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 conservational concerns of its products. Since the company has a global customer base, the ecological issues are threatening its sustainability. In addition, criticism and complaints about the increasing carpet waste in landfill is creating adverse challenges to the ecosystem, which the company relies on for the supply of raw materials. Therefore, C2C approach based on a framework of waste-free manufacturing and socioeconomic perspectives can manage the impending ecological crisis in the world (Little, Hester, & Carey, 2016, p. 6833). Although the previous operations of Desso have yielded significant growth and profitability, implementing manufacturing processes driven by renewable energy sources and reusable raw materials under the C2C models can potentially sustain the company.
Business operated under environmentally hazardous setup affects the eco-system. Systems that consume intensive raw materials increase waste and over depletion of natural deposits. Accordingly, energy systems harnessed from potentially dangerous ecological sectors over-exhaust the environment. The expectation of the (C2C) program in exploiting elements that naturally decompose and other non-toxic materials with no adverse effect to the environment could bring 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 protect the company and global population.
Benefits and Limitations of Cradle-to-Cradle
Implementing Cradle-to-Cradle systems will allow the company to renegotiate terms without the influence of market competition. Since the core focus of C2C systems is to address environmental concerns, the materials would be nontoxic, enhancing safety to consumers and the entire ecosystems. Although preliminary steps of implementing the models carry significant cost implications, C2C methods ensure that 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 and after establishing the raw material, the manufacturing process is 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 business systems have limitations. The model has exclusive reliability on the value chain. Technical faults, such as trust and integrity flaws, regarding material quality assurance 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 may limit the implementation of a C2C plan. Hence, the process becomes both cost-labor intensive, leading to loss of resources and subsequent market failure.
Relationship Adjustments with Customers
Companies that adjust their business practices from ordinary operations to the C2C model should modify their relationship with customers. Given that Desso products have been criticized for 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 and the eco-friendly product lines to improve their relationship with the firm. The C2C business approach will enhance competitive advantage of the company by increasing sales, enhancing customer trust, and advancing product satisfaction level. Accordingly, a marketing approach employed by Desso will change the customers’ relationship and encourage them to buy products 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. Majority of organizations that implement green solutions in their manufacturing processes employ significant 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 as well as redevelop factory manuals to adopt the best operational practices.
Companies seeking to implement the C2C model are required to reallocate funds for effective adjustments. Furthermore, staff training is a critical factor during the modification period. Firms seeking to apply C2C approach 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 forcing 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. However, according to Fischer and Pascucci (2017), C2C approaches are environmental friendly, which is a substantial resource for the company’s operations (p. 3). The model also assists the companies to save on costs and materials in the long run. The reserves accrue from activities, such as reduced power charges of running equipment and machinery when renewable energy systems are used. Therefore, equipment maintenances are controlled, which form a significant part of company expenditure. C2C model has advantages beyond a company’s operations since it supports the environment shared by the entire global population.
References
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