Business Environment and Competitive Priorities

This assignment requires an in-depth analysis of the business environment and its impact on competitive priorities. It involves reviewing various studies and articles that explore the relationship between business environment and competitive priorities, as well as examining the role of performance frontiers. The assignment also touches upon the design and technological innovation of startups in a competitive business environment.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body...................................................................................................................................1
1.) Demonstrate your understanding of innovation, and the role of technological change in
economic progress.......................................................................................................................1
2.) Practical illustrations of how innovation has impacted the operations, sales and the profits
of Rolls Royce.............................................................................................................................3
1.) Demonstrate your understanding of corporate governance, including the responsibilities of
the Board of Directors to the stakeholders and, the 5 basic principles of corporate governance.
.....................................................................................................................................................4
2.) Explain the four areas that make up corporate social responsibility as identified by Archie
Carroll. Give relevant practical examples...................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

Illustration Index
Illustration 1: Archie Carroll CSR Model........................................................................................7

INTRODUCTION
The advancement of technology has impacted the functionality of trade entity to a greater
extent. The technological and environmental innovation helps in better handling of wide range of
business operations that has been followed by business organisation. The technical innovations
that have been followed by an enterprise will support a good growth and development of
enterprise (Savrul, Incekara and Sener, 2014)
For the report, Rolls Royce has been taken for assessment. It is a UK based, luxury auto
mobile manufacturing firm. It lays an emphasis on advance usage of internet and effective
utilization of technical tools and techniques like cloud storage for the better handling of business
operations that will support better growth and development of business operations. Besides this,
the Archie Carroll model of Corporate Social Responsibility that has been followed by cited
organisation for effective growth on economic and social level (Moroni, Arruda, and Araujo,
2015).
Main body
Question A
1.) Demonstrate your understanding of innovation, and the role of technological change in
economic progress.
Innovation is the process to develop a new product or improve the work quality of
existing item to meet the operational needs and demands in a better way. It helps to handle the
business operations that will lay a very deep impact on growth of economic conditions of a
company. Apart from this, innovation also involves the adoption and implementation of wide
range of organisational functions that will help in better growing and development of an
organisation as well as a country. The better management of business operations and functions
will help in suitable management of wide range of requirements of their stakeholders as well as
customers, who are associated with a business entity (Reynolds and Rohlin, 2014). The effective
following and utilization of technical advancement and innovative processes will help in better
handling of the tangible and non tangible assets of Rolls Royce and this will help in better and
sustainable rise in its productivity and profitability of an organisation. Besides this, the
adaptability of innovation will also support the R & D department in an enterprise and will
support efficient management of intellectual property of a business and lead to development of
high quality products and services. The advancement of technology which has been adopted by a
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trade firm will help it to have a good economic stability and support a better rise in functional
capabilities of an organisation. Other than this, the adoption of innovation will cause the firm to
develop a good product or services to gain a good customer satisfaction level, that will support
an effective rise in its economic conditions. The rise in effectiveness will lead a better formation
of strategic plan, depending over environmental conditions of an enterprise. The development
and delivery of high quality product with better functional capacity and quality will support a
better management of high level of operations that will aid in meeting targeted goals set by a
business organisation to gain a good revenue and economic stability in market (Smith, 2017).
Besides this, the technological advancement and economy is also closely related to each
other. The level of technology utilized by Rolls Royce will help it to manage and plan its
functional actions on the basis of trade environment and gaining a good control over the business
operations that are followed by firm. An enterprise will gain a good growth by utilising high
level of the latest technology that supports a better revenue generation and improving economic
viability. The organisation has to look after constant development of technology and innovation
that will support a better rise in its economic conditions. The advancement in technological
innovation will cause the business entity to improve its functional calibre with the passage of
time, to meet changing requirements of its clients and stakeholders. Other than this, the adoption
of innovations and advance technological tools and techniques will aid in increasing economic
growth of a country in which Rolls Royce is operational. It will help in rise in capital generation
and supports more R & D process to develop innovation and better technologies. Although
capital formation and high work force help in improvement of business operations but the
technological advancement is important for a company as it help in better managing and
executing of business operations (Sodeyfi, 2016). Other than this, the relationship of technical
advancement and growth of economy is closely related. The country which supports more
development of technology and innovation tends to have higher economic growth and
development. Other than this, the high implementation of the latest technical tools and measures
increases efficiency of the work force and help in gaining better profit margin and economic
stability, by increasing the output. Thus, it can be said that better innovation and technical
advancement is one of the major determinant factor of growth and development of economy of a
nation. The innovation not only helps to improve the efficiency of an enterprise but also help in
increasing its efficiency that will help in better rise in operational capability of organisation.
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2.) Practical illustrations of how innovation has impacted the operations, sales and the profits of
Rolls Royce
Innovation will lay a deep influence on Rolls Royce, that helps it to develop high quality
products and services on the basis of wide range of business operations. For instance, Rolls
Royce is deeply impacted by growth and development of various different technological
advancements and innovative measures that have contributed on a large scale for a good growth
and development of business operations of cited luxury auto mobile manufacturing firm. The
effective utilization of latest and innovative services on production or manufacturing level to
produce a significantly high class of cars and its equipments (Menychtas and et.al., 2014). In
recent time, Rolls Royce used an Advance3 demonstrator that helped the firm in better
development of civil aerospace engines and increase its work efficiency and revenue count. The
use of this innovative and advance technology will support the firm to test its engines and
calculate the effectiveness of its cars to deliver maximum utilization of fuel and have low
emission count, supporting environmental concerns and CSR policies, followed by auto mobile
firm.
Apart from this, the active simulation process that is been taken in utilization for a better
growth and development will aid in identifying the effectiveness of technological measures that
are been followed by a business entity. The adaption of innovative technology has not only
helped the organisation to develop high quality product and services but also have helped in
better formation of better designs that will improve the efficiency of its aerospace engines and
luxury cars. Other than this, the utilization of Advance3 demonstrator will support a better
testing and maintain the various quality parameters that are been set by company for better
customer satisfaction level. This tool will help Rolls Royce to deliver high level of economic and
environmental performance outputs, that will help in better sales and generation of profits for the
business organisation (Khan and Quaddus, 2015). The Advance3 works on technology of “work
splitting” that contains two stage high pressure turbines and one single stage intermediate
pressure turbine. The core part is attached to Trent XWB fan system further attached to Trent
1000 low pressure turbine system. This structural setup forms the complete demonstrator engine,
that help the firm to have a better assessment of its engine efficiency. This system is attached to a
digital simulator that crates the variety of condition in which the engine is ought to operate. The
testing will help in getting a good idea about the operations and will help the organisation to
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have a good strategic idea about the different components like gearbox and wheel alignment
system that are been connected to business operations and will help in suitable rise in functional
capacity of a luxury auto mobile firm. Other than this, the UltraFan technology developed by R
& D department of firm, will help in increasing the effectiveness of its engines and other
machineries, that are incorporated in its cars. It will help the better utilization of gearbox to
generate a good acceleration and high bypass ratio. This has helped the firm to increase its fuel
efficiency and its better consumption. This has helped the firm to develop a better and
environmental friendly product that helps the company to achieve an economic stability by
getting a good customer support and funding or financial resources, to carry out effective
development and research process in the organisation. Also, the utilization of innovative and
latest technologies will improve its productivity and meeting of operational requirements of
organisation in a better way (Huang-Horowitz, 2015). The utilization of advance digital methods
to collect the data and its analysis will support a good management of business functions. Rolls
Royce is also known to provide advance customer support which is improved using the cloud
computing and internet measures, to provide its clients with a good customer satisfaction level.
This approach will improve the overall customer contentment level and aid the auto mobile
enterprise to give out better output and have an economic stability.
Question B
1.) Demonstrate your understanding of corporate governance, including the responsibilities of
the Board of Directors to the stakeholders and, the 5 basic principles of corporate
governance.
The corporate governance is the system that will help in meeting the needs and demands
of user to have a better execution of functions that are been followed by a business entity. It is a
set of rules and regulations that help in better handling of different operations on higher level,
which will help in suitable rise in effectiveness and operational capacity of a business
organisation like Rolls Royce. It involves the better management of company's constituent
bodies i.e. Board of directors, stake holder, organisation's management, customers, suppliers,
financier or investors, governmental bodies and the customers or clients. It helps in creation of a
frame work in the firm that help in better handling of business operations to develop a better
action plan and have a control over the internal functionality and decision making process that
affect the overall performance and revenue generation (Georgescu and Popescul, 2015).
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The stake holders are group of people that lay a deep influence on functionality of an
organisation like Rolls Royce. They consist of share holders who are generally the legal owners
of a company who enjoy benefits from firm in form of dividends and part in company's profit.
The Board of directors or BOD will involve the operations related to Rolls Royce and will hold
the responsibility for better management of wide range of business operations. It may involve the
executive and non executive members, who are accountable to share holders or stakeholder of
luxury auto mobile firm. It involves the members like CEO, CTO, executive and non executive
officers and directors from various department of business organisation. They look after the
better handling of business operations and gain a good control over the business organisation
(Kljucnikov and et.al., 2016).
The 5 basic principles of corporate governance that are been followed by Rolls Royce is
as follows:
 Governance structure: This principle involve the strategy or policy that lay an impact
on operations of Rolls Royce must be headed by an effective board, that will look after
all functionality and implementation of innovative technologies. This will involve the
better allocation of role s and responsibilities in an organisation that should be clearly
identified. This approach will reduce the communication gap and support effective
implementation of different business operations that are been followed by cited luxury
vehicle firm.
 Structure of BOD and various committees: This involves the appointing of free
minded executives and directors that will look after the better management of
functionalities of Rolls Royce. The management committees must involve a better
combination of directors, executives and non executives members, that will promote a
better decision making process and avoid the domination of one group over other
members. Also, the board should be compatible to match the sophistication and quality
standard of cited firm (Cull and et.al., 2015). This will support the effective promotion of
implementing the innovative and latest technical measures to maintain quality standard of
Rolls Royce.
 Risk governance and Internal control over operations: The BOD will look after the
corporate governance that will support a good adoption of innovative operations to
mitigate the risk factors, that are associated with the manufacturing operations. This will
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support the organisation to adopt and develop comprehensive risk management system
and approach to minimize the treats caused by external and internal factors affecting
Rolls Royce.
 Reporting and integration: The committee member and the BOD will look after the
better handling of operations that will lead to the better handling of quality management
approaches. The proper reporting will involve the information details and output of the
innovative measures and the preventive measures are been suggested to reduce the threats
for Roll Royce (Cascio, 2018. ). Besides this, based on report received, the management
or BOD will further look after better implementation of innovative technical measures to
sustain the quality standards of company.
 Relationship with stake holders: The core motive of corporate governance is to develop
a good relationship with the stake holders involving share holder, investors, suppliers and
clients of company. This will help in enhancing the revenue generation and maintaining
the product and service quality standards, that are been set by auto mobile firm.
2.) Explain the four areas that make up corporate social responsibility as identified by Archie
Carroll. Give relevant practical examples
The Corporate social responsibilities or CSR is the major factor that will help the firm to
grow and develop in a much effective and better way. This will help in suitable handling of
different operations that will help in better rise in good will of Rolls Royce towards its
customers. Archie Carroll, 1991 stated that the development and following of appropriate CSR
policies will help in better management of business operation's that will help in suitable handling
of business operations of company. Other than this, it will help Rolls Royce to develop a good
control over its operations and managing a wide range of its social responsibilities that will help
in improvement of business operations and will help in diminishing any sort of legal constraint
that will impact the business operations followed by organisation (Cai and Yang, 2014). It will
also help cited auto mobile firm to maintain its environmental and economical obligations in a
better way.
The Archie Carroll CSR Pyramid is as follows:
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 Economic: It is the core responsibility that is been followed by the organisation,
regardless to size and scope. Rolls Royce being one of the major auto mobile brand will
look after the better measures to sustain and attract more and more customers after the
globalization and handling of business operations. This approach will help the auto
mobile firm to sustain in market for a long term and cater more and more customer's with
passage of time. It is the ethic, that is required by the society for better maintaining of the
business operations of the company and meet the operational requirements of their
customers. For instance, Rolls Royce will look after the fulfilment of economic
obligations that will be looked after to gain a good customer support in market (Botha,
Kourie and Snyman, 2014).
 Legal: this approach involves the following of different legal obligations that are been
imposed on Rolls Royce by legislation or governmental bodies in various countries of its
operation. The fulfilment of different law related measures like Employee welfare, safety
at work place and competition measures, that will help in better handling of different
operations that will help in better growth and development of business organisation. It
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Illustration 1: Archie Carroll CSR Model
Source: Carroll's CSR Pyramid, 2018

will help in maintaining the CSR of Rolls Royce and will support the effective rise in
functionality of business firm. Other than this, the following of laws will help the firm to
operate effectively in a business environment, sustaining its productivity and revenue
generation. For example, Rolls Royce will follow all the laws and rules decided by trade
unions and government to sustain in market (Blahová, Haghirian, and Pálka, 2015).
 Ethical: This measure involves the company to act ethically and morally that will help in
the supporting of wide range of business operations that will support better rise in
effectiveness of Rolls Royce. The following of legal and ethical code of conduct will help
Rolls Royce to draw a better brand image that will help in suitable gaining of customer
base and involve the better management of business operations that supports the better
rise in operational capability of organisation. It includes the better and ethical behaviour
with employee's, customers, and suppliers, who contribute in better development of cited
firm in a better way. For case, Rolls Royce will see through the effective management to
have a better management of wide range of ethics as per the code of conduct that is
required to be followed.
 Philanthropic: It is the approach of giving back to society what you have gained from it.
Although it is not an obligation but following this approach will help as firm to improve
its business operations. This involves the approaches like donation, sponsoring a social
cause or giving out charities. Besides this, the implementation of different innovative
approaches that helps the firm to make its services environment friendly and clean to use
will also help in maintaining the CSR of the company. For instance, The implementation
of Advance3 demonstrator and UltraFan will help in improving fuel efficiency of its cars
and reduce the emissions, that will help in maintaining the CSR of the company in a very
effective and better way (Botha, Kourie and Snyman, 2014).
CONCLUSION
Thus, this can be concluded that the better management of business environment will
help in increasing the effectiveness of an enterprise in a better way. The report laid an emphasis
on advance usage of internet and effective utilization of technical tools and techniques like cloud
storage for effective handling of business operations which will support better growth and
development of business operations. Besides this, the Archie Carroll model of Corporate social
responsibility that undertaken by cited organisation for effective growth on economic and
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corporate level help in identification of various measures to ensure effective growth and
development of company.
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REFERENCES
Books and journals
Blahová, M., Haghirian, P. and Pálka, P., 2015. Major factors affecting contemporary Japanese
business environment. International Journal of Productivity and Performance
Management. 64(3). pp.416-433.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
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.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Cull, R., and et.al., 2015. A new index of the business environment for microfinance. World
Development. 70. pp.357-388.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20. pp.277-
282.
Huang-Horowitz, N.C., 2015. Public relations in the small business environment: Creating
identity and building reputation. Public Relations Review. 41(3). pp.345-353.
Khan, E.A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
square approach. International Journal of Sociology and Social Policy. 35(3/4). pp.273-
288.
Kljucnikov, A. and et.al., 2016. The Entreprenurial Perception of SME Business Environment
Quality in the Czech Republic. Journal of Competitiveness. 8(1).
Menychtas, A. and et.al., 2014. 4CaaSt marketplace: An advanced business environment for
trading cloud services. Future Generation Computer Systems. 41. pp.104-120.
Moroni, I., Arruda, A. and Araujo, K., 2015. The design and technological innovation: how to
understand the growth of startups companies in competitive business
environment. Procedia Manufacturing. 3. pp.2199-2204.
Reynolds, C.L. and Rohlin, S., 2014. Do location‐based tax incentives improve quality of life
and quality of business environment?. Journal of Regional Science. 54(1). pp.1-32.
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Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150. pp.35-
45.
Smith, S.S., 2017. Strategic Management Accounting: Delivering Value in a Changing Business
Environment Through Integrated Reporting. Business Expert Press.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives. 10(2). pp.146-150.
Online
Carroll's CSR Pyramid, 2018. [Online]. Available through:
<https://www.tutor2u.net/business/reference/carrolls-csr-pyramid>
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