Impact of Innovation and Technology on Sales and Growth of Future plc

This report discusses the impact of innovation and technology on the sales, profit, and growth of Future plc, a magazine and internet publishing company. It also explores the importance of corporate social responsibility and the responsibilities of the Board of Directors to stakeholders.

Business Environment

Executive summary
Future plc is a public limited company, magazine and internet publishing. Business environment
refers to internal and external factors that affect company. Innovation means to make new
products or provide services that will help in increasing sales of company and grow their
business. Importance of innovation and impact on increasing sales of company, profit and
growth of organization had been described in the report. Impact of technology on performance of
company had been discussed. Further, corporate social responsibility and its benefits are
discussed. Responsibilities of Board of Directors to shareholders are described in the report.

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK -1...........................................................................................................................................4
Impact of innovation and technology..........................................................................................4
TASK -2...........................................................................................................................................6
Importance of corporate social responsibility..............................................................................6
Corporate governance..................................................................................................................7
Responsibility of Board of Directors to stakeholders..................................................................8
Archie Carroll’s Model................................................................................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Business environment refers to external factors that affect working of an organization. Some
of the internal and external factors includes, suppliers, customers, competitors, government,
owners, social, legal and political factors (Maitrayee, 2020). Future plc is a magazine and
internet publishing company which was founded in 1985 by Chris Anderson. Impact of
innovation and technology on sales, profit and growth of organization will be described.
Importance of corporate social responsibility and Archie Carroll’s model is discussed.
TASK -1
Impact of innovation and technology
Innovation means to introduce new products so that customers need can be satisfied and
they will get innovative products. Innovation refers to making new products or make changes in
existing products. Every organization has to make some innovation in goods or services that are
provided to customers. Future plc is magazine and internet publishing, its headquarter is in Bath,
England, UK. The managers of company take necessary steps to increase its sales. Initially, they
were publishing normal magazines but after sometime they conduct market research and identify
that there are many ways which can be used by organization to increase productivity and
generate more revenue (Agudelo and et.al., 2019). For every company it is important that they
should make plans for making new products and this will help firms in increasing their profit.
Innovation helps employees to increase their efficiency so that good quality products can be
delivered to customers and satisfy them. Future plc publishes magazines related to technology,
films, music, video games, knowledge and many other areas. Future plc provides global platform
to its customers and uses latest technology so that they can get competitive advantage.
Innovation helps in increasing productivity of company as there are many opportunities available
in market, managers has to identify correct growth opportunity for their firm. Innovation help
employees to learn new things and enhance their knowledge. It also allows workers to suggest
creative ideas to satisfy needs of customers. Managers of future plc try to make new plans
because nowadays, all people are using internet and they gather all relevant information from
google. Magazines are read by few people because all information is available on internet, only
those people are reading magazines who like to read books (Alabdullah, Ahmed and Muneerali,
2019). In this digital world, competition is increasing day by day so if a company want to survive
or earn profit then they have to make creative and innovative products to attract more customers.

Innovation helps in increasing sales of company because if new products are made after
identifying need of customers then more people will buy it.
Innovation is one of the element which is used by all companies after sometime when they
want to expand their business or managers think that company is not earning revenue then they
will make new products which will help firm in increasing revenue. For future growth of
organization it is necessary that new products should be manufactured as it will help in building
good reputation in market. Innovation helps companies in earning more profit, reduces cost and
helps in differentiating firm from other organizations in the market. When managers want to
expand their business in international market or want to make plans for future growth, they
should take necessary steps which will be beneficial for employees as well as for company
(Kaymak and Bektas, 2017).
Some advantages of innovation are, it helps in increasing overall efficiency of firm and also
increase profitability. Another benefit of innovation is it helps in reducing cost because
sometimes employees make new products from waste material and this requires less cost.
Competition is increased in the market because if one company manufactures new products then
others will also make strategies for earning profit. It improves productivity of company as when
a firm want to expand it means that they are having some quality. Employees of every
organization should take essential steps for growth of company and in every firm workers should
have right to speak or share their views or ideas. Sometimes, it also helps in making good
relationships with customers and other firms. It improves brand awareness among customers and
people create good image about organization. Future plc company provides magazines in a
unique way such as, they include attractive advertisements, share live experiences of people,
innovative media services, provide growth opportunities and many other things that is useful for
people (Liao and Tsai, 2019). Managers of future plc make plans or strategies so that customers
can get innovative products and they build interest while reading magazines. Every year they
have some creative plans which is beneficial for company as it helps in increasing profit, sales
and growth of the organization.
Impact of technology in growth of company
In this fast moving world, technology plays an important role in growth of company.
Earlier companies were not having facility of promoting their products or educate consumers
about new products but today, there are many ways by which customers can get proper

information related to product. It is important for companies to move with technology so that
firms can earn more profit and they will get more growth opportunities. Technology plays a
crucial role in increasing sales because managers can make plans to manufacture new products
using new machines. To attract people or to provide them relevant information, customers can
take help of google to gather all details. Earlier people were not having facility of smartphones,
internet connection, magazines and many other things but now customers are active eon social
networking sites and this is the best way to attract people (Marek, 2018). Nowadays, people get
all information from social sites and they can share their views on sites and also give suggestions
if they want anything to be added in the product.
Technology helps organizations in identifying need of customers and provides
information about opportunities for firms to attract customers. In this digital world, all work is
done with help of internet. If a company want to promote their product, managers should give
advertisements on social sites so that more people can know about new product and this helps in
increasing sales. When more customers will know about products then it is positive point for
company. Future plc organization is providing unique things in magazines such as, Hawk –
unique ecommerce technology which is made by future plc. This makes purchase easier for
customers because with the help of this technology they can find best products in market. It helps
consumers in getting correct product at reasonable price and from right shop. Consumers do not
have to search for more shops, they can get good products (Olsson and et.al., 2019).
With the help of technology companies can increase profit because there will be many
options that are available for promoting products. Some tools that can be used by companies to
increase sales are, social networks, virtual learning, mobile devices. Organizations can use social
media for promoting products because people are more active on social sites, it covers wide area.
So, technology plays an important role in increasing sales, profit and growth of company.
TASK -2
Importance of corporate social responsibility
Corporate social responsibility is a concept that is used by organizations to integrate social
and environmental concerns and take necessary steps for development of society. Generally,
organizations make CSR policy by taking consent from stakeholders and final decision will be
taken by shareholders. It is the responsibility of managers towards society, as they are taking

resources from society so they should pay them back by providing good quality products which
is beneficial for customers. Corporate social responsibility help companies in building good
image in market by satisfying people living in society and this will lead to increase in profit. The
main purpose of CSR is to provide good quality products to people at reasonable prices and
creates positive impact (Phillips and Phillips, 2017). Corporate social responsibility is a way to
satisfy customers and helps in increasing profit. Some common objectives of CSR are, donating
funds to charity for development, encouraging employees to work efficiently. Types of corporate
social responsibility are, supply chain, sustainability, corporate governance, employee
engagement.
Future plc company publishes magazines according to interest of consumers
internationally which includes, games, music, crafts, sports and ither areas in UK, US. The
company has published 96 magazines according to consumer interest. This helps firm in building
unique identity in front of society, create awareness among consumers and beneficial for firms in
generating more profit. Corporate social responsibility is an important element because it helps
in improving productivity of company and motivate employees to work efficiently.
Benefits of CSR
Benefits of corporate social responsibility are, it provides better environment to work,
necessary steps is being taken for development of society, encourages employees, saves money,
increase sales of company, customer loyalty is increased. It also helps in attracting customers as
well as in retaining staff and selecting best candidate for organization. It helps in improving
financial performance, organisational growth, access to capital, better brand recognition. It also
helps in building good relations with customers. This is a way by which customers are attracted
and increases sales of organization (Hughes and et.al., 2018).
Corporate governance
Corporate governance refers to rules and regulations that are made by managers which are
to be followed in an organization. Policies and procedures are being made so that all
employees can work properly and they will get healthy working environment. There will
be no confusion of misunderstanding among employees and they will not fight with each
other for small issues and focus on achieving goals of the organization. There are many
internal and external factors that affect working of a firm which includes, interest of
stakeholders, customers, suppliers, government, political, legal and environmental factors.

There are four P’s of corporate governance are, people, process, performance and purpose.
It is important to make rules and regulations, policies and procedures so that all employees
can work properly and safe environment can be maintained in the organization. By
following rules and regulation it creates good image in market and there will be no
discrimination among employees on the basis of gender, caste, race, income or any other
basis (Nakano and Wechsler, 2018).
The main focus of corporate governance is on ethical practices in the business and
responsible to stakeholders. It is the responsibility of managers to provide good working
environment to employees and proper rules should be made which is to be followed by
everyone. Policies and procedures should be made with the consent of stakeholders. In
future plc managers make policies, procedures, rules and regulations which is followed by
every employee and there is no discrimination among workers on any basis, all are given
equal treatment (El-Kassar and et.al., 2017). Proper rules and regulations should be made
by managers of future plc so that all employees can give their best and work efficiently.
Responsibility of Board of Directors to stakeholders
There are many responsibility of Board of Directors to stakeholders such as, duty of care
and obedience. They have to take decision which is beneficial for stakeholders. Board of
directors are a group of people who are elected to represent shareholders. It is
responsibility of BOD to take correct decisions. Duty of obedience means that
organizations are following rules and regulations properly or not. They should check that
whether all employees are giving their best in achieving targets and goals of the company.
Another responsibility of board of directors is to maintain good and independent working
environment in which all workers are having right to share their views or give suggestions
for future growth of firm. In future plc BOD are responsible for checking performance of
every employee and ensure that all employees are working according to instructions given
to them and working efficiently. They oversee all the departments properly and ensure that
all are working properly and following rules that are made. It is important that Board of
Directors should take care of employees and provide them benefits when goals and
objectives of company are achieved (Ben Youssef and et.al., 2018).

Archie Carroll’s Model
Archie Carroll model of corporate social responsibility describes that why an organization
should take responsibility of development of society or give benefits to people living in the
society. It is a pyramid which is given by Archie Carroll, according to him there are four
types of responsibility i.e., economic responsibility, legal responsibility, ethical
responsibility and philanthropic responsibility. The base of this pyramid is profit, proper
rules and regulations must be followed by an organization so that all employees can work
smoothly. According to Carroll, CSR is a business behaviour in which employees follow
rules, regulations, policies and work ethically, focus on how to accomplish goals and
objectives of company (Gligor-Cimpoieru and et.al., 2017).
Economic responsibility
Economic responsibility refers to producing products or services that are needed by
people living in society so that profit can be earned. In this managers have to make plans or
strategies so that all the people who are directly or indirectly connected to organization can
be benefitted such as, shareholders, customers, employees working in firm and many others.
Shareholders want that they can get good return on investment, customers want good quality
products at reasonable prices, employees want safe and healthy working environment and
firm want to earn profit. The economic responsibility in corporate social responsibility is to
generate more revenue by satisfying need of customers and make policies that are beneficial
for all.
Legal responsibility
According to Carroll, legal responsibility refers to rules and laws that are applied in
organization. It is important for every firm to make rules and regulations which is
compulsory for everyone to follow as it helps employees in working efficiently. Managers
should make rules which will help in keeping healthy environment in company. Legal
responsibility in CSR is to meet legal obligations, supply products to customers properly
that will satisfy their needs and minimum legal requirement should be meet.
Ethical responsibility
In CSR, ethical responsibility includes, recognising moral standards that is being adopted
by society, how an employee should behave in an organization. According to Carroll,

decisions should be taken after analysing situation and understanding that what is morally
correct or incorrect. Employees should work in an ethical manner.
Philanthropic responsibility
It is also known as voluntary or discretionary responsibility which means day to day
activities and practices of business. There are different types of philanthropic responsibility
such as, gifts, donations, community development, and other. It should be fulfilled by
managers and take necessary steps for development of society.
CONCLUSION
From the above discussion it can be concluded that, innovation is done by managers of
future plc which help them in generating more profit and sales of firm increases. Innovation
helps company in building good image in market and it helps future plc in expanding their
business. Corporate social responsibility and its benefits has been described. Corporate
governance and responsibility of board of directors to stakeholders has been discussed. Further,
Archie Carroll model of corporate social responsibility is described.

REFRENCES
Books and Journals
Agudelo, M. A. L., and et.al., 2019. A literature review of the history and evolution of corporate
social responsibility. International Journal of Corporate Social Responsibility. 4(1).
pp.1-23.
Alabdullah, T. T. Y., Ahmed, E. R. and Muneerali, M., 2019. Effect of board size and duality on
corporate social responsibility: what has improved in corporate governance in
Asia?. Journal of Accounting Science. 3(2). pp.121-135.
Ben Youssef, K., and et.al., 2018. The importance of corporate social responsibility (CSR) for
branding and business success in small and medium-sized enterprises (SME) in a
business-to-distributor (B2D) context. Journal of Strategic Marketing. 26(8). pp.723-
739.
El-Kassar, A. N., and et.al., 2017. CSR, organizational identification, normative commitment,
and the moderating effect of the importance of CSR. The Journal of Developing
Areas. 51(3). pp.409-424.
Gligor-Cimpoieru, D. C., and et.al., 2017. Perceptions of future employees toward CSR
environmental practices in tourism. Sustainability. 9(9). p.1631.
Hughes, D. J., and et.al., 2018. Leadership, creativity, and innovation: A critical review and
practical recommendations. The Leadership Quarterly. 29(5). pp.549-569.
Kaymak, T. and Bektas, E., 2017. Corporate social responsibility and governance: Information
disclosure in multinational corporations. Corporate Social Responsibility and
Environmental Management. 24(6). pp.555-569.
Liao, Y. C. and Tsai, K. H., 2019. Innovation intensity, creativity enhancement, and eco‐
innovation strategy: T he roles of customer demand and environmental
regulation. Business Strategy and the Environment. 28(2). pp.316-326.
Marek, A., 2018. Corporate social responsibility in FC Barcelona as Carroll’s CSR pyramid in
practice. Annales. Etyka w życiu gospodarczym. 21(7). pp.153-165.
Nakano, T. D. C. and Wechsler, S. M., 2018. Creativity and innovation: Skills for the 21st
Century. Estudos de Psicologia (Campinas). 35(3). pp.237-246.
Olsson, A., and et.al., 2019. Organizational climate for innovation and creativity–a study in
Swedish retail organizations. The International Review of Retail, Distribution and
Consumer Research. 29(3). pp.243-261.
Phillips, J. J. and Phillips, P. P., 2017. The value of innovation: Knowing, proving, and showing
the value of innovation and creativity. John Wiley & Sons.
Online

Maitrayee. P., 2020. Business Environment. [Online]. Available Through: <
https://www.economicsdiscussion.net/business-environment/business-environment/32496>
[Accessed On April 28, 2021].