COURSE CODE:

INS2019 01
Lecturer: Ms.Bùi Mỹ
Trinh
Group 8
Number of words:
4395
Member:
Trần Diệu Linh
Phan Hải Yến
Nguyễn
Phương Anh
Khúc Cẩm Chi
Trịnh Thị Lan
Chu Thủy Tiên
FINAL ASSIGNMENT
Business Organization and Management
Executive summary:

Nowadays, with advanced technology and innovation, the textile industry meet the needs of

various customers. The textile industry is one of the biggest current branches of world trade.

It is an important channel for the transfer of technology and finances to developing countries.

Simultaneously, it is also one of the most polluting industries with complex technologies and

the development process from the raw material to the final product.

Broadly speaking, there are four ways that this can happen:

Health decline :along with the popularity of textile industry, the reliance on many kinds of

hazardous chemicals raises serious health risks.

New tech : There are large numbers of factories that manufacturing garment products in the

world. Each country has its own way of dealing with environmental problems like large

amounts of wastes produced by textile waste, solvent residuals and finishing processes ect. By

developing and applying new technologies including environmental friendly dyes, eco-

protection water treatment systems can reduce the negative impact on environment.
Fast fashion’s tricks : The prevalence of fast fashion can be seen in life - on social networks

and in each person's wardrobe. The fast fashion market is influential and helps the fashion

industry thrive. However, proportional to that development are the adverse effects on the

environment.

Price? : Do people really care about the environmental protection standards of clothing

brands? Or only care about price, design and do not care about the origin, environmental

issues that the clothes they buy can have a negative impact on the environment.

I. Introduction

1.1 Structure and scope of the report

This report consists of 3 main parts: Introduction, Main body heading includes 9 steps,

and finally the conclusion. In which, the Main body heading from step 1 to step 4 presents the

general questions to be answered throughout the report, context, external driver, ranking and
ranging. Steps 5 to 9 will name, categorize, and make predictions for the four scenarios in the

past, present, and future.

This report is limited in scope to studying the scenarios that textile companies in China

will encounter in their pursuit of environmental goals.

1.2 Scenario planning definition and framework

Scenario planning approaches are progressively utilized in climate alter investigate to

distinguish future vulnerabilities and look at adjustment alternatives (Flynn, Ford et al. 2018).

The theory encourages scholars to adopt theory that is not necessarily tethered to a common

core, which does not contribute to a shared, foundational theoretical perspective in futures

studies (Spaniol and Rowland 2018). Furthermore, Scenario planning, as one of the foremost

valuable foreknowledge consider strategies, gives elective arrangements for policymakers and

organizers (Norouzi, Fani et al. 2020).

An overall framework of scenario planning is built based on the suggestions of the

problem and includes 9 steps as shown in the figure 1 below

 Figure 1. Scenario planning framework

In a competitive landscape, intentionally learning about future business risks and

opportunities by creating likely scenarios and devising a plan of action contributes to

competitive advantage. of the business (Schwarz, Ram et al. 2019). By making planning

scenarios, businesses can optimally allocate resources and see possible trends in the future.
1.3 Trend description

Nowadays, more and more companies are neglecting the pursuit of environmental

goals so that they have more opportunities to profit from their industrial activities, they can

also cut down on pretreatment of pollutants. For example, the fashion industry is one of the

major polluters in the world as the production and addition of crops, fibers and clothing used

in a fashion company all contribute to environmental pollution, which includes different cells

such as water, air, and soil cells. In fact, the textile industry is the second largest polluter of

fresh water in the world. Some of the small known contributing factors in the polluting

industry are the overproduction of these items, the use of synthetic fibers and the agricultural

pollution of the crops used in the fashion sector. In addition, more and more customers pursue

products made from natural materials, realizing this trend, garment companies quickly use

natural materials to communicate for their businesses.

II. Nine steps of the scenario planning framework

1. Determining the Question

Environmental protection is increasingly concerned by manufacturing enterprises and is

an important goal of the garment industry. However, in recent years, this industry is receiving

a lot of criticism from environmentalists for not being active in the issue of building a

sustainable environment and society. In fact, the garment industry generates 10% of global

CO2 emissions each year, the volume of wastewater from the fabric dyeing process accounts

for 20% of global industrial wastewater (Niinimäki, Peters et al. 2020).

The difficulty of today's garment companies is maintaining environmental sustainability

while pursuing long-term economic development goals (Islam, Hunt et al. 2020). Therefore,

the objective of this study is to present four scenarios of challenges when garment companies
pursue their environmental goals and provide solutions to address those challenges by

answering the question: " What will happen to the environment when the textile industry

only produces for profit and does not care about building sustainable environment in

China? “

2. Contextualisation

The lack of technological proficiency is the primary challenge in pursuing

environmental goals. If in the Netherlands, garment companies use modern

technologies to filter billions of tons of wastewater discharged every day during the

dyeing process, garment startups start with the production of environmentally friendly

silk fibers but still achieve the same durable quality as synthetic silk, not all

manufacturers apply these technologies to their processes for many reasons such as

time consuming More time for waste treatment as well as money to hire senior

engineers to research and implement.

In addition to the high requirements on wastewater treatment technology, the

cost required for a garment enterprise to pursue environmental goals is quite high.

Specifically, the operating cost to treat reused water is $0.44/m3, while a fabric

manufacturing company in Long Thanh industrial zone, Vietnam discharges about 794

m3 into the environment a day. The fee per month for wastewater treatment only is

$1047,269 (Yin, Qiu et al. 2019).

Figure. 2. Schematic illustration of the textile production cycle and the main environmental
impacts caused by them in nature: (A) - Natural fibers cultivation; (B) - Chemical fibers
production; (C) - Spinning process; (D) - Weaving process; (E) - Knitting process; (F) -
Ennoblement process; (G and H) - Cutting and Sewing process; (I) - Shipping and Delivery
process; (J) - Wholesale and retail; (K) - Final costumer (Source: Science Direct).

1. External drivers

China needs to have necessary policies for the textile industry related to

the environment.

 China needs to continuously come up with environmental

 standards and regulations for the development of the garment

industry

 The garment industry, which is the last part of the textile

POLITICAL industry chain, can involve many areas, such as raw materials

and dyeing skills, and those fields all have an impact on the

ecological environment. Therefore, its development must be

taken into account together with the national environmental

protection policy strategy.

 On the basis of the promulgation of the "Environmental

Protection Law" of the People's Republic of China ", other

relevant laws and regulations are made more strictly, and the

orders of textile enterprises. And that will help the garment

industry to develop a more eco-friendly option, driving the

whole industry to grow in a different way.

China is the world's leading producer and exporter of textiles. In 2020,

China's export value is approximately 266.5 USD (CONTRIBUTOR

2015). The industry is thriving and the government is also trying to

ECONOMIC support the expansion. However, the development of the textile industry

means that environmental issues need to be paid more attention by the

government because it directly affects people.

Considering the continuum of demand for textiles, in addition to the

many impacts of the textile industry on processing in many countries. Its

growing industry and environmental impact, has been identified in many

studies. especially for developing economies. China's economy will be

 affected if environmental issues are not taken into account. According to

statistics in China, there are about 2.5 billion tons of wastewater every

year from the textile industry, which causes many difficulties for waste

treatment (Hui-Hui, Li-Ying et al. 2017).

The manufacturing of textile products incorporates a lot of processes

that include dyeing, bleaching, and washing of materials that also

consume big amounts of water.

Aware of this serious situation, the Chinese government and people are

gradually making changes to improve the problem of waste and garment

SOCIAL waste. More and more textile and garment enterprises are more

interested in investing in waste and emission treatment technology.

Many businesses also organize plans to prevent and respond to chemical

incidents. Previously, under the influence of fast fashion trends,

customers followed the trend, and to meet customer needs, garment

companies were always in a state of overproduction in large quantities.

Currently, following the development of the world, this industry is

gradually turning to the trend of "slow fashion", companies pursuing

sustainable development, and their customers are also gradually

becoming aware of the problem, garment waste (Simpson 2020).

The 4.0 revolution is beneficial to production and environmental

protection, and it is extremely beneficial in the medium and long term.

As a consequence of technical advancements in all sections of the

country, the whole socioeconomic environment has changed. There has

 been a lot of technological progress, especially in the field of textile
TECHNOLOG
Y waste treatment.

Textile dyeing accounts for one-fifth of all contaminated industrial

effluent. China is leading the way in using electron beams to remediate

waste from textile dyeing processes, ushering in a new era for radiation

science. A new factory in Jinhua, some 300 kilometers south of

Shanghai, will treat about a sixth of the facility's entire capacity of 1500

cubic meters of wastewater each day. China is the world's first country

to use electron beam technology to clean up textile factory wastewater.

Recognizing the seriousness of the problem, over the years of changing

and revising the environmental protection code with the initial goal of

enhancing change in participation, awareness and accountability. 2017

and 2018 saw changes to the law that began to specifically target certain

types of pollution and increased penalties for non-compliance such as:

LEGAL
 The Environmental Protection Tax Law

 The Water Pollution Prevention and Control Law

China's new environmental requirements have had an impact on the

textile sector as it expands. Due to the strictness of the laws and

regulations, large industrial sections of cities or regions are temporarily

shut down for inspection. If a company is discovered to be in violation,

it might face serious sanctions including production halts, equipment

seizures, and worker layoffs (Sgt.group 2018).

Textile industry is the second most polluting industry in the world,

according to many sources. To produce 1 ton of fiber, about 2 trillion

ENVIROMENT
gallons of water and 145 million tons of coal are needed. Coal alone is

an important source of air and water pollution. Throughout its

manufacturing process, the textile industry generates a variety of wastes,

including gaseous, liquid, and solid forms.

2. Ranking and Ranging

Uncertaint
Driver Relevancy Immediacy
y

With more and more policies and

suggestions are useful in the

construction and implementation of

management methods and solving

environmental problems more

Legal proactively. Strengthen measures to Now -5 years High

prevent and control projects with

high risks of causing environmental

pollution. thereby promoting

business growth in a sustainable

way.

Technological High
In order to stay clean, both
Now
environmental and industrial
– 5
waste treatment technologies
years
must be continually improved.

The Internet of Things underpins

rapidly growing environmental

 monitoring systems, which gather

and analyse data in real time 24

hours a day, seven days a week, and 7-10years

give disaster early warning.

China's economy will be affected if

environmental issues are not taken

From now to the
Economic into account. The government will High
future
have to spend a lot of money to find

the solutions.

Besides making great contributions

to the development of the country,

the textile industry also brings a lot

of negative impacts on the

From now to the
Environmental environment. Throughout its High
future
manufacturing process, the textile

industry generates a variety of

wastes, including gaseous, liquid,

and solid forms.

The political and environmental

situations in China have a direct

impact on the textile industry

Political Now- 5 years Moderate
there. China must implement

essential environmental policies

for the textile sector.

Social Recognizing the gravity of the From now to the Moderate

 matter, the Chinese government and

people are progressively

future
implementing adjustments to address

the waste and textile waste problem.

3. Naming and framing

Worst Case Rogue Scenario

Base Case
Health decline Price?
Fast fashion’s tricks

Best Case
New Tech

6. Logic and narrative

What will happen to the environment when the textile industry only produces for profit and

does not care about building sustainable environment in China?

Scenario Synopsis

Name

Dying, weave, spin, finish, and print, as well as other critical techniques for

changing fiber into garments or finished fabric form, are all handled by

different divisions in the textile industry. Clothing production necessitates

extremely repeated and high-speed processes that typically require workers to

adopt an abnormal and awkward position of the body, which can result in a

range of musculoskeletal disorders that can be transient or chronic in the worst-

Health decline case scenario. Textile workers are exposed to a number of health concerns,

including the ones listed below (Meena, Dangayach & Bhardwaj, 2014).

Textile workers are exposed to a variety of chemicals in the manufacturing

process, some of which can cause serious health problems. Brown Lung is a

deadly condition induced by an excessive amount of cotton dust exposure.

Noise pollution has been found to cause hearing loss and damage to the

eardrums of employees. Sleep disturbance is one of the most harmful impacts of

noise pollution.

The competition of apparel companies also leads to many positive aspects for

the environment. In which, the first activity is the garment industry applying

new technologies to treat and recycle wastewater. The second is that companies

New tech in the textile industry especially startups they start with new environmentally

friendly materials and fibers. However, most waste improvement methods and

technologies are very expensive, as a result, small and medium-sized garment

companies with low capital are not really excited about the above measures

In recent years, fast fashion, often known as "fast fashion," "mass fashion," or
 "throwaway fashion," has grown rapidly. Rapid fashion may be seen as an

attempt to bridge the gap between client demands and garment corporations

Fast fashion’s throughout the globalization of fast fashion. Fast fashion has become extremely

tricks popular in Asia, notably in China and Korea. It's a cutting-edge retail concept

that offers high-quality, low-cost clothes that is updated often. The fast fashion

industry, on the other hand, is actively scaling up manufacturing in order to

meet client demand, resulting in increasing water and air pollution. Fast fashion

should adopt sustainable development to protect the environment and keep up

with trends.

In addition to meeting basic humans for protection against weather variations,

clothing functions as a means of communication so that individuals can express

Price? themselves through their clothing choices. Since this practice has persisted in

human history, it might be regarded as an acquired human’ needs. However, the

clothing industry of today has moved well beyond merely satisfying basic

physiological and psychological needs, and the rise of fast fashion, especially,

has greatly altered clothing’s societal and cultural significance. In particular,

fast fashion has drastically shortened the clothing life cycle, with new styles

swiftly superseding the old, leading to one's remove cloths as soon as they can

not wear and they tend to buy new clothes

7. Distillation and dialogue

Plans for "Fast fashion's tricks" and "Price?" There are many things in common

because these two scenarios are both influenced by fast fashion trends that lead to buying too

many trending clothes, sometimes not caring about the price, but unintentionally harming the
environment by quantity. The clothes they bought when the trend ends will be released into

the environment again and again in a cycle. The government's mission and solution is to

propagate about the negative aspects of the fast fashion industry on the environment,

introduce policies to recycle old clothes, etc.

Health declines

Pollutants that create hydroxides include dyes that directly risk people's health, as well

as compounds that promote water deterioration and aid in the processing of dangerous algal

growth and contaminated groundwater. Water pollution is extremely harmful to human

health, and textile production alone produces 1,712 million tons of carbon dioxide each year,

jeopardizing the health of fast fashion communities as well as worldwide attempts to reduce

carbon dioxide emissions (Ganz 2020).

It's crucial to remember that many harmful compounds can be obtained through a

person's skin, as well as through ingestion or inhalation. For certain persons, the materials for

use in textile production may well be the primary source of allergies. In rare instances, it can

induce cancer and mutagenesis. As a result, it's critical to address the textile industry's

negative effects on human and environmental health.

Having a pre-existing ailment induced by textile production, like the base case and

rogue scenario, makes the morbidity and mortality danger from environmental degradation a

worldwide concern that must be ethically addressed. Furthermore, low-income people are

more susceptible to illness and find it more difficult to access healthcare.

Chemical chimneys should also be used by industries to reduce pollution. To protect

themselves from noise pollution, workers should use earplugs (Rouch 2021). Workers should

use masks to protect themselves from the smell pollution and smog. To safeguard their vision,

they may also wear spectacles.

 New tech

Currently, China is known as the world's factory due to its openness to technology

transfer and the location of production plants of multinational corporations (Hu, Wang et al.

2018). Thanks to the environmental policies of the Chinese government, garment factories

located in the country compete in introducing new technologies that both reduce production

costs and help protect the environment.

New technologies used in current dyeing technology can be mentioned as technology

using electrocoagulation to remove color and heavy metals (Iron). Specifically, the water after

treatment can remove 86% of the color and the iron concentration is lower than 0.2 mgL−1,

which means that with this iron concentration, the treated water can be used for drinking,

however, to be safe, the water after treatment is safe. The treatment is reused for subsequent

dyeing processes (de Oliveira, da Silva Júnior et al. 2021). Membrane bioreactor (MBR) is a

combination of membrane separation technology and traditional activated sludge process also

applied to remove organic wastes in dyeing and printing processes. MBR is tested by more

than 30 textile companies and wastewater treatment plants in 5 southern coastal provinces of

China (司, 2018).

The materials of the textile industry are mainly from natural sources (animals, plants),

man-made or synthetic by-products of the petroleum industry. All of the above materials

cause negative impacts on the environment during production and processing. One solution to

minimize the negative impact of these materials on the environment is to replace artificial

silks made from polymers and synthetic silks produced from petroleum products and

microplastics with the use of natural silk produced from jute and hemp fibers instead of

cotton, and recently olive leaf has also been introduced as a raw material for yarn production

(de Oliveira, da Silva Júnior et al. 2021).

 Fast fashion's tricks

Through the National Statistics, each year, the fashion industry produces 10 million

tons of waste materials. In accordance with the national natural resources census, the fast

fashion industry’s nature conservation body, each year in China, will release a lot of waste

textile resources than ten millions tons. The greatest achievement of fast fashion is to bring

some new perspectives in the fashion industry. The fast fashion brings vitality into the market

and supply the big share of changes on people’s lives. The fashion industry is the second most

polluting in the world after the oil industry. The environmental footprint of a manufactured

garment comprises a trail of multiple toxic processes from cotton planting (passing through

processing and dyeing) and transport to the points of sale and finally, disposal after use. ‘Fast

fashion’, premised on low cost and low durability, has widened this footprint by accelerating

wasteful fashion consumption (Analytica 2019).

Consumers expect more from their brands in times of crisis, as the COVID-19

outbreak has demonstrated. In fact, 63 percent of consumers regard a company's commitment

to sustainability to be a critical purchasing decision. A major catalyst for rapid abatement is

the public's demand for brands to take responsibility, understand their own emissions and

abatement levers, collaborate with partners to decarbonize the value chain, and work with

stakeholders to construct a less emissions-intensive product lifetime. Now is the moment for

the industry to think outside the box and embrace business model reforms in order to achieve

long-term success.

Prices?
 In some cases, when consumers buy cheap clothes which have unknown country

makes, these clothes might not be made of organic fibers and natural fibers that requiring

chemicals to be produced. Every time they wash as synthetic garments such as polyester,

nylon, about 700,000 individual microfibers are released into the water.

A lot of people tend to rush to buy fashion products on big sale days and quickly sell

them to customers during sales during the year, even though they may never wear them.. A

good illustration for this is China's Alibaba records Singles' Day GMV at $84.54 billion in 11-

day sales period. The price of this uncontrolled increase in consumption is waste, pollution,

and clothing factories with poor working conditions.Moreover, the production of leather; for

example, requires a large amount of feed, land, and water to raise livestock, while the tanning

process is among the most toxic in the fashion industry (Horwitz 2021).

8. Validation and refinement

Drivers that will have a profound impact on scenario one “Health decline” are

environmental, legal and social as The polluted working and living environment has directly

affected the health of workers as well as those around them. Businesses are becoming more

aware of the harmful effects and dangers of continuous exposure to a polluted environment.

This makes them more interested in investing in waste treatment technology.

In addition, scenario two New tech is driven by technological and economic . The

great development of technology has helped to find a lot of solutions to help textile and

garment enterprises to both produce sustainably and protect the environment. Using new

technology is also very expensive, especially for developing countries where economies are

not able to invest in research and development.

 Lastly, social influence significantly on 2 scenarios: fast fashion’s tricks and price?,

The fashion industry is gradually turning to the trend of "slow fashion", companies pursuing

sustainable development, and their customers becoming aware of the problem. Previously,

under the influence of fast fashion trends, customers followed the trend, and garments were

always in a state of overproduction in large quantities.

Restriction

1. we are not students majoring in apparel or the environment, so the technique of

analyzing environmental problems is weak and inaccurate

2. Our data collection method mainly takes data from secondary sources on the internet,

so scenarios may not be close to reality.

9. Interpretation and implementation

9.1 Health Decline

New machinery and technologies of the textile industry help the fashion

industry develop and improve the national economy by reducing production costs.

However, contrary to the development of the country, human health is strongly

affected, not only workers in the textile industry but also consumers. For laborers,

exposure to cotton, fabrics, toxic dyes....does their health decline, causing many

dangerous diseases such as breathing due to inhalation of dust, poisoning, even Even

cancer is caused by prolonged exposure to chemicals from dyes.

 For consumers in general, the waste from the textile industry pollutes water

sources, affecting the quality of life. More dangerously, when fashion products use

poor quality dyes, are not guaranteed, the dyeing process has not been carefully

processed but sold to the market, consumers using the products will easily get the risk

of skin diseases such as rashes, allergies.

9.2 New Tech

The use of natural materials (animals, plants) such as silk, jute, etc. Instead of

artificial materials such as polymers, synthetic silk, etc. Helps to minimize the impact

on the ecological environment. However, we can only partially replace artificial

ingredients with natural ones, but cannot completely replace them. Natural ingredients

are available, but also limited. In addition, fashion products made with handmade

materials are significantly more expensive than similar products made from synthetic

materials. Minimizing the use of man-made materials also contributes to a reduction in

negative environmental impacts. The textile industry can completely limit the use of

artificial materials in garment production.

In general, the above dyeing technologies both help reduce production costs

and are environmentally friendly. This can help China maintain its leading position in

the world garment industry. However for textile dyeing technology, dyeing chemicals

can be replaced with non-toxic and environmentally friendly natural colors.

9.3 Fast Fashion Tricks

 Stemming from the desire to catch up with the trends of girls, fast fashion is

copying many models from famous brands with cheap prices and poor quality. Fast

fashion isn't bad, just as sustainable fashion isn't necessarily good. Buying better

doesn't mean you have to spend more. Prof Dilys Williams at London College of

Fashion said: 'Sustainable fashion is not expensive, it is more valuable than fast

fashion worn only a few times’.

Aside from the price point of view, there are several elements of sustainable

fashion to be proud of. All your clothes are made from 100% organic cotton or

recycled materials that will save the planet from the serious pollution it is today.

McKinsey has estimated that the fashion industry is responsible for 4% of the world's

greenhouse gas emissions. According to the United Nations Framework Convention

on Climate Change, emissions from textile production are expected to soar to 60% by

2030 (Earth.Org 2021).

9.4 Prices

Tech-savvy customers, exposed to technological advances in their day-to-day

lives, expect firms to bring out high-quality clothes with reasonable price so that more

people would be able to purchase products which meet both their demands and

environmental goals.

III. Conclusion
 This report has been prepared with the objective of developing scenarios of enterprises

pursuing environmental goals by developing four scenarios that we believe are likely to occur

in the future. From there, the company can detect business opportunities to take advantage of

competitive advantages and anticipate some risks to have a reasonable plan to allocate human

resources.

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Group evaluation and contribution