Company Environmental Management and Sustainability at Marks and Spencer - Case Study Example

?Topic Corporate sustainability is often a result of combined strategic management, cleargoals, better human resource management, regular environmental scanning with analysis, objective competitive leveraging, comparative leveraging, and great exercise of corporate social responsibility. This paper is a critical review on how Marks and Spencer Company, a leading commercial chain in United Kingdom (UK) optimized its environmental management to leverage against their competitors in the market. Mark and Spencer The company is a commercial chain department store that sells variegated goods for customers in United Kingdom (UK), a prominent region of the world international enriched of thriving commerce and trading relations. The region is populated with an estimated 5.3 billion of populace based with 84% of them are located in urban centers (Index Mundi, 2013, p. 1). The presence of these diverse and multicultural consumers and its relative economic affluence compared to other emerging countries, are opportunities for business chain to undertake corporate operation. Mark and Spencer sell clothes, food, home needs, and other products, has it main center based in UK and has varied offshore operations including chains in advanced countries. The company relies on its core corporate values: quality, value, service, innovation and trust (M & S, 2012a, p. 2). Its subsidiary company at UK also contributed to the ? 9.9 bn group revenue in 2012, underlying group operating profit of ? 810.0 m. As a leading retailer, it sourced its products responsibly from 2,000 suppliers globally (M & S, 2012a, p. 2). Central to its business operation since 2007 is the drive to address ecological concerns and social inequities by upholding a healthier and sustainable lifestyle (M & S, 2012b, p. 1). The company prided of integrating sustainability in managing its business by providing such framework of governance that is focused on environmental management systems (M & S, 2012b, p. 1). What is environmental management system? The US Environmental Protection Agency (2013) defined Environmental Management System (EMS) as a quality control mechanism designed to enable an organization to practice set of rules and behaviors that will reduce and mitigate environmental destruction to scale up its operating efficiency (p. 1). Such framework encourages companies to attain environmental objectives by employing environmental plans, goals, and protectionism campaigns as part of its operational mandates in management, for customers, for human resources, including its suppliers (USEPA, 2013, p. 1). This extols the assumption that employing environmental management control will likewise gain social acceptance and hence improve the corporate financial sustainability of the organization (USEPA, 2013, p. 1). This is also presumed that the EMS is also aligned and is consistent to company’s goals and business practices (USEPA, 2013, p. 1). Experts likewise posit that this internal and external regulatory approach requires stringent compliance to reduce risks, hazards, and to ensure cost-efficient business operation (USEPA, 2013, p. 1). This is also to address the call of our times amid the devastating impact of climate change and the need to respond for ecological protection (USEPA, 2013, p. 1). It also provided remedies to unregulated issues like problems on energy conservation, quality operational control and the importance of corporate stewardship (USEPA, 2013, p. 1). Thus under this framework, the company develops its own environmental goals based on ecological and legal basis; form its own environmental objectives, increase employees competence. EPA encourages company to have an environmental policy as its foundational plan to attain targeted environmental performance and outcomes (USEPA, 2013, p. 1). These blue prints are implemented and became subject of an evaluation at the end of every cycle of to determine it has improve its corporate social relations, it is has positively impacted with its corporate financial outcome, and enhance corporate behaviors (including employees) (USEPA, 2013, p. 1). Every year, this can be reviewed and amended to set new plans of actions to sustain or enhance targets (USEPA, 2013, p. 1). Some of the actions that can be opted by the company could be reduction or prevention of hazardous materials; use of technology to interconnect departmental communication and hence reduce the use of papers; reduction of the use of energy or use of renewable energy as source of power; recycling and reusing decomposable materials; adoption of health safety and environmental compliance; adoption of quality control in business operation; conduct of regular meeting to ensure that ecological plans are translated to reality; and devising action plan to attain outcomes which is inclusive of allocating responsibilities, schedule, and outlining defined steps (USEPA, 2013, p. 1). Figure 1. The continuous improvement cycle on environmental performance (USEPA, 2013, p. 1). The team tasked at ensuring that ecological plans are implemented and that these are transmitted to all workers or to all departments for compliance and for corrective actions (USEPA, 2013, p. 1). The management will likewise ensure that the EMS is enforced and that the adoption of this ecological framework as a corporate policy is adopted well as a corporate value. Under this policy, the USEPA (2013) summarized it using the table shown below: Potential Costs Potential Benefits Internal Staff (manager) time Other employee time (Note: Internal labor costs represent the bulk of the EMS resources expended by most organizations) External Potential consulting assistance Outside training of personnel Improved environmental performance Enhanced compliance Pollution prevention Resource conservation New customers/markets Increased efficiency/reduced costs Enhanced employee morale Enhanced image with public, regulators, lenders, investors Employee awareness of environmental issues and responsibilities Table 1. Cost and Benefits of EMS, (USEPA, 2013, p. 1). EMS and M & S Following the discussion above, the questions are interposed how well does the company use environmental management systems and performance measures to implement its strategy? What does this tell us about the kind of strategy it is following? How well does the company apply the principles of resource savings (the 5R’s) to its supply chain, operations and marketing? To answer these, the researcher delved into M & S corporate reports to determine how EMS is integrated in its production of goods. a. On clothing, the company observed customers’ preference on goods that impress upon them with better longevity and versatility—meaning, those products that can demonstrate such “wearability” that could last for longer period, could match other colors well, and can be maximized to complement with existing wardrobes (M & S, 2012b, p. 5). b. The quality of products remained of paramount importance and customers acknowledge the value of buying higher price tiers by upholding its outstanding values through rigorous promotions (M & S, 2012b, p. 5). c. The company uses the differentiation of sub-brands to promote affordable products especially for children and women’s goods—dovetailing the significance of using creative visual merchandising to demonstrate the latest trends (M & S, 2012b, p. 5). This visual merchandising is not only limited on using television-based advertisement but also of maximizing web-based opportunities and social networks to promote products using photos and videos for marketing (M & S, 2012b, p. 5). d. On home products, the company maximized the use of social networks in marketing or selling furniture (M & S, 2012b, p. 5). It also understood that as socialization has become increasingly a home affair, the families too started reinventing their homes with accessories (M & S, 2012b, p. 5). e. On food, the companies also leverage by using promotion for consumers to find food products that are not priced high (M & S, 2012b, p. 5). A simply M &S food product was launched in consideration to the macro and micro condition of the market and to uphold the healthy foods (M & S, 2012b, p. 5). In the last few years, research and studies have been conducted by the company to understand the values and preferences of consumers (Crotty, 1998, p. 1). It was the strategy to make marketing sensitive to the limited financial resource of consumers without sacrificing the nutrient value of the food and the consumers’ satisfaction (M & S, 2013, p 7; Hugos, 2007, p. 254). Online marketing has also been considered wisely to accommodate the needs of women, especially the aged consumers that are no longer keen of doing actual shopping in department stores (M & S, 2013, p. 7; Amaravadi, Samaddar, & Dutta, 1995, pp. 4-13). Digitized stores were developed to keep up with the modern trend and shopping experiences of customers (Inmon, 1996, p. 49). The company sustained too of complying the production and marketing of quality products (M & S, 2013, p 7; Binney, 2001, pp. 33-42; Bose & Sugumaran, 2003, p. 3; Buttle, 2000, p.1; Graafland & Smid, 2004, p. 1-5; Girard, 2009, p. 350). To keep it aligned to the environmental framework of M & S, the management launched and sustained Plan A which focused on implementing the 180-points for eco-sensitive supply chain management (M & S, 2013, p.7). The company focused on producing products made of cotton and has sustained fishing to support the companies’ food chain. Of course, these are supported with extensive customer-focused thus, making it more a business leader in the retailing industry of brands, goods, food, and of home supplies (M & S, 2013, p 7; Bona, 2003, p. 1; Camarinha-Matos, 2008, p. 338). The differentiation offer such exclusive collaboration and great selection of great, quality and less expensive products (M & S, 2013, p 7; Carroll, 1999, p. 268). Through this, it’s able to contribute to the overall profit earmarked from the 387 M & S retail stores that are serving in the international community (M & S, 2013, p 7). But the success of M & S supply chain should also be attributed to the ability of the management to read through the market development and to define its competitive leverage from the rest of leading companies that are engaged in the retailing industry (Elman, Barry, McQuaid, Foley, & Gataora, 2012c, pp.1-22). It is also attributed to the ability of the company to create and recreate the value for shareholders such as the innovation of shopping experience, the ways on delivering continued improvement across operations that are sensitive to Plan A and to the corporate commitment for sustainability, in managing financial growth by improving the figures of sale, and by engaging employees to deliver the company’s ambition (Elman, et al., 2012c, pp.1-22). Aside from leveraging through innovation, the company also worked to secure its integrity, credibility, and its corporate reputation (Elman, et al., 2012c, pp. 1-22, Michigan, 2001, p. 1-96; Lee-Kelley Gilbert, & Mannicom, 2003, p. 1). In conclusion, it is thus asked, “how well does the company perform well against the criteria chosen to evaluate it against or against its competitors? Is it responding to the issues you have identified as important? Stronger conclusions will be SMART and supported by the academic literature. Statistically, the company is able to support the financial stability it aimed to gain and it has developed multi-channels to promote its product in a cost-efficient way (Elman, et al., 2012c, pp.1-22; Rothwell & Sullivan, 2005, p.753). It prided self for attaining the exceedingly its commitment of 180 points, instead of that original target of 138-points as provided in its Plan A commitment for conservation and ecological protection albeit facts there are still targeted plans that they are intending to attain this 2013 (Elman, et al., 2012c, pp.1-22). Such success has contributed ?185m from Plan A that is reinvested in business operation (Elman, et al., 2012c, pp. 1-22). The company has likewise prided of becoming a carbon neutral company, no longer depositing wastes to landfill, developed 100% aquaculture e.g. fishing site, and engaging about 5000 peoples to the company’s development program (Elman, et al., 2012c, pp.1-22). It has also prided the receipt of 100 awards from adopting an EMS such as those that came from Queen’s Award for Enterprise for Sustainable Development and partnership with Forum for the Future, Oxfam, WRAP, WWF, Business in the Community and the like in the implementation of environmental consciousness as part of the corporate social responsibility program (Elman, et al., 2012c, pp.1-22). Aside from this, the company has contributed in attaining 28% energy efficiency, save 800,000 t carbon, got 26% reduction of non-glass packaging per item, reduced company water utilization by 18%, got 84% sustainable wood sourcing, and invested 550 K hours in trainings to develop an eco-friendly suppliers, including the removal of artificial food flavoring for all M & S foods served for customers (Elman, et al., 2012c, pp.1-22). IT has likewise donated 11 m of garments for Oxfam for community services (Elman, et al., 2012c, pp.1-22) as well as partnered with UNICEF on recycling clothes (Elman, et al., 2012c, pp.1-22). From these in data, it can be inferred that the company has indeed successfully adopted and implemented its EMS as an integrated program of the company and in relation to the programs designed for corporate social responsibility. It is therefore recommended that successful integration of EMS in its corporate management should be sustained. It must review and assess which part of the plans which remained to be implemented and should be pursued. While partnerships with international organizations for ecological protection are a positive indicator of its acculturation of environmental protection framework, it’s likewise more beneficial for the company to partner too with government agencies that are involved in ecological preservation campaign to bolster relation with government. The Plan A, which was adopted since 2006, has certainly nurtured the corporate social responsibility of M & S (2012c) that has involved 1000 stores and its supply chain, including its 21 million customers. It has likewise inspire to strengthen strategic management and corporate financial resource by maximizing the environmental management framework (otherwise dubbed as green lens) in furthering the application of green perspective, use of innovation, doing cross business remedies to issues, and improving relational aspects in relating with consumers and with the service companies (Elman, et al., 2012c, pp.1-22; Spencer, 2005, p. 170; Teece, 2009, p. 299). It helped more importantly in improving sales and services (Elman, et al., 2012c, pp. 1-22). References Amaravadi C.,Samaddar S., & Dutta S., (1995). Intelligent Marketing Information Systems: Computerized Intelligence For Marketing Decision Making, Marketing Intelligence & Planning, 1995, vol. 13 No. 2, pp. 4-13. Binney D., (2001). 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