MGT 345 | OPERATION MANAGEMENT

MGT 345 PREPARED BY:
OPERATION NORFARISHA BINTI
MANAGEMENT SAPRI

CASE STUDY 2018475196

NBMSF8A

DIPLOMA IN BUSINESS
STUDIES

BA 111

PREPARED FOR:
DR. AHMAD RAIS BIN
MOHAMAD MOKHTAR

NORFARISHA SAPRI | 2018475196 | MGT 345 | NBMSF8A 1

COCA-COLA: A CASE STUDY IN SUSTAINABILITY
ANSWER Q1

Based on the case study given, in order to sustain the environment, Coca-Cola has
been transforming its manufacturing and distribution to save energy, reduce carbon footprint,
water usage and material usage. To initiates this purpose, Coca-Cola which is specifically in
Brampton, joins the local community of business to collaborate on green projects that
participation also by other huge company such as Xerox, Unilever and a few more. Energy
conservation and climate change is one of the approaches. The significant from this approach
is, their trucks and tractors were introduced to heavy-duty hybrid where these vehicles
improved fuel consumption and reduce emissions by one third and create less noise and
emissions when stopped in traffic. While water-sustainable operation is to minimize water use
which is 20% of reduction uses by installed new osmotic water recovery system, it has
reclaimed 11 million litres of water for production. Another approach is packaging and
recycling. Coca-Cola launched the plant-bottle where packaging made by 30% of plant-based
that can be recyclable. Thus, to achieve these green innovations in recycling technologies,
renewable packaging material and hybrid trucks, Coca-Cola made a great investment on this
purpose.

ANSWER Q2
Benefits that Coca-Cola gain from these initiatives for sustainable of the environment

is, it improves living standard where it can bring back to the community by using the resources
efficiently that can reduce harm to the environment. From this, it can buy customer’s faith and
satisfaction since the quality of products does not affect thus it improves the value. It also can
reduce operating cost and increases revenue for the company in a long run period of time.
The investment on this initiative would give advantages for the stakeholders in the future time
since it can smooth the production process and being effective producers where the company
can manage it cost in the future. Coca-Cola has managed its initiatives in sustain not only for
the environment but also for adapting for future survival and that is what the objective in
operation management.

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NORFARISHA SAPRI | 2018475196 | MGT 345 | NBMSF8A 2

IKEA: BUILDING A SUSTAINABLE SUPPLY CHAIN
ANSWER Q1

Based on the case study given, IKEA had run their initiatives in order to sustain in their
business and also for the sustainable of the environment. One of the examples of IKEA
sustainable activities is formed partnership with World Wildlife Fund (WWF) for promoting the
sustainable use of natural resources. On these activities to help and ensure that forest can be
used both now and, in the future. Where, a series of training courses for people in Russia,
Bulgaria, Romania and China on responsible forest management and development of forestry
plans in China. Furthermore, another examples that IKEA has initiates in sustainable activities
is set up many local UK initiatives which is in 2006 IKEA UK started to charge for carrier bags.
This reduced the use of carrier bags by 95%. Then within a year, in June 2007 IKEA UK
removed of using carrier bags in stores completely.

ANSWER Q2
Each sector of industry is linked together that we call as supply chain where basically

it started from the primary sector which is input process to extract or develop the raw materials
or natural resources such as timber, oil, minerals or agricultural. The secondary sector is an
output process where it must go through the transformation process or manufacturing process,
there is assembling or painting or testing process is run before it becomes the product as
planned. Then it goes to the tertiary sector where through distribution and retailer to provides
services needed to meet the needs of the end user. As the product move through the supply
chain, the process of added-value takes place which this is what gives value to the products.
Even so, to improves the product furthermore, feedback as a control mechanism to measure
the actual performance of the product versus planned. It comes back to the primary sector or
secondary sector to improves the process.

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NORFARISHA SAPRI | 2018475196 | MGT 345 | NBMSF8A 3

ANSWER Q3
In order for IKEA to realize and influences all elements of its supply chain to adapt

sustainable practice is by one of IKEA uses tool which is call e-Wheel where the purpose is to
evaluate the environment impacts of its products. The e-Wheel helps in analyse the four
stages within the life cycle of the products. It started from extracted of the resources to its
production then to using the products and then if the product is declined or can be recyclable.
This also helps suppliers in their understanding of the environmental impact of the product
they are supplying such as to recognize which resources can be recycled or renewable.
Another initiatives IKEA has for sustainable practice is by run code of conduct called IKEA
Way of Purchasing Home Furnishing Products (IWAY). This contains minimum rules and
guidelines that helps manufacturers to reduce the impact of their activities on the environment
The IWAY code complies with international legislation that makes all their suppliers across the
globe are manage to adapt to it.

ANSWER Q4
IKEA’s vision is “To create a better everyday life for the many people”. IKEA wants to

provide many well-designed, functional products with low price but not at any price for as many
people as possible so that people can afford to buy them without sacrifices IKEA’s principle
since the business also rely for many people behind it. IKEA significantly are different from the
other competitor by their role as the leader in creating a sustainable way of working. From
educate their suppliers on how crucial is to sustain in their production to the consumer about
recyclable product information of IKEA’s product itself. This have recognized IKEA’s
commitment by their both suppliers and consumers. This must encourage IKEA to be more
concerns and will provide better home furnishing for the better way of living.

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