Current Event Assignment

Name: Neha Parab.

Course name: Business Planning

Master of Business Administration

Golden Gate University

Submission Date: 8th March,2024

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 Impact of Climate Change on Business World

Climate change is not only a problem for a far future and not a matter for now, but it's a

harsh reality that businesses should deal begin with immediately. Notably, the world is already

experiencing unchecked ramifications of climate change, which are ongoing on a global scale.

In this short research-based article, we will cover: one, the consequences of the climate change,

two, the newest data about the situation, and, three, why knowing this is a significant issue

between now and the future for business enterprises. Offering a grasp of the intricacies of the

climate change phenomenon is no less than an environmental issue but it can easily be extended

to the dimension of corporate strategy. Here’s why:

Risk Mitigation: Climate change carries different kind of risks for corporations, for

example disruption of supply chain due to extreme weather events which leads to higher

insurance expenses. Organizations get to know the threats through climate change and have the

chance to take the necessary steps to avert the threats in good time.

Regulatory Compliance: The authorities, on a massive global scale, engage in

introducing the strict set of regulations designed to control the climate issues. Companies that

are aware of these rules could undoubtedly beat the system and remain protected from potential

penalties while they maintain to serve the sustainability driven consumers.

Market Opportunities: As a core cause of climate change, innovation and development

help to address the prospective consequences of the climate change. By establishing a niche in

sustainable technologies and practices, companies can fish in deeper waters of green demand

and thus increase their competitive edge through enterprising their products and services.

Increased Operational Costs: The phenomenon of climate change poses as a challenge

for businesses, because its effects may be either direct or indirect raising the costs of businesses

operations. The corollary of stricter regulations upon industries is that they invest in

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environmentally friendly technologies, energy efficient processes, and waste reduction

programs. Mechanisms such as the supermarkets and other big energy consumers like Walmart

began to use renewable power and sustainable practices that fulfil both their economic and

public goals to save money and improve their environmental image.

Physical Asset Vulnerability: The multiple cases of rising severity of the environmental

situations threatens property in physical terms. In this regard, coastal houses and infrastructures

are at risk of drowning due to the rise in sea levels or ruin in powerful storms. In 2012,

Hurricane Sandy inflicted much damage on New York City itself and had the effect of

disrupting business operations with the end result of a heavy loses worth billions of dollars.

Property and insurance agents have now begun to reflect on reinsurance given a relation with

the raising chances of the damages brought by climate change.

Shifting Consumer Preferences: Consumer attitude about green issues is increasing,

thus these trends become more stable due to this fact. Once the positive effects of green

strategies on the companies' performance are clear others will follow. If this doesn’t occur your

customer base would shrink. The market became gold mine for decarbonization when Tesla

finally managed to tackle the potentials market. People demanded for cleaner environment and

company has solely built electric cars to be their answer to needs of society.

The actions of climate change on businesses are already formidable and ranging from

affected supply chains, operational costs, assets on the ground, consumer interest and

regulatory pressures to reputation. Climate change adaptation and sustainable practices are

crucial for businesses to deal with the hazards implied by climate change as seen in the cases

such as disruption in the supply chain resulting from extreme weather events and Tesla's

popularity in market. Environmental awareness combined with the desire for an evolving future

guarantees sustainability as a prerequisite.

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 How AI is helping business owners launch new goods more quickly

In fact, every outstanding entrepreneur counts the innovation upon the top of their list.

One of the most vital factor is the research and development in the go to market strategy which

is especially due to the high competition. They have to periodically launch new product

offerings and frequently do that faster than their competitors to remain profitable in a rigorous

market. It is so fast and intense in the battle for customer attention within the market these days.

The entrepreneurs are using different technologies and algorithms in their work so as to

eliminate, in a considerable amount, the manual methods and make the entire process shorter.

AI is also considered among those factors that help to get such greens within time on the store

shelves.

Rapid Prototyping and Design Optimization: The development stages of AI-powered

tools have significantly reduced the product design process and the building of prototypes,

giving an entrepreneur a possibility of fast visualization and testing of the concepts. A

particularly outstanding remit is that of Generative Design software. This AI-powered tool will

accept the input parameters and constraints, after which, it is able to produce numerous design

options that not a human designer might have a chance of having in mind. By automating the

iterative designing process, startup businessmen can reach the desired level of optimized

solutions more swiftly. In other words, Airbus employed the use of generative design to

generate a light yet robust partition that is utilized in the A320 aircraft and as a result, the weight

of the material has been reduced and the fuel efficiency improved.

Predictive Market Analysis: Entrepreneurs have to juggle between evaluating the

market and understanding what the customer wants by putting the needs and wants of the

customer first. The field of AI includes predictive analytics, an analysis method specialized

from large data sets to identify market trend patterns. For instance, check out a fashion retailer

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named, Stitch Fix, that uses AI Algorithms and based on customer preferences, purchase

history, and social media activities. It helps them engender the confidence trust of their

customers allowing them to supply individualized clothing recommendations and henceforth,

they can quicker get to market fit and lower the amount of waste of that inventory.

Insights and feedback from customers: Through artificial intelligence, iterative

product development is facilitated due to the fact that entrepreneurs can get and apply the

customer feedback precisely. Besides responding and managing customer reviews and queries

these chatbots and sentiment analytics bots also provide valuable information to marketers for

assessing the performance of the products and the measures that should be taken for

improvements. Considering guest reviews Airbnb identify those features that create guest

satisfaction. Entrepreneurs can more precisely meet customers’ needs and requirements thanks

to this streamlined process flow.

Supply Chain Optimization: Artificial intelligence is the main engine that gives supply

chain management a facelift by making it possible for entrepreneurs to cut out unnecessary

processes and reduce lead times. Alibaba customizes its supply chain using the AI tools. In

order to get an accurate estimate of the impending demand, the system takes into account all

sorts of data, including historical sales records and weather patterns and social media trends.

Similarly, AI-powered solutions can help entrepreneurs generate savings on their inventories

and let them be quick to get along with market changes.

AI represents a game-changer for business owners and professionals who aim to attract

the attention of the consumers by the prompt introduction of new products to the market that

make a real difference to the end-users. AI-based technologies effect the product development

pipelines in every detail including the point from rapid prototyping till various marketing

prediction analysis via supply chain automation, and to automatic quality control till generating

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an inescapable deep customer insight. In these kind of cases, new entrepreneurs take less time

to reach the market and consequently have an opportunity to produce greater and more relevant

products than their competitors in face of a fast-moving global business structure.

References

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disasters. Global Finance Journal, 55, 100805.

2. Ghadge, A., Wurtmann, H., & Seuring, S. (2020). Managing climate change risks in global

supply chains: a review and research agenda. International Journal of Production

Research, 58(1), 44-64.

3. Gössling, S., & Humpe, A. (2020). The global scale, distribution and growth of aviation:

Implications for climate change. Global Environmental Change, 65, 102194.

4. Kuramochi, T., Roelfsema, M., Hsu, A., Lui, S., Weinfurter, A., Chan, S., ... & Höhne, N.

(2020). Beyond national climate action: the impact of region, city, and business

commitments on global greenhouse gas emissions. Climate Policy, 20(3), 275-291.

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