Introduction
Environmental practices among Small and Medium Enterprises (SMEs) are increasing being supported as the vital approaches that are needed to shapes and sustains the environment (Schaper 2002; Hillary 2004; Redmond, Walker et al. 2008; Rasi, Abdekhodaee et al. 2010; Revell, Stokes et al. 2010). Many large organizations have taken considerable steps to reduce or eliminate pollution that might occur from their operations. Small and Mediums Enterprises (SMEs), however, continue to be overlooked on it consequences on environmental management issues (Melton 1999). While, some SMEs are generally aware of the substantial impact of their operations on the environment (Williamson and Lynch-Wood 2001), most SME believe environmental initiatives as peripheral issues and may not be important to the organizational survival (Redmond, Walker et al. 2008)
Ensuring SMEs to realize and accomplish its environmental objectives are crucial. The notions that SMEs are not yet engaged in the environmental practices are intimidating since the facts that most environmental pollution is originates from SMEs. An earlier study by Smith and Kemp (1998) identifies that 70 percent of manufacturing pollution are created by SMEs. The Marshall Report (1998) estimates that SMEs generates 60 percent of carbon emissions. More recently, a report for The European Commission, Directorate General Environment, indicates that more than 50 percent of commercial and industrial waste are produced by SMEs (Berends, Morère et al. 2000), whilst the UK Environment Agency estimates that UK SMEs are responsible for 60 percent of commercial waste and 80 percent of pollution accidents (Netreg 2003). Again, work by the Wales Environment Centre in rural Wales, indicat...
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...tivities. The strategy requires a structural investment in operations that involves process or product based changes in effort to gain a competitive advantage (Klassen and Whybark 1999). Compared to former strategies, proactive strategies imply creative problem solving and collaborative exchanges with stakeholders (Sharma and Vredenburg 1998). For example, organizations implementing proactive approaches can improve various managerial aspects by continuously monitoring their activities and learning to optimize and utilize their green technological investment (Biondi, Frey et al. 1998). In addition, strategic collaboration with stakeholders enables SMEs to share tacit knowledge that are useful to make a successful transition to new environmental technologies. Table 1 depicts the differences between a reactive approach and a proactive approach as discussed above.
With forward movement in society, it is important to consider not just what will propel most toward success, but also what will help to sustain the environment along the way. What may have been considered appropriate decades ago, may no longer be socially acceptable due to the changes observed in both the business world and the environment (Fiske, 2010). Therefore, it is important for organizations thriving in today?s economy to consider how they may capitalize most effectively from their product or service of choice while minimizing or eliminating any damages along the way (Knoke, 2012).
The Small Business Administration “aids, counsels, assists, and protects the interests of small business concerns.” They assist small businesses by providing them with whatever is necessary and will not stop until they get the business to be successful without their assistance. Although they are not able to give the business all of the necessities they need, they do their best and as much as they can do. Their motto is, “Aid, counsel, assist, and protect insofar as is possible, the interests of small business concerns.”
The Small Business Administration (SBA). In July of 1953, the United States Congress amended an act called the Small Business Act. Many believe that the essence of the American economic system of private enterprise is free competition. Also, that only through full and free competition can free markets, free entry into business, and opportunities for expression and growth of personal initiative and individual judgment can be assured.
The first process is executing, which is noted as being repetitious, completing reports, organizing documents and the implementation of strategy tools, (Paroutis, et al., and 2013). The next category is reflecting, which analyzes past practices, develops modifications and conducts experimentation, (Paroutis, et al., 2013). This task appears to concentrate on what is good and bad, regarding current practices and the effectiveness of implementation. Initiating begins the process of developing new ideas by shaping and modifying new strategies, (Paroutis, et al., 2013). According to the authors, initiating usually takes place in the beginning phase of strategizing, (Paroutis, et al., 2013). Coordinating concentrates on team interaction, this takes place within the organization working with other strategy teams and management, during interviews and implementation of strategy tools, (Paroutis, et al., 2013). Through coordination, the actions of one team influence the actions of other teams regarding strategic tools that have been implemented, (Paroutis, et al., 2013). The last three categories are supporting, collaborating and shaping, (Paroutis, et al., 2013). During the supportive phase, the strategy teams are providing knowledge and support to other teams by initiated the strategy tool kit, (Paroutis, et al., 2013). They are also analyzing data
The problem with pollution prevention is that it requires people to understand more than the intimate details of the production process; they must also understand the technical possibilities. Many corporations have environmental managers, which are generally responsible for helping corporations comply with the law. According to the case study, the work of environmental managers often expose them to many pollution prevention solutions, but they often have trouble getting access to production areas. Production often sees Environmental Managers as "the compliance police".
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
To begin with, I believe that a proactive approach exhibited by a firm, makes a statement that do not want to lose their competitiveness. One such reason is capitalizing on economy of scale and growth (Pearce & Robinson, 2011, p. 125). Businesses can lower their cost per unit and spread their cost over more items by selling and producing
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
Thompson, A.A., Strickland, A.J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin
Strategies per se don’t generate competitive advantage or sustainable operations. Businesses that build sustainable operations management achieve this through development of efficient policies and activities that meet the needs of clients. Organizations that sustainably manage operations integrate all core functions into a one active force in the market. Morrison dynamically and steadily works in various sustainable areas of policy formulation to achieve competitive advantage, value addition, customer satisfaction, job creation, food waste management, social responsibility and climate change control.
What is the socially optimum level of production keeping in mind the environment? How should it be achieved? It is at this point that the great economic minds of out time begin to take up arms. Michael Porter, a Professor of Business at the Harvard Business School claims that environmental regulation of businesses will actually give the businesses a competitive advantage over their counterparts in nations with less stringent regulation because it forces them to innovate. Porter claims that by changing their production processes, the businesses will actually lower their production costs (Porter, 97).
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
Strategic management is the “identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them” (Business Dictionary, 2016). In order for industries and organizations to thrive, they must have strategies in place and strategic management processes to stay competitive, profitable, attractive to stakeholders, and to sustain advantages that set them apart from other competitors (Barney & Hesterly, 2015). The strategic management process involves a set of procedures that lead to choosing a strategy that will eventually lead to competitive advantage (Barney & Hesterly, 2015). The six steps of the strategic management process involves defining
Small, medium enterprises (SMEs) are largest types business in the world, making up an estimated 99.7% of business. According to the Federation of Small Businesses (FSB) there are nearly five million existing businesses in the UK as of 2013. SMEs are a key contributor towards economic growth in terms of creating more employment, stimulating innovation and promoting social unity. SMEs are responsible for 47% of private sector employment, yet despite such global present there is still no agreed definition of a SME (Storey 1994). Bolton (1971) attempted to define them through a statistical and economic analysis. Classifications which are based on criteria, such as number of employees or annual turnover, however, do not remain consistent across borders. Given their size, smaller companies tend to be more intent on survival rather than expansion and profit maximisation. Smaller sized firms have always felt that the current reporting framework for IFRS is tailored more for the needs of larger companies and that the heavy cost burden it imposes upon them may not be entirely justified. In response to these concerns, the IASB subsequently issued the IFRS for Small and Medium-sized Entities (IFRS for SMEs) in July 2009. This standard offers an alternative framework which can be adopted by entities in place of the already extant full set of IFRSs or local national requirement standards.(Holt 2010) This essay will critically evaluate the impact of the IFRS for SME’s and whether or not it stands as the most suitable framework available for SMEs to use.