Impact of Innovation and Technology on Business Operations, Sales, and Profits

This document discusses the impact of innovation and technology on business operations, sales, and profits. It explores different types of innovation and technology and their contribution to economic growth. The case study focuses on TESCO's use of technology in its operations, such as the 'shop and go' feature. It also evaluates the importance of Corporate Social Responsibility (CSR) and Archie Carroll's CSR model for TESCO.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Demonstrating and understanding different types of innovation and technology............3
P2 Innovation and technology has impact on the operations, sales and profits in the business 4
TASK 2............................................................................................................................................5
P3 Evaluating the importance of Corporate Social Responsibility (CSR).............................5
P4 Archie Carroll's CSR model for the chosen company......................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation refers to the product which is new in the market and are able to full fill the
requirement of the customer. It is the one which are having the ability to change the market in
just few time. Technology is one of the most important in this time which are having the ability
to do many task in very less period of time. In this, it is going to be discussed about the
innovation and technology which are having the contribution in economic growth of country.
There is alos discussion abou the impact of innovation and technology, about the CSR and the
Archie Carroll's Pyramid and its different components (arques-Mendes 2016).
TASK 1
P1 Demonstrating and understanding different types of innovation and technology
Innovation refers to the production of creation of new product or services which is either
came in the market or it is going to come in the market. In this there is the production of such
products which is not there in the market and which is having the demand for which they are able
to solve the current issue of the society or the market. There are many such examples which have
already been innovated which were the successful innovation which created the drastic change in
the market. Technology is the one which is able to do the hard work in just few time without
having more effort and are able to solve the problem. There are different technology which are
being use in the business which are having the ability to solve or help in many works.
Technology brings change with them which is for the future aspects which is used to make
different works in just few period of time (Haski-Leventhal 2017).
For every nation economic growth is one of the important part to keep their citizen safe.
For this, the innovation is the one which helps in this. In context to TESCO, there is one of the
innovation that they will provide the retail product which will be of minimum prices and can ble
to provide this in an supermarket when it was the new time for innovation. Now such innovation
has been in the normal business. There are many technology which has contributed to economic
growth in the country like Artificial Intelligence. Everyone is the proof for the change due to
change in the technology which has contributed to the growth and in the economic of the country
(Tanimoto 2019). This came with the high number of customer who like to use the technology
for their purpose of business which can help them out in increasing the customer like working

with AI, there are many things changes in the electronic devices specially in the smartphone
which is one of the best example of the AI technology which everyone is using this.
In this present time, there are many businesses which are using the new technology which
are using in their operation (Vitolla and et. al., 2017). TESCO is also using such technology
which are helping them in their different operations. For example during the billing process they
are using “shop and go” in which customers are able to scan and pay for their chosen products.
Due to this customer can easily shop in without wasting any extra time which they don't want to
be in the queue. There are many such examples which can be seen in such types of businesses.
There are many innovation which is there in the market which are able to full fill the customer
requirement and their need which can help in serving the community and also helpful in
increasing the revenue of the company which is good for the profit.
P2 Innovation and technology has impact on the operations, sales and profits in the business
TESCO is British multinational groceries along with merchandise which is having one of
the largest market share in the market in which it is regulating the retail supermarket. It was
founded in year 1919, and the founder was Jack Cohen. They are having the shops in about
seven country in Asia and Europe. There are many customer which are loyal to them. TESCO is
the one who is providing the high quality of the product in cheap price which help the society
and the community who are not able to pay more for such products. There are many technology
which are getting used in this organisation which is very helpful in managing the different
operations (Scandelius, C. and Cohen, G., 2016). There are many innovation which is there in
the market which is taking place day to day life which is not possible ot adopt all such innovation
in this company so the main or the much successful one which is having the ability to get success
and can help in increasing the productivity of the company as well as the profitability, then this
will be the best to adopt such innovation.
TESCO is using many technology which are very useful in this time for running many
operation in this businesses. One of the technology introduced to their customer by the
organisation is called as the “shop and go”. In this customer don't need to wait for the billing
process, they just need to use the application which is for this organisation. In this customer is
need to scan the products and pay which is very easy in process and able to save the time of their
customer and there is also beneficial for this organisation that they don't need to have the
employee for billing process which can help in increasing the customer base and the business

profit. This technology is the one which can help in increase the business revenue and can help
them in increasing the productivity and the profitability. There are many technology which are
getting used in this organisation but due to using in different purpose those can only be seen to
the employee and the organisational people who are working there (Saunila 2016).
Before introduction of the new technology in year 2017 there was about 20000 million
profit which increased to about $27000 million is the profit. Then was very less to this year due
to not having the latest technology which is now using by this organisation which is now able to
provide them such benefits which are helpful in making such profit and helps in continue
increasing in the revenue of the organisation. It has been found that there are many calculations
which are giving the sign that due to having the latest technology there can be seen that there are
high benefits of having the latest technology which increases the organisation revenue and profit.
TASK 2
P3 Evaluating the importance of Corporate Social Responsibility (CSR)
Corporate governance refers to the combination of laws, rules and process which
business are operated, controlled and regulated by them. This incldes the factors which are able
to affect the interest of the customer, suppliers, government regulators and shareholders. Board
of directors are the one who are responsible for creating and conducting along with objectives.
Corporate social responsibility refers to the act of incorporation in which environmental
and social concern are there which is related with the company's planning and operations. This is
used to improving the company's environmental and social impact. CSR is said to be there when
there is regulation of the organisation in a sustainable along with ethically deal with social as
well as different environmental impacts. There is need for the organisation in which they need to
regulate the business in such manner which shows the responsibility. The impact of CSR to
TESCO are described further (Faherty 2016).
Brand Value- TESCO is having the one of the biggest brand in all over the UK which is
in the retail sector. The brand value of this organisation is very high which is having many
reasons. One of the main reason is that they are able to provide the quality product in the cheap
cost which is one of the best specification of this business. There is also one more valuable thing
which is the customer relationship which attract the customer and also helpful in increasing the
customer base which leads to the high profitability. Due to its high popularity, this business is

able to increase own production which is for reducing the cost of the product which are having
the high cost and so they are able to make the business run with proving the high quality product
in less prices which attracts the customer.
Increased Sales- there is increment in the sales due to adopting the technology which is
there in the organisation which can help in to get the work done in less period of time without
getting any difficulty. It is analysed that there are about 70% of the customer which are using
such services which are provided by the organisation to their customer. Cusotmers are supoorting
the company which are serving the society which are the basis rule for the business that when
you are serving someone then the other party will also serve you as the customer. There are
many new offering in the product which are able to attract more and more customer which can
help in increasing the growth and development which leads to the profit for the organisation
(Maradana and et. al., 2017).
Employee engagement and retention- There are many work in which the worker or the
employees are always busy which shows the engagement of their employees. There are also
customer which are very engage in finding new product and due to having many alternative
product which are also having the good quality this make them engage in their shops or
supermarket. The company is providing different services and product in very low cost which
make their customer retain to them. There is also one reason for the retain the customer is that
they are providing the organic products which are able to provide the good health which is one of
the best region for retaining the customer.
Advantage over competition- Due to having the brand popularity and high awareness
which leads to give them the advantage of having the large number of customer for longer period
of time. This is about 101 years old brand which is also the reason for building trust in their
customer. They are also organising the social activity which helps in creating the brand
awareness and also building trust (Carpenter 2020).
History of Corporate Governance in UK
The word Governance is the one which were rarely existed many years before. In this
present time it is common, not only in companies but also in universities, national health trust
etc. The word first comes in presence in year 1990 when Cadbury reported the financial aspects
for corporate governance which was for the best practices. This code gradually adopted by city,

states and then country. This was good for the business which was able to create the productivity
and trust in the customer mind.
P4 Archie Carroll's CSR model for the chosen company
This refers to the framework which are able to explain how and why any entity need to
take social responsibility. Archie Carroll proposed this model which is consist of four types of
responsibilities of any company. Each and every components are described further.
Economic responsibility- It is such types of responsibility in which the organisation is
able to develop such products which are able to serve the society by the help of selling the
products which are required by the customer to full fill their need and wants. They are also able
to get the benefits through this or say are able to earn the profit. The shareholders of the
company expect form the society that they will get some financial benefits from them for their
investment (Maslach 2016). When it comes to employees, their need is the job security and when
it is about the customer then then they require quality products at an reasonable price. To gain
the profit is one of the best way to get sustain in the market which can help in to help in support
the society for attaining growth in long term. In context to TESCO, the company is offering the
high quality of the product to the customer at marketplace.
Legal responsibility- There are many types of legal responsibility to all the company.
Here, TESCO is also liable to take the legal responsibility which make it to do the business in the
market. Here the company is having the responsibility for supping the products to the sellers
which should be legal and ethical and are able to meet the criteria for legal obligations which are
following the social norms. This helps in implementing all business activity in their systemic and
in proper manner.
Ethical responsibilities- This type of responsibility which is expected by the society from
the company where all the business activities should be there in the ethical manner. When any
company like TESCO, uses the ethical responsibility, which means that company is having the
standards which leads to the trust for the company. TESCO has reduced the plastic consumption
and its use which creates the awareness for the environment which meets the expectation of the
society. In addition to this, it should be ensure about the ethical behaviour which needs to be
implemented in the company or in the retail store where the code of conduct along with
standards should be followed by the workers and the employees (Satell 2017).

Philanthropic responsibilities- These are the voluntary responsibility of any enterprise.
This one is able to reflect the public current expectations which are towards the enterprise. In
context to TESCO, need to involve in the volunteer activities which is desired by the people to
get involve in the community activities which are not necessary or in any law. Public like to
involve the TESCO in the philanthropic actions, which can create and show that the enterprise is
related with the society (Gomber and et, al., 2018).
Therefore, the above paragraph shows that corporate social responsibility which is
needed to be adopted any company or enterprise which can help them in understanding the
society requirement and can help in creating the innovative products or inventions.
CONCLUSION
From the above discussion, it can be conclude that business environment is having the
deep impact for new innovation along with economic growth. There is the discussion of the
innovation and the technology which is having the great contribution to the economic growth in
the country. There is also discussion about the new technology which are used in the company
and helpful in increasing the profit. Corporate governance and the Corporate social
responsibilities are also discussed in brief along with discussion about the Archie Carroll's
Pyramid with their components.

REFERENCES
Books and Journals
Carpenter 2020. The forging of bureaucratic autonomy: Reputations, networks, and policy
innovation in executive agencies, 1862-1928 (Vol. 173). Princeton University Press.
Faherty 2016. Innovation in micro enterprises: reality or fiction?. Journal of Small Business and
Enterprise Development.
Gomber and et, al., 2018. On the fintech revolution: Interpreting the forces of innovation,
disruption, and transformation in financial services. Journal of Management
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Haski-Leventhal 2017. The role of gender and age in business students’ values, CSR attitudes,
and responsible management education: Learnings from the PRME international
survey. Journal of Business Ethics, 146(1), pp.219-239.
Maradana and et. al., 2017. Does innovation promote economic growth? Evidence from
European countries. Journal of Innovation and Entrepreneurship, 6(1), p.1.
Marques-Mendes 2016. Strategic CSR: an integrative model for analysis. Social Responsibility
Journal.
Maslach 2016. Change and persistence with failed technological innovation. Strategic
Management Journal, 37(4), pp.714-723.
Satell 2017. Mapping innovation: a playbook for navigating a disruptive age. New York, NY:
McGraw-Hill Education.
Saunila 2016. Performance measurement approach for innovation capability in
SMEs. International Journal of Productivity and Performance Management.
Scandelius, C. and Cohen, G., 2016. Achieving collaboration with diverse stakeholders—The
role of strategic ambiguity in CSR communication. Journal of Business
Research, 69(9), pp.3487-3499.
Tanimoto 2019. Do multi-stakeholder initiatives make for better CSR?. Corporate Governance:
The International Journal of Business in Society.
Vitolla and et. al., 2017. The integration of CSR into strategic management: a dynamic approach
based on social management philosophy. Corporate Governance: The International
Journal of Business in Society.