SBM3204 Sustainability and Ethics Case Study Sample
Assessment 2 Detail
In this case analysis, you need to identify an issue in business ethics and/or sustainability and demonstrate your understanding of the discipline by evaluating your recommendations. You can investigate a real-life case from an organisation. Your lecturer will not assign you to a case study. You must discuss your choice of case study with your lecturer by providing a verbal or written rationale for choosing a particular case study. Your lecturer needs to approve your choice of case study in written format (APIC email). Plagiarised assignments will not be tolerated.
You need to consider a significant business ethics and/or sustainability issue. Do not consider multiple issues as it will degrade the quality of work. You need to consider yourself being a consultant helping with the issue. Your lecturer is looking for creative solutions proposed by groups.
Examples of issues could be:
• Corporate Social Responsibility and stakeholders
• Managing ethical issues
• Ethical decision making
• The role of corporate culture and ethical decision making
• Ethics auditing
• Ethical leadership
Students will need to collect data from actual organisations and/or secondary sources. Valid sources for obtaining such data may include:
• Visits to the case company and interviewing key personnel (if you choose to do this, interview questions should be included in appendices).
• Secondary data from online (it should be reliable and valid online data sources such as data from other research publications, databases and so on. (WIKIPEDIA is not a suitable one)
• Company’s annual/quarterly reports, and sustainability reports.
• Related business strategy management articles and news.
Solutions
Introduction
Background
The aim of the report is to found issues within the aspects of sustainability and Business ethics. It is focused on demonstrating the learnings of the field by analysing and providing recommendations in reference to real life cases from an organisation. The topic which is being researched in the current report is new shopping experience unveiled by Zara.
Importance
It is an important topic because the aspect of sustainability has become very important in customer journey. Uni Assignment Help, Customers are only likely to incline their purchasing behaviour in favour of those brands who are making efforts to make sure that their business operations are not harmful to environment and community (Pei et al., 2020). Zara has integrated sustainability in its customer journey at new store in Plaza de Lugo store slated to reopen in A Coruña in March. It will unveil new concepts, materials, and designs, which will establish a benchmark for the brand.
Major Issue and Outline of Methodology
The major issue addressed in the report is that of Fast Fashion. It can be referred to as trendy and cheap clothing that are representative of the celebrity culture. Zara is one of the most prominent dealers in fast fashion. The brand is looking forward to make a change by presenting a experience of sustainable clothing.
In the current report, data would be collected through secondary sources. It will allow, the researcher, to integrate viewpoints of other individuals in reference to sustainable clothing and customer journey and its relationship with business ethics. The viewpoints would be further studied in reference to Zara in the later stages of the report for identifying the correlation and providing recommendations in order to deal with the situation.
Contribution of Assignment
This report will contribute to the literature related to sustainable customer journey and clotting and how it impacts on business ethics and sustainability of the company. It will also provide recommendations to the manager of Zara regarding how they could deal with the issues of fast fashion and secure the overall sustainability of the business.
Literature Review
Concept of Sustainable Shopping experience
According to Ijaz and Rhee (2018) shopping experiences and sustainability are the major elements which are affecting how their customers are shopping now and will continue to do so in the future. They have led to considerable changes in the Global retail landscape which would inevitably impact and shape that future retail environment.
Han et al. (2019) stated that in order to attract Shoppers to the physical retail space if it is necessary to provide them with sustainability and aesthetic. This is so because they are likely to be attracted by a spacer where they could confront a wide variety of reactions, experiences, and emotions.
In the perception of Lin et al. (2020) the importance of a light, texture, sound and smell has taken the centre stage where the store designers are combining subconscious and sensor elements in order to generate experiences and memories which are not only visual but also atmospheric.
However, De et al. (2021) argued that stores in future are likely to merge with online retail environments rather than competing. It makes it more important for current retailers to improve their shopping experience when it comes to dominating the online space. The physical store is likely to become a space aware retailer and brands will be able to express their personality to the customers.
As per the views of Geiger and Keller (2018) personality of the brand could be reflected through the showroom where they would provide engaging experience in order to encourage Shoppers to purchase their products online after they have touched and tried that in the shop. It could be said that a sustainable shopping experience revolves around making shopping centres of the future engagement centres. Retailers such as Dara would need to focus on how to take the shopkeeper on an improved and sustainable customer journey.
Relationship between Sustainable Shopping Experience and Customer Journey
Signori et al. (2019) highlighted that sustainability in both environmental and social aspects is one of the most defining Trends of retail evolution. It is becoming Paramount as the customers are taking a long-term shift to an eco-friendlier environment and adopting similar shopping behaviour. Consumers are already asking brands about what they are doing to integrate sustainability in their business operations.
From the research conducted by Lin et al. (2020) it has been identified that the trend of sustainable shopping is very strong among gen Z and millennial consumers. This is so because they belong to a younger shopper segment and tend to identify themselves with sustainable values as compared to older generation Shoppers.
Witell et al. (2020) explained that sustainable shopping is not just about the brand. Product packaging and store design are an integral part and one of the most important aspects of providing a sustainable shopping experience to the customers. Adivar et al. (2019) contradicted that customers are not asking for environmental sustainability but they are also concerned about the impact of the company's operations across the entire supply chain. They want to get information about ethical components Sourcing to consumption of water and management of pollution.
However, Holmlund et al. (2020) argued that Shoppers are more concerned about product packaging and have been expecting brands and retailers to invest more in sustainable alternatives. This is an important aspect of a customer journey because the packaging communicates brand tone when the customer opens the product.
In the views of Cervellon and Vigreux (2018) if the brand does not have a recyclable packaging or then it is highly unlikely that the customer would make another purchase. This is so because they feel that when they open the product packaging goes to waste and if it's non-recyclable then it is just to contribute to the pile of waste.
Literature Gap
In the current literature, a gap has been identified in the impact of Sustainable shopping experience on customer journey and their viewpoints. It is an important element because even though there is a relationship between this component, they exist independently in a retail environment. Brands such as Zara are making a conscious effort to provide a sustainable shopping experience to the customers but are still looking for answers on how it improves the customer journey and make them want to spend more time in the store and incline their Purchase Decision in favour of the business organisation. Impact of Sustainable shopping experience on customer journeys needs to be explored so as to gain clarity on the particular aspects which could be integrated with the business organisation for improving the customer journey while exercising functions in a sustainable manner.
Methodology
Within the current report, data has been collected from secondary sources. Qualitative information has been collected. It is useful in the present context because the researcher aims to explore business sustainability in terms of Zara by reflecting upon its case study. In order to add credibility and reliability into the study data from both secondary sources as well as a real-life organisation has been integrated. Database library which has been surfed for collecting secondary data is Google scholar. This is so because it makes it easier for the individual to search for published books and journals based upon keywords (Johhson and Sylvia, 2018).
The researcher has made sure that only those books and journals which have been published in 2017 for after that have been integrated. This is so because this data is comparatively newer as it is only 4 years old at maximum. This allows the learner to reflect upon the latest perspectives in reference to sustainable shopping experience and customer journey. By doing so, the individual would be able to curate an informed set of findings.
Case Study Findings and Analysis
Overview of the Organization
Zara is a Spanish apparel retailer. It was founded in 1974 and is currently headquartered in the municipality of Arteixo, Spain (Zara, 021). Zara is one of the biggest International fashion companies where the customer is the core element of the business model. It has an extensive retail network which includes production, distribution, design, and sales. It tends to work closely and together as a single company globally with its parent organisation — Inditex, Zara has been able to focus on the key elements of production. The business operations of the organisation are based on three major pillars which are digital integration, sustainability, and flexibility. It has been able to bring its customers closer than ever to the products and provide them at affordable prices.
The success of Zara was followed by international expansion at the end of 1980s and the successive launch of new brands within the same parent organisation which now have an integrated model of physical stores as well as online business operations (Inditex, 2021). The human resource at Zara is focused on fulfilling the demands of the customers. This is so because it is focused on creation of value which is beyond profit by placing the concerns of the environment and people at the core of its decision-making capabilities. Zara is focused on doing better and being better in reference to do business operations while securing sustainability.
Critical Evaluation of the Issue – Sustainable Shopping Experience at Zara
Zara Home is focused on unveiling its new Global image. It's new Store, The Plaza de Lugo will reopen in March with a totally overhauled concept. The store has been reported to have new designs and materials which would establish a global benchmark for the brand. This is so because the new concert revolves around being 100% ecological (Inditex, 2021). The story would be featuring minimalistic designs with traditional routes along with the latest technologies which would contribute to the shopping experience of the buyer.
The construction materials of the store have been made with the help of local artisans and include lime and marble with linen and Silk. It is in contrast with the furniture which is made from traditional materials such as oak, slate and Granite. It has been identified that this environmentally friendly store has used those materials which are capable of absorbing carbon dioxide. It only displays traditional handcrafted pieces on Handlooms which have been burnt by a novel warm and comfortable lighting. The energy consumption of the store has been enabled through sustainable technology and focused towards making sure that it is not harming the environment in any manner with monitored use of electricity. The idea of this store is to provide a new shopping experience to the customers.
Within this, the product displayed tends to stand out in a space which feels familiar like home thus, is in Alliance with the brand image of Zara home. It has been done by recreating a mixture of aesthetic beauty and feelings of well-being and comfort. The results of the Sustainable shopping experience curated by Zara would be on display for its flagship store which reopened in March 2021 as it was under a process of a full renovation and overhaul (Inditex, 2021). It could be stated that the new Zara home store concept enables the customers to uniquely experience the products and Discover its collections in a better way. The idea behind the design was to create an enjoyable visit for the customers to a warmer which focuses on sustainability and comfort by integrating the aspects of beauty and Technology together.
Recommendations
By analysing the contents of the report, following recommendations would be made for Zara in order to improve its sustainable shopping experience and ultimately enhance customer journey:
Using recycled and biodegradable packaging: it is suggested that Zara should make efforts to reduce the amount of plastic packaging which is used in its products. Biodegradable packaging which is made from plant-based materials such as cellulose and starch could be used which is broken down in a manner that could be made into bags. It is necessary to reassess how the organisation uses its packaging and where it can reduce the negative impact on the environment.
Minimising use of paper: it is necessary to reduce the amount of paper which is used in the organisation in order to drive sustainability. Zara needs to identify tasks and processes that require pen and paper to perform and then digitise them. For example, providing the bill and invoice to the customers requires the use of paper and ink which could be digitised and sent directly to the phone number or email address. It will make it easier for both the organisation as well as the customers to access the invoice if it is available in digital form because people are likely to misplace paper slips.
Empowering customers for engaging in sustainable operations: it has been identified that when people want to be more sustainable, they are likely to make sustainable purchases in decisions in order to leave their mark. By helping the customers to offset their impact in reference to retail habits would be highly beneficial for Zara's own sustainability efforts. It would need to make the people feel empowered as consumers and motivate them to bring changes in their daily habits. It also provides them with the confidence that Zara is out there to make a difference in the long term.
Conclusion
Findings and Importance to Business
From the current report, it has been found that sustainable shopping experience is gaining importance in the current environment. This is so because customers are inclined towards making purchasing decisions in favour of those business entities who integrate sustainable aspects in their operations. It is important to Zara because it holds a negative reputation of engaging into fast fashion and not performing sustainable operations. However, by integrating aspects of the Sustainable shopping experience it would be able to improve its business model and brand image in both short-term and long-term which will further help the organisation to increase its sales and be up-to-date with the current trends in the market.
Risks for Implementation
The major risks for implementing the recommendations is that it would need to make changes in a business model on an international level. For example, in order to introduce biodegradable packaging, it would need to make changes in all the stores and warehouses which satisfy both offline and online demand in order to make sure that the change has been implemented. It is risky because even though the customers would be in favour of biodegradable packaging it is unclear on how it will actually solve the issue.
In addition to this, by minimising the uses of paper it can get difficult for the customers to adhere to the change. Since always Zara has provided invoices and builds on paper and when it would turn digital it does not know how the customers would be able to absorb the change and be in favour of it. One of the major reasons behind the same is that our customers are sceptical in giving their personal details such as a phone number and email address while making a purchase as it makes them susceptible to phishing scams.
Limitations of the Study
The limitations of the current study are stated below:
- The researcher has only used the secondary data. This means that the findings of the study have been developed on the opinions and perspective of other authors and researchers.
- Limited number of studies are integrated in the report which reduces the reliability of the conclusion. The major reason behind the same is that a small sample size interferes with the level of generalization because the researcher generalisation specific content on the basis of the opinions in findings of a small number of people.
References
Adivar, B., Hüseyino?lu, I. Ö. Y., and Christopher, M. (2019). A quantitative performance management framework for assessing omnichannel retail supply chains. Journal of Retailing and Consumer Services, 48, pp.257-269.
Cervellon, M. C., and Vigreux, E. (2018). Narrative and emotional accounts of secondhand luxury purchases along the customer journey. In Vintage Luxury Fashion (pp. 79-95). Palgrave Macmillan, Cham.
De, M., Basu, I., and Saraiwala, V. (2021). An Initiative to Make Shopping Hassle Free for Individuals with ASD Steps Towards Sustainable Development. Asia-Pacific Journal of Management and Technology, 1(4), pp.22-26.
Geiger, S. M., and Keller, J. (2018). Shopping for clothes and sensitivity to the suffering of others: the role of compassion and values in sustainable fashion consumption. Environment and Behavior, 50(10), pp.1119-1144.
Han, H., Sahito, N., Thi Nguyen, T. V., Hwang, J., and Asif, M. (2019). Exploring the features of sustainable urban form and the factors that provoke shoppers towards shopping malls. Sustainability, 11(17), p.4798.
Holmlund, M., Van Vaerenbergh, Y., Ciuchita, R., Ravald, A., Sarantopoulos, P., Ordenes, F. V., and Zaki, M. (2020). Customer experience management in the age of big data analytics: A strategic framework. Journal of Business Research, 116, pp.356-365.
Ijaz, M. F., and Rhee, J. (2018). Constituents and consequences of Online-shopping in Sustainable E-Business: An experimental study of Online-Shopping Malls. Sustainability, 10(10), p.3756.
Inditex. (2021). WHO WE ARE. [Online] Available Through <https://www.inditex.com/en/about-us/who-we-are> [Accessed on 19th November 2021]
Inditex. (2021). Zara Home poised to unveil its new global image. [Online] Available Through <https://www.inditex.com/en/article?articleId=661371&title=Zara+Home+poised++to+unveil+its+new++global+image> [Accessed on 19th November 2021]
Johhson, E., and Sylvia, M. L. (2018). Secondary data collection. Critical Analytics and Data Management for the DNP, p.61.
Lin, M. F., Shih, S. G., and Perng, Y. H. (2020). Sustainable shopping mall rehabilitation. Sustainability, 12(17), p.6698.
Lin, M., Li, F. Y., and Ji, Z. (2020). How to Innovate the Service Design of Leisure Farms: The Innovation of Sustainable Business Models. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), p.45.
Pei, X. L., Guo, J. N., Wu, T. J., Zhou, W. X., and Yeh, S. P. (2020). Does the effect of customer experience on customer satisfaction create a sustainable competitive advantage? A comparative study of different shopping situations. Sustainability, 12(18), p.7436.
Signori, P., Gozzo, I., Flint, D. J., Milfeld, T., and Nichols, B. S. (2019). Sustainable customer experience: bridging theory and practice. In The Synergy of Business Theory and Practice (pp. 131-174). Palgrave Macmillan, Cham.
Witell, L., Kowalkowski, C., Perks, H., Raddats, C., Schwabe, M., Benedettini, O., and Burton, J. (2020). Characterizing customer experience management in business markets. Journal of Business Research, 116, pp.420-430.
Zara. (2021). Company. [Online] Available Through <https://www.zara.com/us/en/z-company-corp1391.html> [Accessed on 19th November 2021]
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