Types of Innovation and Impact on Operations, Sales, and Profits - Kingfisher Plc

This report analyzes different types of innovation and technology and their impact on the operations, sales, and profits of Kingfisher Plc. It also evaluates the importance of corporate social responsibility (CSR) and applies Archie Carroll's CSR model.

ASSESSMENT

EXECUTIVE SUMMARY
In the present report innovation is bringing something original and more competitive. Innovation
basically means improving a product or services by organisations so that competitive advantage
can be gained. In the present report it has also been analysed that performing corporate social
responsibility has also assist in increasing the awareness related to brand and also brand
recognition can be improved. It has also been analysed that CSR has assisted in making use of
resources in sustainable way.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Demonstrate an understanding of different types of innovation and technology..................1
1.2 Illustrations of how innovation has impacted the operations, sales and the profits............2
TASK 2............................................................................................................................................3
2.1 Evaluate the importance of Corporate Social Responsibility (CSR)................................3
2.2 Apply Archie Carroll’s (1991) CSR model...........................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation can be described as the process in which something new has brought into
existing practices. This process supports organisation in meeting out the needs and expectations
of consumers. It has also been analysed that innovation can help assist company in growing and
achieving goals and objectives. Corporate social responsibility means firms are been involved in
making use of resources in an effective way so that there is no wastage of resources. This has
assisted company in increasing their brand awareness as well as value. Present report will lay
emphasis on Kingfisher Plc. It will describe about the different types of innovation and
technology. It will also explain about the importance of innovation and technology to economic
growth of country. Report will also explain about the importance of corporate social
responsibility. It will make use of Archie Carroll model to know in detail about the CSR.
TASK 1
1.1 Demonstrate an understanding of different types of innovation and technology
Define innovation and technology
Innovation means taking out of new combination, introduction of new goods and production
methods so that needs and demands of consumers can be met out and it also assists in enhancing
the satisfaction level of employees. This will assist them in growing and also achieving set
mission.
Technology basically means combining together skills, techniques and methods so that
objectives can be achieved (Hollebeek and Rather, 2019). It is been used for the production and
delivering of goods and services.
Examples of how innovation and technology have contributed to the economic growth of
the country
There are various ways by which innovation and technology has contributed to the
economic growth of country. By making use of this country has been able to attract more
potential investors who can invest in companies working in United Kingdom. This has assisted
them in increasing the income and revenue of country. They have also been able to simplify the
ways of working and compressing and narrowing down complex process in simpler one which is
really necessary for economic growth of country. Simply put, innovation can lead to higher
productivity, meaning that the same input generates a greater output. It has been analysed that
because of making use of innovation and technology in United Kingdom, they have also been
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able to increase the production of goods and services, which means that economy has also
enhanced because of this. Innovation has also assisted the country in producing more from less
and thus the country has grown because of this perception. They have also been able to achieve
target which was been set by them. Innovation and technology has assisted in lowering down the
price of making goods and services, thus wages of workers has been increased by this. This has
also assisted in enhancing the life style of workers. It can also be counted in economic growth of
country and also because of this their gross domestic income has been increased (Chen, 2019).
Business organisations use new technologies in their operations
Various business organisations have been engaged in making use of automation and
artificial intelligence in order to complete their operations on time. It has been analysed that
making use of innovation and technology has assisted company in growing and also because of
this they have been able to achieve set target and objectives. For example Tesco is been involved
in making use of business intelligence tools like Webinar, E-buddy. In this they can easily share
the information and also can held meeting online (Leicht, Chtourou and Youssef, 2018). By this
can also be able to exchange the knowledge and improved abilities of workers through effective
knowledge management online. Some companies are also engaged in making use of E-buddy for
better recruitment. In this HR department gets connected with workers and they solve their
problems and also attract potential employees through referrals.
1.2 Illustrations of how innovation has impacted the operations, sales and the profits
A brief overview of Kingfisher Plc
Kingfisher plc is a British multinational retailing company headquartered in London.
They have other regional offices which are been set up in all over United Kingdom. Company
has been founded in the year 1982 and also there are 79000 employees who are working with
them. Firm is been engaged in providing high quality of services to consumers. They have also
been engaged in making use of innovation and technology so that large number of customers can
be attracted towards them. This will also assist them in growing.
Describe the new technologies and how they are being used
It has been analysed from the research that there are various new innovation and
technologies used by Kingfisher plc. This has assisted them in increasing profits, sales and
revenue (Chan and Parhankangas, 2017). It has been analysed that company has been involved in
making use of IT desk. This has assisted them in solving problems of employees online which
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was based on IT. Kingfisher plc has also been engaged in making use of E-library. This was
useful for employees as they collect useful information from this online library and it has also
assisted them in overcoming problems and issues which has been faced by employees while
working. It has also been analysed that this type of library has also increased their knowledge
and skills.
This has also helped workers in increasing their productivity and they have also been able
to achieve the set target. Company is making use of technology and innovation so that they are
been able to cover seamless experiences of consumers. They are making use of integrated supply
chain and are also acting as a sustainable company. It has also been analysed that they are also
making use of various type of software like enterprise resource planning (ERP). In this
Kingfisher plc has been engaged in doing planning about managing and coordinating resources.
This has assisted in increasing growth. Company has also been engaged in making use of
management information system. This has assisted them in extracting out big data and also by
this right decision can be taken.
Compare the sales and profits of the company before and, after the new technologies were
introduced
The sales and profits of company before the introduction of technology was really low. It
has been analysed that after the introduction of new innovation Kingfisher plc has marked an
increase in the profit. In the year 2014 the retail profit was retail profit £753m. This profit has
been increased by 10% in upcoming year when company has started making use of new
innovation. It has also been analysed that by making use of new innovations they have also been
able to engage consumers and employees more. This has also assisted them in increasing
productivity and also they have been able to achieve set target and mission. It has also been
analysed that by making use of new innovation Kingfisher plc has also been able to meet out
expectations and demands of consumers. It has also been evaluated that by making use of new
techniques and tools they have also been able to increase consumer experience. This has assisted
them in growing and also because of this they have been able to gain success.
TASK 2
2.1 Evaluate the importance of Corporate Social Responsibility (CSR)
Definition of corporate governance and corporate social responsibility
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Corporate governance can be defined as set of rules and regulations which is been used
by companies so that business can be controlled, operated and regulated. United Kingdom has
implemented codes for corporate governance. In this it is responsibility of board of directors to
be transparent, honest about the decisions which are been made. They need to ensure that every
useful information is been shared by them to stakeholders. This will assist them in gaining
success for their company.
On the other hand corporate social responsibility basically means that making use of
resources in such a way that it future generation have access to plenty of resources. In this
company needs to make sure that resources are been used in sustainable way. This can assist
them in increasing their brand value as well as reputation. In this they also need to be engaged in
doing charity.
Brief history of Corporate Governance in the UK with examples
The corporate governance code of United Kingdom has set out the guidelines which need
to be implemented by board of directors. It has been analysed that the directors needs to be
involved in implementing the better practices so that there can be proper management of
company and also it will assist in enhancing company performance. The United Kingdom code
for corporate governance has implemented that in 2009 they have implemented a press
conference related to that BOD needs to honest, transparent and accountable for the decisions
which has been taken by them (Freeman and Dmytriyev, 2017). In the year 2008 they have also
implemented that Board of directors needs to also be engaged in publishing the remuneration
given to shareholders in their annual report. They also need to be engaged in opening about the
areas in annual report where the expenses have been made. All these rules and regulations of
corporate governance need to be followed by directors. This will assist them in gaining success
and enhancing strategic performance of company. It has also been analysed that according to the
code of corporate governance which was been implemented in the year 2010, it was been
evaluated that board of directors and chairman of the company must make sure that
responsibilities are been delegated effectively. This will assist them in lowering down the
chances of miss-understanding which affects growth of company.
Importance of CSR for organisations
Corporate social responsibility means making effective utilisation of resources in a
sustainable way. It is really important for Kingfisher Plc to make use of corporate social
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responsibility. This will assist them in enhancing their brand performance and value. It will also
assist them in attracting large range of consumers which is necessary for the success of company.
In this, company must be involved in making effective use of resources; they need to make sure
that there is no wastage of resources. In CSR Kingfisher Plc needs to have a look upon the wider
social issues. It will assist them in enhancing productivity and profit margins. It will assist them
in attracting consumers who have same corporate values (Wang and Sarkis, 2017).
It will assist company in enhancing their public image as more and more social
responsibilities will be performed by firm. In this brand will be engaged in committing to help
others who are in use. Performing corporate social responsibility will also assist in increasing the
awareness related to brand and also brand recognition can be improved. It will help organisation
in achieving the set targets goals and objectives. Kingfisher Plc will assist in attracting more
consumers and their knowledge related to brand will be increased. It has also been analysed that
making use of CSR models will also support in doing cost savings. This is because by making
use of this approach company will be engaged in making use of biodegradable materials. They
can obtain these kind of material in lower cost and by this they will be able to save cost and
expenses. This will be beneficial for Kingfisher Plc and by saving cost they can put the amount
in some other productive aspects. Corporate social responsibility will also assist company in
gaining competitive advantage. This is because brand value of company will be improved and
more and more consumers will be attracted towards them. By this they will be able to enhance
competitive advantage. They will also be able to grow and achieve set target and mission. It has
also been analysed consumers will also be engaged more in firm. This is because they have given
social and environmental commitment. This can assist Kingfisher Plc in growing and also by this
their goals and objectives will be achieved. It can assist in gaining success and growth.
2.2 Apply Archie Carroll’s (1991) CSR model
In the Archie Carroll’s model there are four phases which are included in this. It has economic,
legal, ethical, and discretionary (philanthropic) expectations of the society which needs to be
achieved by organisation in given period of time. It includes the following:
 Economic responsibility: Kingfisher Plc in order to grow must meet out the economic
responsibilities. In this they need to be engaged in performing various economic
functions so that financial effectiveness can be gained. They need to make out the
marketing strategies and other techniques according to the economic aspects. In this
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company also needs to be involved in making sure that they are bringing out those
products that have economic effect.
 Legal responsibilities: It is really necessary for organisation to follow all rules and
regulations which has been implemented by parliament. In this Kingfisher Plc has to
make sure that they work by keeping in mind health and safety of employees. They also
need to work towards well being of others by providing them with services which are
sustainable in nature. This will assist organisation in growing and also by this they will be
able to gain set goals and objectives.
 Ethical responsibilities: In this Kingfisher Plc needs to make sure that ethical code of
conduct is been followed by them. They need to make sure that they are transparent in
their working and also better decisions are been taken by them which benefits company
as well as society. This will assist firm in growing.
 Philanthropic responsibilities: In this company needs to be engaged in doing those
activities which are been desired by societies. In this Kingfisher plc has responsibility to
lower down the carbon emission and also they need to work towards doing more charities
so that more consumers can be attracted towards them (Advantage, 2020).
CONCLUSION
From the above study it has been summarized that making use of corporate governance is really
necessary. In this board of directors of firm has also been involved in following the ethical code
of conduct. They need to be transparent, honest and accountable in their work. They have also
been engaged in making sure that integrity, value and respect is been followed by them. This has
assisted them in growing and also achieving set target and objectives. This has helped them in
lowering down wastage related to resources. It has helped firm in growing and gaining success.
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REFERENCES
Books and Journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies, p.65.
Chan, C.R. and Parhankangas, A., 2017. Crowdfunding innovative ideas: How incremental and
radical innovativeness influence funding outcomes. Entrepreneurship Theory and
Practice, 41(2), pp.237-263.
Chen, C.J., 2019. Developing a model for supply chain agility and innovativeness to enhance
firms’ competitive advantage. Management Decision.
Freeman, R.E. and Dmytriyev, S., 2017. Corporate social responsibility and stakeholder theory:
Learning from each other. Symphonya. Emerging Issues in Management, (1), pp.7-15.
Hollebeek, L. and Rather, R.A., 2019. Service innovativeness and tourism customer
outcomes. International Journal of Contemporary Hospitality Management.
Leicht, T., Chtourou, A. and Youssef, K.B., 2018. Consumer innovativeness and intentioned
autonomous car adoption. The Journal of High Technology Management Research, 29(1),
pp.1-11.
Wang, Z. and Sarkis, J., 2017. Corporate social responsibility governance, outcomes, and
financial performance. Journal of Cleaner Production, 162, pp.1607-1616.
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