Introduction
The three pillars of a sustainable company are economic, social, and environmental sustainability. Most companies focus more on the environmental pillar and reduce water use, wrapping waste, carbon footpaths, and other environmental effects (Beattie, 2021). Another vague concept, social legitimacy, is connected to the major significance. Its owners and staff should support a company’s operations and the public it operates. Most firms consider their footing secure in fiscal sustainability (Beattie, 2021). While the three sustainable development pillars are modern ways of achieving sustainability, conventional paradigms are the traditional ways that enhance business sustainability.
Economic growth evaluates the corporate world in a measurable format and influences the level, focusing primarily on GDP and total output. It lays a great emphasis on qualitative advancements to create quantitative results. When the price of a nation’s goods and services increases, bringing in more money for businesses, the biosphere’s economy is thought to be expanding. Economic advancement results in higher income levels, more excellent employment opportunities, and higher levels of education (Cheng et al., 2021). Sustainable development is crucial because it affects business strategy and management through business models, CSR, environmental stewardship, life cycle management, manufacturing, procurement strategies, and ethics.
Sustainable Business and Traditional Model
The company that best represents sustainable development is Apple Inc. McDonald’s, in comparison, is the business that best represents the traditional model. Every time an Apple product is introduced, the corporation displays a “green” slide on which it discusses issues including energy consumption and recycling. Like numerous other businesses, Apple implements sustainable business principles throughout its organization. Apple’s environmental reports demonstrate that the company knows that businesses must meet some of the environmental challenges associated with a sustainable business. Firms must take additional steps to assist partners and suppliers in streamlining their operations (Hartman, 2021). In Apple’s case, this entails collaborating with smaller partners to develop better business practices; the recent revelation by the company that the use of clean power in its supply chain has increased is part of that investment. A three-structured franchise model is used by McDonald’s. One common way for small businesses to operate is through franchising. A global master plan called “Plan to Win” is the foundation of McDonald’s corporate strategy. McDonald’s upholds the four principles outlined in its mission statement: “Quality, Service, Cleanliness, and Value.”
How Each Affects Business Strategy and Management
The Business Model
Business models and strategy are essential requirements for a firm to exist. A business model discusses and details how a company functions and makes money. A company model’s why, where, and how are described and justified in a business plan. McDonald’s most lucrative business model architecture, conventional licensing, enables them to retain up to 82% of the revenue earned by their franchises (Pereira, 2022). The capacity of Apple to create cutting-edge devices that use the same computer system, applications, and programs is a significant competitive advantage. Because of the reduced cost, risk, and time required for study and development, the business can consistently introduce new goods and keep a competitive edge over rivals. Economic paradigms increase Apple’s global costs, staff wages, and the potential for buyers to stop upgrading their iPhones. Numerous work opportunities are made available by economic concepts at McDonald’s. The corporation employs teenagers as part-time help, attracting more workers, and creating even more job openings.
CSR
Businesses increasingly emphasize being morally sound by defending women’s rights, preserving the environment, or attempting to eradicate local, provincial, national, or international inequity. Socially responsible businesses provide their clients and shareholders with visually appealing images, benefiting their bottom lines. In the 99 percent of the countries in which it operates, Apple has sustainability initiatives, and since 2008, it has prevented more than $508,000 worth of electronic waste from ending up in landfills (Dudovskiy, 2021). McDonald’s CSR ensures that the goods they are supplying are manufactured safely, morally, and with the least detrimental environmental effects possible. CSR might assist a company in luring and keeping talent.
Apple distinguishes its values with a high level of uniqueness and ongoing investment portfolio across equipment, software, and applications. McDonald’s inventiveness, consistency, and licensing model are primarily accountable for its success currently. Socially conscious employees are offered the opportunity to use the tools at their disposal to further their causes. Being socially responsible can benefit a company’s brand and reputation (Hartman, 2021). Initiatives focused on social responsibility can boost staff morale and productivity, impacting how profitable the company can be. Companies can increase the retention and loyalty of customers by putting social responsibility initiatives in place. Companies that engage in social obligation have the opportunity to stand out from the competition because their brands become well-known and regarded.
Environmental Stewardship
Environmental responsibility is known for the ethical use and preservation of natural surroundings through sustainable and conservation practices to improve ecological integrity and human well-being. Apple and McDonald’s stripe engage in actions that impact the environment. Stewardship is a company’s obligation to comprehend and control any number of ways they impact the environment. A company can find sustainable methods, enhance its standing with customers, and even save by engaging in stewardship (Hartman, 2021). Not every company practices active stewardship. While some engage in activities with little environmental impact, others concentrate on other facets of corporate responsibility. When a company practices stewardship, it is usually required to take accountability for its operations’ environmental impacts.
To enhance environmental stewardship, several corporations collaborate with environmental organizations. For companies involved in manufacturing, this entails employing chemicals and production methods that are environmentally benign, as well as obtaining renewable raw resources. Reduced car use can be a part of stewardship, whether from a fleet of hybrid vehicles or from purchasing goods in bulk to reduce the requirement for shipping. Utilizing email and intelligent devices to reduce paper usage is a kind of stewardship for all business types. There are expenses associated with active environmental stewardship. Utilizing renewable energy alternatives, like solar-powered factories or hybrid cars, is cutting-edge stewardship but comes with a high upfront cost (Hartman, 2021). Tax incentives and savings from lessening reliance on expensive, environmentally damaging energy sources like petroleum can help mitigate these costs.
Every company that wants to improve its environmental standing faces the problem of controlling stewardship as part of a budget. There are several possible advantages to stewardship in business. Together, these factors cut energy use, safeguard natural resources, and enhance public health (Hartman, 2021). Individual companies that commit to stewardship may find that their choice is profitable. Some businesses receive certifications from environmental organizations that serve a marketing purpose by letting customers know what they are doing. Environmental stewardship is crucial for businesses to adopt since it increases sustainability.
Life Cycle Management
All businesses can utilize LCM as a business management strategy to enhance their sustainability performance. The method of allocating various customer lifecycle stages to evaluate and analyze indicators to determine overall business success is known as customer lifecycle management (CLM) in marketing (Hartman, 2021). CLM encompasses the entire lifecycle, from the discovery of a product or brand to adoption and brand loyalty. Well-executed customer lifecycle management provides marketing teams with an extensive view of the customer experience and makes it simple for them to spot areas for development. Its objective is to promote more sustainably managed value chains, and both big and small businesses can use them. Targeting, organizing, analyzing, and managing product-related data and activities for continuous improvement throughout the product life cycle are all possible with LCM (Hartman, 2021). LCM aims to operationalize the life cycle philosophy and sustainable solutions for companies that pursue continuous improvement.
Apple releases software updates to maintain the security of its devices and the performance of its current hardware. Businesses no longer require extensive service operations and imaging procedures for system upgrades. McDonald’s has undergone multiple life cycle phases since its inception in the 1940s. The business is currently in the resurgence stage, which is a stage between stability and decline. Throughout the revival stage, a company pursues rapid expansion through creativity and significant risk-taking (Habib & Hasan, 2019). These companies are working to minimize environmental and socioeconomic impacts and carbon footprints while boosting social and economic values. Different operating concepts and technologies are connected by life cycle management.
Production
Production is among the critical aspects of the manufacturing process and is essential to being a manufacturer. Without this procedure, Apple and McDonald’s could not produce manufactured goods, meaning there would be nothing available for consumers to buy. By ensuring a high-quality product, keeping costs in check, and achieving delivery schedules, an efficient production senior management helps a business draw in and keep customers (Hartman, 2021). The primary benefit of understanding and managing manufacturing is that it allows a business to increase its customer base, generating profits. A robust production management department can evaluate the possibilities for the resources and raw materials required for production and acquire resources of the proper standards and at a reasonable cost.
The most excellent materials for a corporation are those that are most suitable for its production model rather than those that are either the best standard or lowest priced options. Strong production management teams can identify reliable suppliers with suitable materials. The most crucial duty of manufacturing management is overseeing the production process (Hartman, 2021). The department must determine the employees required, what tools should be employed, and what manufacturing procedure would yield the best product to satisfy client expectations. A robust production company management will optimize the production system to reduce costs while keeping the required level of quality.
Supply Chain Practices
Supply chain practices aim to increase velocity while encouraging cooperation among the numerous enterprise’s entire supply chain and searching for new technology to improve their operations. Companies have Goals in place that enable employees to evaluate the success or performance of each distribution network stage. Procedures for supply chain management improve customer service and a business’s financial standing (Hartman, 2021). Customers look forward to acquiring the correct quantity and variety of products. Customers assume that items will be available where they should be and expect prompt delivery of their orders and quick product fixes.
Apple’s supply chain strategy uses several sources for the same item. Apple’s supply chain comprises a wide variety of outside vendors. Apple purchases its parts and supplies from various vendors, who then deliver them to the Chinese assembly facility. The long-term logistics company founder Ray Kroc developed is the key to McDonald’s supply chain success. Though few people are aware of it, OSI, one of the biggest private firms in the U.S., is a significant and long-standing meat supplier to McDonald’s (Sorvino, 2020). The Aurora, Illinois-based business has been subtly supplying the venerable restaurant for over 50 years and now exports to more than a dozen nations.
Business Practices and Consumer Behaviors
Apple uses prepayments to secure large production volumes, bargain for favorable combinations, and purchase strategic raw materials, which enables it to offer its products to clients at affordable rates, motivating them to make more purchases. With its top suppliers, Apple has various exclusive long-term agreements with clients, inspiring them to stay loyal to the company. McDonald’s business practices make it one of the most reasonable fast-food firms, attracting several buyers to the organization. Suppliers may find it advantageous to have a solid knowledge of how customers behave (Hartman, 2021). Businesses use consumer behavior to help them decide what products and services to make or provide. The capacity of Apple’s products to fulfill customers’ requirements and expectations is the primary factor that affects consumer behavior. McDonald’s promptly provides the most excellent quality cuisine in a clean atmosphere as part of its value proposition.
The Ethics of Each Company’s Marketing Activities
Business ethics governs business interactions with clients and society. The importance of appropriate and inappropriate behavior from a business standpoint. Business ethics includes standards of conduct with coworkers and customers and those that apply at the workplace (Hartman, 2021). High-standard organizations provide reliable information, treat everyone with dignity and carefully adhere to the law. Apple addresses ethical issues by adopting a conduct code that is adhered to by all employees and partners, which defines several goals to improve working conditions and decrease the adverse environmental effects of industrial methods. McDonald’s takes leadership responsibilities seriously and holds each employee individually and collectively accountable.
Operating in a way that benefits personal financial, and societal aims is what business ethics implies. A satisfied workforce, strong sales, lower regulatory expenses, more customers, and a high reputation can all be obtained by making ethical business decisions. Business ethical concerns include the relationship between workers and their employers, interactions between corporations and shareholders, the work environment, global warming, bribery, the preservation of workers’ rights, and product safety (Hartman, 2021). Using the proper marketing ethics, brands may connect customers with a high level of trust, and loyalty, a sizable market share, more robust brand recognition, increased sales, and more significant revenue. They will have the chance to perfectly accomplish both short-term and long-term goals due to these moral practices.
Accounting, Finance, HR, and Operations Management
Apple’s finance and human resources divisions use a variety of SAP systems. Apple has profited from SAP’s support in growing its clientele and developing relationships with them. McDonald’s can realize its plan and importance in various ways due to the Accounting Information System (AIS). It offers pertinent data that aids in the effective use of resources, eliminate some manual tasks that would add to costs, and ensures that data is delivered on schedule. HR professionals can assist with the recruiting efforts of incredibly creative individuals or in the advancement and training of operating employees to increase their skill levels. These skills ensure that McDonald’s and Apple make a profit through the creation of innovative products and methods of service delivery. HR experts contribute their profound insights into the human condition to guarantee that personnel priorities are given the proper weight as part of the company plan (Fadeev et al., 2021). They establish better strategies to attract top talent, promote engagement, and strengthen capabilities.
The process of planning, directing, and controlling the creation of goods and the delivery of services is known as operations management. A corporate organization needs operations management because it improves the management, administration, and control of products, services, and employees (Hartman, 2021). McDonald’s operations management supports its claim to be the world’s most well-liked fast-food restaurant. It integrates numerous critical areas to attain maximum effectiveness and prevails in the face of intense competition. For Apple to excel in creating its technological products, the system of interactions inside the company ensures that the outcomes in this functional environment are successful. All sectors and industries are impacted by operations management. With the appropriate resources and time, operations management in healthcare delivers the most tender care. It enables professionals like nurses and doctors to provide rapid treatment. Someone knowledgeable about technology can identify the issue when something disappears.
Potential Ethical Issues
Some of McDonald’s ethical concerns are corruption, environmental responsibility, and regulatory requirements. McDonald’s has been accused of several environmental violations because they have built multiple facilities worldwide to produce their products, which results in pollution (Zhang et al., 2020). McDonald’s has been accused of several environmental violations because they have built multiple facilities worldwide to produce their products, which results in pollution. Apple’s most significant ethical issues are child labor, substandard environmental reporting, and poor working conditions. Apple addresses ethical issues by adopting a code of conduct that is adhered to by all employees and partners. Additionally, it set forth several goals to improve working conditions and reduce production methods’ environmental influence.
Apple’s suppliers must treat employees fairly and produce goods using green practices. This does not, however, eliminate all immoral activities, such as child labor, e-waste, or hazardous working conditions, which continue to exist in some regions of the world. By noting the ethical issues and their impacts on the organizations, it would be easier to prioritize them since the businesses will quickly put measures to minimize or prevent the issues (Hartman, 2021). Individuals would approach resolving ethical issues in various ways. One could discuss the significance of ethics with the company’s owner and workers and ensure that workers are adequately informed about matters affecting them. People can honor agreements and obligations to employees and stakeholders and commend and honor moral behavior. On the contrary, a company can provide an excellent example of ethical behavior to ensure that individuals who break norms are accountable, particularly leaders.
Conclusion
Sustainable development strategies help a nation regulate its development to the difficulties associated with climate change, thus protecting vibrant natural possessions for present and future populations. Sustainable development opens up new growth engines by generating incentives for more effective use of environmental assets and assigning funds to uses with the highest value. The negative consequences that some conventional business practices have on the community and the economy are lessened or made worse by the development of maintainable business models.
References
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