials are used. This process is very efficient for transportation but huge waste generation is done through this process. The answer product poses another significant challenge regarding their waste. The reporting and recycling initiative of IKEA contributes to waste management. Minimisation of landfill contribution and adaptation of more sustainable packaging materials is done by the company to improve environmental footprint and promote the circular economy (Mignon & Bankel, 2023). The donation and recycling process of the products also helps to reduce the negative impact of the company on the environment.

5. Analysis and Discussion

IKEA face challenges in maintaining sustainability, and intensity of resources due to the issue of waste management and supply chain complexity. The company needs to improve the production process of manufacture and focus on the concept of ethical electronics. By manufacturer and retailer, the company has made progress in product life cycle management which includes renewal of energy usage and sustainable resources. The company need to improve material sources and energy efficiency in the business to maintain eco-friendly practices for all the suppliers. The diverse extensive supply chain of the company presents in various countries each country has different standards and regulations, to mitigate the complexity of the supply chain the company monitors the support system. Renewable energy technology helps in the development of sustainability by reducing greenhouse gas emissions and improving energy security by providing access to the energy community. Also generating energy which does not produce greenhouse gas diversifies energy supply (Emon et al., 2024). To enhance the manufacturing efficiency adaptation of Sustainable material and the process reduced negative impact on the environment which improves the sustainability strategy the company has contributed to the minimization of landfill and adult sustainable packaging material to improve environmental footprint and promote a circular economy.

IKEA face significant challenges to maintain sustainability in the company's demand for raw materials, water and energy which is substantial in the procedure of production. Production procedure needs a good amount of plastic and metals. To minimise the impact of high energy consumption on the environment the company has faced challenges.

Reliance on non-renewable energy: Non-renewable energy resources include coal, natural gas, and nuclear energy which release harmful gases and speed up global warming leading to climate change. Additionally, non-renewable energy extraction and combustion leads to pollution which harms the ecosystem and human health. Also, those resources are finite and individually depleted and make vulnerable disruption in the supply chain as the price of those resources fluctuates. IKEA has used heating, lighting and cooling to require substantial energy which comes from renewal energy. The fossil fuels reliance exacerbated huge greenhouse gas emissions.

Long supply chains cause high carbon emissions: shipping goods over long distances requires extensive use of transportation typically powered by fossil fuels. Mode of transportation emits greenhouse gases combusted fossil fuels and release those gases contribute to climate change. IKEA's Global supply chain requires extensive travel which heavily emits different harmful gases into the environment. The shipment of raw materials and finished goods delivered to the customer increases the carbon footprint of energy extension. additionally, materials used in the manufacturing process such as plastic metals or particle boards accelerate greenhouse gas emissions (Chidolue et al., 2024).

6. Solutions/Recommendations

Renewable Energy Investments: IKEA needs to invest in renewable energy sources such as solar, wind, hydro and geothermal power to achieve long-term sustainability. additionally, the company should improve energy efficiency in various sectors such as transportation and manufacturing (Behera et al., 2024).
Promote Energy Storage Technologies: IKEA should invest in the research and development of energy storage technology such as battery, pumped hydro storage and thermal storage. efficient energy storage solutions can help the company overcome issues which are associated with non-renewable energy sources and make the business operational.

Improve Infrastructure of Grid: IKEA should expand the modernized grid to accommodate the source of renewable energy and enhance the capacity of transmission. By implementing smart technology which establishes the microgrid system and improves the flexibility and resonance of energy distribution in the process of cooling and heating in the line (Annisa et al., 2024).

Green Infrastructure and Technology Investment: IKEA should invest in the infrastructure to improve the technology and practice renewable energy parks. sustainable transportation systems low emission and alternative transport systems improve the opportunity for Ikea in the electronic and hybrid bicycle and make the process autonomous. (Idroes et al., 2024).

Localize Sourcing: IKEA should adopt the approach of local Sourcing and recognise the opportunities in the closure end market. Additionally, Sourcing material from nearby suppliers which minimises the travel distance and significantly minimises carbon emissions.

Optimize Routes of Transportation: IKEA should use innovative analytic systems and algorithms to recognise the effective routes and modes of transportation that will consolidate the shipment and optimise the capacity of the company. Leveraging the transportation system through streamlined logistic operations the company could minimise carbon emissions.

Embrace Digitalization and Data Sharing: According to Silva et al. 2024, digital technology improves the supply chain by improving transparency with the help of blockchain, data analysis, and IoT. IKEA should optimise its supply chain and operation and reduce inventory by sharing real-time data with expedited shipping.
Promote Principles of Economy: IKEA can reduce environmental impact by the principle of economy which is associated with a long supply chain.
Collaborate with the supplier: IKEA should select its supplier wisely and conduct an audit to monitor compliance as well as measure the deduction of waste and provide support to the supplier.

7. Conclusion

As per the analysation, it can be concluded that, IKEA needs to practice green to reduce the challenges of non-renewable energy which promotes global warming and leads to climate change. Also, IKEA needs to promote the principle of reducing the impact on the environment and enhancing sustainable sourcing. Additionally, the company has set the goal to achieve zero carbon emissions by 2030, which requires collaboration with the supplier and improved education and engagement among stakeholders to promote sustainability practices.

References

Ahirwar, N. K., Singh, R., Chaurasia, S., Chandra, R., & Ramana, S. (2020). Effective role of beneficial microbes in achieving the sustainable agriculture and eco-friendly environment development goals: a review. Front. Microbiol, 5, 111-123.https://www.researchgate.net/profile/Ravindra-Singh-9/publication/338494863_Effective_Role_of_Beneficial_Microbes_in_Achieving_the_Sustainable_Agriculture_and_Eco-Friendly_Environment_Development_Goals_A_Review/links/62d02d26beb04023187641e7/Effective-Role-of-Beneficial-Microbes-in-Achieving-the-Sustainable-Agriculture-and-Eco-Friendly-Environment-Development-Goals-A-Review.pdf

Mignon, I., & Bankel, A. (2023). Sustainable business models and innovation strategies to realize them: A review of 87 empirical cases. Business Strategy and the Environment, 32(4), 1357-1372.https://onlinelibrary.wiley.com/doi/pdf/10.1002/bse.3192

Perlangeli, G., & Rea, A. (2023). Strategic communication: CSR aspects in Industry 4.0–case study of IKEA in the Millennials. The role of Digital Transformation in customer journey case study Zara, 4(2), 47-57.http://archives.marketing-trends-congress.com/2023/pages/PDF/266.pdf

Rame, R., Purwanto, P., & Sudarno, S. (2023). Transforming The Furniture Industry in The Digital Age. Jurnal Riset Teknologi Pencegahan Pencemaran Industri, 14, 53-69.https://www.jrtppi.id/index.php/jrtppi/article/download/178/128

Upadhayay, S., & Alqassimi, O. (2020). A study on assessing a business viability for transition to a circular economy. Westcliff Int. J. Appl. Res, 4, 78-94.https://www.academia.edu/download/96058304/Upadhayay-and-Alqassimi-2020.pdf

Idroes, G. M., Hardi, I., Rahman, M. H., Afjal, M., Noviandy, T. R., & Idroes, R. (2024). The dynamic impact of non-renewable and renewable energy on carbon dioxide emissions and ecological footprint in Indonesia. Carbon Research, 3(1), 1-21.https://link.springer.com/article/10.1007/s44246-024-00117-0

Behera, B., Sucharita, S., Patra, B., & Sethi, N. (2024). A blend of renewable and non-renewable energy consumption on economic growth of India: The role of disaggregate energy sources. Environmental Science and Pollution Research, 31(3), 3902-3916. https://link.springer.com/article/10.1007/s11356-023-31372-0

Annisa, S., Rachmawatie, D., & Kusuma, D. B. W. (2024). The Effect Of Urbanizaation, Industrialization, And Economic Growth On Renewable Energy Consumption In Asean-6 Period 1994-2020. El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam, 5(4).https://doi.org/10.47467/elmal.v5i4.1695

Emon, M. M. H., Khan, T., & Siam, S. A. J. (2024). Quantifying the influence of supplier relationship management and supply chain performance: an investigation of Bangladesh’s manufacturing and service sectors. Brazilian Journal of Operations & Production Management, 21(2), 2015-2015.https://doi.org/10.14488/BJOPM.2015.2024

Silva, R., Tarigan, Z., & Siagian, H. (2024). The influence of supplier competency on business performance through supplier integration, vendor-managed inventory, and supply chain collaboration in Fuel Station: An evidence from Timor Leste. Uncertain Supply Chain Management, 12(1), 207-220.https://m.growingscience.com/beta/uscm/6533-the-influence-of-supplier-competency-on-business-performance-through-supplier-integration-vendor-managed-inventory-and-supply-chain-collaboration-in-fuel-station-an-evidence-from-timor-leste.html

Chidolue, O., Ngozichukwu, B., Ibekwe, K. I., Fafure, A. V., Daudu, C. D., & Illojianya, V. I. (2024). Advancements in energy storage technologies: A review across Canada, USA, and Africa. Global Journal of Engineering and Technology Advances, 18(01), 001-008.https://ir-library.ku.ac.ke/bitstream/handle/123456789/27636/Advancements%20in%20Energy%20Storage%20Technologies....pdf?sequence=1
ikea.com, 2024. About. Retrived on: 21-05-2024, from: https://www.ikea.com/