BUS310- Casella

There has been a demand for the world to support recycling in order to help
with the current climate and emissions issues that the planet faces. Today, Casella,
one of the most prosperous businesses in the recycling industry, will be thoroughly
examined.

Q1

Political: One nation that works hard to promote environmental sustainability and re-
industrialization is the United States of America. Along with the Environmental
Quality Improvement Act and the National Environmental Education Act, the
National Environmental Policy Act (NEPA) was passed in 1970. In 1970, the
Environmental Protection Agency (EPA) was also founded. Resource Conservation
and Recovery Act (RCRA) laws regulate recycling. EPA (Environmental Protection
Agency) developed this. Organisations like Casella, which has been in the recycling
business since 1975, have been encouraged by environmental rules that have been
implemented during the past 50 years in the United States. (EPA ,2014).

Economic: Each year, 140 million tonnes of the 268 million tonnes of garbage that the
United States produces are dumped in landfills. Each person in America generates
around seven pounds of waste per year, or 2,555 pounds total, according to Columbia
University. A startling 90% of all raw materials collected in the US are either burned
or dumped in landfills. Accordingly, only approximately 10% of the garbage is ever
utilized. In order to capitalize on this opportunity and utilize the estimated $73.7
billion in squandered income, businesses like Casella must seize it. 1.17 jobs, $65,230
in wages, and $9,420 in tax income are generated for every 1,000 (US) tones of
recyclable materials that are collected and processed. (McDonald, J. ,2023).

Environmental ; The US government places a high priority on recycling and using

garbage, particularly because China has refused to accept US waste. As a result,
environmental issues are getting worse in America, and it is the obligation of
organisations like Casella to eliminate this trash (65%). The United States ranks 25
out of 32, which is very low on the list of nations with the most recyclers. Despite
having only 4% of the global population, America produces 12% of the garbage on
the planet. The United States produces 6,347.7 million metric tonnes of carbon
dioxide equivalent in total greenhouse gas emissions. (2023; McDonald, J.).

Social, cultural, and demographic changes have made Americans' awareness of

environmental issues, sustainability, and green and clean initiatives greater. 95% of
Americans who say they recycle do it because they feel it benefits the environment.
The result was an increase in recycling from 7% to 35%.

Technological :Without a question, the advancement of technology had an impact on

the recycling market, which prompted more businesses to enter and grow in it. Both
chemical recycling robots and recycling activities in general have benefited from the
Internet of Things. The optimisation of garbage logistics and recycling facilities both
use big data, analytics, and artificial intelligence. Due to this, businesses like Casella
are now utilizing similar technology, such as fill level sensors for trash cans,
containers, and recycling stations. The business is now reliant on cutting-edge
innovations like startup sensors, LoRaWAN, and the narrowband internet of things
(NB-IoT).

Global: Since America produces 12% of the world's garbage, it is not a discrete region
of the world but rather one of the wasteiest nations. Less than 15% of world emissions
are attributable to the United States. Countries strive to reach the worldwide peak in
greenhouse gas emissions because the United Nations Climate Change Conference
seeks to keep global warming well below 2 degrees Celsius. So, by 2030, the US
government wants to cut emissions by 52%. Many US businesses, like Casella, are
now looking to expand their recycling operations as a result of this.

Given that the garbage business is both neglected and profitable at the same time, the
threat of new entrants has grown in recent years. Since the Chinese government
decided not to accept any waste from the United States of America, it is therefore seen
as an opportunity by the majority of entrepreneurs. Without a doubt, the trash industry
in America is a sector that attracts newcomers. Examples include Utopia Plastix,
Ascend Elements, Redwood Materials, Apeel Sciences, Solugen, PureCycle
Technologies, Vanguard Renewables, and Rubicon Globa.

Due to the small number of well-established businesses in the recycling industry,

particularly those dealing with solid and electronic waste, where about 25% of the
approximately 300 million tonnes of municipal solid waste produced annually in the
U.S. can be recycled while disposal takes up more than 50% of landfill sites (2600
sites), the bargaining power of suppliers has decreased. Due to the fact that only
roughly 67.2 million tonnes out of 267.8 million tonnes of waste being recycled, there
is a surplus or riches being discarded and left unused. In this instance, conversion
expenses are considerable.

Due to the lack of competition for American businesses and the small number of
recycling providers, the bargaining power of purchasers has decreased slightly in
the country. American businesses need recycled materials because of the rising cost of
raw resources globally, ongoing inflation, and issues with supply chains. Numerous
companies, including Kraft, Coca-Cola, Casella, P&G, Johnson & Johnson, Unilever,
Pepsico, General Mills Inc., Kellogg's, and Mars, are among the clients.

Threat of a Substitute Service or Product is Moderate, particularly in light of the

fact that the American waste industry is now crowded with firms that pursue reuse
policies rather of remanufacturing, placing Casella at risk for a variety of hazards.
Many businesses, like Rapanui, McDonald's, Deakin and Blue, Elvis & Kresse, Hugs
& Co., Gucci: aesthetics, KFC, Pizza Hut, etc., embrace reuse policies.
The recycling industry in America has grown extremely competitive as a result of the
viability of this multi-billion dollar sector, which has led to fierce rivalry amongst
existing firms. There are other rivals, including Clean Harbours, GFL Environmental,
Covanta Holdings Corporation Recology, Republic Services, Waste Connections,
Stericycle, etc.

As only 35% of garbage (made lift) is used annually in America, it is crucial for
Casella's managers to put pressure on the US government for increased government
efforts to work to exploit waste waste, which is expected to be around 65%. For
Casella to improve its market share and incorporate all forms of recycling, an
expansion strategy is required. Casella strategy featured by long -term vision as they
plans to install a treatment system for PFAS following discovery in groundwater near
Coventry landfill

References

EPA (2014) What is the National Environmental Policy Act?, EPA. Environmental
Protection Agency. Available at: https://www.epa.gov/nepa/what-national-
environmental-policy-act#:~:text=The%20National%20Environmental%20Policy
%20Act%20(NEPA)%20was%20signed%20into%20law,actions%20prior%20to
%20making%20decisions. (Accessed: April 17, 2023).

McDonald, J. (2023) How much trash does the U.S. really produce?, How Much
Waste Does the U.S. Produce? | Dumpsters.com. Available at:
https://www.dumpsters.com/blog/us-trash-production#:~:text=The%20U.S.
%20produces%20268%20million,pounds%20of%20trash%20per%20day. (Accessed:
April 17, 2023).