Identify and Implement Business Innovation

This document provides insights into the importance of business innovation and strategies for identifying and implementing innovative practices. It covers topics such as market trends, customer preferences, internal processes, benefits and risks of innovation, leadership, risk management, opportunity identification, creating a culture of learning, and employee engagement. The document also includes case studies of successful businesses and their innovative practices.

IDENTIFY AND IMPLEMENT
BUSINESS INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Assignment 1...................................................................................................................................4
1....................................................................................................................................................4
2....................................................................................................................................................4
3....................................................................................................................................................4
4....................................................................................................................................................4
6....................................................................................................................................................5
7....................................................................................................................................................5
8....................................................................................................................................................5
9....................................................................................................................................................6
10..................................................................................................................................................6
11..................................................................................................................................................6
12..................................................................................................................................................6
13..................................................................................................................................................6
Assignment 2...................................................................................................................................7
PART A.......................................................................................................................................7
A. .................................................................................................................................................7
B. .................................................................................................................................................7
C...................................................................................................................................................7
D...................................................................................................................................................9
E...................................................................................................................................................9
F.................................................................................................................................................11
G. ...............................................................................................................................................12
H.................................................................................................................................................12
I..................................................................................................................................................14
PART B..........................................................................................................................................14
A.................................................................................................................................................14
B. ...............................................................................................................................................14

C.................................................................................................................................................14
D.................................................................................................................................................14
E.................................................................................................................................................14
PART C..........................................................................................................................................15
Ability to meet the business objective with the help of changes made in business...................15
Part D.............................................................................................................................................16
Role Play....................................................................................................................................16
REFERENCES..............................................................................................................................19

INTRODUCTION
MAIN BODY.
Assignment 1
1
The marketing problems of business and customer face from external source which
include periodical and newspaper, government publication and reports, trade associations and
foreign government and international agencies which shows the informational data of market and
customer demanded. For example: Economics times include financial data, capital market, stock
trading (Jacob, Boyd 2020).
2.
The external source are Competitor website, annual report, social media tools and of
competitor that are using as a strategy. Example: How social media marketing are uses by the
competitor to reach new market, Competitor website shows tremendous insight and data base
shows the reliable data of stakeholders.
3.
The internal business process, system and efficiency can be known through Marketing
sales team, customer support team and general management. Where Marketing team denote the
efficiency of company to promote product, customer support shows the feedback and general
management shows the overall company performance in market.
4.
Internal sources of information about business markets can be known through customer
trend shows the demand for the product in market and competitor business method can know
through marketing methods used by them. Demand can be known through size of market and
marketing methods can be seen on website or social media.
5.
A. It helps the company to go with Cost effective and increase the profit margin for long
term goal.
B. It helps to build the relationship with customer and make reliable and loyal customer
for longer term.

C. The four type of cost that implement with new business are Direct cost, Indirect cost,
Operational cost, Opportunity Cost.
D. The four benefits are rewards, being your own boss, income and flexible hours for business.
E. Legal issue are arisen from government side, Security issue arise for employees or
customers, ethical issue are code of conduct.
F. Three Metrics are Break even point which shows company is at zero level where no
profit nor loss has been occurred in financial year, leads generation and leads converted shows
data that is enquired about the product and converted them to make purchase, net income ratio
shows net profit of the company earned.
6.
 Improve Productivity of the business that is by increasing the efficiency in employees
and management. Ex. Less time-consuming process.
 Reduce cost of business and leas to increase in profit margin. Ex. Adopting the latest
technology for production.
 Brand value of the company increased by adopting innovative technology and methods
like social media which also gain trust through reliable sources.
 Partnership with other companies lead to growth of company who also want to use
innovation in their organization Ex. Vodafone and Idea.
 Increases turnover and profitability with the innovative products in the market. Ex Apple.
7.
A. Through leadership employee negativity reduced were leaders motivate employee to achieve
the target and with efficiency working (Min, Han, 2017). This reduces the stress and negative
vibes around the employee for working.
B. Creating culture of learning help the employee to work for organization and learn innovative
things to build their career and skills in specific field.
8.
Organization have adopted the changes as the environment is dynamic. This changes brings
some risks which are Resistance is a conman factor of risk which are not acceptable by
employees but can be eliminated through bring changes slowly and step by step. Leadership is
required when changes are adopted in the company. Leander can reduce chances of mitigate by

employees through motivation and training. Forcing changes is another form of risk where
management and employee should be understood of required change and can be reduced by
acknowledge them for change in all levels for need of change.
9.
Key steps are Identified risk by anticipating the pitfalls of management, analysing the risk factors
that how deeper effect on management, prioritize risk shows impact which risk effect most and
which effect the least, Treatment of risk to solve them and Monitor risk by communicating with
stakeholder and monitor the potential risk.
10.
Market size of product and demands for product in market, Relationship with the customer and
make them loyal by gaining trust which build strong relation between consumers and business,
Ability to mange cash flow of the business that run smooth and managed, whereas Management
skills set help to maintain position in market (Mishan, Quah, 2020).
11.
Effective recruitment and selection of employees for the success and growth of company.
Retention of quality employees to grab the business opportunities and employees training and
development should be given to them to achieve the target goal of the company.
12.
Identifying opportunities for creating new strategies: Business should identify the
innovative opportunities that can give them benefits for growth.
Sequencing Opportunities: Prioritizing opportunity is the best way to find success for any firm
Testing new plans: Testing made the company assure about their innovation.
Build support innovative plans: Building support from several plans help the company to assure
about its plan (Antikainen, M and et.al., (2017, April)).
Learn from Innovation efforts: learning to become easier from trials.
13.
Make your intentions clear- making plans became more important when it comes to
strategy development. Initiate- starting from begging is very essential think about the process -
which you are willing to carry forward.

Assignment 2
PART A
A.
Pesto currently offer fast food meal which was served for years without any innovation in their
menu which offers traditional and obscure Tuscan recipes that are not offered by every Italian
restaurants. The menu also offers meat, vegetables, cheese and variety of olives and olives oil
and average spending of Pesto is $25. While customer preference are declining in fast food
sector and moving towards healthy organic food. As the restaurant emphasize the organic
ingredients that are directly sourced from Italy, where customer just want Pesto to add healthy
and casual dining at the restaurant. Whereas business trends are changing in the country and
Pesto is affected very much as the consumers average spend for dinner is $15.20 while dining at
Pesto average per person is set to be $25 which lead to customer lead to shift to other restaurants
due to price. Also, the demand for Italian food is also declining so dinning at Pesto will be less
preferable by the locals. Hence, Pesto offers a traditional form of food and need to be updated
from trending market and demands of customer (Nemeschansky, 2020). Also, Pesto is capable to
meet the demand of market through offering of ethnic ingredient and organic meat for the
consumer which are highly preferable by healthy people.
B.
The traditional culture which was followed by Pesto that they are offering the fast food to
customers which included the meat, vegetables, cheese olives and olive oil which was not a
healthy food. They also offer only Italian cuisines which was slowing declining in trends. But
include Tuscan and Ligurian cuisine for the Australians which was served by few restaurants
only. Pesto should change some of their traditional culture to cop up with new trends in the
environment which are healthy and ethic culture of food instead of fast food they should convert
it to organic healthy food with fine dinning at place. As they just have to modify their menu and
focus more on healthy food by using of organic ingredient and meat which was using earlier.
C.
The two most acclaimed restaurant in the metro region around Australia is Cha Char –
Eagle St. Pier and the Otto Ristorante.

Restaurants Marketing and
customer retention
Business relationships Business methods or
USP
Cha Cha Char –
Eagle St. Pier
 Provides high
quality meals
to its
customers.
 Offering
pleasing
ambience and
offering
discounts.
 It timely makes
use of the
technology to
provide as
reminder to
communicate
with the
suppliers in
time and
establishing
better relations.
 The main USP
of it is the river
view it
provides to its
customers
which adds to a
proper
ambience (Cha
Cha Char.
2020).
 Specialized in
quality food.
Otto Ristorante  It offers valued
offers and
discounts to its
customers
which helps in
retaining them.
 It
communicates
its customers
about the
special events
or the prices
put on for a
special
occasion in
order to make
 It maintains a
good relation
with its
suppliers
across the
different
locations
which helps
them in
grabbing stuff
at the
reasonable
price and at
first the fresh
and healthy.
 Specialized in
high quality
Italian food.
 Attractive
décor and
ambience.
 Suitable for
organizing
various events
and occasions
(About Us.
2020).
 Official
website for
getting order
and offering

them informed
and remain in
their mind.
information.
Based on the above, it can be analysed that the Pesto’s is being lacking behind in terms of
providing a new environment which the customers are more looking towards. The restaurant
failed to identify the change the customers taste and preferences which resulted into its
operational inefficiencies. Therefore, the two major inefficiencies are the type of meal that
customers wants and the ambience.
D.
Determining innovative practices.
The Pesto’s can implement the three innovative approaches which will help in grabbing
more customers which are — setting the ambience to the theme based, offering healthy and
organic drinks to the customers and creating its own official website with various features which
will help in taking reviews and feedback from the customers (Tyce, 2020).
E.
Cost benefit analysis (CBA)
Opportunity Assumptions Approx. costs Potential returns
and benefits
Feasibility (Yes/
No/ May be)
Theme based
ambience
 It will
require
approxima
tely 6
months.
 It will
require to
hire a
interior
decorators
team.
Approximate cost
= $80700
Cost of building =
$75000
Cost of marketing
= $1200
Cost of handling
business relations
= $3000
Cost attached to
business risk =
 This will
grab and
attract
more
customers
(Lunkes,
Rosa, and
Lattanzi,
2020).
 Providing
a soothing
May not be
feasible as it
depends upon the
perception of the
customers which
varies person to
person.

 Budget=
$75000
$1500 ambience
which will
help in
retaining
customers.
 This will
increase
the
profitabilit
y of the
restaurant.
Healthy organic
drinks
 Time
required
will be
one week
for
preparing.
 Budget =
$21 per
drinks
Approximate
budget = $6070
Cost of material =
$170
Cost of labour =
$2500
Research and
development =
$3000
Cost of marketing
= $400
 It will
draw the
attention
of the
health
conscious
customers
(Nguyen,
Pham,
Phan, and
Than,
2020).
Yes, it is
economically
feasible as the
restaurant is
meeting with the
changing needs of
the customers.
Official website  Developin
g website
will
require 1
months
time.
 Budget=
Approximate
budget = $6070
Cost for creating
website = $7500
Cost of IT staff =
$9500
 Through
this,
costumers
can gain
informatio
n about
the
Yes, it will be
feasible if
implemented as it
will add value to
the business from
short to long
term.

$7500 restaurant
and the
products
and
services it
is offering
along with
the feature
of online
reservatio
n.
 It will be
profitable
as it will
create a
brand
image of
the
restaurant.
F.
Assessing the compatibility of each opportunity with the business goals and KRA targets
Theme based ambience: The unique ambience and structure of it will grab the attention
of the customers especially those who loves to visit the unique places. This will help in meeting
up with the KRA of satisfying the customers along with reducing the customers complaints
leading to 100% customer satisfaction (Rowthorn and Maciejowski, 2020). This will increase
the revenue base useful in achieving the KRS of staff retention as higher revenue will lead to
higher salary increment.
Healthy organic drinks: This is mainly for target group of health conscious people
looking for healthy drinkable products. This will help in expanding the customer bases resulting
into customer satisfaction KRA targets.

Official website: This opportunity will help in grabbing the customer's attention,
gathering customers feedback based on which decision can be made. It consequently leads
to satisfying the customers.
G.
The potential impact of each opportunity on the culture of the organization, in particular
with regard to:
1. complexity of change for the organization
2. staff motivation levels
3. impact on business relationships
4. impact on influencing innovation and continuous improvement processes for the future
Theme based Website Development Organic Energy Drink
1. With the changing in
traditional methods to innovative
themes based interior are applied
This lead to capture new
market and opportunities
nationally and internationally.
These lead to new line of
product in the house which
comes with market analysis
and survey of consumer
demand
2. This will increase the
efficiency staff working
environment with positive
surroundings.
It motivates the staff as new
emerging changes are adopted
by company.
It motivates the staff as new
product line is added which
is more demanded.
3. Business relationship will
increase which attract new
customer and experience of
leisurely dining.
It leads to connect with new
business and increase the new
opportunities.
These lead to new
relationship with
stakeholder and new
consumers in new market.
4. Innovation and continuous
improvement for future growth
from theme based restaurants
increase the customer base.
These are the new technology
of doing business and
communicate with the world
through internet and marketing.
Change in taste in organic
energy drink with timely
leads to continuous growth
and innovation.
H.

Objecti
ves
Conte
xt
Risk
source
Risk description Conting
ency
measure
Effectiv
eness of
measur
e
Risk rating
Cause Eve
nt
Imp
act
L C R
Financia
l risk
Fluctu
ate in
budge
t
Shorta
ge of
labour
Organiz
ational
capabilit
ies
Delay
in
innov
ation
Not
met
the
dead
line
Nega
tive
Review
each
stage of a
project
impleme
ntation
High 4 2 8
Reputati
on risk
Lower
reven
ue
Econo
my
slowd
own
Market
change
Affect
comp
any’s
image
Dela
y
Nega
tive
Hire
experts
who can
easily
meet the
define
aim
Mediu
m
4 1 4
Legal
risk
Not
adher
e with
policy
Politic
al
fluctu
ation
Regulato
ry
requirem
ent
Not
compl
y with
laws
Not
meet
the
dead
line
Nega
tive
Maintain
risk
register
in which
manager
should
maintain
which
laws are
adhere
High 3 2 6

I.
Through the above analysis, it has been analysed that financial risk is considered one of the
highest risk as it ranked higher than compared to other risk. Moreover, it is also analysed that
due to financial risk, company’s innovation opportunities may affect in negative manner.
Through the above, it is also suggested to the firm that, special team members should be hired
which in turn helps to improve the overall performance of a company.
PART B
A.
Pesto is an Italian restaurant which served the organic and healthy food with ethnic
ingredients and organic meats and dairy farms product. The company have started fine dining
and added new line of products like Organic Energy Drink and also develop the website where
more details are given and theme base restaurant interior is done to attract new customers.
B.
The problems which are facing is providing old form traditional fast food which trends
decreases day by day and limited number of cuisines and menu are available at restaurant
without any fine dining experience.
C.
 Change in product line and introduce Organic Energy Drink and start fine dinning
experience.
 Focuses more on Organic and Healthy food for customers and theme based restaurant
interior to attract new customers base.
D.
Company's Act of the country and Local Labour Union
Data protection of consumer data
E.
Particulars Time
A. Training of New Staff. 2 Weeks
B. Website development. 3 Weeks

C. Interior Change. 6 Weeks
Personnel: New Employees are hired to maintain and develop the Website and Old
Employees are trained to adopt new change and technology used.
Website developer and Digital Marketer are hired specially to promote the Brand and
awareness about the offers in market.
Bench Marking: The company have set the Goal to reach the target sale of 10000 units of
new Organic Energy drink in 1st month of introducing. Where the company successfully reached
the target goal by Digital marketing of product.
PART C
Ability to meet the business objective with the help of changes made in business
The changes that has been made with the reference of changing preference and taste of
customers in the market are very innovative and as it fulfil the needs of customers of being
healthy even eating outside of home in luxurious restaurant. Italian food usually have less oil and
more spices that made it already attractive and the Pesto had made various changes in their menu
by adding more vegan foods and more vegetables and many more that is attracting not only
existing customers but also new customers and tourist that is plus point for business that help the
business to achieve its objective of top restaurant of Australia (Lankoski and Smith 2018).
The enterprise objective of earning profit more through sales and lowering down cost of
inputs so that it can gain its goals at the end of financial year. The changes brought in business
are use of more organics ingredients so that it can meet the objective of customers of being
healthy and fit. The another verifiable rather than earning profit of the Pesto is to be on most
liking restaurant in Australia so that it be survived in market as the liking for Italian dishes in
market is decreasing. Through the fresh strategies the Pesto restaurant can meet its objectives at
the end of financial year.
Recommendation to improve strategy
The plan that has been selected by Pesto is good but require some changes so that the it
can attract more and more customers and maximize its profitability, it should attract the
customers by making strategies through segmenting its customer base into age groups like for
minor those who are more fond of eating in luxurious restaurant will get attracted through plan of

placing good sound system and favourable type of music singer among the youngster of
Australia, and serving energy drinks as complementary drink so that it can become most
favourable place for them to hangout and eat.
Another targeting group of age is senior people or those who are alert of health can be
pull in by showing case of vegetable agriculture beside the eating place and making them assure
that those plants are used in Pesto dishes and which are cultivated with organic fertilizer without
any chemical usage so it can be the best way to draw in the targeting unit (Cosenz and Noto,
2018). It will promote the trustworthiness among the customer and that will result in Mouth
publicity of customers who are fully satisfied and feel belongingness to the restaurant (Veuger,
2018).
Both improvement that Pesto can adapt to improve its income and position in industry.
The cost control can be done by excluding irrelevant cost that restaurant used to inure. The cost
reduction strategy can also be done to improve profitability (Villalobos and et.al.2020). Pesto
restaurant can use all the above strategies to improve its profit margin and increase sale so that it
be the best restaurant in Australia (WATKINS, 2020).
Part D
Role Play
Meeting between the CEO, Director of Finance and Operations and the General manager.
CEO/ Head Chef- Rose Rossi
Director of Finance and Operations- Lily Rossi
General manager- Good morning ma'am...thank you for attending the meeting on such a short
notice.
Rose- Good morning... that's okay...but may I know the reason for conducting this meeting
General manager- Yes sure....actually Pesto's has been experiencing rapid slow down in its
business, and so we are unable to expand our customer base and simultaneous profitability. So
this meting has been arranged in order to discuss the improvements in the business strategy and
to implement innovations in the business.
Lily- Oh is that the situation....then what are the innovations that have been so far implemented?
General manager- Yes some innovations are under process...in the beginning of this year we
planned some new business ideas to attract the customers and regain the profitability of the
restaurant.

Rose- Great job....please brief me about these latest business ideas that are under
implementation.
General manager- Ma'am we decided to promote the restaurant by the digital marketing
campaign through optimizing our website which shall provide all relevant details. And also to
abide by the new trend of organic drinks, we have added them in the product line.
Lily- What has these new business ideas fetched our restaurant till now?
General manager- They have proven to be successful for us till now...it has been eight months,
and we have generated some good profits out of it...also it has been expanding our customer base
thereby solving the problem that we were facing earlier this week.
Rose- I appreciate the efforts you have put in....a journey of thousand miles begins with a single
step...i believe the first step is taken, but we are still far from our destination..
General manager- Thank you ma'am
Lily- I agree with Rose...what else have you planned...recommend some business plan so that we
can build competitive edge in the industry.
General manager- We have some recommendations that could help us to attract new customers
and shall position our brand in the minds of people....your approval is required
Rose- Bring it up then...what are the recommendations most suitable for the business
environment we are operating in?
General manager- Ma'am we have been planning to attract the customers by making the
environment more interesting....we can build the ambience such that consumers are attracted
towards our restaurant
Lily- Like how...please elaborate
General manager- like we can play music or serve with the welcome drinks...some other
occasional like cakes on birthdays and anniversary for which prior booking has to be done.
Rose- That's a great idea...i approve the idea....my vote is yes
Lily- So is mine...i approve it too
General manager- So I'll be advising them to work on this as soon as possible
Rose- What else opportunities can you identify to innovate our business?
General manager- Seeing the times of pandemic we prefer social distancing and less crowding
over the tables...so for this we suggest technological advancement that avoids personal
contact...we can bring the tabletop tablets or digital menu systems that can help our customers to

know all the available dishes and the special offers of the day.... they shall be able to place orders
and shall be able to make direct payment.
Another idea can be of updating the menu with healthy foods and less use of fat foods like
cheese as the customers are very conscious nowadays.
Lily- these ideas can surely boost our profits, but we on priority we should go with the first idea
to tackle Covid- 19.
General manager- okay ma'am...here we wind up with the meeting...thank you

REFERENCES
Books and Journals
Antikainen, M and et.al., (2017, April). Circular economy business model innovation process–
Case study. In International Conference on Sustainable Design and Manufacturing (pp.
546-555). Springer, Cham.
Jacob, A., & Boyd, R. 2020. Addressing economic vulnerability among low-income families in
America: is the basic income approach a viable policy option?. Journal of Children and
Poverty. 26(1). 85-99.
Min, K. H., & Han, S. (2017). Local consumers’ perceptions and preferences for Asian ethnic
foods. International Journal of Tourism Sciences. 17(3). 165-179.
Mishan, E. J., & Quah, E. (2020). Cost-benefit analysis. Routledge.
Nemeschansky, B. (2020). Listen to your customer-how to manage your restaurant more
effectively. Journal of Foodservice Business Research. 23(1). 17-45.
Rowthorn, R., & Maciejowski, J. (2020). A cost–benefit analysis of the COVID-19
disease. Oxford Review of Economic Policy, 36(Supplement_1), S38-S55.
Tyce, M. (2020). ‘KRA has the capacity, but it is kept on a tight leash’: The politics of tax
administration and policy in Kenya.
Veuger, J. (2018). Trust in a viable real estate economy with disruption and
blockchain. Facilities.
Villalobos, J., and et.al., (2020). Exploring adaptability and proactivity across cultural
contexts. International Journal of Cross Cultural Management. 20(3). 345-360.
WATKINS, J. (2020). STARTING A RESTAURANT BUSINESS IN NORTHWEST
SYDNEY?.
Online
Cha Cha Char. 2020. [Online]. Available Through:<https://www.zomato.com/brisbane/cha-cha-
char-brisbane-cbd>.
About Us. 2020. [Online]. Available Through:<https://ottoristorante.com.au/brisbane/about/>.