Environmental Analysis of the Eden Project - Case Study Example

? Environmental analysis of the Eden Project BY YOU YOUR SCHOOL INFO HERE HERE Environmental analysis of the Eden Project Introduction The Eden Project is a naturalistic attraction in Cornwall consisting of a variety of domes that support and maintain many thousands of different species of plants that have been collected from around the world. The structures consist of hexagonal plastic cells that have support from a variety of steel frames, giving the Eden Project a modern design and appearance. The three different biomes, Tropical, Mediterranean, and Outdoor (not covered) all maintain different plant species that are native to certain regions of the world. Opened to the public in 2001, the project took approximately 30 months to construct and now provides an interesting experience to visitors both domestic and foreign. The Eden Project, based on research findings, is a benchmark by which other organisations can replicate their operational models for the company’s consistent focus on providing relevant services and activities related to their mission and vision goals. PESTEL analysis of Eden Project The Eden Project operates in a stable political environment in which there is ample state-level and local-level support for business development. The Eden Project is even supported by an EU organisation, The European Social Fund Convergence Investment, that has partnered with the local Learning Partnership for Cornwall to deliver sustainable operations and promote training of local workforce members to support the project (Green Foundation 2013; Major 2010). Through government support both domestic and foreign, the Eden Project is able to sustain its operational model and achieve a variety of grants that provide adequate funding that assists in procurement, operational strategy development and even the marketing and promotional functions that give the organisation more public visibility and brand recognition. The Eden Project has also been supported by notable political figures ranging from the Queen to Prime Minister Gordon Brown in an effort to promote sustainability and eco-tourism in the country (Eden Project 2008). Political actors with considerable influence in promoting the organisation and also ensuring government funding provide the Eden Project with the marketing benefits and political networking benefits required to ensure long-run operations and sustainability of the company model. Celebrity endorsers often have a positive impact on consumer attitudes and behaviours and utilising the Queen’s endorsements is only one element of how the organisation achieves brand visibility. The economic environment is also quite favourable for continued operations at the Eden Project. Admission prices for adults at the attraction range between ?19.50 and ?23.50, whilst children can enter the attraction for between ?6.50 and ?10.50 (Eden Project 2013). These are rather high prices comparatively to other local attractions, however it guarantees a higher revenue stream for the organisation. The UK is currently experiencing a recovery from the 2008-2010 recession, which is giving consumers higher disposable incomes today (Forex 2012; Reuters 2011). Concurrently, the UK Consumer Price Index has been stable since October of 2013 which represents that inflation is stabilising and currently household consumer income enhancements are rising in a faster proportion to inflation (ONS 2013). This provides an economic environment in which the Eden Project can sustain more consumer interest in disparate market segments without concern about substantial admission price discounting. The ability of consumers to pay the higher-than-average admission costs to experience a unique attraction provides a stable and positive economic environment for the organisation. The social environment is also favourable for continued consumer interest in the attraction. There is a growing ethical awareness in many consumer groups about the importance of ecology and environmental sustainability that impacts their consumption behaviours. Buyer markets are beginning to boycott and punish companies that do not adhere to ethical environmentalism whilst rewarding (through patronage and support) companies that have more focus on corporate social responsibility and ecological sustainment (Globe Scan 2009). Companies that promote high ethical standards achieve greater levels of profitability (Lys, Naughton and Wang 2013). Furthermore, a recent study indicated that 33 percent of consumers who responded from a sampling of 5,000 different consumers would be willing to pay premium prices for products and services if the company maintained and promoted high ethical standards (Grande 2007). This has tremendous positive implications for the Eden Project, a holistic organisation which maintains a solid mission of improving environmentalism in the UK and abroad and educating consumers about the importance of improving the ecological condition of the globe. This likely justifies why consumers are willing to pay the premium pricing structure of the organisation which provides substantial revenues for the organisation to maintain its research and development focus. The technological environment is also supportive of continued operations for the organisation. The organisation is experimenting with vertical farming, a process where animal and plant life can be cultivated on a variety of different vertical surfaces (i.e. skyscrapers and other urban structures). Phytoremediation is supported by technology, a process in which plants (not chemicals) are utilised to remove pollutants from soil, air and water to provide a more sustainable farming environment (Salt, Smith and Raskin 1998). New developments, as well, in growth light technology provide opportunities for vertical farming improvements, which provides urban citizens with new methodologies for engaging in naturalism and ecology even when living in apartments and skyscrapers. These new technologies are invaluable to the Eden Project and give the organisation new opportunities for enhancing consumer education and improving the sustainability of each individual biome in the attraction. Research did not uncover any notable legal issues that could seriously undermine or complicate continued operations at the organisation. The organisation must maintain liability insurance and other homogenous legal protections that are concerned with visitor safety, however this is a requirement for most organisations in the UK. The company offers skating rink services and musical events featuring big-name artists and local artists, therefore providing for safety is a top concern. The environmental factors impacting the Eden Project are viable for the organisation and are directly related to the organisational mission of the attraction. The UK Planning Act of 2008 established objectives for the nation to become eliminate its carbon footprint (Sustainable Development Commission 2012). This Act provided the foundation for building cooperative infrastructures that provide support and knowledge for how to improve the ecological condition of the country, giving the Eden Project representatives ample opportunities for political networking and collaborative organisations dedicated to promoting research and education for sustainability. Furthermore, the organisation works directly with representatives of The Carbon Trust, an organisation funded by the government to assist in moving the UK to a low carbon economy (Carbon Trust 2012). Through this partnership (and others in this growing trend), the Eden Project shares knowledge, builds education in horticulture and sustainable development and further provides the firm with ample government and non-profit organisational interest in working cooperatively on the objective of ecological sustainability. Creating value for citizens and visitors The value chain, proposed by Michael Porter, consists of various activities along the business model that allows an organisation to provide superior value to its most desirable consumer segments (Porter 1985). Primary activities along the value chain include operations, logistics, marketing and service. Support activities include human resources, technology, procurement and firm infrastructure. The value chain views an organisation as a holistic system of inter-dependencies with each division or support activity consisting of different inputs, transformations and final outputs that take into consideration proper resource allocations, assets and administrative activities that function cooperatively to support the organisational model. One of the foundational aspects of creating value within the Eden Project is in human resources. A cooperative relationship was developed between the organisation and the Learning Partnership for Cornwall that provided funding and support for employee development and recruitment. This partnership was inclusive of the European Social Fund Convergence Investment, an organisation that provided additional support for improving the competencies of the local workforce and promotes more efficient and productive training to existing employees (Green Foundation 2013). This effort emphasises the importance of establishing an efficient human resources system that focuses on recruitment and training development of Cornish citizens. Participants are invited to enrol with the program and visit the Eden Project as a potential employee to understand its mission and operations (Major 2010). A 13 week program was developed for interested candidates that involves an apprenticeship that includes such HR-based learnings as stress management, team-working, communication skills development, and even CV writing services (Major 2010). The Eden Project, therefore, is able to provide valuable employment and development services to the local community where the organisation operates. It suggests a focus on corporate social responsibility and workforce educational promotion which assists the local economy and improves the unemployment rate in Cornwall. The organisation also provides value through sales and marketing, especially apparent in promotion. Instead of just focusing on agriculture and horticulture, which might only be relevant to certain markets, the organisation attempts to diversify its attraction benefits through the provision of musical acts and other recreational activities not related to ecology. Big name artists such as Amy Winehouse, The Verve, and Blink-182 (to name only a few) have been recruited to serve as headliners at the attraction (Eden Project 2013). Through effective promotions and advertising, the organisation illustrates to many different consumer segments that the organisation is diverse and capable of providing variety associated with the premium pricing structure. When an organisation is able to gain notable entertainment figures to assist in providing value to consumers, they serve as an aspirational reference group by which consumers judge their intention to repurchase, willingness to recommend, and influences their perceptions of overall quality related to the organisational model. This recruitment greatly enhances the brand equity of the organisation which has long-run implications for diversification of the operational model or expanding existing service offerings. Operationally, the cost structure provides value, even though a premium pricing model, by discounting music presentations comparatively (competitively) against other concert promoting organisations. At a price of approximately ?23.50, visitors can experience not only the ecological aspects of the organisation, but also experience high quality entertainment at a very low price. This strategy provides consumers with the perception that the organisation is providing a valuable, cost-effective service with a range of attractions and activities that make the organisation fun, sophisticated and exciting. Technology also provides value to consumers at the Eden Project. The company works cooperatively with a variety of different eco-focused organisations to develop more sustainable operations and education to consumers about sustainability. Representatives of the Eden Project were involved in a large-scale biomass study, or the process of extracting organic materials from plants and animals and then further storing these extractions as a form of chemical energy to provide efficient transport fuels, heat and even electricity (Cooke, Cripps and Kolokotroni 2006). The company devotes considerable capital, research and development team function and technology research into the mission of incorporating new technologies into the organisational model that can provide better agricultural and horticultural output and also education. This provides value to consumers by educating them on modern farming and cultivation methods and also illustrates the modernism of the organisational model and its attempt to improve urban farming and sustain the natural environment. This is highly important to those consumers that are more willing to patronise and support organisations with a promoted emphasis on corporate social responsibility. The company also trialled a new food waste handling system, involving anaerobic digestion and composting to determine whether new and more efficient systems could be developed to limit landfill waste and the carbon output involved in other traditional waste systems (Stokes 2007). This provides superior value to consumers since the findings will improve landfill reduction which has significant implications for improving the natural landscape and ability to provide more urban development without concerns about food waste pollution and the health dangers of waste disposal of organic products. The Eden Project’s willingness and dedication to involve the organisation in many different trials of technology illustrate to consumers that the organisation continuously keeps its promises for improving natural sustainability and improving the lifestyles of many different consumer segments. Procurement and logistics go hand-in-hand for providing value to consumers. In order to make the organisation relevant to its mission and vision, it must procure exotic plants from around the world. This improves the servicescape environment of the organisation for aesthetic appeal and also makes the Eden Project relevant for promoting the natural diversity of plant-life from around the world. Berman and Evans (2009) iterate that consumers are significantly impacted by the servicescape which leads to an intention to re-patronise and organisation or recommend to others. The organisation must establish cost-effective supply chain networks to ensure proper procurement of relevant and interesting plants whilst also enhancing the aesthetic environment of the organisation. This provides value by satisfying consumers visually and giving them the impression that the mission of the organisation is aligned with service offerings. Operationally, the business also engages in activities that provide superior value to consumers by establishing systems and programs that allow for more interactivity and experiential learning. In 2011, in order to promote the value of electric and hybrid cars, the Eden Project launched the Sexy Green Car Show which allowed visitors to test drive and look over a diverse selection of green-oriented automobiles. Eden found through research that consumers are generally interested in these vehicles, but do not go through the evaluation and research steps to seriously consider their potential relevance as substitute products over that of traditional cars. “We found that if we take cars to people...they will think more seriously about (them) as an option”, stated a representative of the Eden Project (Eden Project 2013, p.28). The organisation works diligently to understand certain consumer behaviours and then further aligns the operational model to better service disparate consumer segments. It shows a flexibility in operational design and processes that are necessary to better engage consumers and provide them perceptions of value through relevance and sophistication associated with operational strategy development. Conclusion As shown by the research on the Eden Project, the external environment is largely favourable for sustaining the long-run needs and revenue-building expectations for the organisation. Political stability, economic improvements in the UK economy supporting more consumer income growth, the social conditions in today’s UK, technology support and availability and environmental conditions greatly support the organisation’s overall mission and vision. Coupled with prowess and knowledge that better develops all different subsections of the value chain, the Eden Project provides superior value to consumers through interactivity, better focus on human resources and training, service delivery and procurement. The Eden Project could be considered a benchmark for providing consumer value by diversifying service offerings and opportunities whilst also creating workable strategies aligned with changing and existing external market conditions. The organisation is highly adept in satisfying consumers and providing them cost-related value by providing extended services (i.e. music acts and recreation) that illustrate price-related advantages for choosing the Eden Project over other competing attractions in the United Kingdom. References Berman, B. and Evans, J.R. (2009). Retail management: a strategic approach, 11th edn. Prentice Hall. Carbon Trust. (2012). About us. 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