Importance of Innovation and CSR in Aston Martin

This report discusses the importance of innovation and CSR in the context of Aston Martin. It explores how innovation impacts sales, profit, and growth, and how CSR contributes to sustainability and positive public image.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Task A..............................................................................................................................................3
Task B..............................................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation plays important role in business and success in several aspects and this is why
it is important for business to undertake innovation. CSR in present times has become very
important in several aspects and this report will discuss about importance of innovation and CSR
in context of Aston Martin.
Task A
Innovation is playing key role in success of the business and there are several reasons
because of which innovation has become for business in order to remain competitive and survive
in the current business environment. Innovation have become important because the businesses
are now dealing in more competitive environment and in order to survive and grow in
environment where many companies are presenting different products and services that are able
to attract customers. Innovation is important for creating and presenting a product and service
which is able to attract customers (Katz. and Green, 2018). A product that is first of its kind, and
offers a great value to the customers is a successful innovation. In relation with innovation
technical innovation has taken significant place, this innovation is linked with technology. For a
company like Aston Martin Technological innovation is a key to success. The reason because of
this is its product and their efficiency is based on what technology is used for that.
Technological innovation can be defined as a process where organisation starts a journey
where importance of technology is considered as a source of innovation and become success
factor for the organisational innovation. Aston Martin is a car manufacturer which is totally
linked with technology and efficiency of the cars is linked with effectiveness of the technology
used for developing and creating the cars. Innovation is very important for economic
development. The reason is that innovation attracts customers to try and buy products being
offered by the company and this contributes in economic development of the organisation. In
enhancing and contributing to economic development of the Aston Martin some of the key
factors are sales and profit and growth of company (Kasemsap, 2018). These three elements are
indicator of economic development and growth of the company.
Impact of Innovation on Sales

Innovation plays important role in increasing and enhancing sales of Aston Martin. The reason
that innovation brings an element in the product that is something new that customer have not
experienced before and this element attract customers to buy the product and this make impact
on the sales of the company. Aston Martin has believed in innovation and innovation of the
company can be considered important for the success of the company.
Increased customer attraction means increased sales and this contribute in increasing turnover
and revenue of the company, contributing and economic development of the company. presently
several ways have been developed and designed through which organisations can attract
customers and sale them their products. This is also included in technological innovation, this
however cannot be linked with individual company but this innovation is being used by all the
organisations to increase their sale.
Innovation of Aston Martin brings several elements which make it more attractive and
innovation bring newness in the products of the company. In relation with Aston Martin
environment friendly cars attract those who are environment conscious and its technology
innovation attracts those who are technology conscious (Aithal, 2017). This way innovation
enables to attract both kinds of customers to buy the products of the company. Innovation also
allows company to take the benefit of first mover and this is another important element which
attracts customers. This means that when customers get what they have not seen and experienced
this becomes a key factor in attracting them towards the product. Later by ensuring a favourable
experience company can ensure potential customers buy the product. This is possible by
innovation which is able to fill the gap in customers’ desires and needs and existing products.
This means that through innovation company has managed to increase their sales and Aston
Martin is luxury sports car manufacturer and this makes it more important for company to
innovate in order to increase their sale and company with help of innovation increased their sale.
Through innovation Aston Martin has managed to sell most expensive cars and Aston Martin
DBR1 is most expensive British cars that have ever been sold.
Effect of Innovation on the Profit
This is another important aspect related with innovation in the company. Aston Martin
has managed to earn significant profits and this gets significantly affected by the innovation.

This means that innovation add several elements in the products through which company can add
its margin associated with the product. This means that luxury sports cars are sold expensive and
at premium price and innovation is one of the reason that allows companies to sell their products
on the premium price (Shelton. and Shopley, 2017). This is not limited to the companies only
innovation also convinces buyers and customers to buy the product at premium price and Aston
Martin DBR1 is an important example of that. Products when are sold at higher prices they
increase profit of the company. This way innovation helps Aston Martin to earn higher profits.
Higher profits add value in economic value of the company and contribute in economic growth
of Aston Martin (Kasemsap, 2018).
Innovation many times come with element in which cost of the company gets reduced
and this is another way in which company can increase their profit and Aston Martin can
improve their economic progress through innovation.
Impact of Innovation in Growth
Innovation has significant impact on the growth of the business as well the reason is that
innovation brings elements that are new and different. These elements allow company to get the
advantage of pioneering and superiority. This also makes company a leader and company gets
benefit in competition (Aithal, 2017). Innovation and technology has become centre of the
competition and this is why it is important for the company to undertake innovation so that it can
strengthen its competitive position and and get the competitive advantage. Innovation in Aston
Martin is also linked with vision this means that company create products according to its vision.
This means that innovation in the company increase its effectiveness and potential for the growth
according to the vision of the company. In context of this it can be said that Aston Martin
designed an highly innovative and ultra-modern four door saloon that was far ahead of its time
and received universal acclaim from the motoring press. This suggests that innovation can play
important role in creating and offering that are ahead of the time and this allows company to get
the advantage of leading and creating new product as well as competitive advantage for the
company. Competitive advantage of the company also allows company to expand its operations
and present an element through which it can succeed in what they are doing and willing to do.

Growth of the company also plays important role in success of the company (Kresi, Milatovic.
and Sanfey, 2017). Growth can be of any type such as growth in sales, growth in operations and
growth in profit and overall improves its economic value and contributes in economic growth of
the company.
Task B
Importance of CSR
To assures the sustainability of business as well as life within future the corporate social
responsibility plays a significant role within this capitalist economy. According to
Mallen Baker CSR is about to how firms can manage the process of business to produce
the overall positive influence on the society. CSR has also proved the best way that can
builds relationship with consumers as having the policy of CSR that can impact the
buying decisions of the costumers as well as make loyal towards particular brand
(Holmqvist. and Ruiz, 2017). There were incidents when consumers are willing to pay more
than the actual price of the product when consumers get to know that one portion of the profit is
used for the good cause. When firms like Aston Martin stands for such a charitable cause then
they are viewed more positively through the society that turns their sales at a high level. People
like Bill gates is also known for the world’s leading Philanthropist who are frequently known for
their efforts regarding charity. Bill also works for the developing nations so that they can make
their contribution to improves the health of the people.
Mention below are some of the Benefits that highlights the importance of CSR.
Improves Public image- This is vital as consumers focuses on the public image when they want
to purchase anything. It’s very simple such as employees volunteering an hour a week at a
charity focuses that a brand that is committee to helps others. As an outcome there is more
number of people focuses on the brand and it will appear much more favourable to the
costumers.
Cost saving –There are simple changes regarding favour of sustainability for example using less
packaging will aids to decrease the cost of production. Within the past cost savings becomes
one of the big factors as responsible firms have found new technologies that will definitely
decreased the production cost.

Enhanced brand awareness as well as recognition-if Aston Martin committed to the ethical
practices than such news can be spread and more number of people will heard about Aston
Martin, it creates a brand awareness as people are nowadays are more focused on ethical
practices (Vij. and Bedi, 2016).
Benfits to employees- There are several range of advantages within the workplace when a
firm embrace CSR as because of the CSR workplace becomes more productive place to
work as well as becomes more positive, thus by promoting things such as
volunteering ,Aston Martin boosts the employees for professional as well as personal growth
both.
Loyal consumers- Costumers whenever buy any product they think consciously as according to
the Nielson survery there were around 66% of the participants focuses on pay more for products
as well as services from the firms that are known as socially accountable firms. When examine
the participants that are willing to pay more as around 58% a brand such as Aston Martin known
for its social value is on the top buyer driver. There is another buy drive as a brand that focuses
along community commitment was marked through 53 % of those will paying more as
consumers who will be loyal to Aston Martin if firms values aligns with theirs (Vij. and Bedi,
2016).
Engagement of the workers- The way of an entity to treat the community suggest good things to
its workers regarding how it respects as well as perceives them. Staff members of Aston
Martin is also feels respected through their employers feels more comfortable as study
focuses that leads to enhance engagement. In addition to this as per the survey firms also
boosts their staff members to do volunteer by pro bono work during paid business hours
that will also boosts workers. Workers of Aston Martin also feels that their firms respects
their development as these are the firms that respects their development. These workers also
feels very energised through such opportunity to be more creative with their skill set
regarding for a good cause.
Positive Public attention- According to the CSR positions of the firm as consider as a leader
within community as well as positive role models for others. Firms also stand out for the
good work as they are doing for the welfare of the society, the media gains the request.
When a firm’s CSR efforts sends messages as it can identifies within a position to aids society as
well as acting upon such recognition. By this process of do good work, firms also not also

help their community but also provides a few benefits as firms can plays a role of the active
player besides its traditional model
B) In 1991 Archie Carroll developed a CSR model in which he propose a 4 pyramid framework.
The purpose was to shape model in effective way and survive business for long term. So, the
model is defined as below
Economic responsibility - It refers to responsibility of business to produce effective products
and services to fulfil needs of society and to earn profits. There are shareholders in
company who expect a return on investment, employees want job safety and security and
customer want high quality goods at fair prices. Thus, business responsibility is to be
profitable which will enable them to survive in market and society for long term. So,
Aston Martin economic responsibility is that they must adopt such manufacturing process
to reduce ecological footprint. They waste can be reduced and environment is protected
(Kuzieva, 2020).
Legal responsibility – in this it refers to comply of rules and regulations which are formed by
government and company. It is expected from them to operate while following those rules. Here,
basic rule is society view of codified ethics. It states that how business can conduct their
practices in fair and legal way as per laws defined in local, state and national level. However,
there are several ethics in it like operating as per government rules, comply with regulations, to
meet legal obligation, to remain loyal towards society etc. here, Aston Martin needs to follow
the health and safety regulation in the car. These regulation must be met to ensure safety of
passenger. It will enable in saving life of passenger. Similarly, in their work place as well the
health and safety measures and standards should be practices and followed by company. This is
their legal responsibility.
Ethical responsibility – as name depicts here business needs to operate in an ethical manner.
They must follow activity, practices which are not laid down but it is still expected from them.
The ethics included in it are performing in ethical and moral way, following standards in it,
comply with laws, etc. in this Aston Martin must be honest and loyal in following of business
practices. They must also provide equal pay to employees and ensure that no discrimination
occurs at work place (Berman. and Dalzell-Payne, 2018).

Philanthropic responsibility – it includes the voluntary or discretionary activities and practices of
businesses. Now a days business are expected by society to take part in such activities.
The nature and quantity of these activities are voluntary and desire to take part in social
activities that are generally not expected from organizations in an ethical sense. This
enables business to give back to society. So for that they donations, gifts, community
development, etc. with stakeholders. It is necessary for Aston Martin to engage in
philanthropic responsibility as well (Berman. and Dalzell-Payne, 2018). therefore, they
must contribute towards community by giving donations, charity, etc. by this they will
be able to sustain for long term. Therefore, in this way Carroll CSR model is applied by
company which allow them to initiate CSR practices and contribute towards society.
CONCLUSION
On the basis of above discussion it can be concluded that with help of Innovation
Company can create basis for growth and enhance its economic condition in all aspects. CSR is
also important for the company in order to ensure that it fulfil its responsibility towards society
in which it operates.

REFERENCES
Books and Journals
Aithal, P.S., 2017. A critical study on Various Frameworks used to analyse International
Business and its Environment. International Journal of Applied Engineering and
Management Letters (IJAEML), 1(2), pp.78-97.
Berman, S. and Dalzell-Payne, P., 2018. The interaction of strategy and technology in an era of
business re-invention. Strategy & Leadership.
Holmqvist, J. and Ruiz, C.D., 2017. Service ecosystems, markets and business networks. The
TQM Journal.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Katz, J.A. and Green, R.P., 2018. Entrepreneurial small business. McGraw-Hill Education,.
Kresic, A., Milatovic, J. and Sanfey, P., 2017. Firm performance and obstacles to doing business
in the Western Balkans: evidence from the BEEPS.
Kuzieva, N., 2020. Kuzieva NR Stimulating the development of small business and private
entrepreneurship through a tax mechanism in the Republic of Uzbekistan. Архив
научных исследований, (24).
Shelton, R.D. and Shopley, J.B., 2017. Beyond the green wall: Rethinking the environment for
business advantage. In Greening the Boardroom (pp. 119-128). Routledge.
Vij, S. and Bedi, H.S., 2016. Effect of organisational and environmental factors on
innovativeness and business performance relationship. International Journal of
Innovation Management, 20(03), p.1650037.