A sustainable business model
In order to sustain in the rapidly rising competitive and globalised business environment, the concept of ···
A sustainable business model is one where a business enters into collaborative partnerships with government regulators
Generating insights from Coca Cola
In order to sustain in the rapidly rising competitive and globalised business environment, the concept of cross sector partnership has become an emerging issue. The number of cross sector associations has increased significantly over the past fifteen years. This type of associations comes in various structures, starting from coalitions between company and government regulators to non government organizations (NGOs) (Bansal, 2002).
The alliances also can take place between companies and micro finance institutions and different industries. These collaborations are formed primarily to address the sustainability all over the world. The collaboration with the government regulators specifically helps the organizations to regulate the consumer demand and supply of the products with a strong environmental force. Moreover, with the strong regulations, the organizations can use the available resources optimally and in perfect way to drive the sustainability in business operation (Baker, 2007).
In this background, the present paper is prepared to discuss the effectiveness of going into collaboration with the government regulators and the formation of a sustainable commercial framework for the collaboration. After describing the benefits of collaborate with government regulators for creating sustainable business model, the case of Coca Cola has been considered to identify how it has achieved the benefits of government collaborations and created a sustainable business model.
The collaborative partnership with government regulators can enhance the level of competency through . Which the organizations can solve their problem that a single company cannot solve. The competency level of both the organizations increase as all the resources, skills, knowledge and technology gets merged (Doppelt, 2003).
Substantial level of knowledge about the sustainability challenges generates from a large number of stakeholders (Driscoll & Starik, 2004). The alliance between government regulators and a business enterprise can address the sustainability issues primarily by balancing the utilization and reformation of resources and intending to protect the human lives, animals and other species i.e, by focusing on the developing eco friendly business environment.
On the contrary, the government also obtains benefits from the collaboration as they face significant challenges due to poor economic growth and economic crisis. Therefore, the government regulators also need to put their economy on the path to achieve sustainable growth and gain the confidence of citizens (Stubbs & Cocklin, 2008).
Therefore, in the modern economy, the organizations can attain sustainable competitive advantage by collaborating with the government regulators. This is because the collaboration helps to promote growth of the organization, provide adequate investment, facilitate innovation potential, and explore market opportunities (Mintzberg, 1983).
Apart from the financial perspectives
The collaborations with the government regulators also help to develop the shared principles of the organizations all through the various cultural contexts. Additionally, it can put some restrictions on the entry of new firms into the industry (Griffiths & Petrick, 2001). Therefore, it is understood that collaborative partnership with government regulators helps significantly to set up a sustainable business model not only in environmental conscious manner but also by increasing corporate values.
To identify the importance of creating collaborative partnerships with government regulators for setting up a sustainable business model . The case of Coca Cola has been considered. The Coca Cola Company has shown positive approach towards creating a strong collaboration with various stakeholders. The company is connected with a number of stakeholder associations in the form of both official and informal settings all through the Coca Cola Company’s network.
The company’s associations spread over all gatherings with regional, domestic and nationwide associations to continuous trade with bottlers, suppliers and buyers (Kenan Institute Asia , 2010). At a universal level, the company is effectively associated with numerous partners with varied activities. Two main organizations are United Nations Global Compact and the World Economic Forum, involving a primary aim that the company can deal with compressing universal complexities (Shapiro, 2010).
为了确定与政府监管机构建立合作伙伴关系对建立可持续商业模式的重要性，我们考虑了可口可乐的案例。可口可乐公司展示了积极的方法来与各种利益相关者建立强有力的合作关系。该公司通过可口可乐公司的网络以正式和非正式的形式与许多利益相关者协会建立了联系。该公司的协会遍及与地区，国内和全国协会的所有聚会，并持续与装瓶商，供应商和采购商进行贸易（亚洲Kean Institute亚洲，2010年）。在全球范围内，公司可以有效地与众多合作伙伴开展各种活动。 两个主要组织是联合国全球契约组织和世界经济论坛，其主要目的是使公司能够应对压缩普遍性的问题（Shapiro，2010年）。
With a strong association with external stakeholder associates
The company has distinguished and addresses issues by uniting the skill, information and enthusiasm of numerous associations and people. This approach has helped them to accomplish far more prominent positive effect on ecological, social and different issues than by working alone. Coca Cola has tied up with many government regulators, namely, foreign investment advisory councils, chambers of commerce and recycling.
The collaborative network has helped Coca Cola to govern the political influences, advocacy of public policy and trade partnerships. The Political Action Committees (PACs) of Coca Cola is operated by following all the rules and regulations of US laws and corresponding legal system ( The Coca-Cola Company , 2015). Senior government officials provide advice to the board members of Coca Cola Company all through the years on regular interval to improve the advocacy efforts.
The company has put a strong effort by collaborating with the government. They took further steps to protect the sources of local water by implementing source water protection plans (SWPPs) through the bottling partners (The Coca-Cola Company, 2015). The process has been implemented in over hundred societal water shade reinstatement ventures in the United States.
As such, Coca-Cola made an investment of $660,000 for USDA ventures (Purt, 2014). The National Forest Foundation and Coca-Cola jointly created two-third of the aggregate financing for the organization, with Federal government dollars representing the rest. A few protesters, involving Bragg, are worried that irreconcilable circumstances could conceivably emerge from collaborations between enterprises and Federal government. The USDA, the office accused of setting dietary rules .
And in addition farming approaches
Could be seen as accepting money related help from an organization that is specifically affected by its choices. At the same time, the World Wildlife Fund (WWF) which is a principal conservation association is also supported by the collaboration obtained through government support (Butler & Tischler, 2015). Through WWF, Coca Cola works at various levels so that future resources can be protected.
WWF’s way to deal with saving the environment’s natural resources consolidates its worldwide span with an establishment in science to guarantee the conveyance of inventive arrangements that address the issues of both individuals and nature. Understanding the key estimation of joint effort, the Company reported a transformational association with WWF on June 5, 2007 to move in the direction of rationing and ensuring freshwater resources around the globe (Ward, 2014).
Throughout the years, the organization has given functional case of how effective cross-division joint efforts can prompt preservation wins, proficiency picks up and benefits for individuals, nature, and business. Both the parties, namely, The Coca-Cola as well as the U.K. Government of International Development (DFID) declared associations to promote young ladies residing in Nigeria by furnishing them to training and trading skills that can help them to move forward in the society.
Jointly, the Coca-Cola Company and DFID have contributed more than £7 million to give chances to these Nigerian young ladies (The Coca-Cola Company, 2014). They are working in organization with executing accomplice Mercy Corps to dispatch the Educating Nigerian Girls in New Enterprises (ENGINE) program. Motor has engaged more than 10,000 young ladies by giving them preparing programs intended to assemble their monetary, entrepreneurial and authority abilities.
Every lady has the chance to browse various organizations and vocation open doors, incorporating help with beginning their own particular organizations as miniaturized scale retailers of Coca-Cola items. In order to minimize the risks arises from complex health and environment; it becomes crucial for each organization to create a difference in product characteristics.
Therefore, the Coca Cola Company has created a partnership with government regulatory authorities under the name “Golden Triangle” and relies on them to generate much collective impact on product characteristics. The company has adopted Golden Triangle association strategy to deal with the stakeholder engagement proceedings, spreading over people in general, and private and civil society segments.
The company has perceived and grasped the synergistic force of associations . That can accomplish much more noteworthy aggregate effect than would be conceivable by any one association working in separation (Kenan Institute Asia , 2010). The Golden Triangle organization approach is a center of Coca Cola’s business procedure, and can encourage maintainable business development, ecological stewardship and social advancement.
As a concluding remark it can be stated that Coca Cola has established a very strong sustainable business model by creating collaboration with government regulators. Utilizing rules and regulations specified by UK government . The company is able to establish an eco friendly water management plan along with a suitable agricultural plan.
The board members of the company always get valuable advices from the government officials on regular basis. The alliance with government has also helped Coca Cola to maintain a strong financial base after getting financial assistance. The creation of World Wildlife Fund (WWF) has helped to enable the company to utilize the resources optimally.
It is also observed that young ladies living in Nigeria are also getting help to become furnished with the entrance to training and business aptitudes that will help them to succeed. Overall, it can be concluded that by creating collaborative governance with government regulatory authorities, an organization can successfully implement sustainable business model and attain competitive advantage.
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