Business Environment Report

This report examines the significance of innovation, corporate social responsibility (CSR), and corporate governance in business. It analyzes the impact of technological advancements on the UK economy, focusing on AVEVA Group plc as a case study. The report also examines the importance of CSR, using Bovis Homes Group PLC as an example, and discusses Archie Carroll's model of CSR.

Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
TASK 2............................................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is a process of creating a new innovative ideas for modifying and developing
a goods and services in order to achieve an organisational goals and objectives. Also, this
method helps business that creating a values on product and services for which customers will
pay. Along with this, innovation plays very crucial role in every organisation as it helps the
businesses to expand at global level and attract customers towards their company or product for
maximising its profit. In this present report, AVEVA PLC company is chosen as a business
entity for task 1. it is a British multinational information technology company who deals with
engineering and industrial software (Aarikka-Stenroos, Sandberg and Lehtimäki, 2014). Also,
this company and is founded in the year 1967 and its headquarter in Cambridge, United
Kingdom. In addition to this, this essays describes about the technological innovations and role
of its changes in an economy. On the other hand, the chosen company for task 2 is Bovis Homes
Group PLC. This is a British housebuilding company founded in 1965 and its headquarters are
located in Kings Hill, Kent, UK. The building builds by this company is mainly used for
residential purpose. Lastly, it describes about corporate governance and Archie Carroll's model
of CSR in context to Bovis Homes Group PLC.
TASK 1
In today's world technology is used by individuals in order to perform various tasks in
simple or easy way. Technology refers to the process or application which is used to make daily
activities simplex, casual and easy. Technology is a human knowledge which includes different
tools, materials and systems. It is commonly used in different areas such as work, securing data,
communicating information, learning new things, scaling businesses activities, manufacturing
products and services and many more. In addition to this, it is also said that innovation is a
process of transforming an idea into a product or service which creates value. Two types of
innovations are there one is revolutionary and second is evolutionary. Revolutionary innovations
refers to those inventions which are totally new for the society (Brunswicker and Van de Vrande,
2014). On the other hand revolutionary innovations are developed through incremental
advancement in technologies. Innovation of a new product have both positive as well as
negative impact on the company. In references to positive impact, company can generate huge
amount of profit, but on the other hand, company create great risk as they launch totally new

product at the marketplace. In addition to this, imitators have less risk as they copied the existing
product in order to earn profit. Against Apple computers, IBM launch there Personal Computer
also Compaq's PC and Dell's PC are some common examples. United Kingdom is a developed
country and still works in innovating new technology in order to produce attractive products and
services which increase its value in front of customer (Brusakova and Kosuhina, 2015).
Technology and innovation plays very essential role in the overall development of the
organisation as well as the development of whole economy. With the help of technological
innovation company can maintain effective relationship with their customers. In addition to this,
change in technology includes new features to the existing products and attract more customers
by making it creative. As a result, consumers are highly satisfied by getting additional features to
their existing products. Company have a Unique Selling Proposition as they add new feature in
their product which creates value and also provide competitive advantage to the firm at the
marketplace. With the help of USP consumers as well as clients easily differentiate between two
similar products of different companies. Since last 50 years various innovations takes place
within the marketplace of UK. Some of the most popular innovations are service robots, battery
vehicles, fuel cell, power plants which has contributed in the overall development of the
industrial strategies.
For the economic development of the country, technology is one of the primary source.
With the development of different technologies, companies gain competitive advantages at the
marketplace and contribute in the development of economic system of the country. Growth of
economy and technological enhancement are interrelated with each other (Carayannis,
Grigoroudis and Goletsis, 2016). Development of economic system of the country depends upon
different factors, where technology is one of the main factor. UK is one the biggest Information
Communication Technology market. The ICT sector includes various digital goods and services
such as artificial intelligence, e-commerce telecommunications, augmented and virtual reality,
audio-visual, cyber security, software and computer cloud services and many more.
 Artificial Intelligence- With new innovations in artificial intelligence, this sector
contributes in the overall development of UK's economy.
 IT, Software and computer and cloud services- UK is one of the biggest market of data
centre which generates new sources of demand for the ICT providers. At present, there

are almost 100,000 software companies currently operating in UK market. As a result,
this sector contributes for maintaining stability in the economy of UK.
 Virtual reality and augmented reality(AR/VR)- Government of United Kingdom
invested large amount of money in AR/VR sector. UK export VR/AR services all the
world. This involves Government strategies for the growth of artificial intelligence and
data driven economy (Chesbrough and Bogers, 2014).
 IOT/Smart cities- These services are increasing speedily in different areas such as
energy, transport, healthcare, manufacturing industries and public sectors. Government of
As it has great future, UK government is continuously developing sustainable
partnerships in this area. With this profit maximisation is also expanding in this sector.
Software companies of UK generate growth opportunities with the help of cloud
computing.
 Fintech- London is one of the biggest financial centres as well as a global hub for the
innovation and advancement of technology. Government of UK generate policies and
strategies in order to support technologies and foster innovation in the country. As a
result this sector plays very essential role in the overall enhancement of economic system
of the country.
AVEVA Group plc is a multinational British company of information technology. In
order to tackle future easily and effective, company creates industrial software for individual.
Headquarter of the company is located in Cambridge, UK and generally provides industrial and
engineering software. At present, company have more than 1700 employees in around 30
countries across the world, which includes approximately 660 employees in Research &
Development Department (Fabrizio and Tsolmon, 2014). AVEVA believes that advancement or
development of industry should be increase to gain human experience. Key factor of the
company is their customers as company mainly perform their activities in order to fulfil their
requirements. Company take customers problem as a challenge, work according to the situation
and provide solutions to their problems. In order to bring new and innovative thought or idea,
employees of the company perform their activities in a team. In addition to this, company
develop different innovative software which empower industries as well as individuals. With this
company ensures the success of customers or clients and maintain prosperity within the
communities of different operating countries. In order to increase the satisfaction level of

customers and make their life easier across the world, AVEVA plc has introduced various
software. While innovating and developing their products and services, AVEVA follows various
key points. Some of the key points or elements are as follows:
 Engineer, Procure and Construct- It is one of the most important factor AVEVA
follows while developing new software, as a result this will lowers the cost, time as well
as risk included in the capital project engineering.
 Monitor and Control- With the help of this factor company enhances the visibility of
organisation and control market lead solutions, which as a result empowers the decision
making process of employees along with their managers (Fu and Mu, 2014).
 Operate and optimise- By following this, company can easily eliminate ineffective
procedures occur while operating and developing software, in order to accomplish goals
and objectives of the business organisation.
 Plan and Schedule- If the company start following plan and procedures while
developing software, this will increase their profitability as well as utilise optimum
resources while manufacturing or innovating products and services.
The software portfolio helps in expanding operation cycle and assets of business
organisation. With the help of integrated solutions provided by AVEVA, company can increase
business collaboration and create opportunities for expanding market share (Kilelu, Klerkx and
Leeuwis, 2014). With the help of different innovations and technology company can increase its
profitability by satisfying requirements of customers.
 World class Global ecosystem – AVEVA is one of the biggest community which
involves different organisations, distributors, technology partners, system integrators
across the world.
 Technical and Commercial Flexibility- The advantage AVEVA is getting through
perpetual or subscription licensing in mixed software which provides flexibility.
 Installed base with results- AVEVA is one of the biggest and trustful organisation in
UK. It serves in industrial applications for food, water, infrastructure and energy.
TASK 2
Corporate social responsibility is also known as sustainable business, corporate
citizenship, corporate conscience and many more. This is a business approach and it put their
efforts for sustainable development by providing various benefits such as social, economical and

environmental to stakeholders, itself and public. Along with this, companies use activities of
Corporate social responsibility for overall development of economy (Libaers, 2014). Also, it
enhance the brand image of a company which helps them to attract more customers towards their
brand. With the help of CSR activities, it motivates employees and helps them for connecting
with the company at long period of time. Corporate social responsibility is basically a strategies
which is followed by company with the motive of success and growth of their organisation at
market place.
CSR is a managerial concept in which companies gives commitment towards overall
development of the country. Also, it improves the life of employees and society by increasing
their standard of living. Along with this, the main motive of corporate social responsibility is to
manage business operations effectively for creating a positive impact on society. In context to
businesses, CSR activities provide various benefits which are described as below:-
 Increase employee loyalty :- Corporate social responsibility has motive is to do fair and
equal treatment among the employees. Also, if company provides good jobs and
motivates employees at the time of performing a task which helps them to achieve their
goal, then it will enhance the employees morale and loyalty toward an organisation.
 Prevent financial ramifications :- If an organisation operates their business activities in
an ethical manner then it will help their company to build its positive image at market
place. Also, organisations should follow both national and international laws as to stop
unnecessary fines and charges. Along with this, it helps businesses to keep lower legal
expenses (Fu and Mu, 2014).
 Maintain positive reputation :- In CSR activities involves various things which helps
an organisation to maintain its positive reputation at market place. This is because
company displayed all the activities of CSR on websites with the motive of biding
goodwill.
 Environmental consciousness :- Company says that do not use or use less those things
which harm the environment or society such as usage of polythene, carbon footprints and
so on. Also, it build green reputation at market place by producing eco-freindly products,
lowering energy usage and many more for creating a positive goodwill of their
organisation. The main motive of all these is to protect and make healthy environment or
society.

 Local community :- Companies use Corporate social responsibilities strategies for
making relations with customers at long period of time. Local communities gives
donations also helps employees to participate in an organisation and so on with the aim of
development of society (Paradkar, Knight and Hansen, 2015).
 Social concern :- it means to help people who are suffering from various losses or
facing many hurdles in their life such as people suffering from diseases like epidemics,
problems arising from natural calamities, fighting against poverty and many more.
Corporate governance is a process in which company can control or manage their
business operations by following governmental, rules, regulations, practices and process. It
means to run business according to the manner of stakeholder in order to attain growth and
sustainability at market place. Along with this, it is interlinked with board of directors and
committees towards the benefits of stakeholders of a company. Also, corporate governance
provide a proper framework for achieving an organisational goals and objectives effectively.
There are various benefits of corporate governance which are described as below:-
 It ensures sustainable growth, survival and success of the company at economic level.
 Corporate governance build confidence among investors with the motive of rising capital
ethically.
 Also, it create positive image at market place which increase the price of shares.
 With the help of corporate governance, company can minimize their corruption, wastage,
mismanagement and risks.
 It also aid an organisation to build brand image for attracting customers towards their
company and increasing a sales.
 It ensures to manage business activities in an organisation.
Bovis Homes Group PLC is a British housebuilding company who builds building which
is mainly used for residential purpose (Fabrizio and Tsolmon, 2014). Along with this, Bovis
Homes Group company decides that to follow corporate social responsibility activities for an
overall development of the society. Also, it is compulsory for the senior management of Bovis
Homes Group company decide to join a board meeting of this company as they ensures about the
performance of their organisation. The schedule of this board meeting is 7 times within a year.
And these meeting are held at Kings Hill, Kent, UK. In this meeting contain annual budget,
business plan strategy, annual technological review, and many more.

Archie Carroll model of Corporate Social Responsibility
According to Archie Carroll, they identify four areas which makes such as economical,
legal, ethical and philanthropic. Also , CSR was founded in the year 1950. along with this,
pyramid of CSR explains about main areas that a businesses duties to its stakeholders fall under.
The four responsibilities of corporate social responsibilities pyramid are described below:-
 Economic:- Companies economic responsibility is to make profit in order to get return
on investments to the owners and stakeholders of a company, with the motive of creating
job in their communities and to provide good quality of product and services to the
society (McKelvey, 2014). With the help of this, business can survive at long time and
make beneficial for society.
 Legal and Ethical:- It means company should follow rules and regulation for operating
their business activities effectively and ethically. This is because consumers trust only
those businesses who works in ethical manner and provide good quality of products and
services. Also it helps a businesses to create competition and generate employment
opportunists at market place.
 Philanthropic:- it refers to the process where company focuses on human welfare by
fulfilling social responsibility give back to the society. It involves employee welfare,
charitable donations, grants, gifts in kind etc.
Archie Carroll is a pyramid of corporate social responsibility which provide frameworks
to an organisation that how and why social responsibilities affect the growth and sustainability f
business in positive manner at market place. This pyramid is highly relevant and control social
commentators, politicians, and corporate leaders (Chesbrough and Bogers, 2014). The important
characteristics of Carroll's CSR pyramid are discussed below:-
 Company follow CSR pyramid for making profit.
 It is compulsory for businesses to follow governmental rules and regulations.
 Also, businesses has to consider ethical duties before its philanthropic duties.

CONCLUSION
As per the above mentioned report, it has been analysed that, in every companies
innovation plays very important role because it enhance their growth and success at market
place. Along with this, technological innovation helps an organisation for increasing a brand
image and maintaining a long term relationship with their customers effectively. The motive of
technological advancement is to satisfied its customers in order to attain economic companies
growth and sustainability in the market. Technological sector contains many business
opportunities such as, financial technology, software and computer, e-commerce
telecommunications, artificial intelligence, cloud services and many more. With reference to this,
CSR activities helps an organisation for maintaining their reputation or goodwill at market place.
Also, Archie Carroll's model of CSR aid companies to know about the importance of CSR for
their organisation.

REFERENCES
Books and journals
Aarikka-Stenroos, L., Sandberg, B. and Lehtimäki, T., 2014. Networks for the
commercialization of innovations: A review of how divergent network actors
contribute.Industrial Marketing Management. 43(3). pp.365-381.
Brunswicker, S. and Van de Vrande, V., 2014. Exploring open innovation in small and medium-
sized enterprises.New frontiers in open innovation.1. pp.135-156.
Brusakova, I. A. and Kosuhina, M. A., 2015, May. The fuzzy logic method for innovation
performance measurement. In2015 XVIII International Conference on Soft Computing
and Measurements (SCM)(pp. 291-293). IEEE.
Carayannis, E. G., Grigoroudis, E. and Goletsis, Y., 2016. A multilevel and multistage
efficiency evaluation of innovation systems: A multiobjective DEA approach. Expert
Systems with Applications.62. pp.63-80.
Chesbrough, H. and Bogers, M., 2014. Explicating open innovation: Clarifying an emerging
paradigm for understanding innovation. New Frontiers in Open Innovation. Oxford:
Oxford University Press, Forthcoming. pp.3-28.
Fabrizio, K. R. and Tsolmon, U., 2014. An empirical examination of the procyclicality of R&D
investment and innovation. Review of Economics and Statistics.96(4).pp.662-675.
Fu, X. and Mu, R., 2014. Enhancing China's innovation performance: The policy choices. China
& World Economy.22(2).pp.42-60.
Kilelu, C. W., Klerkx, L. and Leeuwis, C., 2014. How dynamics of learning are linked to
innovation support services: insights from a smallholder commercialization project in
Kenya. The Journal of Agricultural Education and Extension.20(2). pp.213-232.
Libaers, D., 2014. Foreign‐Born Academic Scientists and Their Interactions with Industry:
Implications for University Technology Commercialization and Corporate Innovation
Management. Journal of Product Innovation Management.31(2). pp.346-360.
McKelvey, M., 2014. Science, technology and business innovation. M., Dodgson, D., Gann and
N., Phelps (eds.) The Handbook of Innovation Management. pp.69-82.
Paradkar, A., Knight, J. and Hansen, P., 2015. Innovation in start-ups: Ideas filling the void or
ideas devoid of resources and capabilities?.Technovation.41. pp.1-10.