Business Environment Report

This report analyzes the business environment of Aveva PLC and Brewin Dolphin, exploring the impact of innovation and technological change on Aveva PLC's operations, sales, and profits. It also examines corporate governance and Archie Carroll's model of corporate social responsibility as applied to Brewin Dolphin.

Business environment

Table of content
INTRODUCTION...........................................................................................................................................1
TASK 1..........................................................................................................................................................1
1. Demonstrate the understanding of innovation, and the role of technological change in economic
progress...................................................................................................................................................1
2. A brief overview of the Aveva PLC and the impact of innovation on the operation, sales and profit of
the Aveva PLC..........................................................................................................................................2
CONCLUSION...............................................................................................................................................3
INTRODUCTION...........................................................................................................................................3
TASK 2..........................................................................................................................................................4
1. A brief of corporate governance including the responsibilities of the board director to the
stakeholder..............................................................................................................................................4
2. A model for corporate social responsibility by Archie Carroll..............................................................5
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................7

INTRODUCTION
Innovation means new idea, new imaginations and creative thoughts in form of method
and device. It is also defined as an application that can be give better solution to meet the needs
of existing market as well as unarticulated needs. Present study is based on Aveva PLC. It is a
British multinational information technology company that provides industrial and engineering
software. Its headquartered in Cambridge, UK. It is listed in London stock exchange. The report
will include the role of technological change in economic progress. Furthermore, it defines the
impacts of the innovation on the operations, sales and profits of the Aveva PLC.
TASK 1
1. Demonstrate the understanding of innovation, and the role of technological change in
economic progress.
Innovation:-
It is a process that helps to translate an invention or idea into a product and service that
may be create values for the customers. It is implemented for the new improvement in the
product and services, an organisational method, business practices, marketing method, external
relation and workplace organisation. Innovation can be new for the firm, market as well as
world. But innovation is very difficult to understand in modern economy. So, many researchers
give clear and useful definition of the innovation. Innovation is not just implementing and
introducing new methods and ideas. Innovation is a process that involves many activities to
uncover new way to do things(Huamaní and et.al.,2017).
The role of technological change in economic progress.
At the fast paced environment, the technology is advanced as well as globalisation is increased.
It means the competition is increased as well as distance is get shorter to achieve the desire goals
because of technology. The technology plays an important role in order to the progress of the
company. Technology is related to the economic growth of the company because the technology
is the primary source of the company for their economic development. There are various
technology changes accurse in a year that helps to enhance the capacity of the company as well
as contributes to provide long term growth to the company. From the various research, it has
been defined that technology and economic is related to each other because with the help of
technology company can achieve their goals effectively. The high level of technology provides
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the higher economic growth. If the level of the technology is low than the economic growth may
be negatively effect to the company(Jones-Evans and Klofsten, 2016). Innovation and invention
is a big reason of the economic growth that is possible because of the technology. The economic
growth of the Aveva group PLC is depended on the number of the factor and one of the
important factor is technology. Technology is played an important role in order to economic
development of the Aveva group PLC as well as country. Technology can helps in the all area of
the company.
The technology factors are very important for any information technology company because they
overall system is based on technology that helps to provide economic growth of the organisation.
With the help of technology they can update their software timely, they can store any new
software, and they can any new chip and device that makes their business process
effective(Jordaan and et.al.,2017).
2. A brief overview of the Aveva PLC and the impact of innovation on the operation, sales and
profit of the Aveva PLC.
Overview of Aveva PLC:-
Aveva group PLC is the British multinational information technology company, established in
1967. It provides industrial and engineering software, headquartered in Cambridge, UK. It grew
as government funded computer aided design centre. It is listed in London stock exchange. It
also constituent of the FTSE 250 index. There key people are Philip aiken that is chairman and
craig hayman is the ceo of the company. Its revenue is £499.1 million with the operating income
£49 million in 2018. It is an industry of technology consulting, CAD/CAM software, enterprise
solution and manufacturing execution system.
The impact of innovation on the operation
The operation is responsible for the process of the business such as manufacturing, procurement
and supply chain. It includes the process of designing, production and delivery of the goods and
services of the company. The innovation impacts many operations of the business:
Supply chain operations: the human resource of the company can balancing the capacity,
optimize product production, control over inventory with the help of doing continues innovation
such as Aveva group PLC continually implements new techniques for makes their operation
effective. With the help of innovation they create software that helps to store their past data as
well as compare their data with the competitors that helps to make efficient their internal process.
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Procurement: with the help of innovation, the Aveva group PLC can evaluate their performance
of the supplier for their product and services that helps to target right categories to invest their
money as well as save their money.
Innovation in operational activities helps to achieve high performance to the company.
The impact of innovation on profit and sales:
Innovative products and services play a big role in Aveva group PLC. But just innovation
products cannot drive the success because it the target market does not know about the
innovative product and services than how they provide success to the company. So, promotion of
the innovative product and services is also important for enhancing their profitability as well as
sales(Mai and Yen,2018). The company turn innovative ideas into actionable ideas by promoting
their innovative product and services in the market. A customer always wants something new
that attracts their attention as well as satisfied their needs and wants. An innovative product helps
to the company to make the stability for long term in a market as well as their sales and
profitability. The latest innovation of the Aveva group PLC is that provides a precisely designed
and unique designed software for their target market that helps to keep their target market as well
as connect new customers that directly enhance the sales as well as profitability of the
organisation(Shearmur and Poirier, 2017).
The impact of the innovation on operation, profits and sales is positive for the company
because that helps to provide long term growth to the company. For the organisation, innovation
is needed to run their business activities continuously. The company implements innovative
ideas into actionable ideas by producing their innovative products and services that helps to
enhance the capability of the organisation and promotes their innovate goods and services that
helps to enhance the sales and profitability of the organisation. A customer always wants
something new that attracts their attention as well as satisfied their needs and wants.
CONCLUSION
From the above study it has been concluded that innovation plays an important role in order
to contribute in the success of the organisation. The report has been explained about an
innovation and the role of technological change in economical progress. Furthermore, it has been
described the overview of the Aveva group PLC and the impact of the innovation of the
organisation’s operations, sales as well as profitability. Innovation has been provided long term
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growth to the company as well as keeps their existing customers and connects to the new
customers.
INTRODUCTION
Corporate governance creates a relationship between the company’s board, managements,
shareholders and other stakeholders. It provides the structure to the company that helps to set the
objective of the company as well as monitoring the performance for achieving those objectives.
Present study is based on Brewin Dolphin. It is one of the largest British financial planning as
well as investment management firm that is founded in 1762. It holds 39 offices in United
Kingdom and Channel Islands. It is listed in London stock exchange. The report will include
about corporate governance that also includes the responsibilities of the boards of the directors to
the stakeholders. Furthermore, it will explain the model of the Archie Carroll of corporate social
responsibility.
TASK 2
1. A brief of corporate governance including the responsibilities of the board director to the
stakeholder.
Corporate Governance is the way that governed the corporation. It manages as well as
directed the companies. It means running their business activities as per the desires of their
stakeholders(Guo and et.al.,2016). It is implemented by the company’s board of Directors as
well as concerned committees for the benefits of the company’s stakeholders. It helps to balance
the individuals as well as social goals. Corporate Governance is all about the interaction between
shareholders, board of directors as well as management of the company that helps to enhance the
performance of the corporation. With the help of corporate governance the owner can analysis
the performance of the individual with respective standards as well as helps to create healthy and
no conflict environment in the organisation.
With the help of corporate governance, the board of directors can set a rules, policies,
resolutions and controls over the business activities. It is a key component of the board of
directors to create and maintain good relation with investors, communities and stakeholders etc.
The key purpose of the board of directors of the Brewin Dolphin is to ensure the prosperity of the
company by directing the affairs of the company related to meeting financial issues as well as
interest of the stakeholders. The board of director have to deal with financial as well as business
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issue and the challenges related to the corporate governance as well as corporate ethics(Carroll
and Buchholtz, 2015).
It is important that the board meeting is held periodically. So, the director can perform
their responsibility to monitor and control the overall performance of the Brewin Dolphin, their
strategy as well as policies related to the benefits of the stakeholders. The individual director can
analyse the report related to the particular area. The individual have only limited power to related
on particular area that is given by the board(Tigabu, Berkhout and van Beukering, 2015).
There are some responsibilities that the board of directors performed towards their stakeholder of
the Brewin Dolphin:
 The board of director selects members for the board membership as well as evaluate the
performance of the board, individual directors and board committee.
 They have to analysis the performance of the senior management by monitoring and
evaluating to the specified standards as well as analysis their roles against the
stakeholders and provides benefits to the stakeholders.
 It ensures the planning of the management succession is accurate or not.
 The board of directors can review and approve the right corporate actions
 To makes management strategic plan for the benefits of the stakeholders as well as time
to time review and monitor the plan and then implement it.
 To review the ethical standards of the company as well as legal compliance, procedure
and programs related to stakeholders(Social responsibility,2019).
 One of the responsibilities of the board of director can overcome the risk of the enterprise
from the external factors.
 One of the most important to maintain a good relation with the shareholders,
communities, employees in which the company operates.
If the board of director performs their responsibility in a better way towards the stakeholders
that helps to connect more investors as well as customers to the company that helps to provide
the growth of the company for long term. It also helps to enhance the goodwill of the company.
Corporate Governance is a set of interaction between shareholders, board of directors, suppliers
and management of the company that helps to enhance the performance of the corporation.
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2. A model for corporate social responsibility by Archie Carroll
Corporate social responsibility is an obligation of the corporation towards to their
stakeholder. It is a concept where corporations can choose an effective road to merge
profitability with regulations that ensure social investment. it also includes the improving self-
regulating practices and working conditions of employees to ensure a sustainability environment.
It includes employees, investors, suppliers, customers and communities in which business
operates.
Facts of corporate social responsibility:
The pyramid of corporate social responsibility is defined four areas that is legal, economic,
ethical and philanthropic. Their pyramid is used by Brewin Dolphin company to understand their
duties towards the stakeholders(Carroll and Brown,2018).
Legal:
The Brewin Dolphin Company ensures their business practices are legal. The regulations
of the company help to protect the rights of the customers who trust on the business as well as
about their products and services that the business sells to earn profits. It also protects the rights
of the investors who stand to fulfil their loss. It the company performed any illegal practices than
they penalized and also shut down their business practices because of illegal practises(Leyden
and Link,2015).
Economic:
There is also an ethical responsibility to the Brewin Dolphin to perform their economic
responsibility that includes profits in return on investment to the shareholders and owners,
creates job in communities, and contributes towards the society by providing useful goods and
services. Economic responsibility means to find the most efficient way to run their business
operation and offering innovative products as well as increase the revenue through the marketing
that helps to enhance the economic growth of the company as well as country.
Ethical:
There is also a responsibility of the Brewin Dolphin to perform and fulfilled their ethical
responsibility. Ethical responsibility includes recycling, managing and consumption of the waste
in the particular area, city, federal governments and state where the company perform their
operations that helps to sustain the environment for the future generation. The company provides
more than minimum wages as well as health and safety precautions for the employees. They also
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provides the excellent benefits, invest and insurance resources in clean and safe to the workplace
that helps to make employees feel happy that helps to enhance the productivity as well as
efficiency of the organisation(Armstrong and et.al.,2015).
Philanthropic:
It is also a responsibility of the Brewin Dolphin to perform philanthropic responsibility
by promoting the welfare of the humans as well as spread goodwill. It is the responsibility of the
company to give back to the society in form of the charitable donations of money, goods and
time. The company provides extra benefits for the employees. For example, Brewin Dolphin
donates 3% profits for the communities groups in each year(McCahery, Sautner and Starks,
2016).
CONCLUSION
From the above study it has been concluded that corporate governance is played an
important role in order to achieve profitability of the organisation. The report has been discussed
corporate governance including the responsibilities of the board of director to the stakeholders.
Furthermore, it has been defined the model of corporate social responsibility by Archie Carroll.
Corporate governance helps to maintain goods relation in the organisation.
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REFERENCES
Books & journals
Armstrong and et.al., 2015. Corporate governance, incentives, and tax avoidance. Journal of
Accounting and Economics.60(1). pp.1-17.
Carroll, A.B. and Brown, J.A., 2018. Corporate social responsibility: A review of current
concepts, research, and issues. In Corporate Social Responsibility (pp. 39-69). Emerald
Publishing Limited.
Carroll, A.B. and Buchholtz, A.K., 2015. Corporate citizenship: social responsibility,
responsiveness, and performance. Classics of organization theory, 439.
Guo and et.al.,2016. How energy technology innovation affects transition of coal resource-based
economy in China. Energy Policy.92. pp.1-6.
Huamaní and et.al.,2017. The role of the entrepreneur in new technology-based firms (NTBFs):
An analysis according to context development. Regional and Sectoral Economic
Studies.17(2). pp.25-42.
Jones-Evans, D. and Klofsten, M. eds., 2016. Technology, innovation and enterprise: The
European experience. Springer.
Jordaan and et.al.,2017. The role of energy technology innovation in reducing greenhouse gas
emissions: A case study of Canada. Renewable and Sustainable Energy Reviews, 78,
pp.1397-1409.
Leyden, D.P. and Link, A.N., 2015. Public sector entrepreneurship: US technology and
innovation policy. OUP Us.
Mai, T.T.H. and Yen, N.T.H., 2018. VIETNAM'S AGRICULTURE TOWARDS
SUSTAINABLE DEVELOPMENT: OPPORTUNITIES, CHALLENGES AND
SOLUTIONS IN THE CONTEXT OF INTERNATIONAL ECONOMIC INTEGRATION
NOWADAYS. Economics and Law.15. pp.63-70.
McCahery, J.A., Sautner, Z. and Starks, L.T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance.71(6). pp.2905-
2932.
Shearmur, R. and Poirier, V., 2017. Conceptualizing nonmarket municipal entrepreneurship:
Everyday municipal innovation and the roles of metropolitan context, internal resources,
and learning. Urban affairs review.53(4). pp.718-751.
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Tigabu, A.D., Berkhout, F. and van Beukering, P., 2015. Technology innovation systems and
technology diffusion: Adoption of bio-digestion in an emerging innovation system in
Rwanda. Technological Forecasting and Social Change.90. pp.318-330.
Online
Social responsibility.2019[Online].Available through<https://saylordotorg.github.io/text_human-
relations/s09-03-social-responsibility.html>
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