Table of Contents
Abstract..3
Executive Summary
3
Terms of Reference
4
This report was prepared on the behalf of the management at the Happy Flight Travels Company. It focuses on investigating several possible ways of reducing wastes as a way of improving the company savings. It will further explain the good economical practices to be adopted in encouraging the company savings. This report was formulated by William McNally of Happy Flight Travels, Wellington.
Executive Summary
This report aims to investigate the sources and ways of minimizing wastes in the Happy Flight Travels Company. The report suggests methods of minimizing these costs and how to introduce good practices to be adopted by the new company in attempts to enhance waste control. The study proposes the concept of corporate social responsibility and source reduction procurement. It also recommends the inculcation of a cost saving culture among all employees in the new company to enhance costs minimization. The report has also explained the various sources of waste which yields to costs in the hotel sector, air travel sector and the general case. This report also recommends that the new company should acquire the good practices and use them to ensure their market position while at the same time minimizing costs as much as possible.
1.
Terms of reference
This report was requested by Happy Flight Travels Company on 20th October 2012. The company wishes to open a subsidiary firm in Auckland. The report is presented to Pat Stephens, the assistant manager of Happy Flight Travels - Wellington, who ordered it to be concluded by 10th Nov 2012. The aim of the report is to investigate on the wastes that are generated in the company and find specific ways of saving on these wastes. This meant that I was tasked with duty of making recommendations on the type of wastes produced by the company, how to minimize them, what good practices were to be adopted by the company and to estimate what guideline can be put in place to ensure controlled waste management.
2.
Procedure
The author collected information by:
2.1.
Quantitative research in Happy Flight Travels - Wellington, to identify the processes involved in their operations. This would help me trace how the waste is produced and consequently look on ways to minimize it by saving costs.
2.2.
Liaising with the waste management authority to get more insight on waste in flights and hotel rentals companies. I would then relate this to our new subsidiary firm to be opened in Auckland, the new company was supposed to ensure improved savings through minimizing waste produced. This was to ensure that the budget in my research with waste management specialists from the Office of Management and Budget (OMB) and also experts from the US Environmental Protection Agency (US EPA).
2.3.
Analyzed my findings to come up with solid information on the following: waste that is produced, how can it be minimized, how can good economical practices be incorporated to ensure minimized waste and increased savings, and to know what guidelines would be laid down for the new company in Auckland to instill this measures
3.
Findings
3.1.
It became evident that all businesses produce waste and regardless of the type of waste; it will still incur a cost of disposing off this waste. Therefore, lack of measures to control this waste will always lead to increased costs for the company. The best way to reduce waste would be not producing it in the first place (National Recycling Coalition, 1999).
3.2.
The waste that was seen to arise, especially from hotels department is that some hotel costs do not match with the amenities that are available. It would be prudent to search for hotels which have better services rather than paying much for poor services. Otherwise it would be better to rent private homes. The new company should consider the best option on hotel rentals for the client to ensure they pay for value. This would also be a way of maximizing client’s satisfaction.
3.3.
Another waste may come from the use of vehicles used to carry clients to their destinations (Newell, 2006). Use of massive SUVs gives the impression that these cars consume a lot of gas, thus it is possible that the company wastes a significant amount on gas thus reducing profits. It would therefore be advisable to use low fuel consumption vehicles to reduce waste through gas consumption.
3.4.
Air travel can also result to the company incurring wastes, this might be through paying up for all costs including food yet many airlines do not offer free meals nowadays. This would cost the company a great deal of money which can otherwise be avoided. It would be wise for the new company to devise ways of reducing such costs maybe by providing cheaper foodstuff for clients or using airlines that are highly flexible in their prices.
3.5.
Another waste can be through the type of buildings constructed or hired for the new company’s premises (Newell and Seabrook, 2006; 283). Some buildings usually consume lots of energy and water which adds on to the cost of the company. It would be good to go for building designs designed with maximum considerations of sustainability and efficiency to reduce over consumption of energy. This includes buildings which have proper lighting and heating to reduce the energy costs that would otherwise be incurred for these purposes. The clients can also produce wastes in the company; this includes the solid wastes disposed improperly by clients (Rheem, 2009). This incurs costs of disposal to the company and thus it would be shrewd to advice clients on the concept of eco tourism where they take an initiative in ensuring a clean environment.
3.6.
One of the good economical practices that can be adopted by the new firm in overcoming these wastes is through the use of source reduction procurement which is a concept whereby companies buy or use products that cause the least harm to the environment. This would help to reduce environmental cleanup costs for the new company. The company can also incorporate a cost saving culture to the employees; this is a good practice that would ensure that the firm does not produce wastes which tend to increase its costs. Many companies manage the issue of solid waste by being socially responsible, a concept that forms part of corporate responsibility. This ensures that firms are responsible for whatever wastes they produce in the environment (North London Waste Authority, 2012). The best way of managing these wastes is not to produce them. Therefore any action that is deemed to produce wastes or extra costs to the new factory should be cut off.
4.
Conclusions
4.1.
This research pointed out on the probable sources of wastes for the new company, it has also provided the ways of minimizing these wastes for the company for it to be able to save on costs.
4.2.
The research has also proposed the good practices that can be adopted by the new company to ensure continued minimization of waste production and costs.
4.3.
The study also suggests that many companies use corporate social responsibility in managing these wastes hence this culture should be inculcated into the new company.
5.
Recommendations
5.1.
The results discovered in this research suggest that the new company should adopt and embrace the good practices of cost saving and source reduction procurement. These can greatly help the company in minimizing the production of wastes and thereby saving on costs.
5.2.
The management of the new company should ensure they are highly cost efficient. It would also be important if they rent energy saving premises to reduce energy costs as presented in this report.
National Recycling Coalition. (1999). Purchasing Strategies to Prevent Waste and Save
Money.NRC.
Newell, G. and S. Seabrook (2006): “Factors influencing hotel investment decision making.”
Journal of Property Investment and Finance, 24(4), 279-294.
North London Waste Authority. (2012). Reduce Waste Save Money: A guide for business.
NLWA.
Rheem, C. (2009): Going Green: The Business Impact of Environmental Awareness on Travel.
PhoCusWright Inc.
