Group 1 Change Management

1. Mekri Supriansyah 2320522030

2. Amelia Putri 2010522010
3. Ledhisya Juanza Putri 2010521020
4. Fachrum Nisa 2010522005

CASE 5.3 SUMMARIZE

Preparing for life after ‘peak stuff’: sustainability pioneering companies are suggesting that
customers buy fewer of some products

In 2016, several major corporations took strategic steps towards sustainability and responsible
business practices. Notably, Ikea, Mars Food, and Heineken made calculated interventions aimed
at promoting sustainability without compromising growth. These initiatives included advocating
for healthier alternatives, increasing transparency about product ingredients, and encouraging
responsible drinking. Ikea's circular approach focused on product longevity and recycling, while
Mars Food addressed nutritional concerns in its products. These efforts underscored a broader
trend of integrating sustainability and corporate social responsibility into business plans, driven by
the realization that responsible practices are essential for long-term success. However, challenges
remain, including shareholder demands for short-term profit. Despite this, pioneering companies
are leading the way towards a more sustainable future.

Questions

1. How do the intentions of the companies in this case study compare with the 3Ps of the
Triple Bottom Line approach – People, Planet and Profit?

Answer :

The companies' intentions align closely with the Triple Bottom Line (TBL) approach, which
emphasizes considering three main factors in business decisions: People, Planet, and Profit. Firstly,
they prioritize people by being honest about any issues with their products, like unhealthy
ingredients or promoting responsible drinking to keep consumers safe. Initiatives like Ikea's
workshops on repairing products show a commitment to empowering consumers and promoting
sustainable living. Secondly, they focus on the planet by acknowledging the environmental impact
of their operations. Companies like Ikea are rethinking product design to reduce waste and
encourage recycling, which helps conserve resources and minimize pollution. Lastly, they ensure
profitability by integrating sustainability into their business models. By building trust with
consumers through transparency and responsible marketing, they enhance brand loyalty and
reputation, ultimately driving profitability. Additionally, adopting sustainable practices can lead to
long-term cost savings through reduced waste and resource consumption. Overall, these companies
demonstrate a holistic approach that balances the interests of people, the health of the planet, and
the need for profitability, in line with the principles of the TBL approach

2. In pursuing sustainability, would the companies in this case study be best advised to choose
the Japanese approach or the organisational learning approach?

Answer :

The companies would be better off choosing the organizational learning approach rather than the
Japanese management style. The Japanese management style, although successful in certain
aspects like promoting loyalty and long-term planning, might not be the best fit for dealing with
the rapidly changing challenges of sustainability. This approach relies heavily on factors like
lifetime employment, seniority-based promotion, and long-term planning, which might not be
flexible enough to adapt to the constantly evolving sustainability landscape.

On the other hand, the organizational learning approach emphasizes continuous improvement and
adaptation. It involves promoting learning throughout the organization and encouraging everyone
to contribute ideas for improvement. This approach allows companies to be more flexible,
responsive, and innovative in addressing sustainability challenges.

Companies like Ikea and Mars Food have already started adopting the organizational learning
approach by asking themselves tough questions about the drawbacks of their products and
implementing changes to become more sustainable. For example, Ikea's initiative to create a
'circular' Ikea and Mars Food's efforts to offer healthier alternatives demonstrate a commitment to
learning and improving their sustainability practices.

Therefore, in pursuing sustainability, the organizational learning approach would be more suitable
for the companies in this case study as it allows for greater flexibility, innovation, and adaptation
to changing sustainability challenges.

3. Ikea’s 2015 Sustainability Report poses the question: ‘In a world of limited resources, how
can Ikea create a positive impact on the planet while [selling] low-cost products that customers
can easily discard and replace?’ How might Ikea answer this question in way that is
compatible with sustainability?

Answer:

Ikea can answer this question in a way that aligns with sustainability by implementing several
strategies. Firstly, they can focus on creating products that last longer and are designed for easy
repair, upcycling, and recycling. This means using durable materials and designing products in a
way that minimizes waste. Additionally, Ikea can educate customers about the environmental
impact of their purchasing decisions and encourage them to make more sustainable choices. They
can also invest in research and development to innovate new ways of producing and distributing
products that have a lower environmental footprint. By adopting a circular economy approach and
prioritizing sustainability throughout their business operations, Ikea can create a positive impact
on the planet while still offering low-cost products to customers.