If it costs more to buy the sustainable materials locally and to ensure that all offices have recycling bins, then Mott’s expenses will be higher which means that their profit figures would be lower. The owners would then need to decide whether or not they will charge their customers more for Motts to use the sustainable materials, or if they will keep the quotes the same to make sure that they are still competitive within their market.
However, there are also positive impacts for Motts if they do conform to the suggestions. A businesses reputation is one of the main things which consumers will research before deciding to do business with them. If Motts decided to reduce their carbon emissions by following the steps suggested, then their reputation will have a huge boost. In our time being environmentally friendly has become a worldwide issue which most people believe is very important to deal with effectively. If consumers see the extent to which they care about the environment, then they are more likely to do business with them rather than with their competitors who do not care about the environment. One of Mott’s biggest clients is governments. Governments have been pressured more and more recently to operate ethically in whatever they do, which means that consumers such as the government are more likely to work with businesses that are environmentally aware. Even if customers are not that interested about the environment themselves, they still may be more inclined to do business with environmentally friendly businesses to increase their own reputation which means tit is more likely that Motts will get a bigger customer base. If Motts are getting more customers due to the decision they have made about the environment, then it will mean that they will get more revenue and more profit, so even if they have a lower profit margin due to extra costs implemented due to reducing carbon emissions, they extra number of customers will cover that small decline in profit.
Employees are likely to have a positive impact as a result of these improvements. One of the main reasons of this is linked with the points made above. If Motts are making more and more money due to their employees recycling more, then employee’s jobs are more secure as Mott would not have a reason to cut jobs if they are making consistent profits.
They employees are more likely to act in a more environmentally friendly way too if they are constantly prompted to do so by management, and especially if there are bonuses available for employees who reduce their carbon emissions the most. They will be satisfied that they are doing their bit for the environment by making sure that they throw all their waste into correct recycling bins and if they are sharing cars to go to work. Sharing a car would also result in the employees to save money as they would essentially be getting a fifth of their travel costs to work if a lot of the time they are not driving their own car to work.
However they may also be negatively affected by these strategies. This is because they may not care about the environment which means they may not really conform to these suggestions. If this was the case then they may be at risk of losing their job just because they dot have the same views about the environment as Mott MacDonald do. Also, it may be a lot harder and take a lot more efforts for certain employees to reduce their carbon emissions. For example, having to sort out their waste into correct piles so that they can dispose of them correctly in recycling bins. It would also take much more effort for employees who have to find suppliers from local areas. If Motts didn’t get materials only from local suppliers, the employees would only have to contact a small amount of suppliers every time they design or create a building. If they are always trying to source materials from local areas only, then employees would need to contact a whole lot more suppliers every time Motts is doing a new project.
Customers will also be impacted by these decisions made by Motts. One of the main things which will affect them is the fact that most of Motts consumers such as the government are constantly pressured into being more environmentally friendly, and one of the main ways I which they could do this is to use sustainable materials inn their new buildings. If the consumers are seen to have buildings which are environmentally through the use of sustainable materials then their reputation will increase dramatically and is likely to increase those businesses profits due to the appeal of being a ‘green’ business.
One negative way in which they would be affected by these changes from Motts is the price. Motts would obviously have to spend more money to try and make these environmentally friendly changes such as the pricey sustainable materials. This is likely to result in quotes for design and consultancy being higher for the consumer. This would mean that the consumer must decide whether or not they should stay with Motts and pay the higher fee, or go with the competition who may not charge so much, even though they do not offer the same eco-friendly services.
Some suppliers are likely to benefit from these strategies, whereas others will suffer. The suppliers who will suffer are those who Motts use for most of their building work. Motts will have a set number of suppliers who they go to get their material no matter what part of the country or world they are in. If Motts start to only get materials from local suppliers, then their main suppliers would have a massive drop in the amount of product they sell to Motts which is very likely to result in them having lower profit figures.
Local suppliers will have a massively positive effect from these suggestions; this is because although it is not likely to be repeat custom, they local suppliers will still get quite a large form Motts. Motts carry out huge projects which require a huge amount of materials. If local suppliers were to land these contracts, then they will have a massive spike in their profits. If the building that is being created is well known such as the Wembley stadium, then the material are more likely to be desired by other businesses, which could mean that these suppliers will get a bigger customer base. They could also increase the price that they sell their materials at if they know that Motts are likely to source materials from local businesses such ass them, which would also result in more profit for the suppliers.
