Impact of Innovation and Technology on Business Operations, Sales, and Profit

This report examines the impact of innovation and technology on business operations, sales, and profit. It focuses on Spirent Communications PLC, a multinational telecommunications company, and explores how innovation and technology contribute to the progress of the economy. The report also discusses the significance of corporate social responsibility and applies Archie's Carroll's Model of CSR to explain its importance. Overall, it provides insights into the role of innovation, technology, and CSR in the business environment.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1...............................................................................................................................................3
1. Defining innovation and technology, examining its contributions in the progress of
economy of the country and describing its uses in the operations of business............................3
2. Impact of innovation and technology on operations, sales and profit in an organization.......5
Task 2...............................................................................................................................................6
A. Significance of Corporate social responsibility......................................................................6
B. Archie’s Carroll’s Model of CSR...........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is a term that explains the inter-relatedness and dependency of both
the external and internal factors on the business functions. In this report the study is conducted
on Spirent communications PLC which is a multinational telecommunications company of
British in the UK that is listen in the London stock exchange and it’s a constituent of FTSE 250
index. Organization provides all kind of testing services and has test equipment’s. The following
report will focus on various technologies and innovations that impacted the progress of economy
in the country and are helpful for the companies to grow their business and influence sales,
profits and operations within the organizations. The report evaluates the necessity of corporate
social responsibilities in the business environment and explains the pyramid of these
responsibilities by applying suitable theory.
MAIN BODY
Task 1
1. Defining innovation and technology, examining its contributions in the progress of economy
of the country and describing its uses in the operations of business.
Innovation is the introduction of implementing new concepts and ideas that include
launching the new products or carrying out some new combinations to attract a huge range of
consumers and produce new growth and profits for the company. Innovations are some small and
gradual improvements of current products, services and processes. They can be some business
models or technological inventions that are ground breaking and supports companies to
transform effectively and improve productivity. Innovations are the plans and procedures of new
ideas which are turned into action plans and are implemented and developed in businesses to
obtain success.
Technology is a process of studying and transforming tools, machines and techniques build
by human-beings and allow them to make evolvements in their regular lives. This is a skill,
process and ways used to acquire business objectives. Technology is very essential in this
present generation to access the various on-going improvements in both personal and
professional lives. It is major factor that a company needs highly because it is utilised for
everything to do new inventions and innovations.
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Telecommunication industry contributes in country’s economy to increase volume of GDP rates.
Impact of technology in the organization enhances the in sore experiences and maximizes the
convenience and allows consumers of Spirent PLC to browse different varieties in short term
period. Innovations and technologies are truly interconnected with each other because the rapid
growth in economy is acquired through the highest level of technology and the new concept of
innovations that make Spirent dissimilar than other competitors. Technological change is the
major and most necessary factor which is utilized to determine the rate of economic progress or
developments. Economic progress means maximization in the total productivity in the form of
technological advancements and makes possible efforts to produce much output with the same
resources. Technological change also maximizes the productivity of business capital and other
resources. These different choices open to up with economy and examine the productions input
mix. Progress in technology manifest itself in the modification of production function and
operates upon it by making various improvements like superior efficiency of Spirent
communications PLC its equipment’s and materials.
Innovations in an organization support to reduce cost and maximize competitiveness. It also
helps a company to improve value and brand recognition, maintain new relationships and
partnerships with economically developed organizations and improve profitability that increase
company’s turnover. Managing innovations and technologies balances, maintains specific ideas
that can impact company’s profile with expected efficiency in order to gain profitability. These
tools will quickly redefine and develop new strategies to adjust in emerging industries. It is
recognized that as the period changes there will be some more chances of getting fresh
innovative waves of opportunities. Telecom industry will make high operations and contributions
in providing unique conveyances to users. Industry will utilize hi-tech ideas like developing
existing E-commerce and bring services to consumers, Telecommunication industry will use
extra ordinary intelligence to develop and improve advancements to grow business. Using of
high technologies and online transactions will make consumers simple to transact (Holotiuk,
Pisani and Moormann, 2017). Modifications will impact environment in reviving all the old
concepts of communication industry and bring several changes and formats to gain confidence of
their consumers. Retail industries will adapt new shifts in demographic and preferences of
customers by considering these changes. Spirent communications PLC will make possible
improvements in operations and boost their sales by consumer centric approach. It will focus on
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making unique innovations, technologies and leveraging insights for developing new products
according to the current and future advancements.
2. Impact of innovation and technology on operations, sales and profit in an organization
Overview of company
Spirent communications PLC is huge test centre simplified for the testing of hybrid and
public clouds. It provides functions of network and emulates abilities through AWS marketplace.
The company supports organizations to accelerate their verification of products by delivering
improved CI/CO procedures. This is applied to simplify the network services which run AWS
and hybrid clouds that are private by its capability to run the endpoints in two domains
simultaneously and enables on-boarding of special networks like network protocol emulation.
Spirent communications PLC mission is to support its customer innovate very fast, user
experience that is flawless and minimize prices (Wiesböck and Hess, 2020).
Many leaders of industry choose Spirent PLC because it grows latest services and products with
automatic testing that accelerates time. It manages provider and vendor combinations to lower
complexity and cost. It is always ready to prepare security defences and make it harder to protect
organizations data from malicious cyber-attacks.
Influence of innovation on the operations of Spirent communications PLC were it helped
organization to focus and do responsible business practices and the scale of finance of the
combined group of Spirent communications PLC (Lee and Tang, 2018). It is a multi-format
telecom industry that adapts operating model to provide a key element of differentiation between
its own exclusive brands and provide flexibility according to the new concepts of innovation and
reshape, replenish its footprints to reflect the maximizing consumer requirements for immediacy
and convenience. Impacts of innovation on sales played a necessary role that accelerated uses of
services through online, visualization and telecom industry segments (Rantala, Kokkonen and
Hannola, 2020). It also supported organization to set up new technologies like click and collect
services to make transactions easy and accessible (Fartash and et.al, 2018). It also introduced
home delivery option to increase its sales. Innovations highly impacted on the profits of Spirent
communications PLC by the modifications and growth of market, its complexity, perfect
utilization of strength and assets to make economic developments, best practices to lead the
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business, improvements in enabling methods of cost reduction and supported it in making
various strategic plans (Gherghina and et.al, 2020).
Strong growth in profit before and after innovations
Its sales intake was 17% increased to 24% in a period of one year. Spirent PLC operating
profits was increased by 20% with its operating margin of more than 18%.
Task 2
A. Significance of Corporate social responsibility
Corporate Governance is the amalgamation of rules and laws in which the company is works,
regulates and controls. The term corporate governance encloses factors i.e. internal and external
factors that impact the interest of Corporate’s stakeholders (shareholders, customers, government
regulators etc). The company’s Board of Directors creates the framework of corporate
governance which best line up business conduct with objectives. Spirent Communication has a
good corporate governance structure that provides the advantage to everyone linked with
company by and ensures that company adheres to best practices, corporate law and ethical
standard. In UK, Corporate governance began in Cadbury Company regarding their finance and
it good showed good results by focusing on corporate ethics and as a result it was adopted by
many companies (Tilt, 2016). The main purpose of Spirent Communications was to follow this
practice carefully to make it more profitable. The corporate governance practice is very
transparent and company communicates about every policy to its stakeholders.
Importance of Corporate Social Responsibility –
Corporate social responsibility refers to when the corporate operates in ethical and sustainable
manner and deals with its social and ethical influence, which means carefully considering the
factors community, environment human rights etc. Discussed below outlines the significance of
CSR and its influence on Spirent Communication –
Spirent Communications Plc operates in a manner which that exhibit social requirements,
although practicing it is not a legal requirement, but company’s follows it as it is the good
practice which considers the social welfare and environmental issues (Advantage, 2020).
Company undertakes social responsibility an ethical practice because it is vital for its success, as
the consumers globally expects from the company and other corporate to run its operations
responsibly and address environmental and social issues.
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As the consumers are growing aware about the importance of social responsibility now they
actively watch out that which company is operating ethically and which is not and what is their
part of contribution towards society and they also prefer the company which actively does CSR.
CSR demonstrate that the Spirent communications takes interest in wider aspect not just in
maximising the profit margins. Through CSR, Spirent communications has improved its public
image as its brand is committed volunteer in charity events and in helping society, with help of
CSR company can improve its brand awareness in the public and by contributing more people
are conscious about as they hear from people who does mouth of word publicity for the company
and company gets recognition of its brand globally (Wang and Sarkis, 2017). It also helps in
gaining the advantage over rivals as Spirent communication now stand out in the telecom
industry of UK, it has establishes itself by being committed to ethical and social business
practice and considering factors. Spirent Communication uses social media platform and shows
its efforts by posting about their work and initiatives taken, as the user gets to know about the
company and there are good chances of them becoming customers and this results in increasing
customer engagement. CSR can benefit the company by making its workplace more positive and
productive, if the company promote activities like volunteering its encourage the employees and
helps in their professional and personal growth. So, CSR in every terms benefits the company
and Spirent communications Plc with its increasing growth should try to contribute more towards
environment and society which will help in building brand and goodwill in the market.
B. Archie’s Carroll’s Model of CSR
Commonly known as Carroll’s Pyramid of CSR produced by Archie Carroll, is the tool or
framework that assist argues on the feature that why corporate must meet up their corporate
social responsibilities. This framework emphasizes on four major responsibilities of the
corporate – Economic, Discretionary (philanthropic), Legal and Ethical (Carroll, 2016). Now-a-
days, it is awaited from the Corporate’s to come forward and perform corporate social
responsibilities towards several institutions and communities and do something for the welfare of
the society. Spirent Communications Plc is the telecommunications testing or network testing
company having its operations in various countries uses the Archie Carroll’s Model to perform
CSR through 4 dimensions –
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Economic Responsibilities – This is the most level of responsibilities in CSR pyramid and is
very crucial part of the company, as without succeeding in this no business can fulfil CSR.
Spirent Communications Plc has to meet the key responsibilities by making profit for all its
stakeholders. Company formulate strategies related to costs, process to sustain its business in
long run. Spirent Plc has also adopted such marketing practices and strategies which helps the
company to increase its customer base and generate more revenue and profits. It advertises itself
on the various digital platforms to attract the potential customers and also follows its economic
responsibility by giving employment to many people in different countries.
Legal Responsibilities – Spirent Communications have to abide by all the laws set by the
government of UK and the different governments in which the company has its operations and
follow all the rules and regulations in order to smoothly run its business as this is the part of
social contract. Company has to follow all the rules set by the government because the market in
which company exist and does its business is created by the government (Agudelo, Jóhannsdóttir
and Davídsdóttir, 2019). The laws ensure that the organisation doo not undertakes any unethical
practices and also regulates competition as it wants healthy competition in the market. Spirent
abides by all the laws does all its business practices legally and pay the taxes timely.
Ethical Responsibilities – The third level of Carroll’s pyramid is related with the societal aspect
this are not followed by all companies but Spirent telecommunication follows it as ethical way of
doing business practices. Management of Spirent Plc takes moral decisions because these
influence business environment of the company. Customers do mouth of word if they are
satisfied with the service that company provide and that benefits the company by increasing
more customer base and increased profitability and any negativity will damage the company’s
image. Spirent Communications do not involve in any kind of such practices which are against
the society or hurt the sentiments of society, it provides equal employment opportunity to every
eligible person and treats customers, employees equally.
Discretionary (Philanthropic) Responsibilities – This is top level of responsibility, corporate in
recent time are expected to give back, Spirent Communications contribute its part to
communities for its welfare which also helps in generating faith among the people(customers),
because its builds the idea that company is interconnected to its customers wherever they do
business. From the company like Spirent communication plc, citizens of UK expect that it will
pay fair share to the institutions and communities (Bhardwaj and et.al., 2018). Company’s pay
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contributes in the welfare of public by corporate tax, charities to women education institutions
and homeless children education and for their development as part of its philanthropic
responsibility. With its growth, Spirent communications has said to contribute more towards the
CSR because its creates the goodwill and positive brand image of the company.
CONCLUSION
The following report discuss about the influence of innovation and technology that has provided
benefits to Spirent Communications in reducing its cost because of the use such technology and
attracted many customers which has help in increasing its sales, maximise its profit and
contributed in its growth. This report further discuss about the corporate governance and its use
in Spirent Communications Plc and importance of corporate social responsibilities and how
Spirent Plc fulfils the corporate social responsibility with the implementation of Archie’s Carroll
model.
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REFERENCES
Books and Journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies, p.65.
Agudelo, M.A.L., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of the history
and evolution of corporate social responsibility. International Journal of Corporate
Social Responsibility, 4(1), p.1.
Bhardwaj, P., and et.al., 2018. When and how is corporate social responsibility
profitable?. Journal of Business Research, 84, pp.206-219.
Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility, 1(1), pp.1-8.
Fartash, K., and et.al., 2018. The Impact of Technology Acquisition & Exploitation on
Organizational Innovation and Organizational Performance in Knowledge-Intensive
Organizations. Eurasia Journal of Mathematics, Science and Technology
Education. 14(4). pp.1497-1507.
Gherghina, Ș.C., and et.al., 2020. Small and Medium-Sized Enterprises (SMEs): The Engine of
Economic Growth through Investments and Innovation. Sustainability. 12(1). p.347.
Holotiuk, F., Pisani, F. and Moormann, J., 2017. The impact of blockchain technology on
business models in the payments industry.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management
Science. 64(3). pp.983-996.
Rantala, T., Kokkonen, K. and Hannola, L., 2020. Impacts of Digital Twins-Significance from
Sales Perspective. In ISPIM Conference Proceedings (pp. 1-8). The International Society
for Professional Innovation Management (ISPIM).
Tilt, C.A., 2016. Corporate social responsibility research: The importance of
context. International journal of corporate social responsibility, 1(1), pp.1-9.
Wang, Z. and Sarkis, J., 2017. Corporate social responsibility governance, outcomes, and
financial performance. Journal of Cleaner Production, 162, pp.1607-1616.
Wiesböck, F. and Hess, T., 2020. Digital innovations. Electronic Markets. 30(1). pp.75-86.
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