Impact of Innovation and Technology on Company's Sales, Profit, and Growth

This article discusses the impact of innovation and technology on a company's sales, profit, and growth. It explores the role of innovation in improving productivity and reducing costs. The case study of Royal Mail is used to illustrate how innovative technologies have helped the company achieve its goals.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of innovation and technology and its affect on company's sales, profit and growth .....1
TASK 2............................................................................................................................................3
Importance of Corporate Social Responsibility .........................................................................3
Archie Carroll's CSR model........................................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In this current era of marketplace, the term innovation and advancement has been very
familiarised in majority of the organisation., This is because, this element is regarded as one of
the essential component for organisation to attain sustainable growth and development and also
to place the brand in a competitive position. The term innovation means introducing something
new product and service within existing market with an aim to meet targeted customer
requirements in an effective manner (Carroll, 2015). The adoption of innovation benefit
establishment in various ways like long term survival, empower firm to remain competitive,
improve overall productivity and many more. IN regard of this report, Royal Mail has been
considered which is known as a best postal service and courier company in UK. It is established
in the year of 1516 and render the services like letter post, parcel service, freight forwarding ,
EMS, delivery across the globe. In this study, it includes the role of innovation and technology
within company and how it lead firm to achieve increased level of profit, sales and growth
among competitors.
TASK 1
Impact of innovation and technology and its affect on company's sales, profit and growth
From the recent years, the pace of innovation has been risen due to the intense level of
competition and challenges among companies in terms of acquiring aggressive or competing
position inside industry. Along with this, the implementation of innovative technologies help
executives, managers and manpower to operate their business more effectively and also to
improve the quality of produce with less defection or error. Therefore, as per present scenario of
industry, there is a trend within organisation to adopt innovation or modernisation in technology
on continual basis. This is because, market trend and customer demand varies form time to time
that directly impact over establishment decision making process and brand value among
competitors (Carroll, 2016). However, in order to survive inside competing market for longer
period of time, an organisation must be flexible in nature to acquire appropriate or relevant
modification and alteration for obtaining profit maximisation in a stipulated time duration. Not
least, due to trailblazing development or enhancement in information and communication
technology(ICT), it aid firm to make use of available opportunities in an improved or amended
mode. In relation to Royal Mail, it is considered as a dominant operator especially in the field of

remain end – to- end competitor within UK mail market. Additionally, the role and implication
of digitalisation has changed the postal sector as mail volumes decline and the volume of
parcel increased in a better way. As per recent study, with the intense level of competition and
consumer demand, postal and parcel operators use advanced technology for various purposes in
order to enrich the operational efficiency and also to offer new products or services. Apart from
this, customer demand for faster management of order and more convenient delivery is driving
change in the sector and technological innovations. With the help of this, it is enabling e-retailers
and postal operators to take corrective course of action for giving increased level of customer
satisfaction. In regard of present day postal and courier industry, there are innovative
technologies which is utilised by majority of the organisation like RFID chips (radio- frequency
identification), sensor, PDAs, GPS and so on. In context of Royal Mail, the aspect of innovative
technologies plays a vital role as it help them to enlarge its market share or size in a better way.
As per studies, Royal Mail is mainly famous for adopting and introducing novel techniques
within its existing business function. Recently, it has installed automated parcel sortation which
lead them to speed up its processing of parcel (Huang and et.al., 2016). Moreover, it also assist
them to replace the manual sorting procedure which was time consuming as well as physically
demanding. Currently, Royal Mail's 12% of parcels are machine sorted and company is planning
to increase by 80% in upcoming five years. Henceforth, as per the research, it has been identified
that the role of innovation and technology is influencing highly over Royal Mail's potentiality to
achieve targeted profit, sale and growth which is mentioned below:
Improves productivity: The foremost impact which innovation and technology impose
within organisation is that it enable an establishment to enrich its productivity ratio. In addition
to this, it assist company to identify the marketplace trend and consumer demand as well as lead
them to implement best strategic decision (Royal Mail rolls out advanced technology to speed up
parcel sorting in its Bristol Mail Centre, 2019). IN context of Royal Mail, the aspect of
advancement in technology enable them to handle their mail orders efficaciously and also
empower them to cover the area of wide range of population in a better manner. Along with this,
it assist them to bring its sortation of parcels more in line with letter, 90% are processed by
automated machinery. Due to such action, it aid Royal mail to improve its sales performance and
also to speed up the passage of parcel to local mail centres that enhance company's capability in
enriching the productivity ans well as profitability ratio.

Reduce costs: With the adoption of technology innovation, the advantage which an
establishment acquire is that they were able to minimise the advantaged expenses and can
process its managerial or operational function in a better way. Moreover, novel techniques also
lead Royal Mail to decrease the amount of time spent on unnecessary tasks, assist firm to shrink
the chances of human error and also motive them to allow more personnel to take participate into
desired project. Due to such initiation, it aid Royal to enlarge its overall proficiency ratio and
also to improve its sales rate among competitors in an innovative style (Mostaghel, 2016).
Increased competitiveness: Under this component, it states that implementing the views
of innovation within the existing business function plays a significant role as it empower them to
being competent in competing industry. In relation to Royal Mail, by applying latest
technologies it help them to face all sort of current and upcoming rivalries in a better manner and
also can place their brand in a best position without any hindrances.
Henceforth, from the above explained elements, it has been signified that the term
innovation and technology enable Royal Mail to gain competitive advantage and also enable
them to accomplish its pre determined goal or objective in a better manner.
TASK 2
Importance of Corporate Social Responsibility
In today's marketplace, the term corporate social responsibility are being very
familiarised in every form of organisation as it help them to maintain its brand image among
targeted customer and also drive them to achieve their pre defined objective in a better way.
Along with this, the term corporate social responsibility refer to self business regulating
procedure or process that drive an organisation to determine community need and also create
awareness among companies in regard of enriching company's overall productivity ratio in a
stipulated time duration. In addition to this, it also assist them to being socially responsible to its
stakeholders, employees and society by fulfilling their demand in a right time with correct
resources (Phillips, 2018). Moreover, the foremost purpose behind adopting CSR aspect into the
business premises is that it motive firm to conscious of their social and environmental impact
and also can provide needful benefits to society. In this regard, finding best solution for the
betterment of society and empowering them to deal with everyday issues or problems in an
ethical or improved mode. In perspective of organisation, it help them to manage its sales

competition as well as endow them to retain its customer base towards their brand in an trenchant
manner. In regard of Royal Mail, for acquiring best position in postal service industry, it makes
an initiative to formulate the function of corporate social responsibility in order to gain
competitive advantage among competitors within prescribed time period. However, the CSR
activity which Royal Mail practice is that generating a less carbon foot print surroundings due to
increase in pollution and it effect various lives. Therefore the action which Royal Mail
implement is that 99% recycled program in which it signifies that reducing the amount of waste
that goes into landfill. With the help of such action, it help Royal Mail to manage wastage of
product and make use of available resources at optimum level (Making a difference, 2019). In
addition to this, Royal Mail also make an effort to stop reaching scam mail to its targeted
customers and that program is refer as SCAM alert. Due to such action, it drive company to stop
scam mail at distribution centres before it reaches the customer's letterbox (Operating with
integrity, 2019). Moreover, Royal Mail also make an attempt to raise appropriate funds for the
betterment of metal health children in UK, articles for blind people and rewarding female
manpower fairly. Therefore, allocating proper resources and rendering effective training and
development programs to employees. It assist Royal Mail to meet out all challenges and demand
in an improved way and also lead them to enlarge its market share or size in a productive style.
Hence, by evaluating the performance of Royal Mail towards CSR activities, it has been
analysed that it impose huge positive outcome over company's as it enhances its potentiality to
attain sustainable growth and development in an expeditious way. However, some of advantages
that Royal Mail obtain with the execution of corporate social responsibility are as follows:
Enhanced satisfaction among manpower: Under this component, it highlights that
taking an initiative in CSR activities help organisation to determine the taste or preference of
personnel and that aid them to give high level of satisfaction in an amended way. Therefore, in
context of Royal Mail, putting a full contribution towards enhancing the living standard of
community like providing educational facilities, resources for disable people and many more.
Such effort make Royal Mail's manager to understand the ability or potentiality of its each
employees and also lead them to delegate them in a relevant position (Ritala, Kraus and
Bouncken, 2016). This is because, company believes that behaviour with manpower directly
reflect towards the relationship with particular community or society and also it motive them to
improve its overall performance in an effective way.

Increase brand image among public: In this determinant,it states that the idea of
practising corporate social responsibility benefit them in various ways. The primal aspect in
which company acquire advantage is that it assist them to capture the attention of large number
of population towards their brand and it reflect in terms positive outcome of its sales
performance as well as improvement in Royal Mail's brand value among public in a stipulated
time duration.
Maintain customer base: This element is concern with those concept in which it
demonstrates that if an establishment carry out the feature of activity that benefits society or
community in relation to raise their standard of living. Likewise, in regard of Royal Mail, this
aspect enable them to increase its customer loyalty and also empower them to retain them for
longer period of time in the time of intense level of rivalry and challenges among companies
(Romanovich and et.al., 2014).
Enhance creativity: Under this component, it is link with those idea which exhibits that
imposing social responsible action drive an establishment to analyse the industry competition
and also to predict the competitor potentiality in aspect of gaining profit maximisation. IN
relation to Riyal Mail, the concept of CSR input various novel strategies or tactics in order to be
a competent player in term of innovation or creativity among large number of rivalries within the
marketplace.
Therefore, from the above mentioned benefits of Corporate Social Responsibility over
Royal Mail, it has been examined that this self regulating business model enable company to
gain improved level of growth and also to enlarge its market share in a amended way.
Archie Carroll's CSR model
As per the preceding discussed content, it has been signified that the formulation of CSR
activities carries huge initiation and practice in order to accomplish pre determined objective in
an efficacious mode (Spence, 2016). Therefore, proper monitor or direction empower an
organisation to carry out their business process in a better way. However, Archie Carroll's CSR
model plays a vital role as it render suitable guidance or direction to company in term of
maintaining their brand and growth among competitors in an amended way. Hence, Archie
Carroll's model defined as a application of appropriate element or steps help company to reach to
its objective within a prescribed time limit. In regard of Royal Mail, it take an initiative to imply
the Archie Carroll's model which is discussed below:

Economic: In this section, it encompasses economic growth, inflation rate, interest rate,
deflation, GDP ratio and many more which effect organisation ability to obtain high level of
proficiency rate among competition. In the views of Archie Caroll’s, it demonstrates that an
establishment needs to be strong or best in regard of economic state. This is because, it enable
them to meet out the dynamic nature of community as well as employees need in a improved
mode without any hindrances. However, for attaining the same, Royal Mail analyses the actual
or future business challenges or situation and taking initiative to implement best strategic
decision in aspect of decreasing the product price or offering some extra benefits that help them
to gain the attention of large number of population towards their brand in an improved manner.
Legal: This factor is concern with those idea which covers fulfilling government rules,
regulation, laws, and policies and so on in order to make a positive response among government
and consumers. Hence, in context of Royal Mail, it make an attempt to adhere to all government
regulation or legislation like employment, health and safety for acquiring positive response from
customer and manpower (Van Oudheusden, 2014). Therefore, it enable Royal Mail to enrich its
brand value in an improved way and generate high level of satisfaction among community by
rendering fair decisions towards their problems or issues in a precise time duration.
Ethical: Under this, it is defined as an act of company towards community or society in
an ethically and morally way for improving the overall performance in competitory market. In
term of Royal Mail, it make an endeavour to ascertain its manpower demand or interest and also
takes fair action in fulfilling the same. With the help of this, it assist Royal Mail to determine
society issues very ethically as well as empower them to bring amended level of satisfaction,
Furthermore, it also assist establishment to build a healthy relationship with its suppliers,
employees and also towards society that benefits them to treat everyone in an ethical mode.
Philanthropic: Under this determinant, it encompasses that company must give good
benefits to society by examining their needs, demands and also administration the project for
execute their goal in an trenchant manner. In context of this,Royal Mail make an attempt to give
monetary benefits to community for the purpose of enhancing their educational grounds and also
render survival needs for poor family prospect. Due to which, it lead them to acquire good
reviews form assemblage and also help them to keep its brand image among targeted market in
an revised mode. Moreover, it enable them to place their brand in an assertive or competitive
position without any impediment (Wong and Bustami, 2019).

CONCLUSION
It has been concluded from the preceding report that following applicable innovation and
technology enable company to tackle with all sort of competition or rivalries in an effectual way.
Additionally, CSR activities authorise an establishment to be more obligated or accountable
about society need and demands in a improved way. Moreover, Archie Caroll CSR model aid
organisation to analyse its performance in terms of gratifying community wants and interest in an
ethical mode without harming anyone morale. Furthermore, such action aid company to endure
for longer time duration among competitors in an advanced and productive style.

REFERENCES
Books and Journals
Carroll, A. B., 2015. Corporate social responsibility (CSR) is on a sustainable trajectory. Journal
of Defense Management. 5(2). pp.2167-0374.
Carroll, A. B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility. 1(1). p.3.
Huang, K. E and et.al., 2016. Innovation and technology creation effects on organizational
performance. Journal of Business Research. 69(6). pp.2187-2192.
Mostaghel, R., 2016. Innovation and technology for the elderly: Systematic literature
review. Journal of Business Research. 69(11). pp.4896-4900.
Phillips, G. O., 2018. Innovation and Technology Transfer in Japan and Europe: Industry-
Academic Interactions. Routledge.
Ritala, P., Kraus, S. and Bouncken, R. B., 2016. Introduction to coopetition and innovation:
contemporary topics and future research opportunities. International Journal of
Technology Management. 71(1-2). pp.1-9.
Romanovich, L and et.al., 2014. Innovation activity and technology transfer of higher
education. Journal of Applied Engineering Science. 12(4). pp.273-276.
Spence, L. J., 2016. Small business social responsibility: Expanding core CSR theory. Business
& Society. 55(1). pp.23-55.
Van Oudheusden, M., 2014. Where are the politics in responsible innovation? European
governance, technology assessments, and beyond. Journal of Responsible Innovation.
1(1). pp.67-86.
Wong, T. A. and Bustami, M. R., 2019. A Case Study of Micro Businesses in Jelutong Wet
Market in Penang, Malaysia: Implications for CSR Scholarship. Journal of Business
Ethics. pp.1-12.
Yu, W and et.al., , 2014. Innovation and technology of women's intimate apparel. Woodhead
Publishing.
Online
Royal Mail rolls out advanced technology to speed up parcel sorting in its Bristol Mail Centre,
2019.[Online]. Available Through;
<https://www.parcelandpostaltechnologyinternational.com/news/sorting-systems/royal-
mail-rolls-out-advanced-technology-to-speed-up-parcel-sorting-in-its-bristol-mail-
centre.html>
Making a difference, 2019.[Online]. Available Through; <https://www.royalmail.com/making-a-
difference>