Introduction
Today’s lean organizations face a dizzying array of issues, from cost control, customers satisfaction, product quality, productivity, stiff competition, change, technology, labour amongst others.
These organizations are made of people from diverse professional, academic and cultural background who must work as a team under intense time pressure and with limited resources to deliver the best results. When faced with complex problems, a good manager is guided by principles of problem solving skills to make sound decision logically and consistently (Kephner and Tregoe, 2004).
The Kephner-Tregoe technique is one of the logical consistent approach that managers uses to solve seemingly impossible problems (2004). The K-T technique, enable people to efficiently organize and analyze vast amounts of information and take appropriate action. The purpose of this paper is to apply principles of problem solving skills such as the K-T technique, in analyzing how the challenge of climate change is addressed in the soft drinks industry which in this case is Coca-Cola.
Effects of Climate Change
It has been noted that the temperature of the earth have steadily been rising. As a result, the climate of the earth has also changed and this has affected the earth’s ecosystems upon which life depends. In the last century temperatures have increased by about 10C. Though the increase is small, it has a significant impact on the climate.
It has resulted in extreme weather conditions such as floods, drought, severe storms, typhoons, hurricanes, heat waves and mild winters becoming more common and extreme (Coca-Cola.com, 2010). Conscious governments, organizations, companies (such as Coca-cola) and individuals are taking the initiative to minimize their contribution to climate change as well as make efforts to preserve the environment.
The soft drink industry is one of the largest contributors to climate change. It contributes to climate change in three main ways. One is through the manufacturing process by consuming energy that is produced when fossil fuel such as coal is burned where carbon dioxide is released into the atmosphere as a by-product. Secondly, point of sale cooling equipments widely used in the soft drinks industry use energy and at the same time emit dangerous HydroFlourocarbons (HFC) into the atmosphere.
Thirdly, transportation of raw materials to production sites and finished goods to the market releases vast amounts of carbon dioxide into the atmosphere thereby contributing to the greenhouse effect. Other methods through which soft drink companies contribute to climate change are through use of vehicle in product distribution, emissions, during packaging amongst others. Being global companies operating in almost all countries in the world, it is certain that their contribution to climate change is significant
But how can the industry use bottom line reporting to report how they address climate change? Triple bottom line reporting technique entails reporting on economic, social and environmental issues (Coca-Cola.com, 2010).
The triple bottom line technique evolved when companies realized that investors and other stakeholders are not interested on financial performance alone. The method of reporting focuses on a Company’s performance in areas such as “pollution, health and safety, human rights, child labour, and other environmental issues” (Coca-Cola.com, 2010).
The intention is to show how the company uses its resources towards social issues; it is also a useful publicity tool. The Coca-Cola Company will benefit from the triple bottom line reporting method as it will be able to demonstrate that it takes the issue of climate change very serious and also use the chance to demonstrate how it uses its resources to mitigate climate change and preserve the environment.
The main challenge that the company faces from climate change is how to keep its emissions and energy usage low. As such the industry is collaborating with research organizations, conservationists, universities, governments and other stake holders to develop more environmental friendly processes and equipment such as the HFC free coolers.
Coca-Cola Challenges
The company does not see any material risk at the moment associated with climate change, but it has estimated that there is potential risk in the future. There is a marked decrease in the amount of fresh water available which could be alarming because water is a major raw material for the industry. Events such as drought, famine and flooding affect water supply negatively. The supply of water in the future is not guaranteed and there is an urgent and critical need to protect its water resources if the industry is to remain sustainable.
In addition sudden and violent weather changes can disrupt its operations and supply chain systems because environmental disasters disrupts infrastructure and paralyses transport; prices can also increase and this may affect the sustainability of the industry. There are broader implications of climate change that will indirectly affect the industry such as people’s conflict over scarce resources. People constitute the market and labour; if they are in conflict the industry will be affected.
Conclusion
Problem solving skill is one of the most critical competences a manager can have; it gets work done and keeps the group together. It provides useful tools such as the K-P technique, for outlining the course of action in order to achieve an objective.
It provides a platform for integrating different skills such as planning, scheduling, time management, performance appraisal, negotiation and conflict resolution. By using a problem solving tool like the K-T technique, a manager can efficiently analyze vast and complex data like the one presented by Coca-Cola Company to arrive at a workable solution.
References
Coca-Cola. 2010. Sustainability Review. Web.
Kephner, K. & Tregoe. L. 2004. Problem Solving and Decision Making. Washington: Princeton.