AMU Oakhurst Dairy: Operations Management and Sustainability Case Study Paper

User Generated

Yraznp22

Business Finance

American Military University

Description

Review the case entitled : Oakhurst Dairy: Operations Management and Sustainability" in the Sustainable Business Case Book.  Analyze the case responding to the following questions:

  1. What challenges face Oakhurst in 2011 and beyond? How do Oakhurst’s efforts to reduce carbon emissions through operation changes help address the challenges?
  2. The Natural Resources Defense Council’s November 2007 Report (see http://www.nrdc.org/policy) stated, “Although there are some exceptions, in most cases, locally produced food proves the best choice for minimizing global warming and other pollutants. In fact, another study showed that when you combined all locally grown food, it still produced less carbon dioxide emissions in transport than any one imported product. The effects all this pollution can have on our health may be reflected in high rates of asthma and other respiratory symptoms, as well as increased school absence days for children.” How does Oakhurst’s sustainable business model help to support the Natural Resources Defense Council’s findings that buying local not only helps Maine farmers but also helps the environment?
  3. What can people do to reduce their own carbon emissions? Could this reduce their own costs and help them to save money? How?

Explanation & Answer:
5 pages
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Explanation & Answer

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Running head: CASE STUDY ON OAK DAIRY
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Case Study on Oak Dairy
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CASE STUDY ON OAK DAIRY

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Abstract
Greenhouse gases emissions, also known as the GHGs, are the number one cause of
global warming. Companies have made steps to reduce this emission by reducing the burning of
fossils to power their processes. The aim of this paper is to analyze the problems Oakhurst faced
before it adapted a business model that facilitated the sustainable practices in the operations. It
will also describes ways through which people can reduce their carbon print and how cost
effective those ways are. Oakhurst faced a lot of challenges and still contributed highly to the
increased carbon print. Its model facilitated sustainable practices such as solar panels and hot
water recovery system. With the implementation of these practices, it managed to drastically
reduce its carbon emissions.
What challenges faced Oakhurst in 2011 and beyond?
Through its life, Oakhurst has suffered the challenges of the high cost of animal feeds;
the state was losing dairy farms that supplied Oakhurst with raw milk for processing. The cost of
fuel had gone over the roof. The cost of electricity in the production plant was quite high.
Moreover, the company was faced with the increased costs of equipment to process milk, levies,
veterinary services for the cows, and transport system. Oakhurst was a significant contributor to
greenhouse gases, which trap sun rays in the ozone layer, therefore increasing global warming. It
contributed to GHGs gases through transportation and distribution means and milk production
(De, & Houman, 2019).
According to the Sustainability Commitment Progress Report, global warming caused by
the milk industry was from farmhouse discharges, which yield 2 per gallons of milk. 85% of the
emission came from cows, which were the Oakhurst’s source of milk. Regardless of the cost of

CASE STUDY ON OAK DAIRY

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production of milk, fuel and feeds cost, the company’s milk retailers were expecting lower prices
of milk from Oakhurst, which brings along adverse effects on the company’s operations as it
tries to cut down on costs to fulfil the customer’s demands. In the determination to downgrade on
milk cost and increase milk production, companies resulted in the use of human growth
hormones rBST on feeds. However, Oakhurst advocated against the use of these hormones and
even asked its suppliers to sign an affirmation to vow not to use these hormones and, in return,
gave them financial inducements. Oakhurst advertised its milk as hormone-free and higher
quality, which landed it in hot soup with Monsanto for advertising against its products, the
human hormones, which it ended up settling (De, & Houman, 2019).

How do Oakhurst’s efforts to reduce carbon emissions through operation changes help
address the challenges?
Oakhurst sought to improve its business value through practicing sustainability, and in
the process, it managed to solv...


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