Innovation and Technology Management: Assignment

ASOS AND BP PLC

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1. Different type of innovation and technology and there impact on economic progress of
country.........................................................................................................................................1
2. Innovation and technology have impacted on the operation, sales and profit of BP, PLC.....2
TASK 2............................................................................................................................................3
1. An understanding of corporate governance............................................................................3
2. Archie Carroll's Pyramid of corporate social responsibility...................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
ASOS is a British online and fashion retailer. Company has been founded in year 2000
in London. The major focus of firm was young adults. They have extended their market share in
over 240 countries and explored a large range of consumers with the help of social media
channels. ASOS is been headquartered at Camden town in greater London house. ASOSs opened
its first office outside the South East, in Birmingham. Report will highlight different type of
innovation technology and how they have impacted the economic progress of the country with
particular emphasis on business organization. It will also explain how innovation have impacted
the operation, sales and profit of ASOS. Study will demonstrate an understanding of corporate
governance and history of corporate governance in UK (Roberts, 2012). Assignment explains
Archie Carroll's Pyramid of CSR.
TASK 1
1. Different type of innovation and technology and there impact on economic progress of country
Definition of innovation
Innovation is basically bringing some new changes to the existing product and goods. It
can be understood as new idea, thoughts and making use of creative methods. There are various
type of innovation such as frugal, incremental, disruptive and radical which has can be used by
companies (McWilliams and Siegel, 2013). Using innovative techniques supports in enhancing
the economic growth of United Kingdom. Like for example in order to grow ASOS is making
use of digitalised innovation which has supported them in gaining competitive advantage. It has
also increased the gross domestic income of country. Innovation has supported various regions to
grow.
Definition of technology
Technology is basically the collection of techniques, skills, methods and processes which
can be used by companies in production of various goods and services. It has supported United
Kingdom in enhancing the living standards and social life of people (Carroll, 2013). ASOS is
also been engaged in using advancing technology in order to establish there brand name and
equity. Advancing technology has laid impact on the economic development of United Kingdom.
It has also provided job opportunities to local people residing in that region.
The Latest computer technology
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There are various latest computer technologies that has made the work easier for the
companies doing there business in United Kingdom. Like for example Video conferencing on
desktop or computer can be used by industries to stay in touch of there clients who are operating
business from different places. This latest computer technology has supported United Kingdom
in developing there economic growth. It has increased the revenue generated by country. Also,
ASOS is been using this technology which has assisted them in enhancing there profit.
Robots: Robotic is the new computer technology which is been used to develop artificial
intelligence.
Skype: ASOS make use of skype calls in order to communicate with their clients.
Apps: Computer technology like apps have been created by ASOS to explore large range of
consumers.
Innovation and technology affecting economic growth of country
Technological transformation plays a keen role in enhancing the economic growth of
country. Like for example technological enhancement has played a very crucial role in social,
economic and cultural life of people (Dahlsrud, 2018). It has created job opportunities to various
people which has increased there living standard. Also, advancing technologies has provided
various benefits to local public as it has made there work easier, by which people get more time
to relax and enjoy. This has lead to rise in economic growth of United Kingdom.
Business organization using new technology in there operation
In order to gain competitive advantage, various companies are engaged in making use of
advancing technologies. They are using digitalised techniques in making there business
transactions. Like for example the company like ASOS is been engaged in promoting there
product with the help of social media websites. They make use of channels such as Facebook,
Twitter, Instagram. Also, to have a contact with there clients seating at another country, firm
makes use of computer technology like Skype calls and other features.
2. Innovation and technology have impacted on the operation, sales and profit of ASOS
New technology used by ASOS
ASOS is engaged in making use of advancing technology in order to gain a unique brand
name and competitive advantage in the market. Like for example company is been involved in
making use of social media website to explore large range of consumers. (McWilliams and
Siegel,2013). BY making use of advancing technologies and techniques, company has
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successfully made huge amount of profit and revenue. It has supported them to grow and
enhance there efficiency. Using social media website has supported ASOS to increase there rate
of success and enhance there efficiency and growth. New and advancing technologies to easily
drill the wells are also been developed by them. Making use of updated techniques has supported
firm to reduce there cost and effectively utilized the resources.. It has also helped them in
increasing there funds. Company is also been involved in giving extreme protection to
environment by making use of advancing technology. The innovation and technology has been
implemented by firm in order to grow.
Sales and profit of company before and after using new technology
ASOS has been engaged in making use of new technology. By using advancing
technology company is been able to achieve tremendous amount of profit and increase in sale of
clothing fashion. When in 2000, they were not using advancing technology than profit in that
time was quiet low. In year 2016 ASOS had a revenue growth of 26% and revenue has been up
by 27% which has been low in year 2000 (ASOS annual report, 2013). Profit has been more by
43% after tax.
After making use of advancing technology firm was able to employee more than 74000
employees in year 2016 which was less in year 2010 (Dahlsrud, 2018). They have extended there
business's in more than 240 countries with use of advancing technology. Also, ASOS have also
international retail sales by of 57% of total retail sale in year 2016. By using advancing
technology company has been able to increase there profit as well as revenue. The app of ASOS
is constantly been used by a lot of public in region.
TASK 2
1. An understanding of corporate governance
Corporate governance
Corporate governance is basically the set of rules, procedures and practices which a firm
can use in order to give direction and control to there employee's. It mainly involves maintaining
the interest of firms stakeholders, investors, financiers, suppliers, government and the
community. It can support BP, PLC in achieving there objectives and goals. For achievement of
target, firm needs to engage in effective communication of goals.
Brief history of corporate governance in United Kingdom
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Corporate governance is been used in various company, industries and educational
institution in United Kingdom. The revolution in the region took place when Cad-bury used
corporate governance and it was marked as the best practice. After that firms were engaged in
making use of it. The United Kingdom corporate governance code has been different from all the
regions and country (Roberts, 2012). It provides the components of good practices which needs
to be followed by all companies working in region.
Responsibilities of board of directors
 Board of directors of BP, PLC have various responsibilities when performing the
functions related to corporate governance. It includes the following:
 Determining to employee's about vision, mission and objectives of firm.
 Making company's policies in favour of consumer and workers.
 Involving in effective communication to identify needs and demands of
employee's.
 Monitoring the relationship with the share-holders while performing corporate
governance.
 Making sure that internal control are efficient.
2. Archie Carroll's Pyramid of corporate social responsibility
Archie Carroll's pyramid of corporate social responsibility lays emphasis on ethical,
legal, philanthropic and economic responsibilities. It means that British petroleum company has
to be economically responsible which means they have to create a nominal amount of profit.
Firm also need to engage in performing the legal and ethical responsibilities. This will support
them in gaining competitive advantage and increasing the efficiency of firm. It means that
company should be involved in performing corporate social responsibilities.
Corporate social responsibility
Corporate social responsibility in which BP, PLC gets engaged in performing social
functions so that they can establish a good image in the market. It is a self regulating model of
business's which supports a firm to be socially accountable. In these firms are engaged in
enhancing the environment and society so that they can sustainable advantage. Government has
introduced a code in which company has to give 2% of there profit and benefit in the charity or
social cause. It will help British Petroleum in establishing a good image in the market and also it
will lay positive impact in the mind of there consumers. Technological innovation has made it
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easier for the petroleum industry to supply the fuels that power economy of United Kingdom.
Developing of technology has played the vital role in growth of British petroleum company.
Firm has made use of 3D Visualization which allows technical personnel to see into surface area
find out what is there. Wells are been dig by the ship which make use of dynamic positioning
strategies. BP, PLC by making use of advancing technology has get benefit of more oil in
reduced cost. In year 2016 BP, PLC has made profit of $6.2 billion after making use of
advancing technology like digging of well through ships
Companies who were socially irresponsible
There are various companies who have been socially irresponsible which has hampered
their growth and given a negative image in the mind of consumers and local public. Like for
example Wall-mart has faced crisis because of being socially irresponsible. It has been analysed
that the workers and employee's working in the firm are often been under-paid and exploited by
giving them tremendous amount of work (McWilliams and Siegel, 2011). This social
irresponsibility has hampered there growth. It has also been observed that company does not
provide the insurance benefits to their employee's which has raised negativity in mind of
workers. But the firm is working too hard to improve its environmental records.
Other company who has been socially irresponsible is Nestle. Firm was engaged in
designing and developing product by using illegal means and forced child labour. They have also
produced one of their famous product Maggie by using contaminated chemicals and harmful
substances which has laid impact on the health of many consumers. It has also hampered their
growth and production of Maggie has been stopped for certain period of time. Because of this
irresponsible behaviour firm has faced many problems and they have bearded a large amount of
loss (Dahlsrud, 2018). Profit and revenue of Nestle during that time. It has also used aggressive
marketing campaigns which has put negative image in mind of consumers.
Volkswagen also represents about absolute failure in performing corporate social
responsibilities. They do not make use of ethical standards in designing engineering products.
Also, company is not been engaged in doing charity and performing social functions towards
local public. This has made the image of firm negative in the eyes of consumers. It has reduced
their amount of profit and customer base. Various challenges has been faced by firm because of
irresponsible behaviour. For overcoming these barriers firm has implemented various strategies
to overcome it.
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Four areas of Corporate social responsibility as identified by Archie Carroll's pyramid
Archie Carroll's pyramid of corporate social responsibility focuses on ethical, legal,
philanthropic and economic responsibilities. It lays emphasis that British Petroleum company
become more established and represents a good image in the market by performing their social
responsibility. This can support them in attracting more consumers.
Economic responsibilities: This factor includes that BP, PLC must engaged in being
economically responsible. By performing corporate social responsibilities, they must also be
profitable (McWilliams and Siegel, 2011). They must be able to increase the economic level of
country and enhance the living standards of people living in the region. This will support firm in
attracting more consumers. It can also enhance the profit and revenue.
Legal responsibilities:British Petroleum company must perform the legal responsibilities
so that a good image is form in front of consumers. They need to follow all the laws and rules
which has been given by the government. It will provide them with legal benefits. Also
following all the rules and procedures can retain employee's and it will create workers loyalty in
the firm.
Ethical responsibilities: BP, PLC must make use of ethical practices. Firm must be
engaged in behaving properly and adequately with employee's. This can help company in
attracting and retaining workers (Dahlsrud, 2018). Also, firm must be engaged in conveying
everything honestly to the workers. This can help them in creating employee's loyalty. Also,
more customer can be attracted towards them. This will support firm in attracting more
consumers. It can also enhance the profit and revenue.
Philanthropic responsibilities:British petroleum must be a good and responsible
company of United Kingdom. This will help them in attracting and retaining more employee's.
Also, it will increase there profit and attract more consumers towards them. Also, it can help firm
in growing and acquiring a good position in the market.
CONCLUSION
From, the above study it has been summarised that British Petroleum company has made
use of corporate social responsibility. It has supported them to attract more consumers towards
them. It has also helped them in enhancing there profit as well as revenue. They have also made
use of advancing technology to have a unique image in the market. Company has also
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implemented various strategies to overcome the barrier and challenges faced while implementing
corporate social responsibility.
REFERENCES
Books and Journals
Carroll, A.B., 2013. Corporate social responsibility: Evolution of a definitional
construct. Business & society. 38(3). pp.268-295.
McWilliams, A. and Siegel, D., 2011. Corporate social responsibility: A theory of the firm
perspective. Academy of management review. 26(1). pp.117-127.
McWilliams, A. and Siegel, D., 2013. Corporate social responsibility and financial performance:
correlation or misspecification?. Strategic management journal.21(5). pp.603-609.
Dahlsrud, A., 2018. How corporate social responsibility is defined: an analysis of 37
definitions. Corporate social responsibility and environmental management.15(1). pp.1-
13.
Aupperle, K.E., Carroll, A.B. and Hatfield, J.D., 2015. An empirical examination of the
relationship between corporate social responsibility and profitability. Academy of
management Journal.28(2). pp.446-463.
Campbell, J.L., 2017. Why would corporations behave in socially responsible ways? An
institutional theory of corporate social responsibility. Academy of management
Review. 32(3). pp.946-967.
Roberts, R.W., 2012. Determinants of corporate social responsibility disclosure: An application
of stakeholder theory. Accounting, organizations and society.17(6). pp.595-612.
Cochran, P.L. and Wood, R.A., 2014. Corporate social responsibility and financial
performance. Academy of management Journal.27(1).pp.42-56.
Online
ASOS annual report. 2013. [ONLINE] Available through:
<http://www.annualreports.com/HostedData/AnnualReportArchive/a/LSE_ASOS_2016.pdf>
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