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Advantages
- There is growing evidence that consumers
are attracted to firms with environmentally friendly policies
- Can
be
used to promote the business in its mission statement
- The business will be seen as a
“responsible and caring organisation” and could lead to more investment
- Highlights
the
need to focus on carbon footprint and the impact on the world
- The
firm may qualify for grants for solar power/energy saving techniques, etc
- Viewed
as
an ethical business so will attract high quality employees
- Caring
for the environment is an essential part of this image. The firm have
set targets for recycling for each of its outlets and already use renewable
sources of energy
- Government
incentives. Opportunity to apply for grants towards investing in renewable
energy sources. This will reduce initial costs of investment and generate
future savings in energy
- May
give the company a competitive edge in the sector. It is likely to generate
very positive publicity for the company and so further increase sales revenue
and profits
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Disadvantages
- Research
and development costs are significant – perhaps this money could have been
spent on other things to improve the efficiency of the business
- Going
“green” can lead to higher prices for consumers, e.g. waste management/“green”
production methods can be more expensive
- Time
is required to conduct an environmental audit and draw up an environmental
policy
- There
is no guarantee that it will attract customers
- Being
environmentally friendly can push up costs. Recycling and using renewable can
be expensive. Also management may have to pay for motivation strategies to
encourage workers to meet these targets
- No guarantee that it will attract more
customers. Customers may be more concerned about economics issues rather than
environmental issue in recession
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