environmental issues
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tesco_and_the_environment.docx | |
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Key term: SUPPLY CHAIN - The processes that are involved in the route taken by a product from the raw materials needed to create it right through to the final customer.
A business will have a supply chain. This is the journey that raw materials take before they are either developed into a product that is then sold, or used in the supply of a service. This supply chain can have an impact on the environment and these impacts can be divided into short-term and long-term effects.
short-term effects
Traffic congestion
A business has to get its product or service to the consumer. This may be delivering it to a retail outlet, or it might be sending it to them via mail if it is an on-line retailer. Either way, it will lead to congestion on the roads. This has an impact on the environment because:
A business has to get its product or service to the consumer. This may be delivering it to a retail outlet, or it might be sending it to them via mail if it is an on-line retailer. Either way, it will lead to congestion on the roads. This has an impact on the environment because:
- increased travel time for everyone on the roads
- this means vehicles operate less efficiently and use more fuel
- this contributes to climate change and uses non-renewable resources
Air, noise, smell and water pollution
Businesses contribute directly and indirectly to air, noise, smell and water pollution. For example, businesses will use computers and other IT equipment that uses electricity that contributes to air pollution. Delivery vans contribute towards noise pollution (laws are in place to stop deliveries in urban areas before 7.am). Some manufacturing plants will use water in their production methods which can lead to waste water that must be treated so it does not pollute the environment. Some businesses give off smells as part of their production processes that can affect local communities e.g. farming and manure.
Businesses contribute directly and indirectly to air, noise, smell and water pollution. For example, businesses will use computers and other IT equipment that uses electricity that contributes to air pollution. Delivery vans contribute towards noise pollution (laws are in place to stop deliveries in urban areas before 7.am). Some manufacturing plants will use water in their production methods which can lead to waste water that must be treated so it does not pollute the environment. Some businesses give off smells as part of their production processes that can affect local communities e.g. farming and manure.
Recycling
Some businesses will look to reduce their short-term impact on the environment by recycling materials and re-using them within their production process. This can be used as a marketing tool by the business.
Some businesses will look to reduce their short-term impact on the environment by recycling materials and re-using them within their production process. This can be used as a marketing tool by the business.
long-term effects
Climate change
One of the major challenges facing the world today is climate change. This is caused by the emission of too many greenhouse gases such as CO2 (carbon dioxide) and methane gas. This has been caused by increased industrial activity across the world. This happens as the world becomes more industrialised and developing countries look to increase their production capacity. Burning fossil fuels creates greenhouse gases and this has the impact of rising temperatures which causes rising sea levels and changes to where crops can be grown in the world.
One of the major challenges facing the world today is climate change. This is caused by the emission of too many greenhouse gases such as CO2 (carbon dioxide) and methane gas. This has been caused by increased industrial activity across the world. This happens as the world becomes more industrialised and developing countries look to increase their production capacity. Burning fossil fuels creates greenhouse gases and this has the impact of rising temperatures which causes rising sea levels and changes to where crops can be grown in the world.
Resource depletion
This refers to the use of resources in production which reduces the amount of resources available. Many resources such as trees and electricity generated from wind or water are renewable, but coal, oil and gas and non-renewable resources. The oil used to make diesel that powers delivery vans cannot be replaced (the same for coal and electricity). At current levels of use (millions of barrels of oil a day), the world will run out of oil within the next few hundred years, if not before. Businesses, through their supply chains, contribute to this depletion of non-renewable resources.
This refers to the use of resources in production which reduces the amount of resources available. Many resources such as trees and electricity generated from wind or water are renewable, but coal, oil and gas and non-renewable resources. The oil used to make diesel that powers delivery vans cannot be replaced (the same for coal and electricity). At current levels of use (millions of barrels of oil a day), the world will run out of oil within the next few hundred years, if not before. Businesses, through their supply chains, contribute to this depletion of non-renewable resources.
Many businesses are now more aware of the effect of their operations on things like climate change and congestion. Many have put in place steps to try to reduce the effect of their business operations on the environment. Governments can also force businesses to reduce their environmental impact through laws, regulations and taxes.
Laws such as planning permission for buildings, limits on pollution or restricting the activities of the business can be used. 'Green' taxes are also used to change the behaviour of businesses. Taxes are placed on petrol, businesses have to pay landfill taxes in the UK to pay for disposing waste.
Laws such as planning permission for buildings, limits on pollution or restricting the activities of the business can be used. 'Green' taxes are also used to change the behaviour of businesses. Taxes are placed on petrol, businesses have to pay landfill taxes in the UK to pay for disposing waste.
In law, waste is anything discarded by households, businesses or government organisations. Waste management is about reducing the amount of waste generated in the first place. It is also about recycling. Lots of different types of waste can be reused. E.g. newspapers - paper, wood - landscaping, glass - bricks or fibreglass insulation. Recycling however, does not come without a cost though.
Converting waste products into something that can be used takes up resources and costs money. To be worthwhile, the benefit of recycling has to be greater than the cost. Increasingly, manufacturers are being forced to design their products in a way that will allow them to be recycled. e.g. cars being more energy efficient, cans being recyclable.
customer demands
Customers are putting pressure on some businesses to be more environmentally friendly. Magazines are now printed on recycled paper and supermarkets are stocking more organic products. Businesses which can persuade customers that they are more environmentally friendly than their competitors can gain a competitive edge. They can use their 'green' reputation as part of their public relations and boost their brand image and reputation.
business opportunities
Environmental concerns can represent a business opportunity. There are many new businesses which have been created to make energy saving or renewable energy products. Solar panel producers and wind farm electricity companies are examples. Other businesses create products which reduce pollution.