The Role of Innovation and Technology in Business

This assignment delves into the significance of innovation and technology in modern businesses. It discusses how these elements can impact operations, sales, and profits within a company. Additionally, it touches on corporate governance, including its five essential principles, and highlights the importance of corporate social responsibility (CSR). The application of Archie's Carroll model is demonstrated using BP PLC as an example.

Business
Environment
1.0 INTRODUCTION.....................................................................................................................1

2.0 Task1 Question 1: Innovation and technology..........................................................................2
2.1 Key terms..........................................................................................................................2
2.2 The role of technological change in economic progress..................................................3
3.0 Task 1 Question 2: Practical illustration of innovation at Sainsbury's.....................................4
3.1 Overview of Sainsbury's..................................................................................................4
3.2 The impact of innovation on operations within Sainsbury's...........................................4
3.3 The impact of innovation on sales within Sainsbury's....................................................5
3.4 The impact of innovation on profit within Sainsbury's...................................................5
4.0 Task 2 Question 1: Corporate Governance................................................................................6
4.1 Key terms..........................................................................................................................6
4.2 Understanding corporate governance...............................................................................6
4.3 Explain 5 basic principles of corporate governance.........................................................6
5.0 Task 2 Question2: Corporate social responsibility....................................................................8
5.1 Key terms..........................................................................................................................8
5.2 Archie Carroll's Pyramid..................................................................................................8
6.0 CONCLUSION..........................................................................................................................9
REFERENCES...................................................................................................................10

1.0 INTRODUCTION
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Innovation is a method that includes various ideas, thoughts and activities to bring out the
new ways to do things. It help company to develop new thoughts that are changed into a useful
services, products and process. Corporate governance is a relationships among the management
of company, their shareholders, boards and some other stakeholders. It is crucial as it provides
structure through which company set their objectives. For Task 1 the chosen company is
Sainsbury's which is a second largest chain of supermarkets. Its headquarters is situated in
London, United Kingdom. This task includes definitions of innovation and technology. Role of
technological change in economic progress. Overview of Sainsbury's and impact of innovation
on operations, sales and profit within company are mentioned. For Task 2 the chosen company is
BP Plc which is a leading multinational oil and gas company. Its headquarters is in London, UK.
This Task covers definitions and understanding of corporate governance. Five basic principles of
corporate governance. Corporate social responsibility and explanations of Archie's Carroll's
pyramids are also mentioned in this report.
2.0 Task1 Question 1: Innovation and technology
2.1 Key terms
 Definition of innovation
Innovation is a knowing utilisation of information, initiative and imagination in
explaining various values from resources and consider all methods by which creative thoughts
and ideas are created and converted into multi-purpose products. It is important for Sainsbury's
as it provides an edge for the fastest market penetration and gives a better links for market
developments that can be a advantage to get great opportunities in various countries.
 State different types of technological innovation
Technological innovation is a representation of an innovative products and operations and
important technical changes of processes and products. Different types are:
Computer technology:
Computer technology is the improvement of a software application which permits
individuals to execute task from anywhere which has been automatically allotted from computers
at their work place. Technology has essential impact at the time of business operations. It has
both benefits which assist them to generate revenue and produce outcomes according to demand
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of customers. Sainsbury's use this technology so that they can smoothly run the businesses and
also facilitate their employees to do work from home.
Mobile technology:
Mobile technology is a type of technology which is generally used for cellular
connection and another related characteristic. It is focused around improving connections and
through this employees and company are connected with each others and clients at workplace or
on vacations. Sainsbury's considered this technology for higher productivity and efficiency of
employees and also to provide flexibility and good quality services to their customers.
2.2 The role of technological change in economic progress
 The impact of innovation and technological change on economic progress within UK.
Each year technology challenges all over countries to build application which address the
problems of community. Technology is capability of individuals to develop things by utilising
machines and hands. Technical innovation refers creating innovative products, operations and
services that use technology. The change in technology allow economy to move forward.
Innovations has been mostly accountable for continuous growth of economy in UK. The impact
of innovation and technological change on economic growth are:
Gross Domestic Product(GDP):
GDP is a pecuniary measures of the market value of all finished products and services
produced in a particular time period generally in every quarter or yearly. Spending in
technology, economic growth and gross margin have a good relationships when measured by
GDP. It helps to increase the productivity, per capita and exports of goods and services of UK
economy. The growth of domestic product and income in formulated countries cannot be due to
capital. Labour Productivity maximises due to change of technology which is useful for
economic growth in UK.
Unemployment:
Unemployment happen when an individuals is passively searching for work is incapable
to find job. It can be measured in countries by the rate of employment that is unemployed person
divided by number of person. Change of technology made it realizable to produce in lower cost
and a direct affects of innovation is technical unemployment. So, unemployment rate increases
due to technological change.
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In retail business, technology level is essential determinants. As with the help of
technology new and innovative products can be produced in minimum time and a flexible and
standard quality can be provided to customers. This increase the productivity and exports of
services and goods which help in economic growth within UK. But due to the change of
technology and innovation company not require more labour. This increases unemployment most
of the people in countries are without work which effect growth of economy in UK.
3.0 Task 1 Question 2: Practical illustration of innovation at Sainsbury's
3.1 Overview of Sainsbury's
Sainsbury's is considered as a fastest growing food retailers in UK. Sainsbury's has
initiated its business in year 1869 with John James Sainsbury's and also with his wife in London,
UK. However, it started as a small supermarket store but now it is a second largest chain of
retailer in UK. Presently, it is a listed firm which is delivering a world wide range of clients all
day. It basically focus to satisfy the customers and effort to provide better shopping experience to
clients and consumers. The aim of Sainsbury's have some specific characteristics are:
 It serves good, healthy foods and quality products
 It has regards and duties for environments
 It develops positive differences
 It develops opportunities for employments.
The main objectives of Sainsbury's is development in market share and also attract more number
of customers.
3.2 The impact of innovation on operations within Sainsbury's
 Operations means in retail sectors
Operations in Sainsbury's involves all task that their workers perform to support the businesses
to run smoothly. It includes various task from management of people to chain of supply, store
layout, operations of cash, stocks, pricing and offers.
 Impact of innovation and technology on operations
Technology changing the way of businesses. Organisation are changed their method to serve
their services by using modern and standard technology. In retail sectors, innovations and
technological changes the way of shopping it reduces time and labour. Earlier before the
introduction of technology people use to go to shop at purchase products and availed services.
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Customers have to stands for an hour to do payments. Retailers of Sainsbury's has to face some
difficulties like cash operations, people management and so on. After technology was introduced
payments become easier for Sainsbury's to operate businesses in different countries, online
shopping facilities and also changed supply chain management, they provides 24*7 services to
their customers. But this number of competitors increases.
3.3 The impact of innovation on sales within Sainsbury's
 Sales means in retail sectors
Sales in Sainsbury's means that purchase of final products and services by customers and other
retailers.
 Impact of innovation and technology on sales
Innovation and technology transform commercial enterprise and interrupt whole
industries. Retail company effects more on sales. Now social, mobile, big data and cloud
technology are improving the process of sales in a manner that would have been impossible
before. After introduction of technology sales of Sainsbury's increases and reduces the labour
time, maximises profit, competitive advantages and also the productivity. Before technology
introduce in market, sales process of supermarket is lengthy and time taken. They have to sell
products and avail services at a one place.
3.4 The impact of innovation on profit within Sainsbury's
 Profit means in retail sectors
Profit in Sainsbury's is the financial welfare which is accomplished when revenue amount is
more than expenses.
 Impact of innovation and technology on profits
Technology situation in retail company involves strategies of planning to produce benefits,
profits and efficiency. Before technology introduce in market, Sainsbury's not able to make
more profits as no use of technology and innovation same products are repeating again and again
and productions of products are also less. As a result less profits but after introduction of
technology Sainsbury's are capable to produce products in large quantity and in less time. So,
profitability increases.
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4.0 Task 2 Question 1: Corporate Governance
4.1 Key terms
 Definitions of corporate governance
Corporate governance is a method of practices, rules and operations through which a
company is directed and controlled. It is important for BP Plc as it includes equalizing the firm
interests, stakeholders like management, suppliers, shareholders, financiers and government.
4.2 Understanding corporate governance
 History of corporate governance in UK
UK corporate governance has determined by regulation of corporate governance in United states
and European union. Corporate governance incorporates managerial responsibility, rights of
shareholders and structure of boards. The problems and cause started with the initiating of
corporations, qualitative analysis from Hudson's bat company, East India company, Levant
company and another leading companies of chartered during 16th and 17th centuries. A elaborate
investigation of many UK corporate governance reports name are Cadbury report(1992),
greenbury report(1995), hampel report(1998), combined code(1998), turnbull report(1999),
director's remuneration report regulations(2002), higgs report(2003), smith report(2003) and so
on.
 Examples of good and bad governance
Bad governance: An administrative scandal, during life of administration lead to
resignation. A report made by auditor general often get national attention what it
deserves. That time, auditors report handle to mix few interest as of terrific examples of
not good practices in around quarters, until now in fact, no administration has ever handle
to emission disapproval for lack of control in expenses of taxpayer’s amount. So, labour
party may somewhat reasonably turn its weapon on the nationalist administration for
some of limitations registered by auditor general.
4.3 Explain 5 basic principles of corporate governance
 Rights of shareholdersanges of corporates:
Structure of corporate governance should provides and protect activities of shareholders
rights. They have rights to take part and to be informed while taking decisions related to
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basic changes of corporates like articles of incorporations and so on. Opportunity is
provided to participate effectually and rights to vote in general meetings of shareholders.
 Equitable treatment of shareholders:
Framework of corporate governance assure equitable treatment of every shareholders
involving foreign and minority shareholders. Shareholders of same classshould be treated
equally. Prohibition for insider trading and offensive self -dealing. Executives and boards
members should reveal the matters which affects corporation.
 Role of shareholders in corporate governance:
Structure of corporate governance have to identify shareholders rights that is introduced
by mutual agreements and law. And also motivate cooperations among stakeholders and
company in developing sustainability, wealth and jobs. Their rights which is established
by law should be regarded and their interest are secure by regulation. permissions were
created for enhancing performance mechanisms for the participation of employees.
 Disclosure and transparency:
Corporate governance structure should assure accurate and timely disclosures of entire
matter related to corporations such as financial condition, ownership, governance and
situations company. It involves information about outcomes of company operations and
finance, their objectives policies and structures of governance. data should be revealed
with good and standard quality of non- financial and financial disclosure. An audit should
be accompanied by competent and qualified, independent auditor to facilitate objective
and external assurance.
 Responsibilities of boards:
Corporate governance structure assure the strategic supervision of firm, effectual
observing of management and board’s answerable for shareholders and company.
members of boards should behave on informed basis, with good trust care and diligence.
Their decisions effects various groups of shareholders in different way. They should use
good standard of ethics and also have responsibilities to fulfil the main operations.
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5.0 Task 2 Question2: Corporate social responsibility
5.1 Key terms
It is a kind of international private business-regulation. CSR is used to define organisational
efforts for the improvement of society. These efforts can start from donating money to non-
profits. To provide friendly environment policy in job it is essential for organisation workers and
non-profits. It provides benefits to business like: good recognition of brand, maximize
customer’s loyalty, Enhance organisational growth, easy to assess capital and so on.
5.2 Archie Carroll's Pyramid
Carroll’s csr pyramid is a structure that assist discuss why and how company should meet their
social duties. Some features of this pyramid are: it is made on profit foundation (Profit must
come first), after this business needs assure that it compiles all regulations and rules. Before any
company follow it’s philanthropic options they should require to meet its ethical responsibilities.
There are four responsibilities of Carroll’s pyramid. Every components of responsibilities
provide various stake holders in terms of the varying priorities that stake holders might be
effected
 Economic responsibilities: It is the most dramatically impact workers and stake holders
as enterprise is not viable financially. Both these groups are affected significantly. This is
the duties of BP plc to be profitable and it is the only process to leave and provides
benefits to society for longer period.
 Legal responsibilities: These are certainly essential with regard to owners but now a
days in litigious society. Litigation treats against enterprises that raise often from workers
and customer stake holders of BP plc. This is the duties which is to be followed by rules
and other acts of law. For example, competition, health and safety and employment
 Ethical responsibilities: This responsibility effects every group of stake holders. The
law suits of shareholders are an expanding category. When an evaluation of ethical issues
BP Plc faces which is considered now a day. They rarely include consumers environment
and employees frequently. It is the duties to behave ethically and morally. For example,
treatment of workers and suppliers.
 Philanthropic Responsibilities: This responsibility effect the non-profit business and
community also includes employees as some investigation has observed that BP PLC
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Philanthropic participation is essential and related to their workers engagement and
morals. This is the duty to facilitate back to the society. It is discretionary but still crucial.
Example: employee times on task, charity donation and so on.
6.0 CONCLUSION
For the above report it is concluded that innovation and technology are essential for every
organisation as it provide various innovative thoughts and ideas about the products services and
operations. Different innovations and technologies such as computer technology are used with in
company. The role of technological change in economic progress in UK. For example
unemployment and GDP. Over view of company and the impact of innovation and technology
on operations sales and profit within company. Also the knowledge about corporate governance
and its five essential principals. Corporate social responsibilities are defined and also discussed
about companies that are irresponsible in respect of society. And also use of CSR in BP plc. And
archie’s carroll model are applied in bp plc.
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