Impact of Innovation and Business Ethics on Modern Business Organizations: A Case Study of Ocado Group PLC

This report analyzes the impact of innovation and business ethics on modern business organizations, using Ocado Group PLC as a case study. It assesses the impact of innovation on productivity, market share, portfolio, and competitive advantage. It also evaluates the importance of business ethics, corporate governance, and CSR in business organizations and their strategic aspects. The report recommends architecture innovation as the best strategy for Ocado Group PLC and uses Carroll's pyramid of CSR model to analyze the company's economic, legal, ethical, and philanthropic responsibilities.

BUSINESS ENVIRONMENT: COURSEWORK
WRITTEN PROJECT
BUSINESS REPORT
Word count: Type word count here
The word limit is 2500 words, not
including the table of contents, tables,
diagrams, reference list, and
appendices.
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Table of Contents
1.1.Executive Summary (250 words) ................................................................................................. 1
List of Figures...................................................................................................................................... 3
List of Tables ....................................................................................................................................... 3
1.2.Assess the impact of innovation on modern business organisations (550 words) ................4
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1.3.Research, analysis, and application of innovation to [Insert your chosen company here]
(450 words)........................................................................................................................................... 5
1.4.Assess the impact of business ethics and corporate social responsibility (CSR) on modern
business organisations (550 words) ................................................................................................. 5
1.5.Research, analysis, and application of business ethics and corporate social responsibility
to [Insert your chosen company here] (450 words) .........................................................................6
1.6.Recommendations (250 words).................................................................................................... 7
1.7.References ..................................................................................................................................... 7
1.8.Appendix........................................................................................................................................ 7
List of Figures
List of Tables
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1.1 Executive summary
Business environment refers to those factors which affects the company's ability to
develop and maintain successful customer relationship. It includes consumers, competitors,
stakeholders, suppliers, industry trends and so on. The company which is chosen for
preparing the report is Ocado Group PLC. It is the largest grocery and online retail company
and is headquartered in United Kingdom. The company was established in 2000 by Jonathan
Faiman. Ocado Group is one of the company who facilitates users to do grocery shopping
with a computer or a app. The name of this app is Ocado on the go and use of this innovative
idea highly increased the convenience of consumers. The main motive of this organization is
to provide best quality branded products to consumers. Innovation refers to those ideas and
creativity which was used by organization to present their product differently from other
competitors. In this report Carroll's pyramid of CSR model are used to describe all levels of
organizational responsibilities. It includes economic, legal, ethical and Philanthropic
responsibility. This report is also based on the impact of innovation in company's
productivity, market share, portfolio and competitive advantage. Various innovative
strategies and methods are also described in this report and these innovative methods are very
important to run company successfully. This research is totally prepared on the basis of
secondary data.
1.2 Assess the impact of innovation on modern business organizations
Innovation refers to new ideas or creativity, work efficiency, different methods and
products or services (Alm, Martinez-Vazquez and McClellan, 2016). It is a very essential part
in business for improving the existing product, and for providing best quality services to
customers. When organization made lot of investment in research and development then
definitely the product is different other competitors.
Innovation is important in businesses due to various reasons
Firstly, for running organization properly high productivity and work efficiency
employees are important to run the organization smoothly (Amankwah-Amoah, and
Adomako, 2019). Because without productive and work efficient organization did not
achieve their vision, mission and objectives. Secondly, innovation is also important for
maintaining brand image. Because good brand image helped to increase the sales of product.
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Impact of innovation in productivity
Innovation facilitates great impact on productivity because for any organization for
launching any product in market (Brancu, Munteanu, and Golet, 2016). Firstly organization
growth was increased because when innovative product are launched in market then
definitely customers buy the product in large quantity. It leads to increase the profit and brand
image of organization.
Impact of innovation in market share
Innovation definitely increased the market share of organization but it depends on the
product of organization that in which way they attract they customers. Because for achieving
the customers it is necessary that company must introduce their product in front of customers
with unique features and specifications. This strategy leads to capture the highest market
share.
Impact of innovation in portfolio
Portfolio basically refers to revenue or profit which was made by organization at the
time of selling their product with the help of various strategies. It includes advertising, direct
selling, digital advertising and so on. Portfolio is highly important to any organization for
maintaining the overall expense of departments and employees.
Impact of innovation in competitive advantage
Achieving competitive advantage is very important to run the organization smoothly.
When innovation are applied strongly in the product then competition are decreased in
market (Cegarra-Navarro, Soto-Acosta and Wensley, 2016). The reason for achieving
competitive advantage in market are organization used various strategies. It includes offering
discounts, initiating promotional schemes and so on. This facilitates positive impression on
company image and in minds of consumers.
Organization Perspectives
The role of the economy, linking innovation with economic and financial growth, and
organisational survival
For increasing the economic and financial growth of organization innovation plays a
major role -
Firstly, innovation is essential in terms of developing new product, use of new technology
and fixing the prices of product according to customer segment. From these elements price
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play a major role for maintaining and generating the expense in organization. Because
without proper generation of revenue company are not able to maintain the expense regarding
their operational activities, production and departmental functions and so on. Economic and
financial growth also depends on the demand and supply of products by consumers. And for
maintaining demand and supply properly it is necessary that the product will available in
every shop to consumers.
Innovation and R&D expenditure, and performance
Innovation and R and D expenditure and performance all are connected with each other.
Because products are designed in research and development department and for develop a
product lot of investment are made by the organization (Cullen, 2017). Because the main
purpose of organization is to provide best quality products to consumers. For example Apple
is one of the company who manufacture their product with their own operating system and
with highly unique features. Apple have their own processor which is used in their laptop,
ipad etc. and their performance are very good in comparison with other other competitors.
When organization made these type of innovation then definitely people are loyal towards
company. These type of performance based products increase the number of buyers and
purchasing power also increased. These factors also helped to maintain better relationship for
long term and long term relation is also important for increase organization profit.
1.3 Research, analysis, and application of innovation to chosen company
It refers to a plan which is used by Ocado Group PLC for increasing their market
share (Durica, Podhorska and Durana, 2019). For increasing organizational growth they
provide best quality product or services and solutions to consumers with the help of various
innovative strategies which are described below -
 Firstly, they use technology innovations in their organization for increasing their
operational and capital efficiency. For example company using various tablet and
software applications for deliver right product to users and also for run the payment
systems smoothly.
 Secondly, they used architecture innovation for designing the proper infrastructure
of organization. Good architecture is important for organization for increase the
convenience of customers for purchase the product easily in shops.
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Suitable innovative strategy for Ocado Group PLC -
After the analysis of above information it is understood that architecture innovation is
the best strategy for run the organization smoothly (Dyllick and Muff, 2016). In today's time
architecture is most important factor for maintain good relation and attract the customers
easily in shop. Because architecture is not only based on design it includes store ambiance
and product presentation in shop. If these two elements done properly, then purchasing
power consumers are highly increased. In context to Ocado Group PLC , management
increase their products in their shops with good ambiance and layout. It leads to increase the
number of customers and the profit of organization are highly increased. Good architecture
innovation also helped to increase the staying time of consumers in their stores. Because at
that time ambiance are well maintained and it attract the customers. In this innovation
various other technologies are also used to run the company smoothly such as payment
system etc.
Contribution of innovation to company's competitive advantage in various ways -
 Effective logistic system – It is a very essential part for organization to run their
operational activities and departmental functions properly. Because without proper
effective distribution channel company are not able to good relation with suppliers,
customers vendors and so on. It is also important for increase the availability of
branded and healthy products in store. It also helped to maintain the transportation or
supply chain cycle properly between suppliers and manufacturer. Because the demand
and supply of the product are basically based on this system. It also helped to
maintain transactions effectively between customer and organization. Because smooth
payment system is essential to maintain the trust of the customers for long time
towards company.
 Faster and efficient iteration - This organization is using various advanced
technologies for running the organization smoothly. It includes artificial intelligence,
cloud computing, data science etc. and with the help of these elements organization
easily maintained better relations in both aspects whether it is a online mode or offline
mode. Faster and efficient iteration also helped to reduce the cost of organization
because innovation are highly used to achieve competitive advantage. When
technology are fast between customer and manufacturer then definitely organizational
vision, mission and objectives are easily achieved. In this way innovation makes
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contribution to organization success because success is very important to run whole
company smoothly.
1.4 Assess the impact of business ethics and corporate social responsibility
(CSR) on modern business organizations
Organization business refers to whole structure of company which was designed by
owner systematically to run their operational activities and departmental functions properly
(Mbuya and Schachtebeck, 2016). Proper planning of business also helped to achieve their
goals, vision and objectives. The main focus of business is to increase profit with the help of
providing best quality product and services to consumers.
Importance of business ethics, corporate governance and CSR in business organization
Business ethics is used in company for influencing the integrity or value between
employees. It is also important for gaining trust of stakeholders such as investors, customers
and suppliers.
Corporate governance in essential in business for developing a system of rules,
regulations and practices which was created by top level management in company. These
rules and regulations are useful for managing employees in discipline.
CSR stands for corporate social responsibility. It is used for improving the skills of
employees with the help of providing various responsibility in organization. It leads to
increase their productivity and more positive work culture for workers.
Strategies and practices which are used by organization in a social manner
 Firstly, promoting healthy and inclusive workplace culture. It is a necessary part for
organization in workplace to maintain good relation with employees. For example
Audi is one of the company who maintain safety standards in organization for secure
the employees at the time of producing product. It is also important for increasing
their productivity and work efficiency for achieving company success.
 Secondly, soliciting feedback and engagement to maximize stakeholder value. It
means organization always take feedback from stakeholders such as customers,
suppliers and so. Feedback are also very important to improve their product with the
help of unique ideas and creativity. It leads to increase customer satisfaction level.
Strategic aspects of business ethics/CSR:
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The moral argument for businesses to be socially responsible
In aspects of CSR the most important argumentable reason are relationship between
company and society. It is because the delivery and services of products are connected with
society and organization (Nakpodia, Shrives and Sorour, 2020). Due to this reason it is
necessary for organization that they must facilitate best quality goods and services ethically
to consumers in time. For example not serving adulterate products. Because if customer did
not receive proper service then definitely moral argument raised in forms of receiving
complaints from consumers.
The business argument for businesses to be socially responsible
The important business argument for business which are socially responsible in aspect
of both CSR and ethics are ignorance of government regulations (Pop and Pelau, 2017).
Mostly organizations tried to increase their profit with the help of providing quality products
to consumers. For producing high quality product company are using harmful chemicals
which is harmful for both human beings and environment. But it creates negative impact for
organization because without following these rules and regulations company did not run
properly.
The strategic argument for businesses to be socially responsible
In strategic argument organization must use those methods which was ecofriedly and
useful for increasing the sales of product. For example Sainsbury is using the eco friendly
bags for deliver the product to consumer at the time of purchasing. Sainsbury is mostly
dealing the food products and due to this their main focus is to deliver healthy and safe
product to consumer. So this type of strategy is highly useful for any organization for overall
productivity.
The extent to which ethical business is profitable business
Ethical business is profitable in various extent such as good public image for
organization (Sheikh, Shahzad and Ishaq, 2017). Because when public have good image
regarding company, then only their growth and profit are increased. But for increasing these
two elements receiving high quality service and goods by customers are very important.
Other extent is increasing employee morale in company. Employee moral is essential for
increasing the productivity of organization for achieving success in any situation.
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1.5 Research, analysis, and application of business ethics and corporate
social responsibility to chosen company
Carroll's pyramid of CSR model
It is a method which is used by organization for analyzing various impacts which was
faced by them due to competitors in market (Zin and Ibrahim, 2020). The company which is
chose for using this model are Ocado Group PLC. It is necessary for company that they must
fulfill all these responsibilities which are described below -
 Economic responsibility - It is the lowest level of pyramid which shows the
profitability of organization. For managing the overall expense of company increasing
profit is very important. Without profit organization are not able to provide salary to
their employees. In context to Ocado group, organization must fix average and
affordable price in their product which leads to increase the profit easily.
 Legal responsibility – It is a second level of pyramid organization established or
follow the rules and regulations according to the government policy and norms. In this
step various laws are included regarding employees those are employment laws, tax
regulations and so on. In context to, Ocado group, must follow these laws, rules and
regulations which was implemented by government for run company successfully.
 Ethical responsibility – This is a third level of pyramid and in this step ethical or
right decisions are made by top level management. The right decisions helped to
increase the transparency of company towards employees and customers. In context to
Ocado group, must facilitate products and services ethically to customers without any
type of duplicate. It helps to develop good relation with consumers for a long time.
 Philanthropic responsibility – This is a top level of pyramid and this stage the aim
of organization is to deliver eco friendly products to consumers. In context to Ocado
group, management must reduce the use of carbon footprint in their factories. Because
it is dangerous of earth and create pollution.
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1.6 Recommendations
After the evaluation of above information it is suggested that technological innovation is
highly suitable for Ocado group. Because use of proper technology is important for run the
operational activities and departmental functions smoothly. Technology also helped to run the
financial activities properly especially in payment methods. For maintaining the shop atmosphere
properly technology play a major role. When the atmosphere are good in shop then only customers
are easily attracted to buy the product in large number. Technology also helped to increase the
convenience of consumers for buying the product through online mode. Because especially in covid
time mostly buy the product with help of various apps from organization.
In business ethics it is suggested that positive public image towards organization is very
important to maintain company's stability between other competitors. For maintaining the positive
image of company it is necessary that organization must facilitate various discount offers, schemes
time to time to them. The most important strategy which is used by company well established
complaint and query system. It means listen the problems of consumers carefully and then employee
must ready to provide proper solutions to consumers in any time. So for maintaining good relation
with customers quick response is important in service in ethical manner. For positive public image
transparency is very important from company side. It means company must provide correct and
meaningful information to customers in advertising and websites for select the right product and buy
it. Correct information also helped to attract consumers for a particular product.
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