Business Environment and Corporate Governance

The provided document discusses the significance of modern technology, innovative ideas, CSR (Corporate Social Responsibility), and Corporate Governance in a company's success. It highlights how these factors can help uplift a firm's position in the global market, maximize cost, and fulfill customer expectations. The analysis emphasizes the importance of business environment, corporate governance, and social responsibility in sustaining a company's growth and performance.

Business Environment

Table of Contents
INTRODUCTION: .........................................................................................................................1
TASK 1............................................................................................................................................1
1. Define innovation and technology ........................................................................................1
How innovation and technology have contributed to the economic growth of the country. ....2
2. Discuss how business organisations uses new technologies in their daily operations ..........2
The new technologies used by the Britiv firm. ..........................................................................3
Compare the before and after sales and profit of a firm before and after using new
technologies. ...............................................................................................................................4
.....................................................................................................................................................4
..........................................................................................................................................................5
Comment of findings:.................................................................................................................6
TASK 2 ...........................................................................................................................................7
1. Explain corporate governance. ...............................................................................................7
Detailed explanation of UK Corporate Governance with examples. .........................................7
Explain 3 or 4 responsibilities of the Board of Directors. ..........................................................8
2. Corporate social responsibilities (CSR)..................................................................................8
Studying of four areas of CSR as identified by Archie Carroll.................................................9
Conclusions:...................................................................................................................................10
REFERENCES................................................................................................................................1
Books and journals......................................................................................................................1

INTRODUCTION:
Business environment can be explained as all external and internal factors which affect
the smooth functioning of the organization including customers, employees, suppliers, demand ,
management and business regulations. In the given report there are two types of companies
including Britvic plc and Brewin Dolphin. Britvic plc is a British soft drink firm located in
Hemel Hempstead. Whereas Brewin Dolphin is the largest British financial planning and
management investment firm holding around 39 officies across the globe. The CEO of the
company is David Nicol and was founded in the year 1762, located in London, United kingdom.
This report include meaning of technology, innovation and corporate governance and how they
contributed to the firms growth and success. Business previous and current sales and profits are
compared to examine the sales and profitability ratio in these years has raised or not (Bah and
Fang, 2015). Firm also focus on Uk governance in detail as well as some of the responsibilities
done by the board of directors.
TASK 1
1. Define innovation and technology
Innovation can be defined as a process of translating of thoughts, idea and new
imagination into services or goods which is able to create value or that value which consumers
will pay top the seller. There are three types of innovation which are: product, business model
and process innovation. It includes deliberate application of innovation, various values from
resources and imagination that includes all steps by which new ideas can be generated and can be
converted into meaningful or useful product or services for the customers. In business innovation
results when idea or thoughts are applied by the firm in order to satisfy the demands,
expectations and need of the customers.
Technology can be explained as collection or allocation of methods, skills and processes
which are the results of scientific knowledge put into practical use to solve problems. Computers
and internet are the examples of technology. Some of technologies are sensors,industrial
machines, medical technology,space, robotics etc. Firm or general public uses technology to
upgrade it's current position to one level up so that work gets easier and faster as well as best
outcomes can be seen (Charter, 2017). In the era of 21st century technology is used in every
sectors like, education sector, health and care sector etc. to improve the standard of living as well
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as to protect the data, other proprietary information and confidential documents That leads to
competitive advantages. In other words it can be said that technology helps business to keep their
ideas or thoughts away from competitors.
How innovation and technology have contributed to the economic growth of the country.
Contribution to GDP growth: Many findings have confirmed the positive effect of ICT
on growth for example: 10% increase in broad band penetration is directly related with 1.4%
increase in GDP growth in the raising market. The use of 3G connections has uplift the GDP per
capita rate globally by 0.5% as well as company Britvic generates revenue of £117.1 million
which has indirectly raised the GDP of the country.
Direct job creation: In the year 2012 Britiv purchased largest cider maker in US which
provide huge number of job opportunities to many of the unemployed people. Example: In Us
alone, information technology and computer jobs are expected to grow 22% upto 2020 and is
able to grow 758,800 new jobs which indirectly raised the gross GDP of the country (Georgescu
and Popescul, 2015).
Business Innovation: Internet has served many job opportunities to across the globe and
become a powerful marketing tool. Example: In OECD countries around 95% business are
online and provides new ways to reach out the customers to capture the market ratio.
2. Discuss how business organisations uses new technologies in their daily operations
Britiv PLC has been benefited by the use of modern technologies in their daily operations are as
follows:
Faster comprehensive communications: Modern technology helps firm to share
relevant information with the help of internet and email, faster to its team or customers as well as
made product or services move quickly across the globe. It also helps to save time and money of
the firm and helps the organization to grow in the market with the help of modern technology.
Increased use of the cloud: Innovation of the technology CLOUD has made work easier
and faster for Britiv company as data and confidential documents can be saved on the app and
can be use4d at any point of time as and when needed.
New Communication technologies: Continuous innovation in technology is rapidly
benefiting the firm Britiv firm as it makes easier and more effective speakers, coaches and
executives of every kind make virtual presentations anywhere across the globe.
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The new technologies used by the Britiv firm.
3D printing: Britvic is British soft drinks company if firm use the technology of 3D
printing in its product it will help to raise the sells ratio in the market (Hamilton and Webster,
2018). Customers are more attracted to the 3D printing as it is quick and easy way to build
something from nothing. Business will be benefited as it gives opportunity to taste something
new and innovative as well as gives a chance to make error before prototype is created.
Wearables: If Britvic company uses the technology wearables it will help to capture
more market ratio in the global market as well indirect sells of the soft drinks will be raised. It is
big opportunity to encourage healthy lifestyle of employees by supplying them with fitness
trackers. This will help the employees to work more effectively and goals can be achieved on set
time duration.
IoT in the enterprises: This helps the company Britvic to capture a huge range of
customers as it provides advantages of connected sensors and camera to keep eye on the
productivity and efficiency. This technology helps the firm to make less omission in the work
and free employees to focus more on applying data so that sells ratio can be raised tremendously.
Compare the before and after sales and profit of a firm before and after using new technologies.
Interpretation: Britvic has observed increment in their nest revenue due to implementing
digital technologies within an organisation as if compared the year 2017 with the year 2016.
Thus, it brings more profitable result to company for the decision taken regarding
implementation of digital technology. It brings motivation among the management of Britvic to
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regularly update their technologies so as to bring company ahead than their rivals in terms of
profitability and market position.
When the firm was not using technologies the total income of the firm was 111.6 as per
the 2017 data and the current assets of the organization was 572 but when the company is using
technology the total assets of the firm is 1,634.4 and total equity is 2810. this shows that by using
technologies firm earn more amount of finance which help the firm to grow and expand(Hillary,
2017).
Comment of findings:
When the firm is using new technologies than the income of the firm increases which leads the
firm to grow and survive in the international market. Modern technology helps the firm to spread
its product and services across the globe. This leads to effective and efficient outcome in the near
future. Whereas if the firm is not using technologies than the net come is less which restrict the
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firm to grow in the market as well as growth and expansion is restricted due to outdated
technology. Both the organization Britvic and Brewin Dolphin should use modern technologies
to meet the upcoming needs of the customers in the dynamic environment.
TASK 2
1. Explain corporate governance.
Corporate governance means set of practices, processes and rules by which a
organization is guided and controlled. It involves balancing the interest of a firms stakeholders
like, customers, financiers, suppliers and community. There are various elements of good and
efficient governance are transparency, equity and inclusiveness, accountability, effectiveness and
efficiency etc. Corporate governance is based on four pillars which are, assurance, leadership,
accountability and fairness (Ketata and Grimpe, 2015). Brewin Dolphin Plc corporate
governance follow all the rules and regulations so that smooth functioning of the business can be
done in the market. It follows all the norms set by the governing bodies while carrying out the
business in the international market. Brewin Dolphin follow all the pillars like, accountability,
fairness, assurance etc. so that they can bind customers for longer time duration.
Detailed explanation of UK Corporate Governance with examples.
20 Year ago the word governance barely existed but in the era of 21st century corporate
governance not only commonly used in companies but also widely used in universities, local
authorities, charities and national health. It has become the second hand of the firm is run which
specially focus on its integrity, risk management and accountability.
The revolution of the corporate governance came in the early 1990s with the Brewin
Dolphin Plc report on financial aspects of governance which was attached a code of best
practice. Brewin Dolphin Plc code was gradually adopted by the stock exchange and city as a
benchmark of good food practice. In the year 1995 Greenbury report added a set of remuneration
of directors and again in the year 1998 the Hampel report produced the first combined code
(Khan and Quaddus, 2015). Again in the year 1999, the Turnbull concentrated on internal
controls.
In 2002 Derek Higgs, an investment banker was given detailed brief to look again at corporate
governance and build reports on the previous details . In very time duration Enron and scandals
were realised leading to new unease. In the year 2003 the report of Higgs came out and was
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greeted with horror by most of the leading top firms with claims that it place non executives and
unrealistic burden marginalised the role of the chairman. In the year 2003 code was updated with
minor changes in June 2006, with the new version applying to financial years on or after 1st
November 2006. The task of taking Higgs's draft forward was moved to the financial reporting
council(FRC)a body established by the governing bodies and members from professions,
industry and commerce. The FRC was consulted and later on it was revised code that followed
many of the recommendations of the Higg's but also melted few of the more contentious points
and was able to take general acceptance(Kolk, 2016).
Explain 3 or 4 responsibilities of the Board of Directors.
Board of directors means a group of people who together examine or supervise the
activities of an organization either can be for non profit organization, profit firm and a
government agency. Brewin Dolphin Plc board of directors carry out certain roles and
responsibilities for the upliftment of the business in the cut throat competitive world. They play a
vital role for making the businesses successful in the global market. Board of directors are
responsible for the success and failure of the business in the global market. The various
responsibilities of Board of Directors for Brewin Dolphin Plc company are explained as follows:
1. Suggesting proper strategic guidelines to Brewin Dolphin Plc firm which includes
tributary to the development and approving corporate strategy.
2. Revaluation and approving business blueprint, financial plans and annual budgets
including available resources and major finance expenses initiatives of the Brewin
Dolphin Plc (Virglerová and Vojtovič, 2016).
3. Checking that there are effective management process in Brewin Dolphin Plc and
approving major corporate initiatives.
2. Corporate social responsibilities (CSR)
Corporate Social Responsibilities means that it is a type of international private self
regulated business who take responsibilities for social activities and environment related issues.
It is commonly known as corporate sustainability, corporate conscience, corporate citizenship
and sustainable business as well (Laudon and Traver, 201). This is generally known as private
organization policy and mostly align with and be integrated into business models to be successful
in the market. Here are some of the benefits of corporate social responsibilities to companies as it
provides positive business reputation and recognition, increase sales ratio, raise customers
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loyalty and uplifts brand recognition in the global village. This is need to follow by the business
associates to demonstrates that business takes interest at a wider social issues rather than only
generating profits. Here are some of the examples of corporate Social Responsibilities which are
as follows: improve labour policies, embrace fair trade, decrease carbon footprints to mitigate
dynamic climate changes. Brewin Dolphin Plc contributes in CSR activities by providing wealth
management services in the society so that improvements can be done ion the near future. It one
of the largest charity investment in the UK and Ireland. It provides charities of £3 billion for
more than 1,600 charities and helping them to manage their obligations and work towards the
betterment of the society. Firm also hosts many events across UK and are in touch with lawyers,
accountants etc. who share creative ideas to uplift the society. This is a continuing commitment
by business associates to behave ethically and contribute to the economic development by
increasing the living standard of the customers as well as their society. This is titled to aid an
business mission and goals as well as serve guidelines to what firm represent for its customers.
The recognised standards of corporate Social Responsibility is ISO 26000. It is globally accepted
that with similar principles CSR is suitable and has attracted attention from huge business and
stakeholders. Business person states CSR as business strategy, government members may view it
as voluntary regulation and NGO activities may view it as greenwash.
Studying of four areas of CSR as identified by Archie Carroll.
CSR (Corporate Social Responsibility) is a modern formulation in which companies take
responsibility for social environment and environmental impacts on their day to day
functionings.Carroll's Pyramid of CSR can be explained as follows:
Economic respomsibilities: Brewin Dolphin Plc has certain social responsibilities
towads there society and environment by their support the firm is running and surving in the
market (Makarova and Polyanin, 2015). There are four types of responsibilities which
organization need to follow are ethical business pratices, focus on economic responsibility, direct
philanthropic etc. Propfits are important to grow the business in the global market buit at the
same time corporeate social responsibilities is also important to sustain in the market. Virtually
all economic systems of the world recognize the importance of firm generating profits.
Legal responsibilities: To run the soft drink Brwwin dolphin Plc firm successfully
across the globe legal responsibilities need to be followed bny the organization to be free from
gvernment interferance in their working. Here are some of the legal responsibilities that need to
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followed by the business associates Brewin Dolphin Plc which are as follows: complying with
distinguished state, local regualtions and federal, conducting business as law abiding corporate
people, completing all the legal norms to socail; stakeholders, providing quality and quantity
products and services to meet minimal requiremwnts and performing in appropriate sequence
with expectations of government policies and regulations.
Ethical Responsibilities: To be successful in the market Brewin Dolphin Plc need to
performm all the ethical responsibilities to sustain in the global village. Taking on ethical
responsibilities implies that business will focus on those activities , standards, partices and norms
that are even not codified into law. Firms another ethical expectations is that business will
conduct all fair partices nothing illegal activities are not conduted while functioning the business
activities (Prajogo, 201). Here legal expectations are based on ethical premises. Some of the
ethical responsibilities are as follows: recognize business intergrity and ethical behaviour move
beyong with laws and ploicies, preventing ethical norms from compromised helps to achieve
business targets accordingly, examing and respecting all norms, policies, regulations and rules
adopted by the society.
Philanthropic responsibilities: Corporate philanthropy embraces organization voluntary
activities which help the Brewin Dolpphin plc to sustain in the market for long timr duration. It is
not excepted by the organization but as it is a part of the corporate social responsibility so it need
to followed by the firm so that government interferance does not take place while functioning the
business operations. But in todays world customers want that Brewin dolphin plc need to
perform all the activities of corporatev socail responsibilities so that sense of security and safety
can be guranteeded (Raziq and Maulabakhsh, 2015).
Conclusions:
As per discussed above organization uses modern technology and innovative idea it will uplift
the firm in the global market as well as cost can be maximized. Modern technology helps the
firm to run smoothly and customers exceptions can be fulfilled accordingly. CSR helps the
organization top sustain in the market to fulfill all the social responsibilities as well as Corportate
governance helps the firm to run smoothly without any government interferance. Archie Carool
is used by the board of directors to flourish the buiness in the market and trgrtrd goals can be
achieved accordingly.
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REFERENCES
Books and journals
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
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.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Ketata, I., Sofka, W. and Grimpe, C., 2015. The role of internal capabilities and firms'
environment for sustainable innovation: evidence for G ermany. R&d Management.
45(1). pp.60-75.
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.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Makarova, Y. L. and Polyanin, A.V., 2015. Formation of the business environment in the
agricultural sector. Вестник аграрной науки. 53(2).
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Raziq, A. and Maulabakhsh, R., 2015. Impact of working environment on job
satisfaction. Procedia Economics and Finance. 23. pp.717-725.
Virglerová, Z., Dobeš, K. and Vojtovič, S., 2016. The perception of the state’s influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
Public.