Business Models: Walmart vs. Starbucks
Introduction Sustainability has become a great topic of interest in many arenas. Particularly, leading organizations are recognizing sustainability needs to be an essential aspect of their long term strategies. With this recognition, better business practices are being sought by investors as well as sustainability is becoming a driving force for better efficiencies and innovation. Two organizations, Wal-Mart and Starbucks, have both took on sustainability as long term initiatives to address their customer needs and affect how their suppliers operate.
Analysis
With both Walmart and Starbucks being major players in their respective industries, both have
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Perhaps this is giving Walmart a free ride in the media/marketing as being sustainable without any parties doing their due diligence to verify the actual numbers. As Senge explained, perhaps “Walmart is using going green to offset negative press for treatment of its employees” due their recent lawsuit losses and settlements (Senge, 2010, p. 114). Although Walmart should be commended for its sustainability portfolio, I believe the results of their goals need to be looked at from proportional aspect as well as how/where Walmart sources their products. Starbucks seemingly grassroots sustainability program is highly targeted at its main ingredient; coffee beans. With what I feel is a better approach to sustainability, Starbucks utilizes Fair Trade enabling local growers to earn better incomes and ensuring high-quality supplies (Lee, 2010). By utilizing Fair Trade, Starbucks is standing by their brand value, which its customers expect. Another reason I believe Starbucks currently has a better sustainability model is I do not believe Starbucks is utilizing their sustainability platform to overshadow any negative press. Senge explained if a company can continue to be profitable by committing to environmental issues, then its reputation becomes a competitive advantage. Lastly, looking at the overall business models, Starbucks simply has more control of its operations to
Bertrand Piccard quotes, “In the 21st century, the heroes will be the people who will improve the quality of life, fight poverty and introduce more sustainability. This is a powerful message, it sums up the concepts discussed throughout the course. Additionally, the case studies such as the New Belgium Brewery, SC Johnson and The Kimberly Clarke organization have been proven to practice this philosophy. As society progresses in its efforts to provide a more sustainable future, there is a fundamental foundation of principles that must be followed to ensure success. Sustainable business development takes into account the application of business operations as it relates to the three pillars of sustainability, which is a dynamic yet integrative place to begin this journey. DesJardins, (2006) calls for a re-imagination of the future to create a vibrant sustainable model; which forms similar beliefs to Piccard. In addition, organizations are more inclined to create sustainable practices based on consumer demand and the willingness of leadership to participate in sustainability programs.
Moreover, they have redesigned their restaurants and background of logo from red to green, which should mean they are more eco-friendly than ever. Besides, Wal-Mart company claimed that they are going to invest $500 million in technologies that will reduce greenhouse gases from the companies’ stores and distribution centres by 20 per cent over the next seven years.
The purpose of this paper is to compare the sustainability practices of two companies in the same industry. The two companies chosen for comparison are The Hershey Company and Coca-Cola Enterprises, both of which are in the consumer staples industry. These two corporations are ranked sixth and eighth, respectively, on the Newsweek Top Green Companies in the U.S 2015. They have taken pride in creating sustainable product designs, having environmentally sustainable processes and supply chain management.
Sustainability is defined as the ability to endure.(1) Though the idea of sustainability can be applied to most anything from a sustainable ecosystem that has survived thousands of years to a sustainable workplace that uses green technologies. Paul Hawken captured today’s connotation of sustainability in saying “Sustainability is about stabilizing the currently disruptive relationship between earth’s two most complex systems—human culture and the living world.” (2) There are countless ways to live, work, and produce sustainably. Sustainability not only needs to be practiced by citizens, but businesses need to join the green movement as well. Without creating, following, and enforcing green policies, negative effects will be evident and innumerable
Not only does Walmart directly affect the economical situation of your community, it also puts significant strain upon the environment we live and depend on. In October of 2004, North America sued Walmart for violating the Clean Water Act CWA in nine states, causing a huge uproar both from the defensive Walmart corporation and more so from the targeted communities. Relying upon a communities oblivion, Walmart takes advantage of the situation in which it's presented, posing a threat to all nearby water supplies because of all the toxins and pesticides literally oozing from Walmart facilities worldwide. Much more costly towards the environment than the tinkling of spare change resounding in our pockets. Therefore, it should come as no surprise that a single Walmart location expends countless amounts of energy to maintain,
Lee Scott's Founding Vision takes the point of view from the zenith of the association as Walmart's CEO, Lee Scott, creates and verbalizes his vision of what Walmart plans to accomplish by seeking after a forceful sustainability system. This case investigates the weights that drove Scott to report the organization's goal-oriented sustainability objectives: accomplishing zero waste, 100% renewable energy, and offering sustainable items. It additionally investigates the decisions made when characterizing and imparting the extent of
For instance, it has turned into a pioneer in introducing sustainable power sources in a considerable lot of its stores everywhere throughout the world including sun based, wind biodiesel, and energy unit establishments; it works with The Sustainability Consortium to build up a supportability file to quantify the maintainability of its items and procedures; and it has been fruitful in changing over utilized cooking oil into biodiesel, cleanser, and supplements for steers nourish and fertilizing the soil more than 1,900 tons amounts of natural waste. The organization has additionally been trying reusing strategies, which has brought about twofold the measure of cardboard being reused. The Environmental Protection Agency's Green Power Partnership Program has positioned Walmart the second biggest buyer of green power among its U.S. retail contenders and third biggest buyer in the Fortune 500. Walmart also strives to be environmentally responsible, for example, it made plans to introduce LED lights and utilizing sunlight when conceivable, turning off lights and other power sources when not being used, and supplanting its open coolers with optional circle refrigeration frameworks. Walmart has begun a morals instruction program that advances respectability as an ordinary conduct by building a universally reliable morals instruction encounter for partners and incorporating morals content into existing practical zone preparing.
Wal-Mart's goal was to be a "good steward for the environment" and ultimately use only renewable energy sources and produce zero waste. Despite much criticism of its environmental record, Wal-Mart took a few steps in what is viewed as a positive direction, which included becoming the biggest seller of organic milk and the biggest buyer of organic cotton in the world, as well as reducing packaging and energy costs. Wal-Mart also spent nearly a year working with outside consultants to discover the company's total environmental impact and find where they could improve
Walmart is looking to go for sustainability in their everyday activities. They are striving to operate by utilizing renewable energy, to bring down the level of wastes in their global operations and sell sustainable products. They are also taking steps to counter climatic changes. They are also ensuring that the safety and wellbeing of their workers are considered in their supply chain. They are looking to improve recycling through education and infrastructure improvement.
The Walmart Sustainability 2.0 Goal video starts with introducing Doug McMillion President & CEO of Sam's Club discussing the company's sustainability areas of interests: eliminating waste, being powered by renewable energy, and selling more sustainable products. In fact, Walmart ask how they can run their business more efficient by using energy sources that do not pollute air, water, and soil? However, the company is moving in the right direction on sustainability, but there is more work required because they have to start looking at the entire product's life cycle since it affects the company's earnings. Notably, Walmart is a profitable organization, and they would like to continue as such, but sustainability needs to be a part of their continuous
Due to increasing environmental imbalances, it is necessary for firms to achieve competitive advantages in the area of environmental convergence as well. Wal-Mart is putting continuous efforts from a long time for environment sustainability and energy conservation. It also received Aspen Institute Energy and Environment award for Corporate Energy Efficiency in 2009. Here are a few steps that Wal-Mart has taken to encourage environmental sustainability:
Do you have systems in place for incorporating sustainability in decision-making? Is sustainability a criterion for purchasing decisions? Do you have a project gating system? Do you have a system to vet green marketing claims? Does sustainability factor into your acquisition due diligence process? Do you consider sustainability in your R&D and tech investments?
Walmart is a company that has started implementing the Zero Waste program. Walmart’s goal is to one day no longer have dumpsters behind their stores and clubs, and to reach that goal Walmart is motivating their associates and suppliers around the world to find a solutions to excess food and develop ways to turn waste into revenue. On Walmart’s website they stated, “In 2011, Walmart has reduced waste in our U.S. operations by more than 80 percent, returning more than $231 million to the business last year. The reduction, which brings Walmart closer to our goal to create zero waste, has the potential to prevent 11.8 million metric tons of CO2 emissions annually ("Walmart Corporate - Walmart's goal is to
T able of Contents 1. 2. Introduction Company Analysis 2.1 Foundation and Development 2.2 Internationalization 2.3 Products and Services 2.4 Recognition and Awards 3. Ethical Sourcing 3.1 C.A.F.E. Practices 3.2 Coffee Purchasing 3.3 Farmer Support 3.4 Forest Carbon Programs 4. Green Store Design 4.1 Energy Conservation 4.2 Renewable Energy 4.3 Water Conservation 4.4 LEED® certification and Green Building 5. Recycling 5.1 Reusable Cups 5.2 Store Recycling 6. Corporate Social Responsibility 6.1 Community Initiatives 6.2 Youth Action Grants 7. 8. 9. Conclusion Appendix Bibliography .. ... . .. 3 4 4 4 4 5 6 6 6 ... 7 .. 7 .. 8 8 . 8 9 9 10 10 10 12 12 12 14 15 16
With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.