Business under Sustainability Principles: Case of Tetra Pak – Case Study Example

Case analysis Problem ment Sustainability and environmentally compliant practices are assuming a critically important role in the global business environment. This case study deals with the sustainability and environment compliant practices of Tetra Pak. The company has been a successful business in India. Tetra Pak has employed a sustainable philosophy which comprises of 4 Rs- renewing, recycling, reducing and being responsible. The recycling process involves the recycling of the waste generated from the business like the waste in production as well as the wastes disposed in the form of Tetra Pak cartons. The company is striving to employ suitable recycling and waste management processes by re-using the cartons to make useful products and resources rather than disposing off the packets as wastes. The post-consumer waste management and waste recycling process is an important part of the sustainability practices adopted by Tetra Pak. However, the employment of the recycling process is not an easy task in a country like India. This is because, the consumers are not much concerned about waste management and to enter into a recycling process the company has to take into account the complex and hierarchical waste value chin prevailing in the country. There are several other challenges that are likely to arise in the proper employment of the recycling and sustainability programs and strategies formulated by Tetra Pak. But, it is critical for Tetra Pak to formulate and implement suitable strategies for the success of this initiative on the part of the company because the brand image and reputation of the company is much dependent on these responsibility and sustainability initiatives.
Summary of the situation
Apathy towards the environmental sustainability is low in India with very less focus given on managing the wastes in an environment friendly manner. Other challenges include making the rag pickers and scrap dealers interested in collecting, sorting and selling the Tetra Pak cartons, in making the individual and institutional customers interested to store the Tetra Pak cartons for collection by the company representatives of waste management or the scrap dealers. The waste value chain in India is complex with the small rag pickers and scrap dealers selling the products to the bigger scrap dealers and so on. A SWOT analysis of the sustainability initiatives taken up by Tetra Pak is as follows.
Strengths:
The resources and capabilities of Tetra Pak.
The company is a first mover in the area of Extended Producer’s Responsibility (EPR) formulated by the government of India.
Tax Benefits of these initiatives.
Support of the government authorities and local NGOs.
High brand value of Tetra Pak.
Weaknesses:
A low level of awareness and concern for the environment.
The cartons contain sweet products due to which it is difficult to keep the cartons for collection by the scrap dealers because they attract insects.
The complex nature of waste value chain in India.
The low awareness and interests of the scrap dealers towards participating in this type of initiatives.
Opportunities:
The increasing awareness of the consumers towards environmental concerns.
Alliances with NGOs and environment protection agencies.
Providing monetary benefits to the local scrap dealers and recyclers.
Threats:
The association of the brand with the environmental harms caused by the packages.
Customers perceiving this initiative to be a profit seeking move by the company (Wells, 2013).
The increasing volume of waste generated in the country which makes it more difficult to sort the Tetra Pak cartons individually.
Strategic alternatives and recommendations
Tetra Pak needs to employ an efficient model for ensuring a structured and beneficial waste management and recycling process in India. The company should take into consideration the prevailing attitude of the society and the customers towards waste management in the country. The apathy of the customers towards environment management may act as a major hindrance in the way of the efforts of Tetra Pak to recycle the empty and used carton packages of the Tetra Pak products. Due to the complexity of the waste value chain in India, Tetra Pak should employ more than one recycler as the partners. This would help the company to become equipped to mitigate the complexities of the waste management process and chains in the country. Collaborating with different recycler, NGOs and other organizations working towards the improvement of the society and the environment would act as a critical factor in boosting the work of Tetra Pak in the country. The awareness campaigns held by Tetra Pak is an efficient strategy to increase the awareness of the consumers towards recycling and waste management. Also, these campaigns are likely to enhance the image of Tetra Pak as a responsible and accountable company. A proper waste management and recycling process employed by the company would help to increase the sustainability of Tetra Pak as well as to create a positive and environmentally responsible image of the brand in the minds of the consumers.
Reference
Wells, G. (2013). Sustainable Business: Theory and Practice of Business under Sustainability Principles. Cheltenham: Edward Elgar Publishing.