Facility location and characteristics- q1 which is better


Question: The Delicious Beverage company has been unable to introduce a new carbonated beverage to the market for more than five years. Company labs have failed to create a new beverage that is distinguishable in taste in any other quality from other carbonated beverages, and attempts to re-energize existing brands with glitzy marketing techniques have fizzled in the highly saturated soda pop market. As a result, market share is slipping and analysts and investors have started questioning the viability of the company. As the company begins to descend, there is a growing chasm between legendary old guard executives who achieved success in the 60's with their flower power fruity sodas, and their younger counterparts who, despite their extraordinary credentials, can't right the ship.

Against this backdrop, company market researchers begin identifying a remarkably strong trend among young soda consumers. These researchers believe this trend may become a dominant force as these young consumers develop brand loyalty during their "MSCYs" maximum soda consuming years). Just as importantly, subsequent research suggests this trend also encompasses many consumers in all age categories. Simply put, market research suggests that if a new soda product were equivalent in taste and other qualities to existing beverages, consumers would choose a product that is essential, clean clear, crisp, natural, joyful, fun, non-exploitive, no-guilt, future-focused...in a phrase, "an ecologically pure, world friendly incarnation" of the beverage consumers already drink by the gallons. Based on this research, the old guard executives (Berkeley drop-outs who started their business in the 60's selling a basement brew to San Francisco hippie wannabes) and new managers unite in a last ditch attempt to save Delicious by producing the world's first environmental soda, tentatively called Greenola Cola, a double-meaning that is no ost on any of them.

However, there is a catch. If Delicious markets a self-proclaimed environmentally sustainable soda, any subsequent revelation that the soda is produced, packaged or transported in anything other than environmentally friendly conditions will immediately doom the entire undertaking. You are given the job to identify the most environmentally friendly available practices related to several aspects of Greenola Cola's entry into its first major market. Your job is to identify practices that are sustainable in two senses o the term --sustainable in the sense of environment values, and sustainable the in the sense of cost-effective for Delicious. In addition, company research suggests the most favorable first market is Chicago.so all of your choices should be grounded in the realities of operating in the Chicagoland region.

You are given responsibility to identify the options and preferred alternatives for several aspects of Greenola Cola's first major market --product formulation, packaging, recycling, the location and physical characteristics of the production facility, waste handing, energy use (both at the production facility and in transportation), carbon footprint and corporate philanthropy.You are also charged to write the Delicious Philosophy on Sustaining our world. This is a one-page statement of eco-management principles to guide every Delicious decision, preferably with catch phrases that can also be used on beverage containers, billboards, commercials and the sides of trucks. While you are charged to think creatively, you are also told that if you "go too willy Wonka", you will be removed. Moreover, under the best set of circumstances, Greenola Cola will have a product life between seven and twenty years, which should be reflected in your projections. Your responsibilities are described in a meeting with the CEO and a consultant that you memorialize with the following notes.

1. Product Formulation -- are there practical but natural ingredients and/or production processes that can be (legally) promoted as having "earth-friendly" characteristics

2. Packaging -- glass, plastic aluminum or something else, apart from public perception does it matter?

3 Recycling - illinois chosen partly because no mandatory bottle recycling, should we provide in-store recycling option for Greenola bottles/cans to distinguish from competition, Q-if so, how, Q - if used, does transportation/energy = benefit from recycled raw materials and no landfilling?

4. Facility location and Characteristics- Q1 Which is better an urban land recycling project (with equity co-benefits) or a Greenfield, Q2 whether refurbishing an existing facility or constructing a new one more conducive, what needs to be done to meet "green building standards"?

5. Waste -- options for minimization, pollution prevention, also packaging (as above);

6. Energy-green building movement originated in Chicago, can renewable energy be purchased, what about transportation (employee incentives/public transportation fleet) Great deal of rail in some locations, some ship too, trucking hub but major congestion.

7. Reduce carbonated ? no, carbon footprint in every way possible

8. Charity -- lf we give portion of proceeds to NGO or cause, where the biggest bang for the buck for improving global environmental conditions? What is perceived and what is real? lsthis all we should do and ditch 1-7?

You are strongly encouraged to research what other beverage manufacturers-both in domestic and international markets are doing to achieve sustainability, but you are also expected to exceed existing best practices whenever possible.

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