Importance of Innovation and Technology in Business

The provided document is an academic assignment that delves into the importance of innovation and technology in business. It emphasizes how these factors contribute to organizational development, access emerging needs, and build a positive market image through ethical works and practices. The assignment also touches on corporate governance and its role in leading organizations in the market place. References are provided from various books, journals, and online sources, including publications on business intelligence, impact of the business environment, and learning leadership skills.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1. Innovation and technology.................................................................................................3
2. Impact of innovation and technology on operations, sales and profitability of organisations
................................................................................................................................................4
TASK 2............................................................................................................................................6
1. Demonstrate an understanding of corporate governance...................................................6
2. Application of Archie Carroll's Pyramid of CSR...............................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is an collection of all internal and external factors in which
employees, needs and wants of consumers, expectations and supply and demand consist in it. All
these factors influence the firm's functions in both directly or indirect manner of their works and
procedures. This essay first part is based on Britvic PLC; which is a British producer of soft
drinks and listed in London stock exchange. The second part of this essay is based on G4S plc;
which is a British multinational security service provider company, headquartered in London.
This report is based on role and importance of innovation with role of technology to bring
changes and how innovation impact on operation of an organisations. On the other hand, it
includes role and importance of corporate governance and board of directors to reach at desirable
goals. On other hand. it focusses on Role of CSR model of Archie carroll's to demonstrate
understanding.
MAIN BODY
TASK 1
1. Innovation and technology
Innovation and technology is one of the important aspect in today's world and it is
moving with incredible pace or speed. Innovation means to make or bring changes or to imply
something in different manner. It is significant for survival to get exact positioning into market
place (Babu, 2012.). There are various kinds of innovation that are disruptive, sustaining
innovation which focus on improves the condition of products and services into market by giving
faster and cheaper sources. It is an era of modern technology in which autonomous cars,
personalized medicines and computing techniques are important attributes that largely
contributes in economic development and advancement. In modern technologies consist of role
and importance of artificial intelligence, crypto currencies and automation by applying into
learning and practices. These all kinds of technological advancement gives better living standard
to people and raise their standard of living. In that scenario need to connect world with necessary
knowledge and information so that they can adopt innovative tools in organisation (Bah and
Fang, 2015.). In business world knowledge, technology and innovation are major factors that
largely contributes in economic growth and development and increase ratio of welfare of society
in positive manner. They enhance living standard of people and give competitiveness in market.

It is the necessity of the world to give new and techno oriented attributes to consumers so that
they remain loyal for organisation and helps in enhance market base. When in an organisation
technological advancement adopted then it increase viability of firm in market (Bah and Fang,
2016.). Demand of clients and rules with regulation of government with privacy of data and
statistics should be challenging part for an organisation. Information and communication
technology helps in successfully manage or coordinate industrial changes by keep their clients
satisfied and by enhance their productivity with cutting costs (Cai and Yang, 2014.). The main
concern behind development of information technology is lack of knowledge and not well
equipped resources that are very much important for an organisation to adopt changes in firm.
Organisation not have knowledge, expertise and capacity to avail total profit and benefits out of
them. The another major concern is pace of change in which current structure, staffing pattern
and way or methods of operations are not easy to redirect in proper way (Cai and Yang, 2014).
The main issues of ICT that is not able to pace with change in technology in positive manner, it
is an incredibly difficult for an organisation to comply with rapid changes.
2. Impact of innovation and technology on operations, sales and profitability of organisations
With development of innovation and technology, today organisations gain opportunity to
transform their businesses into digitalised manner. This would help in increasing efficiencies of
operational activities and offer more innovative services to customers. Through this process, they
would get chance to improve and enhance sales performance which ultimately leads to generate
high profitability (Craig and Campbell, 2012). For example: ICT technology give opportunity to
bring awareness among customers about their product and services, offers, attractive discounts
and more. In context of Britvic Plc, this company offers a wide variety of aerated or soft drinks
like Britvic 55, Robinsons, Tango, J2O and more in UK marketplace. It aimed to apply that type
of technology that are helpful in adaptation of rapid changes. As there is a close relationship
between innovation and economic development and it has been determined by various
economists to bring changes that influence in growth of economy in whole world. Economists
determined that almost 1/3 of economic growth should be brought by applying technological
advancement because it enhance the living of standard of people and also bring stability in
organisational goals and objectives (Craig and Campbell, 2012). Research and development are
major area in which learning by doing, human capital and public infrastructure are major
components to bring harmony in works and activities. In this regard, the respective company can

adopt or bring innovation in business by radical improvements in communication by internet and
their associated devices by using laptops and smart phones. Once communication and tactical
practices around present communication resources then things should be move faster (Deasy and
et. al., 2015). By increasing use of cloud computing which is one of most advanced source of
communication resource in present world and most favourable to apply in distinctive situations.
The growth of net national income is not a sole indicator in capital alone. It has been observed
that major part of increase productivity due to technological changes. So it has been concluded
that in economic growth technological advancement is a major contributor. In this regard, Britvic
PLC which is a British soft drinks producer can gain high competitive advantage in respective
field, by implementing latest innovation and technology (Erasmus, Strydom and Rudansky-
Kloppers, 2016). Since customers today are more willing to get healthier soft drinks and avoid to
consume those drinks which contains high carbonate. Therefore, in order to counter the
increasing demand for healthier as well as beneficial soft drinks, innovation is key. In this regard,
by adding some special ingredients like probiotics or dietary fibre that are gut-friendly may help
Britvic to bring innovation in drinks, as it will increase digestive benefits of beverages. Here,
through social media platform this company can bring awareness among potential customers
about appearance of fermented methods and ingredients, which includes apple cider vinegar that
helps in establishing a healthier brand name about halo around gut-friendly beverages (Hamilton
and Webster, 2018). This would aid to improve and increase its sales performance at UK
marketplace as well as give chance to expand its business in international platform also.
In case of Britvic PLC in 2018 they continue to innovate by meeting consumer
requirements and focus on transform their supply chain and focusing on giving healthy products
and services. In last year their revenue was 1430.5 million dollars and in 2018 revenue of that
organisation is 1503.6 which increases due to the innovation and technological advancement in
organisation (Hilton and Platt, 2013). The one of most significant innovation and technological
advancement in case of Britvic PLC that are they focus on initiating by implementing carbon
free, energy oriented and water use products and services by bringing eco-friendly products and
services in to market place by satisfying emerging needs and wants in proper way. Their
sustainable goals for year 2020 that reduce no. of calories consumed by 20% by year 2020
(Deasy and et.al 2015). Their main goal is to inspire people to actively contribute together by
giving their contribution in economic growth and advancement. So to bring all these changes and

innovative initiatives organisation focus on technological advancement and innovation that is an
essential part for any organisation. Technology and innovation impacts in positive manner in an
organisation by bringing harmony in work and activities (Bah and Fang, 2015). It gives better
living to consumers by contributing in their income and expenditure and ultimately it contributes
in economic growth of organisation. It brings harmony in activities by coordinating each and
every aspect for attain economic growth. In 2014 it is 1344.4, in 2015 1300.1, in 2016 1431.3, in
2017 1431.5, in 2018 15.3.6 which is an important indicator of profitability in case of Britvic Plc
(Savrul, Incekara and Sener, 2014). Therefore, through bringing innovation in business, this
company would get advantage to offer more healthier drinks by effectively delivery process.
Through this process, it can improve and enhance sales performance more profitably as well as
get opportunity to attain high position in respective field.
.
TASK 2
1. Demonstrate an understanding of corporate governance.
Corporate governance is a system of rules and regulations, practices and processes by
which an organisation can direct and control each and every aspect that are essential for
organisational growth and enhancement (Babu, 2012). Corporate governance involves coordinate
and balance the interest area of an organisation in which stakeholders that are shareholders,
executives and customers, suppliers and government with community (Erasmus, Strydom and
Rudansky-Kloppers, 2016). It provides an framework in which organisation can clearly direct
and attain organisational goals and objectives by practically observing management from action
plan to internally control for performance management and disclosure of corporate works and
activities. There are some major steps that contribute in development of corporate governance in
history of corporate governance that are as follows:
In 1998, the code of corporate governance that also known as UK corporate governance
code, its latest version released in year 2012 which is an important part in history of Britain and
majorly contributes in bringing most contribution in that activity (Hamilton and Webster, 2018).
In year 1999, turnbull give guidance for internal control and accessibility to each and every
activity to give proper guidance to each and every attribute. In 2010 Stewardship code should be
launch in market place for set some ethical works and practices to bring harmony in works and

activities (Hamilton and Webster, 2018.). In 2013, the companies act 2006 launch in market
which depicts into strategic report and directors report regulations. In 2014 the new guidance
regarding risk management, internal control and going concern basis of accounting are major
spheres in which rules of corporate governance applied by a British governance to bring
harmony in works and activities (Bah and Fang, 2015).
Board of directors is a group of individuals that elected to represent shareholders. The
board obligatory establish rules and policies for managing corporate for taking major decisions
and for resolving issues (Harrison, 2013.). In every public company have board of directors and
in some cases private and non profit organisation have board of directors. There are some key
responsibilities of board of directors that helps them to achieve organisational goals and
objectives. The main role and responsibilities of board of directors is to give strategic direction
and set priorities. Interact with key stakeholders for their achievements after ensuring that they
put inputs by strategic goals and direction (Savrul, Incekara and Sener, 2014). They set external
operating environment by ensuring that organisation's strategic direction always give appropriate
and achievable goals and objectives. It also helps in monitor or evaluate performance and
achievement of strategies by annual plans with budget outcomes. They always take participate in
various meetings and report back to stakeholders at annual general meeting (Hilton and Platt,
2013). CSR activities helpful in empowering women's, help to environment and trying to reduce
poverty and it is also part of organisational corporate strategy.
2. Application of Archie Carroll's Pyramid of CSR.
Corporate social responsibility is one of important aspect in today's competitive world to
remain always competitive in market place. It is a business practice which focus on bringing
sustainable business development into an organisation. It impacts in positive manner by social,
economic and environmental factors (Hillary, 2017). The role of CSR extends now a days, to
build an social conscious image in front of market and consumers. In today's world people,
employees and consumers majorly focus on CSR activities of organisation before choosing a
brand name. That part of G4S PLC plays very much valuable role for society and take care of its
activities so that they can build perfect products and services to consumer base which are very
much potential to lead in market and grab attention of consumers (Erasmus, Strydom and
Rudansky-Kloppers, 2016). Their 5,70,000 employees deliver best services that gives a best and
safer place in which millions of people work and live. They conduct each and every activity for

that they are responsible and it is part of strategic model. In their scope of business consist of
touch lives of millions of people in all over the world (Hilton and Platt, 2013.). Their diversity
that is best to gain competitive advantage, they majorly contributes in build good reputation and
analyse potentiality of employees so that they remain always motivated and give their best in
organisational goals and objectives.
Pyramid of corporate social responsibility:
Pyramid of corporate social responsibility has four main factors which are: social
responsibility, economic, ethical and philanthropic responsibility. In economic responsibility
consist to become profitable and secondly in legal consist of to obey rules and regulations in
positive manner which is set by society (Saleem, 2015). In other ethical responsibility in which
by observing needs and wants of consumers organisation have to contributes or focus on major
spheres so that everyone can live prosperously. It is a set of foundation stone in which four
empirically factors are interrelated to each other and contributes a lot in economic and social
well being (Deasy and et. al., 2015).
Economic responsibilities:
It is an fundamental condition for that organisation have to be responsible enough to
create and sustain for long period of time. Firstly, it is not assumed that economic is not a social
responsibility but socially people expect about it and require to sustain for long duration. By

adding values and ethical things and attributes, an organisation can give their best in
organisational works and activities. (.Savrul, Incekara and Sener, 2014.). For an organisation,
profits are very much necessary for reward investor and also necessary for business growth in
case profits should be reinvested in business. In case of G4S plc while lead with economic
responsibility organisation have to consider economic condition of consumers from which they
are deal (Craig and Campbell, 2012). Since less labour turnover rate refers to a main key
indicator of employee satisfaction and increase profitability of organisation. Therefore, in
context with G4S, its staff turnover has reduced from 25.3% in 2017 to near about 24.7% in 2018
(G4S Plc. Annual financial report, 2019).
Legal responsibility:
It consists of rules and regulations that are very much potential for operations and
functioning in proper way. In these grounds includes rules and regulations that influence or
reflect view of society in codified ethics in which fundamental notions by establishing fair
business practices situated at federal, state and at local level (Cai and Yang, 2014). In case of
G4S, they apply kind of legal actions to give best practices to people who deal in organisation. In
that aspect organisation observe the performance in consistent manner by obeying government
laws and regulations. Comply with federal, state and local regulations to represent in legal
manner.
Ethical responsibilities:
It consist of normative expectations in which most societies hold some laws but that are
not self sufficient in itself (Shenkar, Luo and Chi, 2014.). Taking or holding an ethical
responsibility comply with various activities, norms, regulations and standards with practices
that are not codified into laws. The another main ethical responsibility that business conduct
various affairs in a fair manner and objective way by following activities, standards and rules
with regulations to comply with expectations of society in codified manner. In case of G4S they
apply various ethical works and practices to comply with changing needs and wants of
consumers. In that includes perform in consistent by giving best experience to consumers by
moral and ethical works practices. Evolving new norms and practices by society. Prevent from
ethical norms being compromised to achieve goals and objectives.
Philanthropic responsibilities:

Corporate philanthropic consist of all norms and conditions to achieve business goals and
objectives. It is business's voluntary or discretionary work and activity. It is not a kind of
responsibility but it is a business sense (Siewiorek and et.al 2012). The quantity and nature of
business are voluntary or discretionary activity. It is desire of business to willingly participate in
social works and activities. Some organisation do and give ethical motivation for that they go for
ethical works which inspires to society in giving their best and contributes a lot. When an
organisation social contract in society and business by perceived philanthropic responsibilities,
engage with variety of forms by monetary resources, product and services donations and
volunteer-ism in employee and management, community and their development and any other
discrimination contribution. In case of G4S Plc they majorly contributes in philanthropic
activities to build positive experience to consumers and largely contributes in economic
development and enhancement (Babu, 2012). It is very much crucial for an organisation to come
up with these kinds of activities which proved beneficial in organisational growth and
enhancement. The main charities that give support to G4S Plc are CanSupport, IVF (Indian
Vision Foundation), Grant Govan Memorial Homes and more.
CONCLUSION
From the above report, it has been concluded that innovation and technology is one of
important factor that largely contributes in development of organisation as well for an individual.
Innovation and new tools and techniques helps in raise standard of people by accessing their
emerging needs and wants in proper way. Ethical works and practices are also an important
attribute to build a positive image in market place by compensating wants of consumers.
Corporate governance and ethical practices are very much important for organisation to lead in
market place by or gaining all activities. So all organisation takes participate in all these
activities in positive manner.

REFERENCES
Books and journals:
Babu, K.V.S.N., 2012. Business intelligence: Concepts, components, techniques and benefits.
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Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics. 151. pp.131-145.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Deasy, S., and et.al 2015. User interface for controlling use of a business environment on a
mobile device. U.S. Patent 8,954,050.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Harrison, A., 2013. Business environment in a global context. Oxford University Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
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Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Siewiorek, A., Saarinen, E., Lainema, T. and Lehtinen, E., 2012. Learning leadership skills in a
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Online
G4S Plc. Annual financial report. 2019. [Online] Available Through:
<https://www.globenewswire.com/news-release/2019/04/09/1799427/0/en/G4S-plc-
Annual-Financial-Report.html>.