Business Opportunities and the Future of Green Building Constructions - Research Proposal Example

1. Introduction – 1.1. Catalyst of the research The unusual rise in the average temperatures as effect of global warming and the severe green loss of the earth generates a serious concern about the environment of our living place. Over the years, consumption of natural resources on large scale with unlimited wastage is making our environment worse. The improper utilization of green resources is causing for depletion of ozone plate and many other environmental threats. Under these environmental threats there is one more potential area which is posing a threat is constructions and infrastructure developments, Although it has created unprecedented levels of welfare for people and the society, it has given a comfortable and luxurious way to live but despite of these developments, the fact is that, uncounted infrastructure affected the health and material welfare and affecting the environment which is caused from the environmental unfriendly practices adopted by the construction sector. “According to Hashim Al Dabal, CEO of Dubai Properties - The built environment has a vast impact on the natural environment, affecting human health and economy. If developers adopt green building strategies they can not only construct sustainable communities with indoor environmental quality, but can also support the preservation of energy and water resources.” The term “Sustainable Development” was first used in a public context in the World Commission for Environment and Development (WCED) report “Our Common Future In 1987” and was defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. (WCED, 1987) the sustainability concept has gained widespread acceptance as a model and philosophy for guiding community decision-making related to economic growth, Environment preservation and quality of life. The idea of Green Construction is come from the idea of sustainable developments. In the early 1990s, the construction and development sector grew fast without any consideration of environmental factors and their effect to the environment at the same time, with the focus on the economic aspects of development. The selection of materials used for construction did not consider environmental effects, only speed and quality. Waste disposal was not well managed and contractors did not take recycling into consideration when planning for a building, the main concern was the economical and financial factors. On the global front if we look at America - The overall green building market (both non-residential and residential) is likely to more than double from today’s $36-49 billion to $96-140 billion by 2013 (Source: McGraw Hill Construction (2009). Green Outlook 2009: Trends Driving Change.) By 2009, 82% of corporate America is expected to be greening at least 16% of their real estate portfolios; of these corporations, 18% will be greening more than 60% of their real estate portfolios (Source: McGraw Hill Construction (2007). Greening of Corporate America Smart Market Report.) Now my objective of this research proposal is for development of green buildings in context of UAE. From this point my proposal is derived focusing on the construction sector, and the usage of green building to help save the environment by using renewable resources (solar, wind) instead of the non renewable resources that generates energy mainly oil. UAE is one of the fast growing economies in the world, and it is growing rapidly in the construction sector, and the implementation of green building and how it effects its community is an important matter nowadays, that the government and many other bodies in the UAE is working on spreading and becoming a more green community, providing a healthy environment for its society. Benefits, positive impact on the environment and looking at the bright future of these technologies which are in favor of society lead me to conduct a research. I believe that this will add a cutting edge to my knowledge and learning for the future of the world. 1.2. Problem Definition The need of constructing ‘Green Buildings’ in the U.A.E is to encountering the problem of depleting energy resources that are non-renewable which is causing environmental pollution that is increasing and creating pollutions and affecting society and public welfare in a negative way. This is why the need of marketing and spreading awareness about constructing green buildings is necessary. From the business point of view, there is a quite bright future exist for green construction because infrastructure is a sector which will always be a core part in the development of the world. Once the infrastructure stop growing, the world growth will take a set back. This direct relation creates ample of opportunities in this sector. I have mentioned the grounds for the future of UAE in the rationale of the study. 1.3. Benefits of the Research Today the power generation sector is considered as one of the fast growing sectors, and the most important source in it is oil, that is having a dramatic impact on energy trends in the future, the fact it won’t last for ever. Economic growth progress is driving energy to an increase consumption, that will lead to a significant global energy demand, despite the efficiency gains, meaning that economies are rapidly expanding, where billion of people requires accessing to expand the quantity of energy, leading to a realization that the fraction of life quality is taken for granted in developed countries, that depends on non renewable energy sources, that one day will vanish. As a result of the energy being consumed , there is a rising demand toward environment friendly societies by using efficient sources of energy, as a result the Green Buildings concept is a practice that has been developed recently in the US and Europe to achieve such societies. The Metito group offers a comprehensive range of products for: Process water treatment for industry, water desalination by reverse osmosis, sewage treatment, industrial effluent treatment, water disinfection, water treatment for sports and leisure, PLC control, SCADA and telemetry systems for these processes, specialty chemicals and concessions in water and wastewater treatment. Its clients include municipalities, oil and petrochemical-cal companies, food & beverage, textile and paper & pulp companies, tourism sector and various government departments and agencies. UAE is one of the developing countries in the Middle East, that is starting to introduce, and implement Green Buildings concepts in Dubai, the government of Dubai is playing a vital role in promoting for green building among corporate and individuals as well, to provide a healthy and beneficial society. 2. Background and Literature Review 2.1. Literature Review As a literature part of these concepts, there are not many researches as such done from marketing point of you. Till now the scholars had their main focus on the effects, impacts and pros & cons of green constructions. I will be critically evaluating some of the major research findings in this section. This will help me to better understand the underpinnings of the topic so i can use these findings with my research results. The parameters which have been set for literature review are – Energy sources and demographic and geographic figures, competitive edge of the technology from business point of view, opportunities in the UAE, potential areas of developments etc. The literature review will help us in deciding few of the marketing strategies and communications. The below mentioned sources are the one which has presented the facts on the basis of their research that how will the demography will be changed in the coming future, for that how will be the change in the demand of global resources. It is also critically analyzed that will the global resources be able to support this requirement? Or how will it react on the future front? Alan Kelly has presented in their research on the growth of population increases the demand on energy conducted by world energy council indicates that by the year 2050, the present worldwide energy demand will double, on the other hand economical growth and rising living standards are expected. (Alan Kelly, 2007) In addition the world’s population will nearly double from about 6 billion to 10 billion people according to (John Straube, 2006), such an increase in growth will lead to an increase in energy consumed mainly in developing countries like India, Brazil, China and other south east countries. The change in world demography will be affected the business scenario which has given a birth to the societal marketing, but it is still a question mark that how the current entrepreneurs will take this charge and how beautifully they handle it. Such a development in energy results in increasing the prices of energy consumed, leading to a more uncertainty about supplies and a more environmental risk of pollution, resulting to promote alternative environmentally friendly energy source of power generation, at present fossil fuels produces most of our energy, some comes from nuclear power stations. (Greg Kats, Capital E, October 2003) The generation of electricity as a main source of energy generating power, particularly creates a number of harmful emissions, therefore green buildings plays a vital role in saving energy consumption, nevertheless being friendly to the environment, according to John Straube ( John Straube, , 2006) through:: Consuming materials that can be harmless and returned to nature. Consuming non-renewable energy. Releasing pollutant that can not be broken down by natures systems and harming the nature Experts predicts that the world oil as an important source of energy will reach the peak in 2010, which makes the future of energy uncertain, but after the peak the amount of oil will decline resulting in increasing the prices. Fossil fuels provides 95% of the world commercial energy supply, on the other hand looking into renewable energy source supply less than 3%, as a result it is wise to reduce the consumption of fossil fuels, and to invest more in renewable energy as soon as possible. In general a lot of countries mainly the US observes the usage of renewable resources more beneficial for them, only depending on oil as a source of energy, according to Amoy Lovins an international expert in energy efficiency, suggests” oil scarcity may be the weakest reason for making the transition away from oil, profit, climate protection, security, and quality of life are all more relevant and defensible”. And also he advice having an alternative future where the US decreases its oil consumption and increase its investment in renewable energy sources, may be the best way to protect the environment beside the economy as well Such an information about energy has an impact on the construction sector, especially the builders, that compromises 35% of direct energy, 64% goes to heating, ventilation and air conditioning, 24% heats hot water, 13% for lightening in total the buildings are responsible for 48% of all green gasses, that affects the environment that we live in. The whole review shows that each and everyone has suggested finding out an alternative for the resources along with what should be done to save the mother earth. This is being the main point of arguing amongst every scholar. 2.2. Framework Development Jerry Yudelson, PE, LEED AP, BS, MS, MBA, Associate Principal and Sustainability Director, Interface Engineering, Portland, Oregon outlined four steps to competitive success in green building market based on the STP (Segmentation, Targeting, Positioning) approach to differentiation: 1) Define an approachable potential market segment. You cannot be all things to all people but you can be something to some people. Segmentation Analysis for Green Buildings: Geographic. Demographic (for housing) (refers to age and income). Lifestyles (LOHAS consumers Lifestyles of Health and Sustainability Psychographic (innovators, early adopters, early majority, late majority, laggards). Need to know your client and their risk profile. 2) Target specific segments for green buildings. Here we need to understand the green building marketplace and who the current buyers are. Choosing competitive targets is a great art, (e.g., small firms that only do one thing and do them very well). It is best to choose targets that are a “stretch” but not totally out of reach as this provides focus and direction for the marketing effort. The target needs to be large enough to offer high payoff. You have to constantly keep in mind that you cannot be everything to everyone. 3) Position your firm with respect to competitors. Positioning is “the act of designing a firm’s marketing offering an image so that they occupy a meaningful and distinct competitive position in the target customer’s mind.” Claim your market space and hold it with your actions. Positioning occurs in the mind of the buyer (it’s not what you say, but what I hear you say and what I think/feel about it). This needs market research in order to know what is occurring in the mind of the buyer because you may think that positioning is one thing but the buyer sees it as totally different. While segmentation and targeting yield the target buyer, positioning lets the target buyer know who you are. But the positioning must be in dimensions the buyer cares about. It must be integrated with all marketing communications, including branding, literature, web site, internal culture/training, and the way employees speak and write about their position. Positioning differences: • Has to be important in terms of the benefit delivered. • Distinctive is something that not every competitor can claim. • Superior to other ways to get the same benefit. • Communicable and somehow visible to prospective clients or buyers. • Pre-emptive so it is not easily copied by competitors. • Affordable—there is little price difference to get this superior “Positioning is ‘the act of designing a firm’s marketing offering an image so that they occupy a meaningful and distinct competitive position in the target customer’s mind.’” • Profitable for the company to be in a particular market segment. You do not have to do all of the above; you just need to pick one positioning strategy that has a lot of impact. You have to find something remarkable to position yourself with. For example: • LEED project experience • LEED accredited professionals on staff • LEED Innovations/ expertise via awards. • LEED cost management expertise. If you can bring these buildings in cheaper and can document that then you will get the job. • Stakeholder involvement. Your ability to involve large numbers of stakeholders is critical in institutional organizations. 4) Differentiate to establish positioning in the minds of the clients. Differentiation approaches for design and consulting firms include: • Advertising campaigns. • Public relations campaigns. • Creation of new visual identities. • Hiring specialized, key individuals. One can also think about differentiation in terms of: • Firm type. • Client type (this can include smaller clients, large corporations, psychographic profiles, such as early adopters, or those with strong values of sustainability) • Building type. • “Signature” green measures (passive solar design or green roofs). • Project size. The above mentioned way to market the concept seems to be the best way to market that, as a part of the societal marketing, we are passing on the benefits to the society, but this should done in a cost effective manner. Cost effectiveness will be a most competitive edge along with the innovation. 2.3 Research Questions The focus of the study will be limited to the UAE market, as it is the core area of my research. Under the focus of the study, I will be focused for generating data from the potential respondents and interviews of the masters of this field. My study will be limited to the concepts of how to use of societal marketing in business perspectives. Hypothesis of the research The hypothesis of this research is that – The future of green building constructions is sustainable and creates a lot of business opportunities. This is the reason and logic behind developing strategies for marketing this unique idea to the world. 3. Research Design Objective of the study\research Looking at the need of green construction, I have set a few major objectives for my research which will guide me and direct through out my research project. Aim The perspective aim of this research is to find out and judge the potential areas of threat to the earth, to analyze them, its impact on society and then creating some effective strategies to aware the society about benefits of green construction. The whole analysis and strategies will be done under the purview of the concepts of societal marketing. Objectives To identify usage of natural resources in Green Buildings concept. To Judge the current level of practice of green construction To reveal benefits of the Green Buildings concept and future opportunities To judge the current awareness level and then building strategies to aware the community about the value addition from using the Green Buildings concept. Defining a research problem provides a format for further investigation. A well-defined problem points to a method of investigation. There is no one best method of research for all situations. Rather, there are a wide variety of techniques for the researcher to choose from. Often, the selection of a technique involves a series of trade-offs. For example, there is often a trade-off between cost and the quality of information obtained. Time constraints sometimes force a trade-off with the overall research design. Budget and time constraints must always be considered as part of the design process (Walonick, 1993). There are three basic methods of research: 1) survey, 2) observation, and 3) experiment (McDaniel and Gates, 1991). Each method has its advantages and disadvantages. The survey is the most common method of gathering information in the social sciences. It can be a face-to-face interview, telephone, or mail survey. A personal interview is one of the best methods obtaining personal, detailed, or in-depth information. It usually involves a lengthy questionnaire that the interviewer fills out while asking questions. It allows for extensive probing by the interviewer and gives respondents the ability to elaborate their answers. Telephone interviews are similar to face-to-face interviews. They are more efficient in terms of time and cost, however, they are limited in the amount of in-depth probing that can be accomplished, and the amount of time that can be allocated to the interview. A mail survey is generally the most cost effective interview method. The researcher can obtain opinions, but trying to meaningfully probe opinions is very difficult. Observation research monitors respondents' actions without directly interacting with them. It has been used for many years by A.C. Nielsen to monitor television viewing habits. Psychologists often use one-way mirrors to study behaviour. Social scientists often study societal and group behaviours by simply observing them. Sampling - Sampling plan: The basic idea of sampling is that by selecting some of the elements in a population, a conclusion about the entire population is drawn (Cooper, Schindler 2003) The sampling plan of the research process, I started defining the population of interest that meets the objectives’ of the research, I selected the sampling frame that Iwant to choose the sample accordingly the target audience for the green building concept , sampling method choosing from the probability and non probability methods in sampling , determining the sample size and finally implementing the sampling procedure that focused on the quality individuals, who are willing to open up and be creative, reveal sensitive thoughts and behaviors. The population of interest: Reflecting the target audience or potential target market for the product being researched. I Realized that the target populations for my research are people operating in the construction and development field, are most affected by the green building concept hence their field of occupations is directly affected by the green building concept, they can provide me with information about the construction and development field, people awareness of the green building concept and also the level of importance of having and adopting the green building concept in the UAE community, what value the green building will add to the UAE community in general, beside information about the energy and the components that are used in the green building, the identification of the pollution problem that is connected with the usage of non-renewable materials in buildings, the target audience that I choose meets the desired objectives to be fulfilled. Sampling Frame: A list of civil engineers working in constructions, such details and classification were collected from construction and development sectors, through out the UAE to meet the research objectives, and I tried to get as much information as possible to meet my research objectives’. Table 2: The Study’s Target Population Target population Number of Targets 1 Civil engineers in construction and development sector 60 2 Asstt. Resident Engineer   3 3 Project manager 3 Sampling Methods: A large proportion of marketing studies use non-probability sampling method being executed more quickly and easily than probability sampling, was adopted for the following reasons (Wilson, 2003): The cost is significantly less than the probability samples to undertake. The less stringent procedures required in potential respondent selection mean that they could be conducted reasonably quickly. Small size tend to be smaller The research can target the most important respondent The types of non-probability sampling methods were adopted as follows: Judgment sampling, is particularly appropriate were sample size is smaller (Wilson, 2003), using this method the researcher consciously selects a sample that is considered appropriate for the research study depending on his judgment (Wilson, 2003). Judgmental samples involve the deliberate choice of each sample member. Sample size: I will sent 80 structured questionnaires to collect primary data through internet knowing that size of the target audience is not big and to be able to get as much information as possible, I expected to receive only 40 correct questionnaires beside three in-depth interviews with experts in the field I will try to get 4 interviews face to face. Data Collection In this phase, based upon the sample frame design and the researcher’s judgment, the target audiences, which are 2 out of 4 respondents for the In-depth interviews, will be selected, two specialized professionals operating in the construction and development sector. To obtain the desired objectives from each interview, experts will be given prior notifications about the nature of the research and objectives of it over the phone. I will be Using an unstructured and flexible approach during the interview. The interview schedule includes the following: Introducing the interviewer, research topic and the importance of his/ her experience to the research. Interviewer’s use of the knowledge in the research objectives, nature of the study and how interviewing the respondent will benefit the research. The comments of the respondent to select which parts of the dialogue with the respondent to be explored in the interview documentation. Assuring the respondent that information will be dealt with for academic purposes only. Tell respondent to answer in any language of his/her preference, to interrupt any time for any clarifications. Thanking the respondent and express appreciation for their help. What stimulate the respondent to respond to conducting In-depth interview, is the importance of the subject to some of them(green building concept), as for others they want to help for academic purposes to support the research, and benefiting from their experiences , knowing that results from such a research will benefit governmental bodies and most importantly adding value to the society from environmental and financial perspective , to get more attention and better service when results of the research. The interviews will take 1 hour long, depending on the interview and his time available, after finishing the interviews; the following steps will be followed: Data assembly from notes will be taken during interview and rearranging the transcript of the top recording. Filtering and structuring the data by sorting and focusing on the relevant data eliminate the irrelevant data. Analyzing close-end questions in the interview by counting the alternatives that each respondent choice from. As for quantitative techniques, a questionnaire was designed and pre-tested and then distributed via e-mail to 80 respondents of the total sample size which is 80 for the questionnaires and 3 interviews that are done separately in construction and development sector.. Table 3: Research Activities Activity Method Gathering Primary Data Questionnaiers In-depth interviews Gathering Secondary data Internet Sampling / choosing target popilation Non probability(Judgmental), sample size is small Sample size 4 Interviews 20 questionnaiers Table 4: Data Analysis Methods Data Type Method Questionnaiers Likert Scale Kruskal-Wallis test Indepth-interviews Manual spread sheets Data Analysis Modern computer software has made the analysis of quantitative data a very easy task. It is no longer incumbent on the researcher to know the formulas needed to calculate the desired statistics. However, this does not obviate the need for the researcher to understand the theoretical and conceptual foundations of the statistical techniques. Each statistical technique has its own assumptions and limitations. Considering the ease in which computers can calculate complex statistical problems, the danger is that the researcher might be unaware of the assumptions and limitations in the use and interpretation of a statistic. Questionnaire All the questions will be answered on likert scale which varies from strongly agree to strongly disagree. (Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree) 1. What do you feel – is green building construction is something related to natural resources. 2. Green building aims to provide a free environment friendly society? 3. Green building construction is too expensive to adopt and implement? 4. Green building construction should be a part of all the developing and developed nations like UAE etc. 5. People are well aware about the concept of green building construction? 6. The benefits of green building construction ensures a long term fruitful investment 7. Energy is considered a consumed resource that can not be renewed 8. We should not see the consumption of non renewable natural resources (oil, gas, water, an issue. 9. Usage of natural resources in green building is well known in the UAE community 10. Green building should be valued as a long term investment Read More