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Question: What is meant by a triple bottom line strategy? Give an example of a company that has adopted this type of strategy.

Short Answer

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Answer

The triple bottom line strategy is a strategic method to improve an organization's financial, social, and environmental performance.

PepsiCo and King Arthur Flour are examples of companies that have seen a significant increase in revenue after using the triple bottom line strategy.

Step by step solution

01

Introduction

Companies have evolved many techniques to protect the environment as the world has progressed. Customers and workers dislike firms that damage the environment, therefore they have adopted the concept of sustainability and are attempting to properly utilize natural resources.

02

Define Triple bottom line strategy

It is the strategy that leads the organization to undertake projects that are not only expected to promote profit, but also to benefit society, communities, and environmental protection. It encourages the organization to work responsibly, and the organization measures its success in three aspects. The Triple Bottom Line strategy is concerned with how the organization manages its social, economic, and environmental dynamics. A firm must establish a balance between these three categories to be long-term and successful.

Social responsibility:

Social responsibility refers to fair and helpful business practices toward employees, the community, and the region in which a corporation operates.

Economic:

In this strategy, the firm's commitment to rewarding shareholders who give money through competitive returns on investment is clear.

Environmental:

As a result of this strategy, the firm's environmental effect increases.

03

Give an example of a company that has used this strategy

PepsiCo and King Arthur Flour are examples of companies that have seen a significant increase in revenue after using the triple bottom line strategy.

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Most popular questions from this chapter

Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able to copy the technology, it will have a market life of two years after it is introduced. Perot expects to be able to price the chip higher in the first year, and it anticipates a significant production cost reduction after the first year as well. The relevant information for developing and selling the Patay2 is given below

Patay2 Chip Product Estimates

Patay2 Chip Project Timing

a. What are this project's yearly cash flows and their present value (discounted at 10 percent)? What is the net present value?

b. Perot’s engineers have determined that spending \(10 million more on developmentwill allow them to add even more advanced features. Having a more advanced chipwill allow them to price the chip \)50 higher in both years (\(870 for year 1 and \)700for year 2). Is it worth the additional investment?

c. c. If sales are only 200,000 the first year and 100,000 the second year, would Perot stilldo the project?

Suppose that Always Rain Irrigation’s marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is

Yearly Demand

1 (IN 000s)

2 (IN 000s)

3 (IN 000s)

4 (IN 000s)

Plastic 90

32

44

55

56

Plastic 180

15

16

17

18

Plastic 360

50

55

64

67

Bronze 90

11

15

18

23

Bronze 180

6

5

6

9

Bronze 360

15

16

17

20

What are the capacity implications of the marketing campaign (assume no learning)?

Question: Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours follow. What is the labor productivity for each car? Explain the problem(s) associated with the labor productivity.

Question: Various financial data for the past two years follow. Calculate the total productivity measure and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?

Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecasted demand for the next four years as follows:

Yearly Demand

1 (IN 000s)

2 (IN 000s)

3 (IN 000s)

4 (IN 000s)

Plastic 90

32

44

55

56

Plastic 180

15

16

17

18

Plastic 360

50

55

64

67

Bronze 90

7

8

9

10

Bronze 180

3

4

5

6

Bronze 360

11

12

15

18

Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years? (Assume that there is no learning).

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