RTXM Clothing Company Case Study-Free Sample -Myassignmenthelp.Com

Question: Discuss about the RTXM Clothing Company Case Study. Answer: RTXM clothing company stakeholders The following are RTXM company stakeholders; Employees: These include the companys employees and employees in the supply chain. Employees will benefit from sustainability practices of the company in several ways. First, employees will be paid according avoiding underpay either in the company or in the supply chain of the company. Secondly, employees health and safety will be guaranteed while working in the company. Lastly employees with have more opportunities and promotion as result training from the company. Shareholders: Sustainability in the company will impact shareholder negatively in the short term and positively in the long term. In the short term, sustainability practices will require resources to implement and also increase the cost of clothing in the company. This will reduce short term dividends of the shareholders. In the long run, shareholders will get high sustainable returns to their investment as a result of increased company reputation and environmental and social sustainability. Local communities: These include the local community living near the company and it suppliers in the supply chain. The local community will benefit from clean environment, safe and healthy neighborhood and abolishment of child labour. Therefore, the local communities will benefit from low environmental and social impacts. Customers: Sustainability in RTXM Company will increase the price of clothing to its customers. This will deny customers low price clothing. On the other side, customers will benefit from high quality clothing from the company. The customers will also benefit from positive projects to the environment that will be undertaken by the company. Suppliers: Sustainability in the company will increase the reliability of payments and long term contract with it suppliers. Suppliers will be able to get payment on time and enter in long term contacts that will enable the success of suppliers in the business. Suppliers will also get support on their products from the company in the process of implementing sustainable supply chain. RTXM Balanced Scorecard Financial Indicator: Ability to meet all financial obligation Increase revenues Maximization of profits Customers Quality Clothing Timely delivery Business Process Indicators; Reduce carbon emission to the environment Proper waste management Safe and healthy working environment Innovation Learning Indicators; Training of employees New designs The above balanced scorecard outlines performance key indicator in RTXM Company to measure success in sustainability practices. The Balanced Scorecard gives a overall performance of the company in different perspective. Theses perspectives are Financial, Customers, Business Process, and innovation and learning in the company. Finance performance indicators will be the ability of the company to meet its obligations, increase sales revenue, and maximize profit. The important metric in this perspective performance will be dividends to the shareholders. Increase in dividend to shareholders shows that the company is maximizing profiting through increased sales revenue. Customers perspective performance indicators are quality clothing and delivery time. The important metric to measure this perspective performance is number of complaints received in every department. A reduction in number of complaints will indicate that customers are getting high quality products form the company and deliv ery is made on time. Business process performance indicators will be a reduction in carbon gas emission to the environment, proper waste management, and safe and health workplace. This perspective performance metric will be company carbon footprint level. A decrease in the level of carbon footprint of RTXM Company will indicate that the company business processes are reducing the amount of carbon emission, there is proper waste disposal, and the workplace environment is safe and health (Neugebauer, Figge, and Hahn, 2016). The Innovation and learning performance of the Company will be indicated by the training of employees and new designs developed within a specified period of time. The important metric for innovation and learning will be the rate at which the inventory is turnover. The inventory turnover refers to the period within which product clothing will take to get sold. This metric will indicate that the company is performing in terms of high skills and desirable designs in t he market. Choosing a Supplier between Green Fashion and Super Cheap Supplier Demerits Benefits Super Cheap Child labour Low wages Long working hours Poor working conditions Improper waste management Large range of products Short time delivery Competitive price Green Fashion Limited range of products Higher price Longer time frame Ethical sourcing of materials Promotes work life balance of employees Protects the environment Supports outsourcing partners or employees with incentives. From the analysis of Super Cheap and Green Fashion Suppliers, it evident that each supplier has both advantages and disadvantages. Super Cheap Supplies are cheap and attractive but the supplier neglects all the social responsibility of an entity. Green Fashion supplies are expensive and take longer to supply but the supplier is socially responsible. Green Fashion supplier is a better option for RTXM Company. Green Fashion operates ethically to both the environment and people. This shows that Green Fashion Suppliers are socially responsible in their operations. Therefore, choosing Green Fashion will enable RTXM Company pursue it strategic objective of engaging in sustainable business practices. The RTXM will also save the resources that could be used to offer incentives for supplier to engage in sustainable business operations by choosing Green Fashion. Lastly, the choice of Green Fashion will improve the companys reputation through quality products, environmental protection, and ethical sourcing. Life Cycle Analysis of a T-Shirt The following diagram is a life cycle analysis of a T-shirt in RTXM Company. The diagram assesses the entail life of a t-shirt till to it disposal. Analysis of two stages of Life cycle of a T-Shirt Production of cotton This stage of t-shirt involves growing of cotton plant. The process of growing cotton requires several inputs of production for successful cotton harvest. The input used to grow cotton is seedlings, water, fertilizers, pesticides, and human labour to plant, weed and harvest (Eilers et al., 2016). These activities have adverse effect on the environment if not undertaken sustainably. The following are impacts of cotton product ion; Long working hour: This involve employees forced to work long hours in the farm with an objective of exploiting them. Safety and health working environment: The production farms of cotton use chemicals that are harmful to human body. These chemicals are in forms of pesticides, herbicides, and fertilizers that are used to control pests, weeds, and diseases and supplement nutrient to maximum yield (Gamble, and Thompson, 2014). This environment is not safe for human being to work on. Carbon gas emission: This refers to green house gases emitted to the environment during the process of growing cotton. Green houses gases damages the Ozone layer hence destroying the environment. The gases are from fertilizer, pesticides, and on-farm fuel Water pollution: Chemicals and excessive use of water in the farm lead to water pollution and wastage. Suggestions to reduce social and environmental impacts of cotton production Use of safety protective gears on the farm: This will ensure that employees work in safe environment. The farms should record carbon footprint and strategize on minimizes carbon emissions. Ethical usage of resources: This requires farm operators to use resources such as water and soils responsibility to avoid their depletion. There should be policies to protect working hours of employees to enhance work-life balance in the firm. Importance of sustainability Sustainability in business means that all stakeholders interests in the business addressed. This entails that the main objective of a company shifting from maximizing shareholders value. The Company therefore has to engage in activities that are sustainable socially and to the environment (Bansal, and DesJardine, 2014). The Company stakeholders are employees, suppliers, local communities, consumers, and shareholders. Sustainability in the company requires sourcing materials ethically, maintaining safe and healthy workplace, advocating for work-life balance. Sustainability increases costs that reduces profits in the short term but has several benefits in the long term. First, sustainability improves the company reputation that increases sales in the long term. Customers nowadays want to buy from companies that are socially responsible (Lueg, Pedersen, and Clemmensen, 2015. Secondly, sustainability enables responsible use of resources avoiding depletion that can lead to closure of a bu siness. This enables the company to earn profits for a long period of time. Lastly, sustainability enables a company to have good relationship with it stakeholders that increase reliability and long term contracts that increase the companys profits (Klettner, Clarke, and Boersma, 2014). For example, Interface global, a carpet manufacturing company has been a market leader in sustainability which has increased its earnings through improved reputation from customers and ethical sourcing of raw materials. References Bansal, P. and DesJardine, M.R., (2014). Business sustainability: It is about time. Strategic Organization, 12(1), pp.70-78. Eilers, H., Eilers, H., Chong, W., Chong, W., Kim, J., Kim, J., Naganathan, H., Naganathan, H., Glavinich, T.E. and Glavinich, T.E., (2016). Impact of sustainability on business performance and strategy for commercial building contractors. World Journal of Entrepreneurship, Management and Sustainable Development, 12(4), pp.323-343. Gamble, J.E. and Thompson Jr, A.A., (2014). Essentials of strategic management. Irwin Mcgraw-Hill. Klettner, A., Clarke, T. and Boersma, M., (2014). The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), pp.145-165. Lueg, R., Pedersen, M.M. and Clemmensen, S.N.,( 2015). The role of corporate sustainability in a low?cost business modelA case study in the Scandinavian fashion industry. Business Strategy and the Environment, 24(5), pp.344-359. Neugebauer, F., Figge, F. and Hahn, T., 2016. Planned or emergent strategy making? Exploring the formation of corporate sustainability strategies. Business strategy and the environment, 25(5), pp.323-336.