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Strategies for GAL to be a

Responsible Business
Activity 13_Group 10_Wed_1PM_Jan

• Wenhui Zhu (1st Speaker) - 510367802


• Eric Putra Tjioe (2nd Speaker) - 510635804
• Yinshi Hu (3rd Speaker) - 510244570
• Rui Zhang (4th Speaker) - 510225797
• Haoming Li (5th Speaker) - 510276124
• Hao Xian (6th Speaker) - 510345383
1st Speaker
Introduction
1. Go Appliances Limited
■ A leading retail company in Australia, which sells home goods and runs both distribution and installation
businesses.
■ It owns about 1000 to 1500 employees,
■ It gained about AUD 2 billion in the last financial year
2. Problem: The consumers’ idea is contrary to shareholders primary mindset which GAL held.
3. Theories: Circular Economy and Indigenous-based Stewardship.
■ Circular Economy: companies to make changes in their business model and product design from the linear system to the closed-loop system
(Bressanelli et al., 2020). Measures: used SBSC to set goals and identified measurements for GAL.
- Apply advanced digital technology and data analysis to improve the operating system
- Produce products with long-term value.
- GAL can adopt the sharing home appliances strategy
- Improve the capacity of waste management and recycling system.
■ The Indigenous-based Stewardship: combine western science with the indigenous’ philosophy of the environment to manage the resources and protect
biological diversity (Beckford et al., 2010). Measure: demonstrated the risks and opportunities from three aspects: waste and recycling, climate
change, customer, and community.
- Have a comprehensive understanding of the local resources and the environmental governance measures.
- Collaborate with the local environmental protection department and transparent its process of product design
- Publishing notices and cooperating with organizations
2nd Speaker
Three Linkages Between Two Different SBSC Perspective Measures
1. Internal Business Operation Measure 1 (Technology Advancement) - Customer Measure 2 (Customer Satisfaction)
■ The business operation employs Internet of Things, big data, and clouds (targeted to increase by 20% in 6 months).
■ Function: data collection, personalized service offers, a digital platform, and sensor equipment to monitor energy and water consumption.
■ Linkage: Create value to customers in the service offering which will certainly improver customers' satisfaction (targeted to increase by 40% per
year)

2. Non-Market Measure 1 (Energy and Water Consumption) - Customer Measure 1 (Attract New Customers)
■ Housing Energy is a major challenge of 21st century (Basu et al., 2013)
■ Reduce energy and water consumption by 10% and 20%, respectively.
■ Not greenwashing as it helps reduce the negative effect on the environment.
■ Linkage: Increase customers' profitability as they pay less for the same product with better services and technologies and attract new customers
to GAL's market (5 people per month)

3. Non-Market Measure 2 (Waste Management and Recycling Volume) - Financial Measure 1 (Revenue Growth)
■ Improve waste management and recycling volume by 30% in a year
■ The urgency of this strategy: Home appliance product contains toxic substances such as cadmium and mercury (Cui and
Forssberg, 2003; Ongondo et al., 2011, as cited in Lin et al., 2019); Steel, plastic, copper, and aluminum are recyclable items.
■ Linkage: attracts investors and customers, generating greater profits for the business (expected to increase 5% per month).
3th Speaker
Why Linear Thinking Challenges Circular Economy and How to Achieve its SBSC Waste Reduction Strategy

Why linear thinking challenges Circular Economy? How to achieve its SBSC waste reduction strategy?

Linear thinking: Produce, manufacture and business model:


• Follows "take-make-dispose", using resources without restriction to • Produce and sell some products that can maintain long-term use
produce products that will be discarded after use. value, eg. use fewer or recycled materials.
• Generate a lot of waste, further destroying the environment (Jørgensen • Recycle old home goods and sell them after refurbishment.
et al., 2018). • Leasing model is an option, lend home goods but remain the owners
• More about the fastest company's profits maximization of the products.
• When product cannot be repaired, sends it to the first supplier that
Circular Economy: can reuse the spare parts (Bressanelli et al., 2020).
• Includes reuse, repair, refurbishment, and recycling of existing
materials and waste will itself become a resource (Sillanpää et al.,
2019). Supply chain:
• Conducive to our maximum use of resources • Integrate participants in the entire supply chain and induce
• Not only focus on environment but also sustainability cooperation to facilitate the transition to Circular Economy.
• The process avoids waste so that it can also be minimizing
transportation and inventory costs (Bressanelli et al., 2020).
4th Speaker
How GAL Can Draw On Indigenous-Based Stewardship Without Engaging in Greenwashing.
Key points: Waste and Recycling, Climate Change, Customer and Community.
Man's responsibility as custodian of the natural environment is to the wider human community, perhaps including future generations
(Lucy & Mitchell, 1996).

Climate Change
Waste and Recycling The unpredictable climate caused by rising Customer and Community
temperatures has a serious impact on local
Companies must consider the way communities (Beckford et al, 2010).
the product packaging is handled. CAL should take the initiative to
CAL should use new sustainable understand the environmental
GAL can disassemble discarded transportation modes and green renewable
appliances and household governance measures in the
fuels. communities
appliances and reuse recyclable CAL can jointly promote the correct
parts. GAL should be transparent about the
disposal of waste packaging and products way its products
with the local environmental protection
bureau
5th Speaker
How Indigenous-based Stewardship challenges the traditional ideas of ‘ownership’ ?
How GAL can use this to its advantage as part of preparing its Sustainability Report and its overall repositioning as a
responsible business ?

What is intigenous-based Challenges: How the repositioning works for


stewardship? Commercial benefit, environmental responsible business?
The indigenous-based Stewardship is a issues. • Create an image that the company
fundamental concept that supports people's respects the land where it operates. Eg.
development in a responsible attitude that telling its employees not to waste
connects the business, society, and Advantages of GAL: resources and positively affect the
environment (Beckford et al., 2010). Size of the company: revenues over people around them;
$2BN, over 1000 employees. • Donations;
• Contact people from other places;
What is the traditional ideas of • Work with university or studies
intuitions;
‘ownership’ ?
• Creating activities with museums;
The traditional ideas of ownership by
• Engaging collaboration with animal and
indigenous people are that they created original
plant conservation groups.
survival skills in daily life, such as they own
the knowledge of the medicinal and curative
properties of plants and vegetation, which have
been scientifically validated and are in great
demand by pharmaceutical companies in
western countries (Amankwah, 2007).
6th Speaker

Three Linkages Between Two Different SBSC Perspective Measures


• Internal Business Operation Measure 1 (Technology Advancement) - Customer Measure 2 (Customer Satisfaction)
■ The business operation employs Internet of Things, big data, and clouds (targeted to increase by 20% in 6 months).
■ Function: data collection, personalized service offers, a digital platform, and sensor equipment to monitor energy and water consumption.
■ Linkage: Create value to customers in the service offering which will certainly improver customers' satisfaction (targeted to increase by
40% per year)
References List
1. Amankwah. (2007). Traditional values and modern challenges in property law. Journal of South Pacific Law, 11(1), 18–38.
2. Basu, K., Hawarah, L., Arghira, N., Joumaa, H., & Ploix, S. (2013). A prediction system for home appliance usage. Energy and Buildings, 67, 668–679.
https://doi.org/10.1016/j.enbuild.2013.02.008
3. Beckford, C. L., Jacobs, C., Williams, N., & Nahdee, R. (2010). Aboriginal Environmental Wisdom, Stewardship, and Sustainability: Lessons From the Walpole Island First Nations, Ontario,
Canada. The Journal of Environmental Education, 41(4), 239–248. https://doi.org/10.1080/00958961003676314
4. Bressanelli, G., Saccani, N., Perona, M., & Baccanelli, I. (2020). Towards Circular Economy in the Household Appliance Industry: An Overview of Cases. Resources, 9(11), 128.
https://doi.org/10.3390/resources9110128
5. Burke, R. J., & Martin, G. (2011). Corporate Reputation: Managing Opportunities and Threats. Routledge. https://doi.org/10.4324/9781315574295
6. Ellen MacArthur Foundation. (2013, January 7). What If We Don’t Buy Products and We Buy Service? Circular Economy Explained | Animated Video Essay [Video].
https://www.youtube.com/watch?v=Cd_isKtGaf8
7. Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2002). The Sustainability Balanced Scorecard—Linking sustainability management to business strategy. Business Strategy and the
Environment, 11(5), 269–284. https://doi.org/10.1002/bse.339
8. Jørgensen, S., & Pedersen, L. J. T. (2018). The Circular Rather than the Linear Economy. In S. Jørgensen & L. J. T. Pedersen (Eds.), RESTART Sustainable Business Model Innovation (pp.
103–120). Springer International Publishing. https://doi.org/10.1007/978-3-319-91971-3_8
9. Lin, H.-T., Nakajima, K., Yamasue, E., & Ishihara, K. N. (2019). An optimum treatment for waste electronic home appliance in remote area: The case of Kinmen, Taiwan. Waste Management
(Elmsford), 89, 379–385. https://doi.org/10.1016/j.wasman.2019.04.026
10. Lucy, W. N. R., & Mitchell, C. (1996). Replacing Private Property: The Case for Stewardship. Cambridge Law Journal, 55(3), 566–600. https://doi.org/10.1017/S0008197300100510
11. McCrea, B. (2020, September 28). Four Challenges Standing in the Way of a Circular Economy. Source Today. https://www.sourcetoday.com/supply-
chain/article/21142961/four-challenges-standing-in-the-way-of-a-circular-economy
12. Nascimento, D. L. M., Alencastro, V., Quelhas, O. L. G., Caiado, R. G. G., Garza-Reyes, J. A., Rocha-Lona, L., & Tortorella, G. (2019). Exploring Industry 4.0 technologies to enable circular
economy practices in a manufacturing context: A business model proposal. Journal of Manufacturing Technology Management, 30(3), 607–627. https://doi.org/10.1108/JMTM-03-2018-0071
13. Sillanpää, M., & Ncibi, C. (2019). The Circular Economy: Case Studies about the Transition from the Linear Economy. Elsevier Science & Technology.

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