Sustainability refers to have a proper maintenance and upholding the progression in accordance to the requirements of current times while balancing it with the future demands. This directly states formulas to be applied that could fulfill the present-day needs also they shouldn’t be poor alarming for the upcoming generation to set their tasks.
The best of today should be good enough for the next rather it wouldn’t be a process i-e diminishing the fortune assets. So, continuing understanding the term sustainability, it is worth discussing what it is related to the business. Every business unless, it is made sustainable; it is not going to land on good profit graphs. The more it is maintained, the more it is focused to achieve high grades throughout the projects, it is covering. In short it keeps the business stable in all times.
Sustainability – An Important Factor for Companies
Surely, it is a front factor for any company but, its formulations are different for different companies. Here, discussing about Akzo Nobel Company; they have to work out on this factor more deliberately than others. Their works are directly affected by surrounding and global alternations. To keep the coatings good in every environment and weather condition, it has to pay attention or focus on sustainability.
Akzo Nobel is the best supplier of coatings but the reason to sustainability is the competition has increased also the climate conditions aren’t suitable each time. There can be many contrasts that can scratch the quality of coating to a very poor level of acceptance by society.
This is not necessary it happens each time but definitely, in such circumstances, the overall performance of business gets down too much. So, to keep the coatings or their business composed, a brain from Akzo Nobel should set to sustainability element.
Climate Change Issue for Sustainability: Coatings can never be permanent but they can be made durable for a long period. Usually, a company maintains sustainable product and send it to the market for the use to get response. For Akzo Nobel this is something important to consider but there are many disputes on the way to management. As mentioned, climate conditions keep alternating which could result in loss of fine coatings. Sunlight affects a lot on paint. Humidity in atmosphere can cause the finishing coatings to bad health. And so, many such circumstances can influence the business of Akzo Nobel for such level of sustainability.
And other issue like fair trading is considered a pointing sustainability issue that refers to equalizing the producers and investors. Such type of issues affect directly on business. But change of climate for Akzo Nobel is as core as it works with wood coatings. So, this has become a chief issue to keep their business sustainable.
Benefits and Drawbacks of Sustainability Issues
Consumer Interests: In any sustainable business, the needs of customers are first identified and then set to fix in products so that it could benefit the company even more. Consumer interests always matter greatly and here for Akzo Nobel this is noticed at first. Wood coatings are very commonly used in accordance to the temperature of United Kingdom and Netherlands. And so, people check out the product with great care. So, if consumer interests are going down then, company may not be able to produce such stuff properly. This will lead the company to fall down in profits graphs. But, if the consumer interest is rising up then surely, people are showing their attention and demand towards AkzoNobel which indirectly means whether the product is good or not yet; It has to be good because they are liking it from AkzoNobel.
Government Legislation: In a business such as AkzoNobel, government policies are significant to study and notice in all the areas of production. Suppose, the product has been given a good grade with the present legislation but soon a change in legislation may not satisfy them properly, then whether the company was going good; it has to stop its production for that sake any day. And so, if the legislation changes to more suitable environment for company, it is really a good chance to earn at its best level and to set its roots fine enough within the demands of people. And so many such factors have different impacts on business like AkzoNobel Company.
Drivers that cause change in Sustainable Business
Though, there are many drivers which directly and sometimes indirectly influence the business, but some of them related to AkzoNobel Business are here below.
Economic Conditions: Well, for Akzo Nobel it is essential to maintain an economy to keep its business sustainable. Economic diverse conditions can be the reason to add a change in sustainability. It can be a good or bad too. Suppose, if they start utilizing the old resources they had once, definitely, investment is less. But, indirectly if the quality of product start decreasing, the company is in loss and other companies can easily take over this. This hence, doesn’t keep the system sustainable and so, a visible loss is seen to such companies like Akzo Nobel.
Environment: For Akzo Nobel, atmospheric environment matters a lot as it has actually to compete with weather conditions and environment. Wood is a natural product but to keep it set with areas where it is being used coatings play a significant role. They have to be of high quality and sustainable. So, if the environment changes, it may negatively affect the coatings and making the business profit down. This is also possible; an environment for which the coating was produced also suits another environment too, then it becomes an advantage and more profit. But still the ups and downs cause changes in sustainability.
a) Extended Boundaries of AkzoNobel Company
Honda Motors: AkzoNobel has set extended boundaries with Honda Motors – one of the leading vehicles’ manufacturer and supplier. It produces cars, motorbikes and many other vehicles. They are famous for manufacturing quality transports. They had chosen AkzoNobel as a part of their company for they consider them best in making refinishes of vehicles, they produce. They provide training to Honda workers on repairing the vehicles too. Honda Motors has fine relations with AkzoNobel for their production of coatings at a good too level. Honda is good enough, and it should be in a partnership with AkzoNobel to keep their vehicles’ coatings long lasting and matured. Honda has a satisfaction over its business with this company and also they are happy too.
Sikkens Foundations: A free platform where they promote cultural and social values and the specification of being a partner with AkzoNobel is while endorsing all such stuff or guides, colors is a significant factor. Also, AkzoNobel is a donor for Sikkens Foundations. They have made color – a factor to bring life, in society which is highly appreciated by Sikkens. They like to stay as a partner of AkzoNobel for a long time.
Courtauld Institute: This is an association of arts in United Kingdom. This organization is one of the foremost institutes having roots set on encouraging history of art and let it to be commercializing in the society. They need definitely quality colors to be used in arts and such works. So, AkzoNobel is very suitable to them as they produce fine quality which lasts for long and sustainable.
Like above, AkzoNobel has extended its boundaries with many stakeholders e-g: The Cruyff Foundation, GivingBack, Haberdashers, KidsRights, Plan, Rijksmuseum and Van Gogh Museum.
b) Sustainability Impact on Business Structure
AkzoNobel business structure has been changed a lot in contrast to its start of business. Applying sustainability strategies and formulas over their business, they have earned a lot and managed their company to set into modern technology. Their infrastructure has been modified according to the consumer demands plus they have set their systems into competition with other competitors.
Company has achieved wide range of advantages for over past years with this change in their business formation. They have been involving themselves into the new market pressure and keeping their coatings’ production sustainable to timber wood and so on enlarging their association with other shareholders having another sort of business.
Their organization has been affected greatly by the rules of sustainability and maintenance.
c) Strategic Objectives
The respective company has maintained its objectives and has set its target to achieve the best of century. They are indulged in making their business up to prosper and higher level. They are the best of producing coatings and introducing the sustainable windows with a facility of repair and saving the money but earning good.
Their strategic plans involve many of the known visions and formulations as SWOT. By using its tactics, it has enabled itself to generate almost all kind of stuff or products related to wood care. It has fulfilled the major requirements of the consumers and producers too.
AkzoNobel being the best coatings provider has to compete with others too so; it has set its strategic plans to keep its position at first in all times. All these workings and hard work is a part of its strategic objectives to keep its business sustainable and at top.
The company is practicing its best to implement a sustainable business over the worldwide network.
Triple Bottom Line Concept
Triple Bottom Line is a concept of 3P’s that is as mentioned respective association shouldn’t only work for itself to gain profit and all advantages but also it should evaluate how its performance is affecting on people and planet. This term is considered very significant in any business.
Government doesn’t support such a business which is having diverse impact on people or environment. Triple Bottom Line is to sustain a business socially balanced while gaining a good account of profit plus it shouldn’t be destroying other resources that relates with environment. For instance, if a company is working well but its wastes are polluting the areas or rivers, then it is indirectly diminishing the property of people or planet. That business is not included in satisfied or rated business.
The business should not only seek for advantages but also, for the right means and responses from the people for the people. Environment is part of our society in which we exist. And so, protecting it is our major duty that every stakeholder should think of. We are standing in an era where all these things matter widely.
Global usage of resources is common now a day and so, every business should manage its profit with the due needs of people and planet. To equalize the business according to these three i-e profit, people and planet is known is Triple Bottom Line Concept.
Proceeding towards AkzoNobel Business family, triple bottom line concept is mandatory to consider and to acquire its demands it has to work a lot. They are dealing in wood products. And making coatings, their industry is producing a large amount of wastes too. Though, they are making the world beautiful with sustainable colors but on the other side, they have to save the environment too with the diverse effect of coating production materials.
Definitely, every good coating color they generate leaves a bad waste after it. Everything that is used in production and generated by production should be ensured of not harming the environment and society by any way.
Taking instance of other organization, we have Alstom Transport Division business as a fine example of it. They are producing trains at a wide range. No doubt, they are earning good after a hard work due to privatization but production of such parts and then combining them into one is not only one sided job. The have planned no trains should harm the atmosphere with the consumption of fuel the train will use like a poor chimney. They are required to present the reports regularly what their company is performing at financial level with respect to sources they are creating for other people. It is included in the best usage and practices over the business network to keep the steadiness with the people and planet – as we are utilizing it in different manners daily.
Sustainable Strategic Business Planning: Maintaining equilibrium in the business for all the period of times, and setting it to acquire healthy financial responses plus keeping it good for people and environment is a perfect business planning.
Financial Return: As soon as the business is employing sustainable approaches, it is going to receive a good return in the form of profit. If all the approaches are stabilize by the company and every stakeholder is satisfied then, financial situation of the current business can lead to high grading soon. But, if the situation gets worse then, company is in loss through all sides.
Identifying Sustainable Strategic Objectives: Well, when a business is planned and emerged into the market, it has to face many challenging situations and mainly when the market is full of competitors. So, every stakeholder who is the main owner always thinks about the happenings in the market and what steps should be selected to proceed. Every process is defined and then categorized to implement for just acquiring a sustainable business.
All of the efforts or formulations are termed as strategic planning and the targets are set to objectives to be achieved in future. Business sustainable strategic objectives are accomplished at the time of enforcing the policies. Those policies should be according to the demands of all stakeholders with respect to the consumers. At the start of business, these plans are recognized and acknowledged to every shareholder and institute under the main association.
To classify all such strategies to raise the business high within the government legislation, society’s positive response, consumer’s interest, without effecting environment and finally financial profit; after the start of business or facing loss is useless. All of the stakeholders need to sit on a common place to confirm such approaches that could lead the business to sustainability.