Impact of Innovation and Technology on Sales, Profit, and Growth in an Organization

This report analyzes the impact of innovation and technology on sales, profit, and growth in an organization. It explores how these factors contribute to economic development and maximize productivity. The case study focuses on Kingfisher Plc, an international home improvement organization.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
A. Impact of innovation and technology and its effects on sales, profit and growth in an
organization.................................................................................................................................3
Task 2...............................................................................................................................................6
A. Importance of corporate social responsibility (CSR) in an organization................................6
Archie Carroll’s Model –.............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Sustainability innovation in business environment reflects the thinking of economic
development. It pairs protection of natural systems in the environment with the belief of
innovation while providing necessary products and services which caters social objectives of
human health and equity (Kusi-Sarpong, Gupta and Sarkis, 2019). It is the gesture of innovation
that is pushing society towards clean commerce and green economy. Sustainability innovation is
the pragmatic, optimistic and positive effort to refresh economic development in the environment
that addresses the appropriate fundamental challenges (Rauter and et.al, 2019). In Kingfisher Plc,
the title sustainability innovation is applied on goods, process, and services as well as on its
strategies. It is an international home improvement organization that operates in several countries
to fulfil its purpose of making home improvements easily accessible to each and every one.
Task 1
A. Impact of innovation and technology and its effects on sales, profit and growth in an
organization
Innovation is an effective idea or process to grow business and make economic developments in
the society where as technology is referred as a machine or tool to solve issues of real world
(Aznar-Sánchez and et.al, 2019). Technological innovations are the extensions of these both tool
and process which adds extra concepts to develop new products and services in the market (Mills
and McCarthy, 2016). These innovations influence company’s populations profoundly by
modifying relative necessities of resources, challenging learning abilities of Kingfisher Plc,
altering the base of competition and by disrupting markets. The concept of improving and
making advancements in technology enhance the possible order of magnitude and challenge the
competitors effectively by getting superior technologically. Technological innovations plays
prominent role to grow economies of leading industries that affects the capability to innovate and
get high benefits from it. These innovations lead to grow value and performance of high priority
capabilities of Kingfisher Plc in terms of public and social capital policy. Relationship between
innovation and economic development is very strong because the main benefit of innovation is it
contributes in the growth and development of economy and leads to maximize productivity in an
organization. Impacts of innovations such as communicative kiosks and virtual mirrors in
Kingfisher Plc could refresh the expected desires of consumers to shop goods from the physical
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store. Impact of technology in the organization enhances the in sore experiences and maximizes
the convenience and allows consumers of kingfisher Plc to browse different varieties in short
term period. Innovations and technologies are truly interconnected with each other because the
rapid growth in economy is acquired through the highest level of technology and the new
concept of innovations that make Kingfisher Plc dissimilar than other competitors. Technological
change is the major and most necessary factor which is utilized to determine the rate of economic
progress or developments. Economic progress means maximization in the total productivity in
the form of technological advancements and makes possible efforts to produce much output with
the same resources. Technological change also maximizes the productivity of business capital
and other resources. These different choices open to up with economy and examine the
productions input mix. Progress in technology manifest itself in the modification of production
function and operates upon it by making various improvements like superior efficiency of
Kingfisher Plc, its equipment’s and materials. Progress in economy is not possible without the
technological progress whereas technology progress cannot be done without prior capital
formation. Innovations and technologies properly organize the structure of production more
efficiently and the measure of economic progress is totally punctuated by the pace of various
innovations. Technology affected global economy very deeply and improved the standards of
living and rebooted the trade internationally. These innovations and technology both co related
and advancements in these led Kingfisher to significantly lower the cost of its business and make
various improvements in its operations. Information and communication technology are the
computer centric system that has maximized reliability, efficiency, effectiveness, performances
and other factors of modern operations of commerce in Kingfisher Plc. It has maximized and
renovated the structure of finance both in the terms of quality and quantity. ICT has sophisticated
the methods in which transactions are catered in any system of finance with optimal level of
efficiency and performances. Information and communication technology is expertise in policy
development, workforce solutions, labour market research and ICT business intelligence and
enables Kingfisher Plc to grow, develop and balance a competitive edge in the global market. It
also supports organization in practicing its services to rejuvenate appropriate innovative trends
and refers to wider the range of computerized technologies which enables communication and
the processing, transmission and electronic capturing of information. These various technologies
include software of business productivity, network security, data storage and security and other
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co related protocols. ICT has eliminated time, space and distance constraints that furnished the
activities of business by integrating the ability of high speed devices with speedy communication
connections that carry multimedia information. It enhances the utilization of financial
management. This ICT is considered as the most reliable means of giving a strong enough
platform for effective system of inner control over financial reporting. Information and
communication technology in Kingfisher Plc creates an atmosphere which integrates all the
financial transactions with the support of accounting software to generate organization financial
report. Kingfisher is London based major European property and retail group which was
incorporated in 1909 with a large chain of shops, DIY centers drug and electrical stores. It has
employee count of 77,436 and listed in London-Paris stock exchange. It is a property company
which was started by replenishing worth wool properties and globally diversified into
redeveloping properties of other organizations both internal and external of the groups and
manages portfolio of investment. Kingfisher Plc is originated as a subsidiary of Woolworth & co.
in United States of America. Owner of the company identified and recognized the potential for
open display store in Britain on his first visit to Europe then the subsidiary was launched in
England as private limited company. Share capital was increased and entire maximization in
assets was build up from the earnings and there were no further increments in capitalization.
Later company issued a statement saying "both Woolworth and super drug are the essential part
of Kingfisher's future". The future of kingfisher is seeking alternate and additional opportunities
to make expansion and geographically diverse effectively.
Impacts of innovation on the operations of Kingfisher Plc were it helped organization to
focus and do responsible business practices and the scale of finance of the combined group of
Kingfisher Plc (Lee and Tang, 2018). It is a multi-format retailer that adapts operating model to
provide a key element of differentiation between its own exclusive brands and provide flexibility
according to the new concepts of innovation and reshape, replenish its footprints to reflect the
maximizing consumer requirements for immediacy and convenience. Impacts of innovation on
sales played an necessary role that accelerated consumption of products through online shopping,
visualization and retail segments (Rantala, Kokkonen and Hannola, 2020). It also supported
organization to set up new technologies like click and collect services to make transactions easy
and accessible. It also introduced home delivery option to increase its sales. Innovations highly
impacted on the profits of Kingfisher Plc by the modifications and growth of market, its
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complexity, perfect utilization of strength and assets to make economic developments, best
practices to lead the business, improvements in enabling methods of cost reduction and
supported it in making various strategic plans (Gherghina and et.al, 2020).
Task 2
A. Importance of corporate social responsibility (CSR) in an organization
Corporate social responsibility (CSR) is an self-operating business model which supports
Kingfisher Plc be accountable socially to self, its stake holders and the consumers. By practicing
such business activities organization has to conscious of the type of impacts it is having on all
the aspects of community including social, economic and environmental (Advantage, 2020).
Company engages and operated in various methods with corporate social responsibility to
enhance environment and the society. It is a broad concept that can obtain many forms of
depending on the Kingfisher Plc and on the retail industry. Through CSR programs organization
provides advantages to society while putting efforts to boost their brand (Wang and Sarkis,
2017). Corporate social responsibility is essential for both company and community and its
activities also support employees and company to make strong bond between them. Impact of
CSR on Kingfisher is it started to improve and maintain the environment sustainability of their
operational functions and manages supply chains. There are some types of corporate social
responsibility that are discussed below:
Philanthropic corporate social responsibility in Kingfisher Plc includes donating small shares
such as goods or services, funds to another companies to good causes or to make improvements
in the society. It is an effort made by organization to improve human welfare and sometimes
undertaken for seeking tax breaks.
Ethical corporate social responsibility in Kingfisher Plc includes its behavior that is expected by
its consumers and society but not systemized in law. Ethical responsibility of organization is its
environment friendly and it is aware of its practices and business activities that have different
effects on the environment. Ethical behavior in CSR of Kingfisher Plc brings significant
advantages to its business such as it attracts its consumers and can boost its profits and sales.
Legal corporate social responsibility in Kingfisher Plc is an entity in its business. It follows the
rules and regulations which are set to maintain balance and wider the goods and services.
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Kingfisher Plc has some legal responsibilities like registrations and structures, selling of good
and services and licensing of its company.
Economic corporate social responsibility in Kingfisher Plc is to understand and recognize
perspective, demands and requirements of consumers to gain profit. It focuses on reducing
wastages by minimizing emissions to support the environment and it also saves cost of the
company by cutting bills of utility and disposal cost that immediately brings benefits of cash in
the organization.
Source: Carroll's pyramid model of corporate social responsibility (Carroll, 1991).
Archie Carroll’s Model –
Archie Carroll’s Model or Pyramid Corporate Social Responsibility is the framework that
contend on the facet that why corporate and businesses should meet their social corporate
responsibilities. This model highlights the 4 key responsibilities of the organisation –
Economical, Ethical, Legal and Philanthropic (discretionary). Kingfisher Plc is one of the largest
retail company specialised in home improvements, DIY and many more has to perform its social
responsibility towards UK with the help of CSR model it can formulate the broader social impact
strategy (Ahmad, 2018). In recent era, it is expected from the corporate to come forward and
help communities and various institutions by taking part in filling the shortages for the wellbeing
of the society. Discussed below are the various levels of pyramid –
Economic Responsibilities –
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This is the basic level of CSR model, without succeeding in this level, no company or business
can do or will follow CSR work. Kingfisher in this level generates profit through growth.
Company has to meet the core economic responsibilities towards its shareholders and
stakeholders, if it has interest in supporting the society and communities for the long term.
Kingfisher plc changed their approach to provide al its products in eco-friendly packaging which
not only lowered the cost but also helped the company in fulfilling its economic obligation with
environmental obligation.
Legal Responsibilities –
All the companies have to abide with all the laws, rules and regulations set by the government of
UK as a part of the social contract. Company should always remember that the government
creates the market in which they exist. Company has to pay the regular taxes and fines for
anything inappropriate. Public of the country choose the leader to govern all the legal sorts in
which the organization conduct their business.
Kingfisher plc follow the legal responsibilities towards the country abide by all the rules and
regulations as any negative consequence may lead to legal proceeding and also threatens the
company’s proceedings.
Ethical Responsibilities –
This level of CSR pyramid deals with the societal aspects. Corporate’s management should make
moral decisions that influence the customers, employees, business and the environment. Because
of all this, the thought of reputation looms large (Carroll, 2016). Word of mouth and the
customer’s perception has a great impact on the company’s outcome and decision making. For
example: If the employees of Kingfishers speaks against the practices of the company, company
has all the legal rights to fire that employee but if the manager does this it will bring potential
damage to the company’s image that’s why ethical consideration are rare and easy but they cut
absolute values of company.
Philanthropic Responsibilities –
Today companies are expected to give back, contribution from organisation to communities
helps in developing faith among the customers. The idea that companies are interconnected with
the people wherever they do their business. Citizens of UK expect from the well- heeled
company like Kingfisher to pay their fair share. Kingfisher plc pays the corporate tax, and
provide charities to many women welfare, student development institution for the growth of the
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country as a part of their philanthropic responsibility. But with the growth of companies in
various different countries, company should contribute more towards the society’s welfare as iit
also creates the brand image and have positive impact on the customers.
CONCLUSION
This report concludes the business environment of Kingfisher Plc that analyse and
recognize the different impacts of innovations and technologies for the economic developments.
It discusses the different technological advances done in the organization to improve operational
functions and impacts in sales and profits of it. This report understand the total technological
innovation and the interrelationship between innovation and economic development to accelerate
and expand its retail business. It also analyses the technical changes that support in economic
progress and identify the different financial and ICT functions and their role in the company.
This report has an overview of Kingfisher Plc and evaluates the application and importance of
csr to recognize the capabilities of it by applying Archie Carroll's CSR model for the economic
development.
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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.
Ahmad, T., 2018. Carroll’s CSR Pyramid: An Epic Philosophy.
Aznar-Sánchez, J.A., and et.al., 2019. Innovation and technology for sustainable mining activity:
A worldwide research assessment. Journal of Cleaner Production. 221. pp.38-54.
Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility. 1(1). pp.1-8.
Gherghina, Ș.C., and et.al., 2020. Small and Medium-Sized Enterprises (SMEs): The Engine of
Economic Growth through Investments and Innovation. Sustainability. 12(1). p.347.
Kusi-Sarpong, S., Gupta, H. and Sarkis, J., 2019. A supply chain sustainability innovation
framework and evaluation methodology. International Journal of Production
Research. 57(7). pp.1990-2008.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management
Science. 64(3). pp.983-996.
Mills, K. and McCarthy, B., 2016. The state of small business lending: Innovation and
technology and the implications for regulation. Harvard Business School
Entrepreneurial Management Working Paper, (17-042), pp.17-042.
Rantala, T., Kokkonen, K. and Hannola, L., 2020. Impacts of Digital Twins-Significance from
Sales Perspective. In ISPIM Conference Proceedings (pp. 1-8). The International
Society for Professional Innovation Management (ISPIM).
Rauter, R., and et.al., 2019. Open innovation and its effects on economic and sustainability
innovation performance. Journal of Innovation & Knowledge. 4(4). pp.226-233.
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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