Applied Research Paper: Superior Rentals
Learning Team B
Comm/215
July 14, 2014
Linda Camp

Applied Research Paper: Superior Rentals As the business world looks to the future, they are leaning toward a more modern approach. Businesses are going "green" and using recyclable products in their industries. Being an environmentally aware company helps to promote a business, cut costs, and, most importantly, keeps our earth healthy. There are many reasons for a business to become more environmentally responsible. A healthier workplace, positive public response, reduced waste, and legal and tax advantages (Lorette, 2014) are just a few reasons Superior Rentals, Inc. should "go green.”

Environmental responsibility begins with research and continues with the implementation of new methods and ideologies to promote a "green" company and a better world. The proposed methods, contained herein, are financially responsible, and relatively simple to incorporate into Superior Rentals, Inc.'s business plan. When businesses “go green,” the impact on the environment is substantial. Superior Rentals, Inc. can positively affect its local market and the world with environmentally sound practices.

Alternatives and Discussion

Research indicates the following alternatives for Superior Rentals, Inc., and includes discussion of the effectiveness of each alternative.

Using Tablets/Going Paperless Using a tablet in place of a cash register has many benefits. Tablets have more functions than a cash register, and with their average price of less than $400.00 each, tablets are an affordable “green” alternative. Tablets enable Superior Rentals, Inc. to switch to a nearly paperless system of operations. "Rather than asking customers to fill out a paper form that you then have to type into your database, you can have a client fill out an application or contract on a tablet. The information is immediately entered into your database” (Campbell, 2012). Tablets are capable of creating charts, graphs, and business presentations. Saving the customer's information in the database allows the company to track the data for research of its customer base. This data is used to create charts or graphs showing repeat customers, popular vehicle choices, or volume of rentals during a focused period. These applications will allow Superior Rentals, Inc. to continue to grow and adapt in a changing market. Additionally, the process of renting a car becomes easier for the returning customer, as his or her rental information is immediately accessible. Tablets are also used to conduct an inventory. Downloading an application such as Inventory Tracker allows the company to list vehicles and supplies, (GooglePlay, 2014) making inventory easy to control and document. According to the Minnesota Office of Environmental Assistance, the average office worker uses 10,000 sheets of copy paper each year. (reduce.org, 2012) To reduce this practice, Superior Rentals, Inc. must utilize e-mail, a function of tablets, more effectively. Examples of practical use are receipts being forwarded to customers and insurance claims, including photos of the accidental damage, being sent directly to an agent. E-mail is useful, direct, and simplifies operations. Maintaining relevant company documents online with the use of tablets also reduces paper. Access is immediate, and the need for hard copy storage is greatly diminished. Another benefit of going paperless is the office becomes "mobile." Using a tablet, instead of a computer, enables employees "to make presentations, work on files remotely, and take notes during meetings.” (Duggan, 2014). Replacing current technology is expensive, but the tablets will quickly pay for themselves as they serve their many purposes. Employee training on a new system takes time but is, again, worthwhile for the sake of going "green." In addition to greatly reducing paper usage, incentives for switching to tablets are: the recycling of computers and registers currently in use and the purchase of tablets locally supports the community.
“Green” Products and Practices Being environmentally friendly means cutting costs and reducing waste in the workplace. If Superior Rentals, Inc. harnesses this kind of efficiency and waste reduction, the company will maximize its profits and become more environmentally sound. Superior Rentals, Inc. must use environmentally safe materials when purchasing necessary products. The use of toxic materials is harmful and irresponsible. Instead, substitute “green” materials that are environmentally safe, and with careful research, are cost-effective to increase profits while promoting healthier practices.

Superior Rentals, Inc. should participate in ink cartridge return programs and use recycled paper products, where needed, to be socially responsible. Buying supplies locally cuts shipping costs, reducing additional shipping from outside sources, which is another reliable "green" option. The company should use local suppliers, purchase “green” supplies with high amounts of recycled material, and use a packaging recovery practice further to demonstrate the company's dedication to "going green."

To be even more "earth-friendly," the Superior Rentals, Inc. could switch to waterless car-washing products. This practice greatly reduces water use and addresses the issue of waste water run-off and contamination. At this juncture, the products are a bit more time consuming, but the water saved and the environmental impact far outweigh any extra man-hours.

Waterless car washing isn't without its issues. General sales manager Alan MacLoughlin says his workers have had to spend an average 15 minutes longer cleaning the cars because it takes so long to wipe and buff them with the towels. Still, he says, "the savings in water is huge." (Carlton, J. 2011) This simple change saves so much water that it is both cost effective, and money saving, and, therefore, is a reasonable course of action for the company to implement immediately.
Vehicle Inventory/Hybrid Vehicles More and more people want eco-friendly options; therefore, it is in Superior Rentals, Inc.’s best interest to phase out current vehicles and replace them with eco-friendly, hybrid models. There are many supporting reasons for this including long-term saving, low emissions, high-fuel efficiency, and environmental protection. According to Forbes magazine, a study by automotive research company, Vincentric, found 13 out of 33 hybrid vehicles surveyed had lower long-term costs compared to traditional vehicles. Over a five-year period, the most cost effective models were the Toyota Prius, Ford C-MAX Hybrid and Fusion Hybrid, and the Lincoln MKZ Hybrid. (Gorzelany, 2013) Another study done over a five-year period in Vancouver by the British Columbia Automobile Association found that six out seven hybrid vehicles to be more cost effective. (Hybrid Cars, 2006) Including the vehicles listed above Superior Rentals Inc, should also consider the Honda Civic Hybrid, Honda Accord Hybrid, Camry Hybrid, Prius, and Ford Escape Hybrid for inclusion in its hybrid vehicle fleet. According to the Environmental Protection Agency (EPA), vehicles produce the greatest amount of pollution in our environment. (Cars, Trucks, Buses, 2012) Hybrids have lower carbon emissions, which release fewer harmful gases into the atmosphere. The decrease in dangerous gases will lead to an improvement in air quality, which is beneficial to world health. The electric motor in a hybrid changes energy into electricity that is stored in the battery until needed. The motor helps the engine run efficiently so that the gas is burned only when necessary. Hybrid vehicles have better mileage and are able to travel farther than the average gasoline-powered car. They create a lower demand for gas, leading, eventually, to less drilling. A hybrid vehicle's engine is also very quiet, which reduces noise pollution as well. Superior Rentals, Inc. must take an inventory of its vehicles and make a spreadsheet of the year, make, and model. Donate any vehicles five years or older for tax purposes, or use them as trade-in toward hybrid models. Another alternative is selling older models outright. Hertz uses this practice, giving the potential buyer a day's rental to decide whether to purchase a vehicle. If the renter declines, daily rental fee is paid. (Podsada 2010). This solution allows Superior Rentals, Inc. to make money on its older vehicles, offsetting the expense of purchasing new eco-friendly cars. Car rental companies are competitive. National rental companies, such as Hertz, Enterprise, Avis, and Budget are using hybrid vehicles and promoting their companies for doing so. Superior Rentals, Inc. should also promote their “green” initiatives to entice new, energy conscience clients. Giving the customer the option to choose an eco-friendly vehicle demonstrates that Superior Rentals, Inc. is environmentally responsible and, therefore, deserves the support of like-minded drivers.

Promoting "green" business is important. “When the business is promoted as a "green business," customers that are environmentally aware are attracted. More customers means more productivity, which means more profit, and that means more opportunity to expand. Going green sets a positive image for the company and to stock holders.” (Reducing Waste, 2012)

"Overall, there is interest from our customers in alternative-fueled vehicles — and certainly an increase in gas prices increases consumer awareness and interest in learning more about fuel-efficient car rental options," says Lisa Martini, a spokeswoman for Enterprise Holdings, which also owns Alamo Rent A Car and National Car Rental. (Trejos 2012) "We knew we had to implement some green initiatives in response to fuel-cost increases, heightened customer concern about the environment, as well as requests from our corporate clients, whose companies are working out their own green policies," said Frank Camacho, vice president for marketing at Hertz. (Times Colonist, 2007).
Renewable Energy and Refitting Renewable energy and “green” business go hand-in-hand. While the idea of retro-fitting, or refitting, Superior Rentals, Inc. for energy efficiency may sound daunting and expensive, it is well worth the effort. Presently, there are a number of incentives, rebates, and tax credits available to businesses willing to undertake such a venture. The programs make refitting not only globally responsible, but also, cost effective. As an example:“After analyzing the lighting system and identifying the rebates available, they did a retrofit costing $17,775. With EnergySmart and Xcel rebates totaling $12,351, the cost was $5,424. This represents a monthly savings of $276, or $3,314 a year.” (Brown, K. 2012). As demonstrated by this example, rebates offered in the Midwest through EnergySmart and Xcel alone, make refitting a workable solution to energy efficiency and global responsibility. Reduced energy consumption and, therefore, lower monthly utility bills are a bonus, to help the company's "bottom line." Systems that have fallen under these energy programs are lighting, heating and cooling, water or plumbing, and appliances. Local utility companies offer free and low cost energy audits, to assist in prioritizing the retrofitting process. Refitting Superior Rentals' many operating systems makes proven sense for both the short- and long-term goals of social responsibility. In an attempt to make the company more "green," Superior Rentals, Inc. should undergo an energy audit and further develop the plan for refitting the office building currently in use. Additionally, installation of solar panels on the building's roof stands to make a "green" transition complete. Options for installation of solar panels are either during the initial refitting stages or as an upgrade to the refitted electric and plumbing systems in years to come. The genius of the refitting processes is that they are completed in segments, as time and revenue dictates. Solar modifications for businesses are also rife with incentives and rebates, varying on a state-by-state basis. Many utility companies offer an energy "buy-back" system in which Superior Rentals, Inc. would sell any excess wattage back to the utility, therefore, creating positive cash flow. The cost of solar panel and their installation continues to fall each year. The lower panel prices, coupled with lower prices for other components, led to a drop in solar-system installation costs. The average price for a solar-panel system fell year over year by more than 17%.(Sweet, 2012) This price-drop coupled with the aforementioned incentives and rebates make for a wise investment in the company and the planet. This report shows that though the initial costs of retrofitting and upgrading Superior Rentals, Inc. seems daunting, by taking advantage of currently available "green" incentive programs and utility rebates, the company stands to profit. Participation in said programs demonstrates social responsibility. The wealth of information available for tax benefits, rebates, and other incentives is easily accessible through http://energy.gov/eere, and www.dsireusa.or. These sites offer the first steps in implementing “green” into an environmentally aware company. They are the bridge to a better company and a better planet.

Recommendations
After review, it is determined Superior Rentals, Inc. should begin implementation of the alternatives listed. The company should schedule an energy audit with its local utility company to assess the opportunities for refitting, beginning the refitting as soon as possible. In conjunction, recycling practices and the purchase of tablets and "green" products must begin immediately to address the company's desire for social responsibility. In the long-term, the fleet vehicles must transition to hybrid vehicles, as time and wear dictate, and solar panels should be installed further to demonstrate Superior Rentals, Inc. as a “green” company.
Conclusion
Superior Rentals, Inc. has been a successful business for 15 years. For its success to continue, the company must strive to establish itself as a responsible, forward-thinking community leader, and promote it as such. The company will accomplish this by implementing the practices highlighted in this report. Promoting these practices shows community support and attracts a new sustainable clientele. Transitioning to an environmentally friendly company is a social responsibility, one that Superior Rentals, Inc. must undergo. The company can proceed with the confidence that with these changes, not only will Superior Rentals, Inc. positively affect its business; it will also lead the charge in the community to "go green."

References
Brown, K. (2012). Rebates, incentives fueling green retrofits. Boulder County Business Report, 31(8), 2-12A,14A. Retrieved from http://search.proquest.com/docview/1013837023?accountid=458

Carlton, J. (2011, December Day). Towns May Shut Off Tap On Home Car Washing. WallStreetJournal. Retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/399076687?accountid=358

Cars, Trucks, Buses, and "Nonroad" Equipment. (2012, March 6) Retrieved from, http://www.epa.gov/airquality/peg_caa/carstrucks.html

Duggan, T. (2014). Business impacts and applications in going paperless. Retrieved from http://smallbusiness.chron.com/business-impacts-applications-going-paperless-39864.html

http://energy.gov/eere

www.dsireusa.org

GooglePlay. (2014,June 29). Apps. Retrieved from http://play.google.com/store/apps/details?id=com.softmimo.android.inventorytracker

Gorzelany, J. (2013, November 07). Top Money-Saving Hybrid Cars. Forbes Magazine. Retrieved from http://forbes.com/sites (used with express permission of Forbes Magazine)

How Hybrids Work. Retrieved from, http://www.fueleconomy.gov/feg/hybridtech.shtml

Hybrid cars offer long-term savings. (2006, Jun 23). North Shore News Retrieved from http://search.proquest.com/docview/361466797?accountid=458

Inventory tracker. (2014). Retrieved from https://play.google.com/store/apps/details?id=com.softmimo.android.inventorytracker

Lorette, K. (2014). Why businesses should go green. Retrieved from smallbusiness.chron.com/businesses-should-green-766.html

Pachon J. E. (2000). Strategic and Tactical Fleet Planning for the Car Rental Industry. UMI Dissertations Publishing. 128 p.

Podsada, J. (2010). Deals on Wheels: Consider Buying a Used Car From a Rental Company; On the Road. Hartford Courant. D.1. reduce.org. (2012,September 07)

Reducing Waste in the Workplace. Retrieved from http://www.reduce.org

Sweet, C. (2012, Jun 14). Corporate news: U.S. solar-panel demand expected to double. Wall Street Journal Retrieved from http://search.proquest.com/docview/1020180667?accountid=458

Times Colonist (2007). Rental Car Companies Going Green. Times Colonist Victoria B. C., C19

Trejos, N. (2012). More Hybrid, Electric Cars Available to Rent. USA Today. http://travel.usatoday.com/news/story/2012-03-11/More-hybrid-electric-cars-available-to-rent/53487070/1