3. Q1) If you were Patel, would you suggest the company start manufacturing durable plastics instead of the SUPs or go for a more sustainable alternative
by manufacturing bio-degradable plastics?
SHORT TERM / IMMEDIATE SOLUTIONS
• Adopt a Graded Action Plan for smooth transition to production using Durable Plastics.
• A clear Dead line should be adhered to since Cello is operating in a VUCA Environment.
• Utilization of resources of CSR into upskilling labors for acting as recyclers and future laborer.
• Utilization of different grades of plastics in different components based on utility.
LONG TERM / FUTURE SOLUTIONS
• Cello could invest resources into the field of biodegradable plastics.
• On an experimental basis biodegradable plastic products should be introduced in Tier 1,2 cities to gauge the popular response.
• Plastic is not the issue, the real issue is management hence Cello should explore possibilities of managing in line to the Steward
Responsibilities
4. Q2) What benefit could Cello Plastotech realize by adopting the circular economy model as opposed to the conventional linear model in the transition
towards sustainability? Can you think of some other strategies that could prove useful for Patel while adopting TBL approach?
Currently Cello is operating in production of product following a Linear Economy Model
PRODUCE --------------------CONSUME--------------------THROW
Cello aims to create a feedback from ”THROW” to ”PRODUCE” via “RECYCLE”
1st PART of the QUESTION
• Process would align with the TBL of the company, Profit would increase (due to acceptability) Planet
would be happy (due to less waste) People would be satisfied (due to demand fulfillment)
• It would add to the image of Cello as a responsible producer who does not believe in ‘not my backyard’
mentality.
• Although unlike the SUP the volume would take a hit however Cello would make it up in profit margins.
• Cello would be future proof.
5. 2ND PART of the QUESTION
• Introduction of campaigns aimed at returning of used plastic bottles as an incentive program to act as
two pronged sword
1. It would create consciousness among the consumers.
2. It would bring back the plastics to the company for recycling and there by also increasing the sales.
Help in taking the ownership of the entire product life-cycle from Design to Disposal while also help in
creating social capital
6. Q3) Can you describe how TBL approach could help Patel make a successful transition towards sustainability? Identify the tensions between the three
pillars of TBL.
Biodegradable plastic is environment friendly and though not cost/ production friendly. However, there may
be tensions between these pillars, as pursuing social and environmental goals may require additional
investments and resources, potentially impacting short-term profits.
Balancing these tensions and finding synergies between the three pillars is crucial for a successful transition
towards sustainability.
• Focus on People will cause loss in Planet and Profit
• Focus on Planet would not be conducive to Profit
• Focus on Profit is not good for People and Planet in a short run
7. Q4) Do you think the transition towards sustainable development is more challenging in an emerging market context? Can you suggest some ways to
address this?
Yes.
• Gradual adaptation
• Creating a sinking Fund
• Looking at the bigger picture of strategy change
• Use of recycled product and R&D in bio-degradable plastic would open new sources of revenue
8. Durable Plastic Total
Quantity 500000.00
Raw material ₹132.00 ₹6,60,00,000.00
Maintenance ₹80,000.00 ₹80,000.00
Consumables ₹35,000.00 ₹35,000.00
Labour ₹14,40,000.00 ₹14,40,000.00
Electricity ₹25,00,000.00 ₹25,00,000.00
Production ₹7,00,55,000.00
Final cost/kg ₹140.11
Quantity 850000
Raw material ₹132.00 ₹4,62,00,000.00
Maintenance ₹80,000.00 ₹56,000.00
Consumables ₹35,000.00 ₹24,500.00
Labour ₹14,40,000.00 ₹10,08,000.00
Electricity ₹25,00,000.00 ₹17,50,000.00
Production ₹4,90,38,500.00
Normal ProC ₹7,00,55,000.00
Recycle ₹27,58,000.00
Final Cost/kg ₹143.35
Recycle plus normal plastic
After Recycles
70% of quantity 350000
Labour ₹14,40,000.00 ₹10,08,000.00
Electricity ₹25,00,000.00 ₹17,50,000.00
Production ₹27,58,000.00
