M: Business 3rd Edition by O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

Exercise 2

Environmental issues can be addressed through alternatives such as bioplastics. For instance, regular plastic has several problems—it stays around forever, and it contains a compound which has recently been accused of releasing harmful chemicals into food products. As a result, companies are working to create plastic that biodegrades (degrades naturally). Currently, two different types exist—both composed of fermented corn sugar. One is polylactic acid (PLA), which is 20 percent more expensive than regular plastic. The other is known as PHA plastic, which is twice as expensive as regular plastic.

These new bio-plastics are excellent in theory, but they require commitment on the part of consumers. Paper Mate’s new biodegradable pens, made out of the more expensive PHA, must have their internal ink filters removed before the outer case can be buried to biodegrade. PLA plastics require composting, an activity that many consumers do not currently do. Even consumers that engage in composting might encounter difficulties. There are a number of differences between commercial composting and home-based composting. One lab conducted an experiment in which four biodegradable plastic products were placed in both types of composting situations for 25 weeks. Of the four in the home-based compost, only one began to biodegrade, indicating that home compost conditions are not right for many products. All but one did begin to break down in the commercial setting, but very few commercial composting sites in the United States currently accept plastics.

Consumer convenience is another problem. Many consumers want to be environmentally friendly, but only if it is convenient. This was clearly revealed after SunChips discontinued its initial biodegradable bags because consumers were complaining that the new bags were loud (SunChips has since released quieter biodegradable bags). Given all these stumbling blocks, will bioplastics really make much of a difference?

Do you think consumers will pay more for biodegradable packages?

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Biodegradable packaging is gaining gradually gaining attention in almost every business, but particularly in food applications. Today consumers prefer sustainability and biodegradable packaging appeal to their interest.