Business Report – Eagle Valley Health Foods Pty Ltd Essay Example

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Business Sustainability Report3



Executive Summary

Eagle Valley Health Foods is company that deals in health-oriented snacks in Western Australia. Having operated for 3 years, the company has been striving to keep up with the stiff competition that bewilders the food industry. Remaining relevant and being able to sustainably operate in a competitive industry as such requires more than business operational policy or rather internal environment of a business per se. The corporate world is shifting to a comprehensive and philanthropic system of social, environmental and economic up lift of communities and the society at large. Most large companies, and even some smaller ones, now feature CSR reports, managers, departments, or at least CSR projects, and the subject is increasingly promoted as a core area of management, next to marketing, accounting, or finance (Crane, Matten and Spence, 2013, p.4). Apart from that,

Table of Contents

2Executive Summary



3High Heating and cooling electricity bills

3Problems of Corporate Social Responsibility

3Consumption of large amount of water in production

3Conclusion and Recommendations

4Invest in CSR

4Adopt water recovery technologies

4Renovate the building and install cheap air conditioners



Business sustainability is a management practice that focuses on future existence (going concern) of the business. Business sustainability vastly encompasses a set of strategies aimed at ensuring success of the business. In order to be within the definitions of business sustainability, a company’s must be able to effectively manage business operations and maintain a corporate social responsibility profile. As a core aspect of a company, SCR has emerged to be a driving factor of business sustainability and competitive advantage. Owing to the countless benefits of business sustainability, this report provides articulate recommendations on how to sustainably operate Eagle Valley Health Food Company in order to minimize expenses and input and maximise output, profits and shareholders’ value.


High Heating and cooling electricity bills

The company is located in a two storey building built from corrugated iron which has affects the conditions of the working environment. Subsequently, this leads to incremental expenses of heating and cooling of the premises. These operating expenses have a net effect on the profits of the company therefore, limiting the company’s expansion capabilities.

Problems of Corporate Social Responsibility

The company is looking forward into investing in CSR. Currently the company is not generating much profit to allow it invest hugely in improving CSR profile. While corporate social responsibility is a crucial aspect in the success of the organization, it is equally important to consider the position of the company in terms of growth, liquidity and leverage. CSR is a crucial aspect for any lucrative business as creation of stakeholders’ value is a priority to making profit. The low profits of the company however, cannot be attributed to the low CSR since it is just 3 years old.

Consumption of large amount of water in production

Production of the Health bars consumes a lot of water. This is a serious problem as water wastage is not a sustainable way to go. Water consumption also comes with its expenses. This can affect the company’s operating profit and even the company’s long-term reputation. A company that does not utilize available scarce resources in an effective and efficient manner can face massive criticism from environmental activists, thus affecting corporate reputation. Consumption of large amount of water is due to lack of a system that control processes that consume water usage. Additionally, product and water recovery techniques are not available in the company to ensure that water is recycled and re-used.

Conclusion and Recommendations

The findings above were obtained as a result of critical analysis of the company’s operations and organizational missions and visions. In order to ensure sustainability of the company, the company’s management should focus on the organizational missions and visions. Above this, sustainability is a matter of

Invest in CSR

I recommend that the company invest within its financial capacity in corporate social responsibility. Investing in CSR has long-term benefits as it will see the growth of the company. The growth of the company measured by its retention ratio and return on equity will not only attract potential investors into the company, but will also improve its corporate reputation. Firms with low CSR performance have low stock returns, worse operating performance, lower values and higher operating expenses (Chen, Tang and Hung, 2013). A company’s performance is benchmarked against its profits and the value of their shares in the security market. Therefore, invest in CSR to attract potential investors and see long-run benefits in terms of reduction in operating expenses and maximization of profits. The company can improve on its CSR by going green, which is undertaking business course without inflicting harm on the natural environment and actively participating in social welfare issues.

Adopt water recovery technologies

I recommend that the company’s operation be restructured and incorporate water recovery techniques or adopt recent water management technologies in the production process. This is line with the principles of corporate social responsibilities, where the need to conserve resources is paramount. Even though it might be costly to adopt these techniques, they are cheaper in the long run. The company will improve in its operation and performance and this will see it gain a competitive advantage too. This will only ensure sustainability of the company alone, but also of the society within which it operates. The company also adopts cleaner production principles that include changes in; technology, materials input, product design, waste use, maintenance and packaging Almeida, et al, 2016, p.1). This will ensure sustainability of the company.

Renovate the building and install cheap air conditioners

I recommend that the company seek financial mechanisms to renovate the premises. Renovation should involve installation of cheaper air conditioning systems and structural renovation to make the premises an attractive working environment. This will ensure the working environment a conduce place to work in. It will improve on staff productivity and reduce on the electricity expenses. It should be noted by the management that a conducive working environment is important as it affects the productivity of work and even the end-products of a process (Taiwo, 2010, p.299).


Crane, A., Matten, D. and Spence, L.J., 2013. Corporate social responsibility in a global context. Chapter in: Crane, A., Matten, D., and Spence, LJ,’Corporate Social Responsibility: Readings and Cases in a Global Context, 2, pp.3-26.

Chen, R.C., Tang, H.W. and Hung, S.W., 2013. Corporate social responsibility and firm performance. The Journal of American Business Review, 2(1), pp.181-188.

Almeida, C.M., Giannetti, B.F., Agostinho, F. and Huisingh, D., 2016. Cleaner production towards a sustainable transition. Journal of Cleaner Production, 112, p.1.

Taiwo, A.S., 2010. The influence of work environment on workers productivity: A case of selected oil and gas industry in Lagos, Nigeria. African Journal of Business Management, 4(3), p.299.