The Business Sence of Cradle-to-Cradle Approach to Desso
The Cradle-to-Cradle (C2C) business model has several environmental advantages. Desso has witnessed global challenges emanating from the environmental concerns of its products. Since the company has a global customer base, the environmental concerns are threatening its sustainability. Moreover, criticism and complaints about the increasing carpet waste buried in landfill is creating adverse challenges to the ecosystem, which the company relies on for the supply of raw material. Therefore, C2C approach based on a framework of waste-free manufacturing and socioeconomic perspectives can manage the looming ecological crisis in the world (Little, Hester, & Carey, 2016, p. 6833). Although the previous operations of the company have yielded significant growth and profitability, implementing manufacturing processes driven by renewable energy sources and utilization of reusable raw materials under the C2C models has better potential for sustainability of the company.
Business operated with environmentally hazardous operations such as the utilization of toxic chemicals, intensive raw materials leading to waste and energy systems harnessed from potentially dangerous ecological sectors are depleting the environment. The expectation of the (C2C) program in utilizing ingredients that naturally decompose and other non-toxic materials with no adverse effect in the environment could attribute success to a company’s future operations (Little, Hester, & Carey, 2016, p. 6832). The quest by Desso to implement C2C model that observes high ethical standards, solid corporate social responsibility (CSR) programs, and elimination of hazardous waste to the environment will yield to advantages to the company and global population through environmental safety.
Benefits and Limitations of Cradle-to-Cradle
Implementing Cradle-to-Cradle systems will allow the company to renegotiate terms without the the influence of market competition. Since the core focus of C2C systems is to address environmental concerns, the materials are safe leading to safe consumers and the entire eco systems. Although preliminary steps of implementing the models carry significant cost implications, majority of C2C ensures the manufacturing resources and the technical nutrients are reused to save the cost. Additionally, the C2C business model has improved sustainability perspectives. Fischer and Pascucci (2017) illustrate that when implementing a C2C approach, upon the establishment of raw material, products manufacturing are managed in a similar speed and quality (p. 2). The model can be replicated if the material and technical nutrients are available.
Conversely, the C2C model has limitations. The model has exclusive reliability on the value chain. Technical faults, such astrust and integrity flaws, regarding material quality assurance systems can affect the entire C2C production plan. It also takes significant time to identify reliable and committed suppliers. The modification of equipment, operations, and marketing plans is a limitations for implementing a C2C plan. This is cost and labor intensive and may lead to the company losing resources and subsequent market failure
Relationship Adjustments with Customers
Companies that adjust their business model from ordinary operations to the C2C model should modify their relationship with customers. Given that Desso products have been criticized as causing environmental challenges, the company should redesign its communication systems to counter the global viewpoint. The implementation of C2C system allows the company to develop and communicate the new products specification and design a progressive marketing strategy for its global customers. The promotional strategy will enable consumers to understand the enhanced environmental operations of the company, the eco-friendly product lines and thus, redefined their relationship in the sector. The C2C business approach will increase competitive advantage of the company by increasing sales, enhancing customer trust, and advancing product satisfaction level. Therefore, a progressive marketing approach employed by Desso will change the customers’ relationship and encourage them to buyproducts manufactured with green solutions for competitive advantage.
Challenges in Implementing Cradle-to-Cradle
Companies that implement C2C business models experience several challenges in the industry. The core objective of corporations is to manage their business professionally to cover all their obligations and make profits for effective growth. Majority of organizations that implement green solutions in their manufacturing processes employ heavy investments that affect their profitability (Fischer & Pascucci, 2017, p. 3). Funds are utilized to change operations of departments, such as equipment purchases, process redesign, and marketing plans. Therefore, Desso’s significant resources were shelved to purchase and install equipment and redevelop factory manuals to adopt the best operational practices.
Companies seeking to implement the C2C model are required to reallocate funds for effective adjustments. Additionally, staff training is a critical factor during the modification period. Firms seeking to apply C2C model are likely to face challenges of re-training employees to understand the expectation of the new operational designs. Workers can be redundant; others may take long to adjust compelling the company to employ more expatriates to manage the green solutions. Other significant challenges emanate from reduced organizational growth, declining sales, and the loss of suppliers to their competitors in the industry. However, according to Fischer and Pascucci (2017), C2C approaches are environmental friendly which is a major resource for the company’s operations (p. 3). The model also help companies to achieve higher cost and material savings in the long run. The saving accrue from activities, such as reduced power costs or running equipment and machinery due to harnessing renewed energy systems and the reduced costs of machine and equipment maintenance which forms a significant part of company expenditure. C2C model has advantage beyond a company’s operations to the environment shared by the entire global population
Fischer, A., & Pascucci, S. (2017). Institutional incentives in circular economy transition: The case of material use in the Dutch textile industry. Journal of Cleaner Production, 155, 17-32. doi: 10.1016/j.jclepro.2016.12.038
Little, J. C., Hester, E. T., & Carey, C. C. (2016). Assessing and enhancing environmental sustainability: A conceptual review. Environmental Science & Technology, 50(13), 6830-6845. doi: 10.1021/acs.est.6b00298