Understanding Innovation and Technological Change in Economic Progress

This report explores the role of innovation and technological change in economic progress and its impact on the operations, profit, and sales of Cineworld. It also evaluates the importance of Corporate Social Responsibility (CSR) for the organization and the responsibilities of the Board of Directors to stakeholders.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
Demonstrate your understanding of innovation, and the role of technological change in
economic progress..................................................................................................................3
Overview of Cineworld..........................................................................................................4
Impact of innovation on cine word operations, profit and sales............................................4
TASK 2......................................................................................................................................6
Evaluation of the importance of Corporate Social Responsibility (CSR) for the
organisation............................................................................................................................6
Responsibilities of the Board of Directors to the stakeholders..............................................6
Application of Archie Carroll’s (1991) CSR model to analyse on chosen organisation......7
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10
Books and journals...............................................................................................................10

INTRODUCTION
Business environment can be defined as a collection of all outside and inside factors
which can impact on an organisation this sector includes employees, customer’s needs,
supply, demand, management, owners, board of directors, government, Innovation and
technology, social trends, market trends, economic changes and many more. These are those
which have their great impact on functioning of a company and its work directly or indirectly.
In this report chosen organisation is Cine world. It is the world's second largest cinema chain
with more than 10000 screens across 800 sites in 11 nations. It is largest cinema in London
UK where it cover 99 cinemas with 1000 screens and single largest cinema in Ireland. It
founded by Steve Weiner in 1995. Reports consider on Innovation and role of technological
changes in economic process which help organisation in its operation sales profit and growth.
There is also discussion about the corporate governance responsibilities of board of directors
to number of stakeholders (Hamilton and Webster, 2018).
MAIN BODY
TASK 1
Demonstrate your understanding of innovation, and the role of technological change in
economic progress.
Innovation can be termed as new Ideas, new thought and imagination in a form of
device and method. It can also view as an application of better things for solving and meeting
these requirement needs of individuals. This is a function for development with nature an
motivate to survive with solving the errors of different process.
The role of technological change in economic progress
Technology plays various roles in economic progress as it provide opportunities to
economy for its development and by the use of this economic get number of chances to
increase its functioning recharge mentioned below:
Increase labour productivity: the first drone technology play in economic growth is
increasing the productivity of labour it help in agriculture sector as a farmer agriculture
instrument and work equal to 10 farmers without agriculture tools like tractors.

Output: As there is increasing labour productivity because of technological
interventions output of sectors also increased.
Reduce wastage: technology also an important role in decreasing the wastage it helps
in increasing output activity this help in decreasing cost where wastage of resources can be
reduced.
Increase infrastructure: technology is also part of infrastructure where it uses
number of advancement in it which can improve infrastructure. For example use of atomic
energy in place of petrol and other things which also build good infrastructure. Use of
computer is also part of this.
Overview of Cineworld
Cine world is second largest cinema chain in world where it serving in 11 countries,
In UK, Cine world is the largest operator for cinema houses with more than hundred cinemas.
It covers 100% of cinemas in Ireland. It is also listed in London stock exchange and is a
constituent of FTSE 250 index. This was founded by Stephen Weiner in 1995 where the first
theatre was opened in Stevenage, Hertfordshire in 1996. In December 2012 this company
acquired the picture of cinema chain the largest cinema covers. 21 chains are with cine world
in 2013. It provide services to its customer where we can watch 2D, 3D, 4DX, IMAX and
super screen with VIP and screen x facilities. This also provides choices in price ticket prices
by dividing tickets in three classes according to the screens and position of chair. Companies
also providing premium services rooms which can be used for watching movie by VIP where
table services premium food and other associated services are also provided to customers.
Impact of innovation on cine word operations, profit and sales
Impact on profits
Innovation has its great impact on cine world profit which can be seen in their annual report.
According to annual report of cine world their net profit rises by 5% because of using some
innovative ideas. These ideas are related to changing the screen size and technologies like
increasing pixels in screens which can help customers in getting better view. Quality of
seating infrastructure also changed by company as they now started using seats which can
give relax to customers backbones and facilitate them to enjoy their movie, they shown
positive impact on firm as their sales of ticket increased, even prices of tickets are higher
because of comfort level and innovation in functioning (Eesley and Miller, 2018).

Impact on operations
Operations of company also get strengthen because of innovation as company now use
innovative ways to work on its operation. There are number of refurbishments in company
which it is used for bringing perfection in its operations. Like change in unique Square New
York in April 2020 where it get whole new look for customers who help staff in operating
smoothly and attracting more and more customers. There are number of things added in this,
which are attractive and innovative like some games, separate bar as well as restaurants
which help in increasing customer satisfaction and strengthening the operations of
organisation. Company also changes its lenses for brighter picture to customers these
innovative lenses help company in reducing operating cost and saving the energy by 30%
company. It also started and integration of Cineplex where it provides five services
subscription program, online sales, concessions, cinema advertising and cost efficiency. this
help the company in just doubling the cash flow in from which is equal to 130 million US
dollar (Ivanová and Čepel, 2018).
Impact on sales
Innovation has also its impact on sales department of cine world. This can also see in
the annual report published by cine world which sea is that by using innovative ways like
IMAX, super screen, 4DX and screen X. For promoting sales company using three innovative
functions which help it in increasing its market share as well as revenue. First it started regal
unlimited membership program where it have more than 300000 members this provide
company a large customer base where it help customer in getting 10% discount on tickets.
The second program was poster advertisement at platinum sports which is also known as
Americans movie network where company have invested 10 to 15 million dollars which
helped in increasing its sales by attracting more customers. The third method for increasing
sale is online booking which help company in increasing its share by 40% in market through
online booking company can easily sell its movie tickets without inquiring use cost on office
and management. Hear it use different platforms like BookMyShow, Paytm movies and many
others for booking tickets through online media. This is how innovation helps company and
impact on sale, operations and profits (Shin, Kim and Park, 2016).
Relationship between innovation and economic growth

There is close relationship between Innovation and economic growth as they both
work together if there is innovations in economy then there will growth also. For Example,
farmer use tractors for cultivating their agricultural land then they are also support in
economic growth of company as thereby tractor for cultivating the land which produce
income for a car manufacture at also produce infrastructure development in that area.
Resource management effective utilisation will also do there as it saves time and cost of
farmer.
TASK 2
Evaluation of the importance of Corporate Social Responsibility (CSR) for the organisation
Corporate social responsibility can be defined as and business self-regulation with the
aim for contributing towards the society. This can be done in activities charitable nature bi
voluntary support for ethical orientation practices. According to some business professional
corporate social responsibility have its impact for long time on business organisation this is
because build sound image of company in mind of customers where customer start trusting
the organisation blindly. Cine world following number of corporate responsibilities in its
function like it have its own ethical principles which are establishing a common value with
their business to ensure that there are appropriate ways for maintaining and Indians in the
preparation of organisation. It also value for its customer care in 2018 18 for fulfilling its
social responsibilities it started the feedback system in a partnership with leading customer
engagement solution provider Rant and Rave. Company also fulfil its environmental duties
where it use eco-friendly products and reduce wastage towards environment. The main social
responsibility of any cinema house is privacy of reducing the chance of piracy. Cine world
PLC limited use policies for film piracy reducing the chances of it (Crane, Matten and
Spence, 2019).
Responsibilities of the Board of Directors to the stakeholders
Trusteeship: The first rule of board of directors towards stakeholders is trusteeship in
relation this is because there at the trustee to the property and welfare of the company. The
right of board of director to use the property of a company for long term gain and hence they
are and don't use it for personal purposes.

Reputation of company: This is also a responsibility of board of directors in a
company to maintain reputation. It is the duty of board of director of company to prevent
company from fraudulent practices bad press and other issues that can harm its reputation.
This all will impact loss of revenue increase operating expenses and capital or regulatory cost
which can also effect on speaker holders of company.
Make an annual audit: This is also role of board of director make an annual audit of
accounts and other financial books of company. This will help in maintaining the interest of
stakeholders towards company and give them clarification about company’s position. This
also increases reputation of company in mind of shareholders.
Select the Executive: This is also a role of board of directors to select and executive
who can perform according to guidance to shareholder give organtional a direction by which
it can achieve its goals and objectives within pre-determined period of time. The selected
executive should also have qualities of leader, manage and employee for performing the task
an maintain the relationship with every stakeholder of frim for getting maximum advantage
in long run.
Manage Resources Effectively: It is also the responsibility of BOD to mage
resources in firm. This is related to management of human as well as financial resources of
firm. Firms like cineworld requires huge capital investment which is related to development
of firm operations and also help in getting advantage in long term operations of firm which
are related to infrastructure development. This will help firm in incrassating profit of firm
which ultimately help in personal development of different stake holder in firm.
Application of Archie Carroll’s (1991) CSR model to analyse on chosen organisation.
In 1991, Archie Carroll’s presented the model of CSR which divide corporate social
responsibility in a pyramid form can say that it divides corporate social responsibilities in
four stages which are mentioned below:
Economic responsibilities: These are those responsibilities which act as base for other
responsibility of organisation. It is well known that all organisations are operating for profit
where we can use it for their growth. Please. Organisation is required to find out the ways
where it can generate profit morally ethically and legally which is also accepted by society. In
context of cine world, company use policies to generate profits where there is no loss of

customers interest in organisation used to operate at minimum margins by which it can
survive. Cine world using strict rules and regulation for adult movies where it only permit 18
plus members to watch the movie this help society and unethical practices (Carroll and
Brown, 2018).
Legal responsibilities: these are those which are related to the law of the society nation
where organisation is working. Every organisation have to follow these rules and regulations
which build good corporate image of the organisation in front of government as well as
customers in that country. Cine world is also following these rules and regulations strictly
like piracy act but different governments are fulfilled by organisation strictly. This is the
common net in every country where organisation is functioning. Following this act quickly
help cine world in maintaining its good respect and position in front of its supporting
partners. This also helps company in bargaining to its partners because of the security
provided by company to their movies (Shabana, Buchholtz and Carroll, 2017).
Ethical responsibilities: these are those responsibilities which are related to society directly
or indirectly applications of funds which is related to right doing. It should do act ethically
towards the concerning issues surrounding in the functional areas and try to avoid it harm to
the community and common people of society. In Context of cineworld, it also follow ethical
responsibility like it use functions which supports ethical behaviour in society. Company use
no profit policy for movies which are related to social concern and help society in changing
its behaviour for women and removing illness from mind off peoples in society. Company
also try to promote movies which are related to women empowerment (Jamali and Carroll,
2017).
Philanthropic responsibilities: Dehradun number of forms which used to contribute to the
resources of community and improve the life of the people by increasing the quality of these
resources and connecting them by which we can act as good corporate citizens. Cineworld
also operate around the world and try to maximize its profits where company can generate
maximum profit but with it also aware about the social responsibility which it have to be
fulfilled in working its operation. For this company it is important to operate in a manner
where it can maximize its earning per share and develop its processes for working towards
achievement of objectives. It is mandatory for company to follow the rules and obligations
which are provided by UK government and provide IT services to customers according to the
legal needs of society (Carroll, 2016).

CONCLUSION
It can be concluded from above mentioned report that innovation and technology have their
great impact on firm profitability and productivity. Proper implementation of this will impact
positively on firm this is because it helps them in attracting customer towards them. It is also
analysed that it also play an important role in economic progress of nation where firm can
benefit in development and other activates. It can also analysed from this report that
corporate social responsibility have also major contribution in development of business
operation which can help business in getting access to goodwill in market and development
of its objectives by fulfilling social objectives of business. Board of director in company also
paly an important roles and responsibility in helping and saving the interest of stakeholders of
company.

REFERENCES
Books and journals
Carroll, A.B. and Brown, J.A., 2018. Corporate social responsibility: A review of current
concepts, research, and issues. Corporate social responsibility, 360, p.39À69.
Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility, 1(1), p.3.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings
and cases in a global context. Routledge.
Eesley, C.E. and Miller, W.F., 2018. Impact: Stanford University’s economic impact via
innovation and entrepreneurship. Foundations and Trends® in
Entrepreneurship, 14(2), pp.130-278.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Ivanová, E. and Čepel, M., 2018. The impact of innovation performance on the
competitiveness of the Visegrad 4 countries. Journal of Competitiveness, 10(1),
p.54.
Jamali, D. and Carroll, A., 2017. Capturing advances in CSR: Developed versus developing
country perspectives. Business Ethics: A European Review, 26(4), pp.321-325.
Shabana, K.M., Buchholtz, A.K. and Carroll, A.B., 2017. The institutionalization of
corporate social responsibility reporting. Business & Society, 56(8), pp.1107-1135.
Shin, K., Kim, S.J. and Park, G., 2016. How does the partner type in R&D alliances impact
technological innovation performance? A study on the Korean biotechnology
industry. Asia Pacific Journal of Management, 33(1), pp.141-164.