Impact of Innovation and Technology on Sales, Growth, and Profit
Verified
Added on 2023/01/18
|11
|3295
|43
AI Summary
This document discusses the impact of innovation and technology on sales, growth, and profit in the business environment. It also explores the importance of CSR activities and provides an overview of Carroll's CSR model.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
BUSINESS ENVIRONMENT
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION...........................................................................................................................3 EXECUTIVE SUMMARY.............................................................................................................3 TASK 1............................................................................................................................................3 Impact of innovation as well as Technology and affect of it over the sales, growth and profit.3 TASK 2............................................................................................................................................7 Importance of CSR over the business.........................................................................................7 Carroll's CSR model (1991)........................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Business environment means aggregate of all the external as well as internal factors that influences the business. The internal as well as external factors can also influence each other along with work. Lloyds bank is a British retail bank which deals in financial services. The bank was founded in the year 1765. Founder of the bank is John Taylor, the bank is having head quarter in Gresham street, London (You. and et.al., 2019). Net income of the company is around 17.5 billion pound. The study will cover impact of the innovation and technology and its impact over the business including sales, profit as well as growth. What are the importance of the CSR activities will be studied in detail. Archie Carroll's CSR model is explained in detail where four factors affecting business will be studied in detail. EXECUTIVE SUMMARY The study will be conducted for the purpose of finding the technology over the business operation, profits, sales as well as growth. CSR activities as well as importance of the activities will be reflected for finding out whether the company should do investment in the CSR activities or not. TASK 1 Impact of innovation as well as Technology and affect of it over the sales, growth and profit. Innovation and technology Innovation means a new way of doing things, a creative idea for meeting the new requirements in the market. Innovation is more practical and can be termed as practical application of invention. Innovation will help Lloyds Bank by fast process in the work by increasing the productivity in the work (Budhwar, Varma. and Kumar. eds., 2019). Technology is practical application of knowledge of the science and includes the knowledge which will deal with the engineering, machinery and also equipment have been developed by applying the science of the engineering. Innovation and technology impacts the Lloyds Bank, as per the requirements of the company. If it is required for the communication then the communication will be cheaper as well faster. If it is concerned with the internet, then the internet will become fast and also cheap due to which processing will take less time and conversion of data from the internet will be faster. Lloyds Bank innovation such as Artificial intelligence will help the customer responding fast in which if the message is dropped in the site of the company then auto generated message will be
sent which will make feel that someone is there to answer the question. This will enhance the goodwill of the company by quick resolution of the queries and higher customer satisfaction. Impact of Innovation and technology over sales Technology will impact the sales by CRM (Customer Relationship Management), in which the management of the customer relationship is done. The system helps the Lloyds Bank by stay connected via CRM by which better customer services can be provided for the purpose of satisfaction of the internal as well external customers (Grenčíková, Kordoš. and Sokol, 2019). CRM helps in storing the data as well as activities of the customers by which the similarity of the product can be maintained when the customer visits again in the company. This will help the Lloyds Bank to pinch the relevant products which will help the company in up selling of the products. CRM model will help to have coordination as well cooperation among the marketing and sales team. The marketing team will be able to deliver the information of needs as well as wants of the customers and by knowing the needs as well as want of the customers the sales team will react accordingly (Boone, Kurtz, Khan, M.H. and Canzer, 2019). Automated targets are generated in the system on the basis of previous records of the sales team and then the product theypurchasedinterestofthecustomerswillbeanalysed,afterdoinganalysisproduct differentiation will be done.Innovation will help in quick online services in which the customer will be able to add products in the cart and the same can added to wish list. CRM will help the company to make purchase the customers' membership in which customers will be allowed to purchase products at the discount rate, but the sales will be increased due to it because there will be regular purchase of the product from the membership customers.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Illustration 1: indicates the auto generation of the targets for Lloyds Bank which also includes the deviation as well as Diversification in the sales. The analysis as per the CRM system also generated the prediction in the sales of Lloyds Bank (Lu, Wang. and Xu, 2019). Using digital marketing the company can reduce the cost of the marketing and target the audience from which higher revenue can be generated. The same message can be delivered to the targeted audience in more attractive way. There are various tools such as SEO which will help the company's website to rank at the top. This will increase the traffic of the company and the customer will think it is the most popular website and we should buy products from here only (Farr. and Bailey, 2019). SEM is a paid advertisement in which ads for the product is generated and link of the product is highly profitable will be shared, this will help the company in driving more sales to the customers. SMM is social media marketing by which the audience of the Facebook, Instagram and various other platforms can be used for the purpose of gathering the relevant audience. There are various tools such in social media such as sharing stories to pinch the customers, running campaign, videos and graphics (Quinlan. and et.al., 2019). For example if Lloyds Bank has to deliver the product of Fixed Deposit then the company can target the audience from the old aged group and can bring higher conversion of the customers. As per the Illustration 1: it is also mentioned at the green area that using innovation what can be the sales of Lloyds Bank in 2015. Impact of innovation and technology over growth Illustration1: Innovation impact over sales and target
There are three steps in innovation and growth and include innovation, productivity and growth. Using innovation the growth of Lloyds Bank is possible by using advanced technology and training of the same given to the employees. If the employees are better in performing the task then it will lead to automatically increase the performance of the company and this will reflect the growth of the company. The growth of Lloyds Bank is possible by reducing the cost of the company and due to which the profit of the company will increase and the same can be invested in the growth of Lloyds Bank (Hassanien. and Dale, 2019). Updated technology can bring more production of goods as well as services, due to which the sales of the company will increase because of the fast delivery of the products to the customers. Using the technology the company will be able to minimise the wasteful activities and will focus on productive activities. This will save a lot of time as well as money for the company. Technology will bring advance featured infrastructure which will make the work easy and simple this will lead to increase in the growth of the Lloyds Bank. Innovation and technology impact over profit Innovation will lead to save a lot of cost and also will help the Lloyds Bank in doing work in much better way. Innovation will bring new technology which will increase the comfort of the customers and this will give an advantage to the customers due to which more sales will be possible and the same will bring profits to the company. Using innovation will bring minimum faults and will help in bringing optimum results and the same will lead to bringing profits for the company. The process of resolution of the queries of the customer will be reduced by innovation and due to which the satisfaction level of the customers will increase and the same will reflect profitability of the company (Aydiner. And et.al., 2019). Innovation is based on long term focus so there are higher chances that Lloyds Bank will be able to achieve profits for longer period and managing the cost of the products for long period. If there will be fast delivery of the product and fast processing time of depositing cash then the same will bring in more cash and more business which can be of having higher FD, RD and Mutual fund. This will allow the Lloyds Bank to invest in various instruments in the market from which profitability of the company can be increased. The cost of borrowing can be overcoming by the company to increase the profitability of the firm using advanced technology.
TASK 2 Importance of CSR over the business Corporate social responsibility plays a very important role in the brand value of the company in which the value of the company will increase if the company do more CSR activities. CSR activities involves activities for the betterment of the society. Importance of CSR is explained by following points: Brand awareness increase If the Lloyds Bank is committed to the ethical practices this will increase the news among the audience. More people will hear about the company and they will be ready to invest in a company which has done better for the society (Ali. and Khan, 2019.). If the brand awareness will increase the goodwill of the company will automatically increase. Cost saving CSR activities will save a lot of cost as the same activities will be driven by CSR activities which are related to business. For example if the CSR activities is towards awareness of the people to digital because till will promote less cutting of the tress and the same will lead to less environment pollution as well as less global warming. Due to which the paper cost of the FD or RD printing will be saved and this will lead to increase in the profitability of the company. Advantage over the competition People will prefer a company more who is more socially active rather than the company who had done nothing for the society (Reisinger, 2019). If the products provided by Lloyds Bank are e co friendly then the same can be promoted using CSR activities and this will work in two ways by gaining competition advantage due to affective advertisement and helping the environment protection. Customer engagement increase Sustainable systems is used in the company for the CSR activities by sharing over the social media as well as over blogs and website of the CSR work done by the company will increase the customer base. Even the good work done by Lloyds Bank can be shared with the news channel which are local as well as international will involve more engagement of the customers. Cost advantage CSR activities will reduce the cost of the Lloyds Bank by gaining the subsidies of the government in which the government will provide concession in the tax from which the
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
profitability of the company will increase (Klepac. and Berg, 2019). The profits then can be used in the investment of the growth of the company. Benefits to the employees Employees will feel more comfortable with the company indulged in the CSR activities rather than the one not indulged in the CSR activities. This will increase the public image in the mind of the employees and this will bring positive impact of Lloyds Bank by creating positive environment in the company (Dwyer. and Hopwood, 2019). The employees will also play active roles in the participation of the CSR activities and this will give promotion of the CSR activities and due to which betterment of the society as well as environment of the world will increase. Increase in the sales as well as loyalty of the customers Increase in the sales can be possible by CSR activities in which the company can increase its budget for the sales relating with the CSR activities (You. and et.al., 2019). This will increase the customer loyalty and due which the old customers can be retained in the company for the purpose of driving more products and generation of more revenue from the customers. Maintaining good relationship with the local body CSR activities will make a good reputation in front of the local government and this will lead to ease in doing business as the local government will quickly agree about the demands of the Lloyds Bank (Budhwar, Varma. and Kumar. eds., 2019.). Maintaining good relationship with the local body will allow Lloyds Bank to consistently grow in the market without any deviation. This will bring consistent profits for the company and the same can be invested in the growth of the company which will help the company investment in various required fields. Carroll's CSR model (1991) Dr. Archie B. Carroll identifies four areas that includes CSR activities in the form of pyramid and the same are legal, economical, ethical and philanthropic (Grenčíková, Kordoš. and Sokol, 2019.). The focus is to lay down light over the business responsibilities over the stakeholders of the company. Legal factors As per this factor Lloyds Bank should be absolutely legal and should not indulge the company in dirty game playing. If the company follows the regulations of the law the same will bring image of truthfulness of the company where the customer can trust the company and easily ready for the investment in the company (Boone, Kurtz, Khan. and Canzer, 2019.). If the company is
indulged in illegal practices then the same can lead to shutting down of the company or creating contingent liability for the companywhich can cause loss to the firm. If the company is penalised or legally banned then jobs of thousand and millions of people will be affected adversely and this will negatively impact the image of the Lloyds Bank. Economical The Lloyds Bank should also be economical responsible parallelly with the making of the profits. Lloyds Bank should provide return on investment to its stakeholders as well as owner. To help the economic development the company should focus on creating job opportunities, innovative production process and effective marketing tools. Ethical Other than law following it is also important for Lloyds Bank to do ethical practices which involves management of the waste, consumption, as well as recycling and reuse. Apart from all these the company should do advertisement which are based on truth and fake advertisement should be avoided (Reisinger, 2019.). Ethical workplace will lead to creation of the good image in the minds of the employees where they can work and the same will help the employees work more enthusiastically and with the satisfaction in mind they are working in a nice organization which cares of the development of the society. Philanthropic There are various philanthropy activities such as donations, charity, running food campaign etc. All these activities should be done by the Lloyds Bank in order to promote social welfare of the society. Lloyds Bank should focus on donation as this will impact in two ways by reducing the cost of the product by reduction in taxes along with improve brand image of the company. CONCLUSION As per the study it is concluded that CSR activities plays a major role in the development of the company in which it creates a positive image in the minds of different stakeholders by doing good to the society. CSR activities can be used for the purpose of advertisement and boosting the image of the company. CSR activities help the company achieving higher sales, higher profits and higher growth in the company. The theoretical model is also necessary to apply for the purpose of relating the theoretical aspect with the practical aspect.
REFERENCES Books & Journals You, K. and et.al., 2019. Bridging technology divide to improve business environment: Insights from African nations.Journal of Business Research.97.pp.268-280. Budhwar, P.S., Varma, A. and Kumar, R. eds., 2019.Indian Business: Understanding a rapidly emerging economy. Routledge. Grenčíková, A., Kordoš, M. and Sokol, J., 2019. The Approach to Industry 4.0 within the Slovak Business Environment.Social Sciences.8(4). p.104. Boone, L.E., Kurtz, D.L., Khan, M.H. and Canzer, B., 2019.Contemporary business. John Wiley & Sons. Lu, Y., Wang, H. and Xu, X., 2019. ManuService ontology: A product data model for service- orientedbusinessinteractionsinacloudmanufacturingenvironment.Journalof Intelligent Manufacturing.30(1). pp.317-334. Farr, M. and Bailey, D., 2019. Uniting business continuity management and operational risk management.Journal of business continuity & emergency planning.12(4). pp.294-300. Quinlan, C. and et.al., 2019.Business research methods. South Western Cengage. Hassanien, A. and Dale, C., 2019.Hospitality business development. Routledge. Ali,M.S.andKhan,S.,2019.OrganizationalCapabilityReadinessTowardsBusiness Intelligence Implementation.International Journal of Business Intelligence Research (IJBIR).10(1). pp.42-58. Aydiner, A.S. And et.al., 2019. Business analytics and firm performance: The mediating role of business process performance.Journal of Business Research.96.pp.228-237. Reisinger, C.P., 2019. Development and Implementation of New Business Area “Informatics”. InDie Blue-Ocean-Strategie in Theorie und Praxis(pp. 265-273). Springer Gabler, Wiesbaden. Klepac, G. and Berg, K.L., 2019. Proposal of analytical model for business problems solving in bigdataenvironment.InWebServices:Concepts,Methodologies,Tools,and Applications(pp. 618-638). IGI Global. Dwyer, J. and Hopwood, N., 2019.The business communication handbook. Cengage AU.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser