The Company Method Going Green Decisions

 

By going green, Method does not reduce its quality of products. It reduces its operational costs significantly hence realizing larger revenues and increasing the net profit figures and reduces the liabilities because Method shall have a larger cash flow. They will be in a position to pay their suppliers in time and reduce their debtors as well as pay taxes and salaries on time. They will also be in a position to increase their assets in terms of technology, transport, skilled labor and increased number or eco-friendly supplies while still ensuring they leave enough cash in hand for other short term expenses (Fabozzi, 17). An increase in assets would also improve efficiency of operations at Method.

Method might decide to pursue greener business activities that are costly in the long run like investing in more fuel efficient vehicles amongst others. This is because eco-friendly investments in waste management, transport, utilities such as water and electricity production may be expensive to implement but in the long run they are more cost effective as they are more efficient in operation and have less breakdowns, maintenance and servicing costs than those that are not eco-friendly (Khan, 508). It also ensures that Method is cautious about pollution of the environment in as much as they earn their profits from going green.

Yes other household supply companies are beginning to realize how green products can improve their financial conditions. Most companies are changing their tactics and going green as well thus increasing competition in the sector (Esty, 105-122). Method has a competitive advantage because they are already established and have gone green on a large scale not only in their supplies and packaging but also their assets.