Management Future: Water Management

corporal pee worry stake for corporations luck for consultancy helpers Student Number 440008 University of Portsmouth word ascertain 2646 (excluded figures, table of contents, references and executive summary) This is to verify that this is my own work and that it has not been physical exercise in get off the ground in the assessment of separate units in my full stop *********************** Executive summary peeing scarcity volition be a zippy resource for disdain in the prox. In a invoice in 2008, it is indicated that piss deductions to UK accounted for 62% practical(prenominal) irrigate consumption (Chapagain & adenylic acid Stuart, 2008) .It is predicted that the custom of pee in horticulture depart rise 30% in 2025 (Black, 2010) and weewee approachability per capita has reduced by 5 times comp be to statistic in 1950 (UNDP) . In correlation with the tonus-down in pissing bring, at that place has been signifi tint increase in societal sol icitudes and customer attitudes toward environmental hassles (Top of object Survey, 2010) . The urine jounceions on individuals, corporations, and communities vex been realized and heighten magnitudely rival near oer the same menses. piddle memorials, piss supply- focussings argon identifiable practices which atomic number 18 introduced for pieceity and private sectors (WWF, 2009 IBM, 2008) . However, despite the upholds of irrigate issues, the business responses to the difficultys take a crap been equitable weak (Barton, 2010) . At the same time, consultancy market has been indicated as a potential drop field of investment ( addition 4). Triangulation of lines selective information apprizes a potential market for consultancy service of urine focus.The condition highlighted the business opportunities and profitability that it could bring which include improve knowledge of weewee supply chain to reduce environmental impact which is an essential v alue for business, understanding of peeing footmarks practices hence improving CSR. It overly proposed the secure(prenominal) competitive run as beginning base uppercase requirements and uniqueness of the services. However, it is predicted to have a reducing market share for the future. kickoff barrier of entries and the dearth in human-resource might be the main ressures. In tack together to picture this business opportunities, different sets of strategic and market analytical frameworks have been exercised aligning with discussion throughout the article. Contents 1 gate4 2 Methodology4 3 Trends information tie in to pee wariness5 3. 1 water supply a precisely resource5 3. 2 Escalating concern for social function7 4 Connections mingled with trends8 5 Future prediction8 5. 1 wet scarcity a worsening trend8 5. 2 Demand for CSR trend10 6 Opportunity evaluation and justification 11 Conclusion12 References13 Appendices16 Appendix 1 irrigate evince map and Population density16 Appendix 2 Water and Water pace17 Appendix 3 eyeshot survey on mode changes (ONS, 2010)18 Appendix 4 Business Opportunity compend20 1 Introduction Companies have been focuse on green washing their images with environmental activities concern with fossil fuels, emission, nose candy paces, etc. But an more or less early(a)wise major ex angstromle has been long omitted in this country however is water and water usage throughout the supply chain of the business.It is critical to understand that consumptions of goods and services draw tremendous role in water delivery on a globose scale (Ercin, Aldaya, & angstrom unit Hoekstra, 2009) . For the equality and sustainability in the future growth, bust knowledge and insights to water guidance are required for businesses in order to achieve its CSR goals. Environmental consultancy services and business advisories, with timely response can play a proactive part in encouraging, promoting, and provid ing water management services for businesses in the near future.The service forget focus on aligning economic growth of sustainability with water preservation and another(prenominal) think-environmental problems in the business. The consultancy can besides provide traceability service and educate traceability managers (Wylie, 2010) who can examines global supply chain through imports, merchandises, setting water standards, water remains reporting, etc. The potential customers are massively wide-ranged from private companies to multinational companies as well as regime and non-government agencies. Justification of business opportunity pass on be carried out in the last section along with the conclusion.The close section entrust briefly describe the re search method actingology of the believe and key trends related. 2 Methodology For this project, secondary data is used as the main source. Chris defined secondary sources as data which has been collected previously and reported by other citizenry (2005). The secondary data are fact and figures from different environmental electronic source including United ground (UN) website, Water Footprint Network (WFN) website and military position of National Statistic (ONS) website. Data just almost water footprint, CSR is from professional reports, and journal articles.Statistical and qualitative data gathered is the vital foundation to discussions of the business and triangulation of trends and figures. In fact, the major advantage of secondary data is its readiness for collection, extensive amount of empirical research are functional in qualitative and quantitative forms from various sources. Secondary data are decoded and explained so that they are understandable and easy to read (Saunders, Lewis, & Thornhill, 2009, pp. 195 200) . Secondly, it is cut-price with information which cannot be easily obtained individually.However, limitations of secondary data are also considered. Secondary data are collected and analyzed for different purposes and and so general and irrelevant to the topic of the project. Furtherto a greater extent, data used in the research are collected variably thus its quality and reliability must be questioned (Francis & Wesley, 1963) . Primary data collection could be utilitarian tho result be costly and time-consuming for the project (Chris, 2005, p. 107) . Appendices provided statistics related to water footprint, opinion survey about climate change and other water-related data. Some of the figures and table ordain be irectly put into the content of the article for better explanation to viewer. There are a lot of strategic and marketing analytical frameworks have been used which are PESTEL analysis, Porters five forces, Longeneckers opportunity recognition criteria (Appendix 4). 3 Trends data related to Water management There are two main trends which are connected and interrelated to the business opportunity. There are also sub-trends d iscussed inside each of the category to further analysis. 3. 1 Water a scarce resource The Earth cannot withstand a systematic increase of sensible things.If we grow by victimization more stuff, Im afraid wed better incite looking for a new planet. (Spoken by Robert Shapiro) a) Water shortage Nowadays, problems with water have been a rising controversy for humanity. World usages of water have been quadrupled to 4000 km3 per years while world has growth 3 times in 60 years (figure 1). Major contribution for the increase is agriculture and a increase figure on industry and municipal water use. approach pattern 1 Estimated Annual water use of the world (Kirby, 2004) According to UN estimates, more than half of the worlds population now lives in cities (BBC News, 2008) .Population density map (Appendix 1) of UK shows an inextricable link of urban areas with water stress map (Appendix 2. 4). World supply of portable water declines, the density of population in urbanized area i ncreases the inefficiency of water supplies and continuingly enlarges water problems (Cetron amp Davis, 2008) . Human activities include industry, domestic use, etc which could call for the water supply as well as other trends much(prenominal) as globalization and industrialization. (International Year of Fresh Water 2003) b) Water management UK Case The amount of water used to explicate feed and goods merchandise by develop countries such as UK is worsening water shortages in the developing world (Black, 2010) In the case of UK, import goods from other countries are contributing to the water shortage in other nations. According to Chapagain amp Stuart (2008), 62% of the total water in the UK is accounted for by water from other countries, while 38% is used from domestic water resources (Appendix 2. 1) Previous data shows that water consumed by UK residents are averagely 152 litres per days from 1995 to 2008(Appendix 2. ). Nevertheless, the amount of water indirectly embed ded in consumption are massively larger. Embedded water in 1kg of beef are 15000 litres while 1 chunk of give up are 2500 litres hence with this calculation UK consumers only see 3% of water usages they are accountable for (Black, 2010). From 1995 to 2001, 70% of water source are from import goods while 30% water of UK usage are self-generated (Appendix 2. 2). With the increasing trend of usage of importing water, water exhaustion provide add up for the rest of the world. 3. 2 Escalating concern for social duty ) Demand for social responsibility from customers and society. Consumers and society are growingly concern about climate and environmental issues. In an opinion survey of ONS, the number of UK residents who are worried about climate changes and environment is over 80% constantly from 2006 to 2009, 30% of commonwealth seriously concern about environmental problems (Appendix 3. 3). Nevertheless, the percentage believes environmental impacts to be top three priorities decli ned from 2007 to 2009 of 9% (Appendix 3. 1). This may due to a recession which introduced major economic problems during the period thus shifted societys attention.On the other hand, 82% of respondents are ready to change their behaviour to reduce climate changes consequences (Appendix 3. 3). b) Water CSR responses for Business sustainability For businesses, CSR has been ranked 3rd in 2009 and 2nd in 2010 as concerning issues for consumer goods industry (Top of Mind Survey, 2010) . Friedman (2007) also set in his article a strong link between good CSR and profitability of the firm. However, disclosures of collective water performance from different sectors are astonishingly weak.From a benchmarking study of nose candy companies (Barton, 2010) which examine water performance disclosure quality with a score range from 0 to 100 points, there is no company surpasses 43 points and the average highest score are achieved in mining sector with only 28 points (figure 2). Figure 2 m ean(a) score by sector of water disclosure quality from 100 companies (Barton, 2010) 4 Connections between trends Water shortage and water-related stresses put corporations into potential problems. new-made reports of WWF and WFN (Or, Cartwight, amp Tickner, 2008 Hoekstra A. Y. 2008) has identified four type of gamble of infection related to water issues that business could possibly event * Physical risk The shortage of water in the future will be a major problem for businesses. * Reputational risk Disclosure, quality of disclosre, and other water CSR issues may be questioned by public thus damaging companys image. * Regulatory risk As water shortage is a global trend, government will introduce more uncompromising policies and regulations on water resources. * Financial risk The consequences of the above will be increase in cost/decrease in revenue. (Or, Cartwight, amp Tickner, 2008)For CSR of water, Gerben Leenes amp Hoekstra, (2008) presented the business water footprint as total overbold water used directly and indirectly in a production process of a business. It categorized as 2 major type operational water footprints which are water used directly in the operation and supply chain water footprint which are used indirectly. Barton, (2010) implies that reduction of water footprint should be part of business environment approach along with other methods like carbon footprints. International trade and business activities has a close link with local anesthetic water depletion and pollution (Hoekstra amp Chapagain, 2008, p. 8) . 5 Future prediction 5. 1 Water scarcity a worsening trend Forecasts suggest that when the worlds population soars beyond 8bn in 20 years time, the global demand for food and energy will jump by 50%, with the aim for fresh water rising by 30%. (Black, 2010) Human activities especially agriculture will incessantly put pressures on water supply (figure 3). temper change and population growth will burden agriculture to pro duce more which increase the demand for water while industry consumption of water will reduce as technology increases.Figure 3 jut of water usage in agriculture, industry and municipal Water availability is projected to keep a decrease for the future (Figure 3). Figure 3 Water availability per capita (UNDP) For a more depressing view, several projections illustrated that about 48 to 60 countries will expect water scarcity by 2050 with at least 2 billion people in peril (UN-Water, 2010) . If the problem with water becomes critical globally, the UK victimization will also be influenced. Water imported to UK are majorly for agriculture products (Appendix 2. 2).The main source of water (virtual water ) in UK comes from imported goods and foods. 5. 2 Demand for CSR trend regimen in response to energy and environmental issues will impose strict regulations on corporate, industries will have more pressures for social responsibilities. Water responsibility should have a much wider-ra nge of measurement and business should embrace a wider set of value to sustain economic growth in the future and prevent incoming water crisis. * Sustainability in future? Figure 4 risk over time associated with corporate water-related interventions. (WWF, 2009) In the time of government intervention and corporate responses to water-related issues and other mega-trends (Demographic shift, economic growth, and climate change), risks of water will decrease to a level that meet intervention level (figure 4). In fact, a sustainability future can be achieved with responsibilities shared for everyone (HMGovernment, 2005) . 6 Opportunity evaluation and justification The growing concern of water scarcity and public interest in social responsibility are two main trends which will impose pressures to both policies makers and businesses.Pioneers with awareness to areas where water issues are near serious can express actual instructions and bias this to competitive advantage (Pegram, Or, & Williams, 2009) . However, in order to make clear alignment between policies, water-based knowledge and corporate interests (shareholder values, profitability, CSR), there will be a porta for corporate water management developed whilst will encourage consultancy services. Water management consultancy service will have two main focuses * Water footprints accounting practices for corporations Supply-chain water management The former will enhance business practices of CSR, assisting in building a green image for company and control, check over efficiently and effectively the water supply-chain while the latter will analysis, appreciate and give advices to where business could improve its water supply chain. Both will be Unique Selling Points in consultant industry which other competitors do not have (auditors, financial advisors, etc). The uniqueness of the service and magnificent quality will be main differentiations to competitors.There are insufficient data about market sh are and demand for consultant services instanter a primary data research would be useful but the scope of this project does not allow. Nevertheless, the market demand are predicted to dramatically increase with the concerns about water-scarcity and social responsibility demand (Or, Cartwight, & Tickner, 2008) . Particularly, UK will require a wide range of knowledge about water supply-chain management. It is indicated via Porters five forces than 5 threats to this industry is considerably low (Appendix 4. 2) which can be explained by its service-nature and knowledge-based gaps.Nevertheless, in the long-term, demand for consultancy services could be decreased. Government regulations and business awareness increase (Barton, 2010) which may reduce water risks thus the need for consultant services will reduce. This will attract to the problem of sustainable profitability and development in the long-term of the business. Furthermore, constitution development will be crucial for consultant service to arrest quality, reliability and effectiveness of the service provided. This is a long-term process which requires a lot of marketing and R&D funding.Another factor needs to be considered is financial side of the business. With undersized capital investment requirement, the investment in business is predicted to be low (estimation of ? 50. 000). With a runty to medium-size opening which operates efficiently, business could have a payback time of 2 to 3 years and IRR rate amount to 10% cost of capital. However, what is critical is knowledge-based values (intangible assets), with the little people who can have water knowledge and corporate business knowledge about CSR and other consultancy areas combined.Training and Learning may be a problem for mid-long term development that business could possibly face. run low but not least, potentially large number of competitors could appear in the future. Demand for this knowledge gap of water will be fill up with concerns about water crisis. IBM has run its program about water rear smarter water management to explore approaches to water management (IBM, 2008) . Master (Msc) division for water management has been introduced as part of education scheme for Unesco-IHI show of water education (UNESCO, 2009) .However this education development could as well turn into advantages when more water-managers are available to reduce bargaining power of suppliers. 7 Conclusion In conclusion, with the water shortage as a predicted trend for humanity in the future and the demand for social responsibilities comes from society in which customers are the direct pressure. It is noticeable for firms and companies to have appropriate response to the problem in a global scale. Therefore, with the demand for water-management knowledge in the future, this would suggest that there is an unexplored field of water-consultant services for consultant industry.The uniqueness of the services provided by corporate w ater management package will be the main competitive advantage for the companies as clients growingly concern for CSR. Low capital investment required, critical knowledge-based resources about water-management will contribute to the business winner rate. However, the reduction in demand for the service in the future and write up requirements will be the major issues that business may have to face in the long-term development. References Barton, B. (2010). Musky water?Corporate reporting on water risk A benchmarking study of 100 companies. Ceres. BBC News. (2008, November 5). Retrieved November 17, 2010, from Growing Slums face water crisis http//news. bbc. co. uk/1/hi/sci/tech/7708120. stm Black, R. (2010, April 19). BBC. Retrieved April 25, 2010, from UK water use worsening water crisis http//news. bbc. co. uk/1/hi/8628832. stm Cetron, M. J. , & Davis, O. (2008). 55 trends shaping tomorrows world Forcasts and implications for Business, Government and Consumers. Maryland World f uture society. Chapagain, A. , amp Stuart, O. 2008). UK water footprint the impact of the UKs food and fibre consumption on global water resources. WWF. Surrey WWF. Chris, H. (2005). Doing your Master Dissertation. London Sage Publications. Ercin, A. E. , Aldaya, M. M. , & Hoekstra, A. Y. (2009). A pilot in corporate water footprint accounting and impact assessment The water footprint of a sugar-containing carbonated beverage. Delft UNESCO-IHE Institution for water education. Francis, R. J. , & Wesley, B. C. (1963). Research Methodology in Business (1st ed. ). New York harper y Brothers.Friedman, M. (2007). The Social Responsibility of Business Is to Increase Its Profits. In Corporate Ethics and Corporate Governance (pp. 173-178). Springer Berlin Heidelberg. HMGovernment. (2005). Sercuring the future delivering UK sustainable development policies. Norwich TSO. Hoekstra, A. Y. (2008). Water Neutral Reducing and Offsetting the impacts of water footprints. Delft UNESCO IHE Insti tution for water education. Hoekstra, A. Y. , & Chapagain, A. K. (2008). Globalization of water sharing the planets freshwater resouces. Oxford Blackwell Publishing.IBM. (2008). Smarter Water management. Retrieved January 20, 2010, from IBM http//www. ibm. com/smarterplanet/uk/en/water_management/ideas/index. hypertext markup language? re=sph International Year of Fresh Water 2003. (n. d. ). Retrieved April 22, 2010, from http//www. wateryear2003. org Kirby, A. (2004, October 19). BBC news. Retrieved April 22, 2010, from Water scarcity A looming crisis? http//news. bbc. co. uk/1/hi/sci/tech/3747724. stm (2008). Living satellite Report. Gland WWF for a living planet. Longenecker, J. , Moore, C. , Palich, L. , amp Petty, J. (2005).Small business management an entrepreneurial emphasis. (13th, Ed. ) Ohio Thomson South-western. ONS. (2010). Public attitude towards climate change and the Impact of Transport 2006, 2007, 2008 and 2009 (January 2010 report). Office of National Statistic . Or, S. , Cartwight, A. , amp Tickner, D. (2008). Understanding Water Risk A dry land on the consequenses of water scarity for government and business. WWF. Pegram, G. , Or, S. , amp Williams, C. (2009). Investigating Shared Risk in Water Corporate Engagement with Public Policy Process. WWF. Rickman, C. D. (2005).The small Business Start up workbook A step by step guide to starting the business you have dreamed of. Oxford How to Content. Salina, I. (Director). (2008). Flow For the chicane of Water Motion Picture. Saunders, M. , Lewis, P. , amp Thornhill, A. (2009). Research methods for Business Students (5th ed. ). Essex Peason Education Limited. (2010). Top of Mind Survey. Paris The Consumer Good Forum. UNDP. (n. d. ). United Nation Development Development. Retrieved from http//www. undp. org/ UNESCO. (2009). Education of master in water management. Retrieved April 17, 2010, from UNESCO-ihe http//www. nesco-ihe. org/Education/MSc-Programmes/MSc-in-Water-Management UN-Water. (2 010). Retrieved April 23, 2010, from http//www. unwater. org/ WWF. (2009). Water FootprintingIdentifying and Addressing Water Risks in the look on Chain. WWF. Wylie, I. (2010, January 9th). Jobs of the Future. Retrieved April 25, 2010, from The Guardian http//www. guardian. co. uk/money/2010/jan/09/jobs-of-the-future/print Appendices Appendix 1 Water stress map and Population density 1. 2 Population density in the UK Sources ONS (2003) 1. 2 Water stress in regions of UK Sources ONS (2003)Appendix 2 Water and Water footprint Consist of 3 figures Water footprint in UK, Water footprint versus water scarcity, self-sufficiency and water import dependency. Domestic water consumption in UK 2. 1 Water footprint in UK (extracted from WFN, 2010) Water footprint Water footprint by consumption category fit Per capita Consumption of domestic water Consumption of agricultural goods Consumption of industrial goods Internal water footprint Internal water footprint impertinent water footprin t Internal water footprint External water footprint Measurement m3/cap/yr UK 73. 07 1245 38 218 592 114 284 2. 2. Water footprint versus water scarcity, self-sufficiency and water import dependency per country period 1997-2001 (Extracted from WFN, 2010) Country Total renewable water resources Internal water footprint External water footprint Total water footprint Water scarcity Water self-sufficiency Water import dependency 109 m3/yr 109 m3/yr 109 m3/yr 109 m3/yr % % % UK 147. 00 21. 67 51. 40 73. 07 50 30 70 . 2. 3. Domestic water consumption in UK (source ONS)Appendix 3 Opinion survey on climate changes (ONS, 2010) 3. 1 Percentage considering climate change to be the almost all-important(a)/in top three most important issues facing Britain 3. 2 Attitude to climate change and fashion change for UK residents 3. 3 How concern you are to climate change and environmental impacts Appendix 4 Business Opportunity analysis This part will consist of 3 figures water management f uture PESTEL analysis, water management consultancy market Porters five forces anaylysis, Longeneckers opportunity evalution criteria 4. 1 Water management PESTEL analysis.Corporate water Management Future PESTEL AnalysisPolitical * Privatization of water has been show as a threat to water supply with concerns about politics, pollution, human right to entrance money water and the threat of monopolization of water (Salina, 2008). * Sustainability development policies has been developed since 2005 by UK government (HMGovernment, 2005) which shows concerns of government about future environmental problems * Political issues between parts of the world will indirectly ask the supply of water especially to poor people. Water war as a black swan but actually happened in Bolivia in 2000 (Salina, 2008)Economic * Cost of water will go up as the water supply decrease, unstable supply of water will * Import/export goods will play a major role for water management in the 21st century (Chapa gain amp Stuart, 2008). Water consumption of developed countries outmatched other regions which is a serious misallocation. * Specialization, outsourcing will have major impact on water supply and quality.Agriculture, industry progressively pose interdict effects on water (International Year of Fresh Water 2003) * Businesses increasingly concerns about corporate social responsibilitySocial * Access to freshwater is a growing concern for the society. 1. 2 billion people are suffering from water shortage in 2009 (Living Planet Report, 2008) * Sanitation of water is an apprehension as diseases related to water are increasing. Changing attitude of community about climate change and water shortage in the future will * Water users does not realize the real amount of water they using hence exercise shortage of responsibilities * Drought, water-related epidemic are wild-cardsTechnological * Government outlay on management and water preservation research * New method of calculating virtua l water water footprint * Water preservation practices * Innovations in water allocation, water protection methodsBreakthrough in technology, innovative stripping of water management can be a wild cardEnvironmental * pollution of water reduce availability of water supply for humanity, chemicals from industrial activities cannot be fully absorbed by water lead to many other problems with the ecosystems * Carbon emissions, global change According to UN-Waters reports (2010) Global warming will be the cause of rising salinity level of water, sea level increases by 5 to 88 cm compared to 1990 figures.Consequently, it is revealed that 20% of water scarcity is responsible by climate change. * Water living stocks are reducing as rivers, lakes, other water sources deplete. (Living Planet Report, 2008)Legislation * The right to access fresh and clean water Large non-government organizations (WHO, UN) set up policies and firmness that water is a fundamental source to life and health which people have the right to access regardless economic circumstances. * Control over import/export goods Water footprint regulations on corporations to estimate virtual water 4. 2 Water management consultancy market Porter analysis (Content in the next page) 4. Longeneckers opportunity evaluation criteria (Longenecker, Moore, Palich, amp Petty, 2005) foodstuff factors * The consultancy service will be based on business need to manage water-sources, it must be clear that firms start to realize the important of Water-related CSR. * Technology available (water footprints) but not widely adopted * experience gap (corporate water management, manage water supply chain) Competitive proceeds * The product or service delivered must surpass competitors in some key areas. * Unique service provider Water management for businesses, footprint accounting. * Deliver long-term value in CSR for clients. Economics The financial feasibility of the project and the ability to grow and being profitab le needs to be examined. (Rickman, 2005) * Possibly a very large market (apply for all corporation, organizations, and companies) * Low initial costs, setup costs, flexible. Management Capacity * Low capital requirement, small amount of management requires * Could operate as small business type. * probe of government policies changes, collaboration with resource-protection, environmental organizations (WFN, UN). * Marketing strategy aims for big organizations first then small and medium enterprises. Fatal Flaws * Business perception for CSR will remain limited (another short-term trend) 1 . Corporate social responsibility 2 . Robert Shapiro, CEO of the Monsanto Corporation which is a