Theories of Innovation and Idea Generation for Cadbury's Dairy Milk Mystery Bar

Proposal
1

INTRODUCTION
Modernisation is an establishment’s procedure for announcing new ideas, services and
products in order to influence people and adopt changes. This involves improvement of existing
methods or practices that start from scratch. The environment is changing day by day, and it has
become important to introduce changes that could help to grow business and provide competitive
advantages. If there is lack of innovation and new products, then it could be challenging for
companies to regulate their business. The important task for organization is to analysis the
marketplace and bring innovative products that could help to attain higher performance. To
develop an understanding of innovation and idea generation to products Cadbury chosen, that is
British multinational confectionery company (Alqayed and et.al., 2021). This is second largest
confectionery brand in the World after Mars. This is internationally headquartered in
Buckinghamshire where it is operating their business in more than 50 countries. It is known for
its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery
products. The company is planning to introduce new product that is Dairy Milk Mystery Bar that
will be most likely by customers. Firm is focusing over innovative theory and concepts that are
used for managing the customers and attaining higher performance. The present report highlights
on theories on innovation and plan to launched that can help to develop the business
performance.
MAIN BODY
Theories of innovation and idea generation
Innovation is the new concept that is the creation of new idea and thoughts generated by
an individual for the purpose of introducing changes and managing work. This is the
involvement of creativity consider act of turning new and imaginative ideas into reality. The
management should have proper knowledge and skills in order to provide the better quality of
products and services. The main purpose of innovation is to build something new and attractive
that can help to attain higher performance (Kasirye, Radwan and Kreya, 2020). Cadbury is the
larger organization of UK whose management analysis the markets and introduces kind of
products that can help to influence number of customers and supports to increase productivity.
The company is using theories of innovation and idea generation defined below:
2

Schumpeter’s Innovation Theory
According to Schumpeter, modernization denotes to any dogma that a separate
undertakes to reduce the complete cost of production then increate the demand of their products.
This theory of innovation given by y Joseph. A. Schumpeter, who supposed that an industrialist
could earn economic profits by introducing successful innovations (Malerba and McKelvey,
2020). In other words, innovation the wider concept for entrepreneurs as it is used to improve the
organizational performance by adopting the changes. The innovation can be classified into two
categories:
The category first involves all those activities which reduce the overall cost of production
like as the introduction of new technique and method, which is being used by business concern
and supports to influence the number of customers. The category second of innovation theory
contain all activities which increases the demand of a product like as introduction of new
commodity or new quality of goods, the emergence or opening of new market, and finding new
sources that is used by business concern for the purpose of growing their business and attain
higher productivity. An entrepreneur can earn larger profits for longer duration by managing the
all functions and activities effectively (Chen, Han, and Qu, 2020). In relation to Cadbury,
management mainly focused over innovation where they introduce new products or chocolates
by changing taste that can help to attracts the larger number of customers and supports to
increase the organizational profits. Dairy Milk Mystery Bar is the new products of Cadbury after
Silk Mousse that can help to influence the number of customers in changing environment and
supports to increase sales. The management of such organization analysis the environment and
make decision to leave the organization that can help to attain the higher profits (Varshney,
2020).
Roger’s Innovation Diffusion theory
This theory refers to an innovation theory, provides a foundation for understanding
innovation adoption and the factors that influence an individual’s choice about an innovation.
The theory is broad in scope which is used by individual for the purpose of introducing new
changes and managing the business activities. This theory describes the pattern and speed at
which new ideas, products, and practices spread through a population. This is important to
individual to analysis the environment and comes to know what people wants and how they can
be satisfied in changing environment. The management should be focus over changes and then
3