Operations management considers how production should take place; assessing factors such as the size, scale and time frame of production, quality control systems, and research and development. Operations management ensures that the value of the output is greater than the costs of production, thereby earning a profit for the business.
Marketing - The production method used will have a direct impact on the quality and individuality of the product, implicating the marketing mix according to the product’s position on the customer perception map.
HR Management - A change in production methods in response to an increase or decrease in production scale will have a proportional impact on the size and quality of the workforce available.
Finance - The purchase of fixed assets required for desired production methods and scale will be scrutinised with investment appraisal techniques to assess whether it is a worthwhile investment for the business.
Ecological Sustainability - Capacity of the natural environment to meet the needs of the current generation without jeopardising the ability of future generations to meet their needs. Being ecologically sustainable will mean adopting a scale and rate of production that will not potentially exhaust, deplete or pollute the earth’s natural resources before future generations.
Ecologically sustainable practices include:
Social Sustainability - The ability of society to develop in such a way that it meets the social well-being needs of the current and future generations. Social sustainability enables society to optimise the quality of life for people and their descendants.
Social Sustainability practices include:
Economic Sustainability - Practices that support long-term economic growth without negatively impacting social, environmental and cultural aspects of the community. An ideal and sustainable economy is one that provides for the greatest amount of general well-being, with the least amount of resources used and environmental harm.
Brand Image - Businesses will have a competitive advantage with an improved brand image and reputation. Consumers are beginning to support and favour companies that actively support their communities as environmental and social awareness has begun to trend.
Reduced Costs - Development of sustainable business practices lends itself to efficiency maximisation and waste reduction that streamlines effort and conserves resources. Efforts like waste management, water reduction and energy conservation will have tangible costs benefits for the business. In addition, the increased efficiency will increase productivity, which leads to higher level and quality of output, thereby lowering the average costs of production.
Attract Employees - The rise of environmental and social awareness will attract potential employees and talents to businesses that focus on sustainable practices. The morale of current employees will also benefit, increasing employee retention.