QW0426-E(1)

docx

School

Business Management & Finance High School *

*We aren’t endorsed by this school

Course

111

Subject

Management

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by MinisterGorilla1274

Implementing Sustainable Operations and Financial Practices for Green Gold Limited Introduction Green Gold Limited is a UK-based company established in 2020 that aims to address the world's net zero challenges and promote greener and more reliable energy solutions using technology. The company has 53 employees and is partnering with Solve Technology to produce affordable Dimethyl Ether (rDME) for energy solutions worldwide. Green Gold's mission is to advocate for applying new technology in achieving the Net Zero global agenda. It seeks to partner with governments, communities, waste producers, collectors, and exporters to create a sustainable supply chain. Its strategy involves expanding into Europe and other continents where fossil fuels are a primary energy source by 2026, using existing wholesale supply chains and LPG distribution systems for transportation. Green Gold has a sustainability policy and offers employees full- and part-time contracts while relying on an IT subcontractor to manage its remote operations through a shared drive, email, website, and software. The Consultancy processes The Consultancy Process is vital to successful business operations, involving identifying, analyzing, and resolving company issues to enhance performance and profitability. At Green Gold Limited, the process starts with an initial consultation between the consultant and client, discussing the issue and desired objectives. The contracting stage then outlines the necessary actions, timeline, and responsibilities. A joint diagnosis and analysis stage follows, gathering and interpreting data to identify root causes. An intervention plan is then agreed upon, followed by

implementation, evaluation, and transition stages. The Consultancy Project Manager oversees the process, from identifying needs to developing and executing the intervention plan. Scoping process The focus of this consultancy intervention is to evaluate the operations, people management, marketing and public relations, and financial management of Green Gold Limited and provide recommendations on how to improve the business. The scope of this consultancy report will not include any legal or tax advice or any advice about the specific waste materials used in the production process. By conducting a micro and macro analysis, the results of this consultancy intervention will identify potential areas of improvement in operations, people management, marketing and public relations, and financial management. This will allow for a more informed decision-making process and the identification of any potential risks that could arise from implementing the recommendations. The analysis results will then generate tailored recommendations for improvement and implementation plans for each area. The Location Green Gold Limited is strategically located in three areas of Europe, namely the UK, Germany, and Finland, where waste materials are abundant, and the demand for clean fuel is growing. This location provides a favourable environment for the production of rDME, and the proximity to other European countries is advantageous for transporting waste materials and distributing the finished product. Moreover, the vast population of Europe serves as a potential customer base, and the advanced economic infrastructure provides a solid foundation for the

business to operate in. Green Gold's location near major transportation hubs offers easy access to customers, suppliers, and distributors, making transportation efficient and cost-effective. The availability of skilled professionals in Europe also provides a large pool of potential employees, enabling the business to access highly qualified and experienced professionals necessary to run the business effectively. The location also provides opportunities for marketing by providing easy access to customers in surrounding areas and other countries. With a large European population, there is a vast market for Green Gold's products and services. Finally, Green Gold's location may impact the availability of financing options. The UK offers loans and grants for businesses looking to expand, and access to advanced infrastructure may provide access to venture capital. The availability of financing options will enable Green Gold to expand its operations and enhance its productivity in the long run. Operation process Green Gold Limited is committed to delivering a cleaner and greener future through Dimethyl Ether (rDME) production. To achieve this, the business has implemented a project management process that ensures the efficient and effective delivery of projects. The process begins with identifying the project objectives and goals and then developing a project plan considering the project timeline, budget, resources, and risks. Once a project plan has been established, the business moves onto the implementation phase, which includes the execution of tasks, monitoring of progress, and management of change. The business uses traditional project management techniques and the latest technology to ensure that projects are completed on time and within budget. For example, Green Gold Limited has implemented an Artificial Intelligence

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

(AI) based technology (patent pending) to ensure that the build of the plant is completed effectively, within budget and with a reduced timeline. This system also helps reduce the number of experienced staff needed on-site for each new build, saving time and money. Technology Green Gold Limited is a company that uses technology to provide clean and green energy solutions. They specialize in using Dimethyl Ether (rDME) to produce a gas similar to propane and butane but with far fewer emissions. The company's AI-based technology sets up and manages the plant's production process, reducing the time and expertise required. The AI technology also works after the plant is up and running. Only a small team of operatives is needed to operate the site, reducing costs and reliance on expertise. The use of technology has enabled Green Gold Limited to create a sustainable supply chain and achieve its goal of supplying 450,000 tonnes of rDME per year by 2026. Green Gold Limited's technology reduces the time needed to build plants. It reduces the amount of experienced staff required, enabling plants to be staffed by local people and providing suitable quality employment and a safe working environment. The company is also working with governments, businesses, and community groups to increase their technology adoption. Employment Green Gold Limited is a company that places great importance on corporate social responsibility and sustainability practices. They have clear employment terms, including contracts for full-time or part-time work, sick pay, and pension schemes. Additionally, the company has an annual bonus system for managers who meet sales and production targets. The

company currently operates one plant in the United Kingdom but plans to expand into other countries. The head office comprises a managing director, finance director, chief engineer, operator director, and a team of administrative and research assistants. Within the plant structure, there is a head of logistics, a head of operations, and a head of plant relations. Green Gold Limited has diverse employees, including apprentices and managers. Salaries are determined by qualifications and experience, ranging from £6,000 to £170,000 per year. The company is facing two main challenges related to employment. Firstly, they need to recruit a skilled and experienced workforce to manage the business and meet the demands of their growing customer base. Secondly, they need to be able to recruit and retain staff in new locations as they expand into other countries. Green Gold Limited uses various employment contracts, including full-time, part-time, fixed-term, and zero-hours contracts. Performance Management Performance management is a continuous process organizations use to ensure that employees perform to the best of their abilities to meet their goals. At Green Gold Limited, performance management is an integral part of the organizational culture, focusing on developing employee skills and abilities to achieve the company's objectives around Corporate Social Responsibility and sustainability practices. The process of performance management at Green Gold Limited begins with setting individual and team targets for each department. Managers are responsible for assessing progress and providing feedback to ensure that objectives are achieved promptly and efficiently. The organization also rewards employees for their achievements through monetary and non-monetary incentives such as bonuses, salary increases, recognition, and promotion.

People Development Green Gold Limited recognizes the importance of investing in its employees' development to ensure business growth and success. The company provides training, education, well-being, and individual support services to develop its workforce's skills, knowledge, and abilities. Managers are incentivized to achieve sales and production targets and have the authority to make operational decisions. Staff members are rewarded for meeting objectives, and annual appraisals are conducted to discuss performance and set new targets. Training for role competence is also agreed upon during these appraisals. Green Gold Limited encourages its staff to develop leadership and management skills at undergraduate and master's levels and has a clear job description and expectations. The organization supports succession planning and management skill development to deal with present and future needs and has a sustainability policy in place. They use various communication tools, including an online management system, to communicate and collect data. The Organisation’s Stakeholders Green Gold Limited has various stakeholders influencing its business decisions, including the local government, funders, supply chain, distribution, local communities, and customers. The company relies on the provincial government for support in recruitment, funding, and planning applications. Funders provide financial support for construction and cash flow, while the supply chain provides raw materials for production. Distribution is responsible for delivering the product to customers, and the company is in talks with Avantigas to distribute DME using road tankers and cylinders. Green Gold Limited aims to partner with governments, investors, and

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

supply chains to provide clean, green LPG substitute energy globally, targeting areas where access to reliable energy sources can create business opportunities and improve lives. The company values its stakeholders and seeks to work collaboratively to ensure its business success. Customer Access to the Product/Service Green Gold Limited uses a multi-channel approach to reach customers and provide access to their products or service. They have an online presence through their social media platforms and other online channels to inform customers about their products and engage with them. Green Gold also has a direct sales team that offers personalized service to customers and provides additional information and advice on their product or service. They work with retailers to make their products available to customers at convenient locations and use distribution partners to ensure timely availability to a broader range of customers. Analytics tools and customer feedback surveys are used to measure the effectiveness of their channels and understand customer satisfaction. Public Relations and Sales Green Gold Limited, a North London-based company planning to build a new plant, is facing mixed reactions from the public. Concerns have been raised about pollution, false information on energy output, environmental impact, unpleasant smells, dangerous chemicals, reduced house prices, and the creation of unnecessary fuel. To address these concerns, the company should provide accurate information on the plant's energy output and safety measures, deny any allegations of the owner's involvement in risky business deals, and emphasize its commitment to working with political parties to ensure timely and efficient construction. The company should also promote the plant's potential benefits, including job creation and increased energy supply. The company should provide detailed information to the local environment group

on the plant's environmental impact, discuss ways to protect wildlife, and use innovative methods to reduce its carbon footprint. The Financial Management Process Green Gold Limited is a UK-based energy supplier that needs to monitor and plan its expenditure and income to remain competitive and profitable. To achieve this, the company has put in place several processes and procedures, such as monitoring energy prices in the UK and abroad and tracking DME production costs to reduce them. The company also keeps track of HR costs, including employee pensions, administration, and hiring costs. Additionally, the company monitors its investments, partnerships, and marketing strategies to reach the right customers and provide appropriate services while ensuring excellent customer service. Green Gold Limited considers the costs associated with operations, investments, partnerships, and marketing strategies to plan its expenditure and income. Raw materials, production, and recycling costs are evaluated alongside software services and acquisitions. Long- term partnerships are also taken into account to make informed financial decisions. Furthermore, the company considers financing options to ensure profitability and competitiveness in the market, such as debt financing, equity financing, and venture capital financing. Financial Analysis Green Gold Limited and Octopus Energy. Green Gold specializes in producing Dimethyl Ether (DME) as an alternative fuel source, while Octopus Energy provides energy solutions to homes and businesses. Green Gold's expenditure is mainly related to energy prices, the cost of building and maintaining the site, raw materials, and recycling costs. The business's profitability is primarily determined by energy prices in the UK, and DME is priced competitively with LPG.

Green Gold aims to provide competitively priced DME as an alternative fuel source and has managed to keep its expenditure in line with its expected strategic delivery. On the other hand, Octopus Energy has invested heavily in the business, with $1.2 billion invested over the last three years. This investment has enabled the company to expand operations globally and acquire customer management systems and strategic partnerships with other energy suppliers. Octopus Energy's expenditure is mainly related to investments in the business, software management systems, and strategic alliances. The company invests in the business and acquires customer management systems and strategic partnerships to expand its operations globally. While Green Gold is focused on providing competitively priced DME as an alternative fuel source, Octopus Energy is focused on expanding its operations globally by acquiring customer management systems and strategic partnerships. Management Accountancy Management accountancy is crucial for businesses to understand financial performance and make informed decisions. For Green Gold Limited, management accountancy techniques help to evaluate their costs, investments, and market position. The first step is to review the company's current costs, including energy prices, raw materials, labour, maintenance, and other relevant expenses. Then, a comprehensive budget is constructed to provide an overview of their financial position. Secondly, the company's current investments and financing model are assessed, including investments made in building the site, purchasing land, and examining the company's software management system. Finally, management accountancy techniques are used to analyze the company's current revenue and profits and its current market position to identify improvement and cost savings. Green Gold Limited makes informed decisions for its future expansion and growth by utilizing these techniques.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7.0 RECOMMENDATIONS 7.1 Recommendation One Green Gold Limited should invest in a customer relationship management (CRM) system to improve customer service and increase sales. The company should identify a suitable plan that fits its needs and budget, with features like customer segmentation, analytics tools, and marketing automation. Additionally, it should have customer service features such as a case management system and chatbot (Corea, Delfman and Nagel, 2020). A team of internal and external stakeholders should oversee the project, create an implementation plan, and train employees to use the system effectively. Implementing a CRM system comes with risks, such as data security breaches, inadequate employee training, and inaccurate customer data (Stewart and Jurjens, 2017). Green Gold Limited should develop a security plan to protect customer data, ensure well-trained employees, and establish procedures for accurate data management. Regular reviews should be conducted to ensure the system meets their needs. A CRM system is expected to positively impact the business by providing better customer service, improved customer segmentation, and increased sales (Gil-Gomez et al., 2020). The system will allow for personalized marketing campaigns and quicker customer support. It will also provide insights into customer trends for better decision-making. The estimated cost for implementing a CRM system, including the system, employee training, and external consultants, if needed, is approximately £50,000.

7.2 Recommendation Two Green Gold Limited is recommended to invest in a comprehensive waste management system to ensure a sustainable and cost-effective supply of raw materials for their rDME plants. This system should include waste producers, collectors, and exporters to create a reliable and cost-efficient supply chain. To implement this plan, Green Gold needs to identify and partner with reliable waste producers, collectors, and exporters. The company should develop a comprehensive waste management system that ensures a safe and efficient flow of waste from the producers to the plant. Additionally, they should invest in training the local workforce to operate the system. However, the main risk associated with this recommendation is that Green Gold may not be able to find reliable waste producers, collectors, and exporters. There is also the risk of delays in the supply chain due to unforeseen circumstances. To mitigate these risks, Green Gold should conduct a thorough market research to identify reliable waste producers, collectors, and exporters. They should also develop contingency plans in case of delays in the supply chain. Additionally, the company should ensure that their waste management system is compliant with all applicable laws and regulations. Implementing this recommendation will have a positive impact on Green Gold's ability to produce rDME in a sustainable and cost-effective manner. This will enable the company to meet its strategic objectives of providing affordable energy solutions to regions worldwide and reduce its reliance on fossil fuels. The estimated cost of implementing this recommendation is £200,000, which includes the cost of market research, training, and developing the waste management system.

7.3 Recommendation Three Green Gold Limited can improve its performance and profitability by implementing a customer loyalty program. In designing such a program, it is important to provide incentives, such as repeat purchase rewards, in a sustainable manner to increase retention rates of existing customers while attracting new ones (Gable, Fiorito and Topol, 2008). Additionally, ease of use is critical in a digital reward system, as traditional systems may take up too much time and drive potential consumers away from frequent purchases. Exclusive promotions and other off-sale offerings can engage untapped demographics and continue growth. To implement the program, Green Gold Limited should develop a comprehensive strategy that includes goals, objectives, target customers, benefits, budget, and timeline (Uncles, Dowling and Hammond, 2013). Leveraging digital marketing channels and physical retail locations can maximize impact on customer acquisition and retention while expanding brand recognition. Although customer loyalty programs are notorious for high associated costs, careful management of reward offerings can mitigate the risk. Monitoring key KPIs such as profitability relative to reward/payout ratios over time can ensure long-term success (Negron, 1997). It is important to justify the cost against the benefits it brings to overall growth and profitability. Green Gold Limited should ensure that the expenditure is reasonable and worth the value it adds to the organization. By implementing a customer loyalty program, Green Gold Limited can improve performance and profitability, attract and retain customers, and expand brand recognition. Conclusion

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

In conclusion, Green Gold Limited is a UK-based company that provides clean and green energy solutions using Dimethyl Ether (rDME). The company has a clear strategy and sustainability policy, and it offers its employees full- and part-time contracts. However, to remain competitive and profitable, the company needs to improve its operations, people management, marketing and public relations, and financial management. In order to achieve this, this consultancy report has identified three main recommendations. Firstly, the company should invest in a customer relationship management (CRM) system to improve customer service and increase sales. Secondly, Green Gold Limited should invest in a comprehensive waste management system to ensure a sustainable and cost-effective supply of raw materials for their rDME plants. Finally, the company should implement a customer loyalty program to improve performance and profitability, attract and retain customers, and expand brand recognition. By implementing these recommendations, Green Gold Limited can ensure long-term success and profitability.

QW0426-E(1)

Related Documents