Impact of Innovation on Modern Business Organizations

This report discusses the impact of innovation on modern business organizations, assesses the general environment of Ocado Group Plc using PESTLE analysis, and provides recommendations on how to improve decision making within the company. The report also covers the ethical implications of decision making in the company.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluate the impact of innovation on modern business organisations.......................................3
Assess the general environment of the company to identify the major opportunities and
constraints it is facing. Use any three of the following six variables of the environment for
your analysis: political, economic, socio-cultural, technological, legal or ethical (PESTLE)....4
Few recommendation on how to improve decision making of a company ................................6
Simplifying and making clear of decision making rights in the company.................................6
Ethical decision implications of the company...........................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the aggregate total of organisations, people and other
forces which are outside the power of industry but it may also affect its production level as well.
It is important because it enables the firms to analyse their competitors actions and strategies as
well. It also help in terms of identifying the opportunities and also getting the first mover
advantage instead of losing it to their competitors. In the present report, Ocado Group Plc is
taken into consideration(Brenkert, 2019) It is a business of British that licenses the technology of
grocery which is headquartered in Hatfield, Hertfordshire, England. The company basically
owns the fifty percent share of Ocado.com and licenses it grocery fulfilment technology to the
global retailers . The present report will cover discussion about the impact of innovation on the
modern business organisation. In addition to this, the report will cover analysis about the general
environment of the organisation in order to identify the major constraints and opportunities it is
facing. Moreover, the report will cover discussion about the recommendations that in which
manner they can improve decision making within the company. The report also consist of the
ethical implications of decision making in their company.
MAIN BODY
Evaluate the impact of innovation on modern business organisations
Innovation basically refers to the process for introducing, new work flows, ideas,
methodologies, products and services as well. Innovation is important for the organisation
because it help in terms of adapting and overcoming the challenges of change. Innovation plays
a very significant role in terms of achieving the company's success in the today's highly
competitive business environment. It is specially in that case when customers become more
demanding and savvy as well(Büyüközkan and Ilıcak, 2018) The main impact of innovation is
that it help in terms of staying ahead of the competition. It also support in terms of predicting the
market and keep up with the requirements of customers. Within the modern organisation, these
innovations are important in order to overcome and adapt the challenges of change. The impact
of innovation is that it support in terms of achieving the economic and organisational growth act
as the key to staying afloat in the today's highly competitive world.

There is a positive impact of innovation within the modern business organisational
culture where it increases the ability to create, acquire and also make the best use of
competencies. The practices of innovation can help in terms of building the culture of continuous
growth, learning and personal development(Coghlan and Shani, 2018). In context to Ocado
Group Plc, it helps the organisation in terms of further technological growth and development as
well. Thy have used the products in such a manner that it act as beneficial for the customers.
When innovative technology has been used by the company then it makes the procedure more
simplified, to the point and accurate as well. The impact of innovation on Ocado Group Plc is
that it contribute into the context of organisational and economic growth due to which they can
perform into out of box manner as well.
The innovation factor also help the organisation of Ocado Group Plc in terms of staying
ahead into the competition and also support in terms of predicting the market so that they can
accordingly take their further steps and action. For the growth and development of the
organisation it is important that to take seriously about the impact of innovation so that they can
think properly about the planning of the organisation into positive manner. Within the modern
organisation , the impact of innovation is that it not only increases the speed of process but also
increases the efficiency level of giving something unique into the market(Ibragimovna, 2019).
The impact of innovation within the organisation of Ocado Group Plc it lead towards higher
level of productivity which means that the same input contribute in terms of generating the
higher level of output. That's why it is very important to consider the impact of innovation into
proper terms so that it not only satisfies their customers but also gives the satisfaction level of
jobs to their employees who are working within the organisation. That's why innovation is
important for the organisation growth and development as well.
Assess the general environment of the company to identify the major opportunities and
constraints it is facing. Use any three of the following six variables of the environment for
your analysis: political, economic, socio-cultural, technological, legal or ethical (PESTLE).
PESTLE Analysis is framework that helps business environment to analyse the macro
environment factors which helps them to make the strategy. It also helps organisation to keep
the track of the external environment which can affect the Ocado Group plc sustainability. As

the business environment have become so dynamic that every activity have either positive or
negative impact . In context to Ocado group plc this analysis has been discussed below:
Political factors: Political factor is playing a great role in determining long term
sustainability and profitability of the respective company. The political factors include trade
regulation, tariffs, political stability, taxation rate etc, that firm should analyse before
entering into the market. As England is a developed country having political stability which
is opportunities for the firm so that it can makes strategy on the basis of stable political
situation (Phan, 2021) . Due to the government stability, Ocado group plc doesn't have to
make changes in the policies and framework which helps them to expand regionally as well
as internationally. The favourable tax policy helps the firm to maintain its competition in the
dynamic business environment. With reference to this, they can have consistency in business
and can have a good international trade with various parties
Economical factor: In order to survive in the complex business environment it is very
necessary to understand the economical environment of the particular country. It basically
includes interest rate, exchange rate, unemployment rate etc as it can be a threat for the
organisation if not given proper attention to the core economic activities. Here the
government should make more investment in the infrastructure development. This will lead
to increase in employment and labour productivity. The shortage of efficient labour can give
rise to inefficiency of the business that leads to the bad image in the market of the chosen
company and have a great impact in the profitability (Marcolin and et. al,. 2021) . In context
to this higher inflation rate may lead Ocado group plc to continuously increase their product
price that will affect the business to manage its cost.
Technological factor: The improvement in the technology has lead business to be very
innovative and dynamic. Due to this the firm are compelled to be customer oriented and
work according to their taste and preference. It includes change in technology, technology
disruption etc. The firm should make more investment in research and development so that
they can make more profit and work according to the market and consumer needs. They
have to accept the technology change before introducing and launching any new product in
the market. The technological change works as a opportunities for the business as it shows

whether the company can survive in the dynamic business environment or not by adopting
technological change (Ljubojević and Dašić, 2018).
Few recommendation on how to improve decision making of a company
Decision making is important for the success of both small and large company. Decision
making is usually used at the time of problem solving or for the need for a potential opportunity.
Getting or gathering a correct information and input from the key stakeholder is a necessary
part for making informed decisions.
Encourage and distribute the authority
By giving appropriate power to employees at all the levels so that they can make decision
so that they can pay of greater agility and responsiveness. To avoid creating confusion it should
be made clear that when frontline worker have the authority to make which dissension under
what circumstances (Succi and Canovi, 2020). Ocado group plc company keeps a notice about
the there employees and there power authority are maintain in there organisation and company
also take care of the well being of there employees that why they have more happy and satisfied
employees then there competitor.
Simplifying and making clear of decision making rights in the company.
This process help in identifying and clearly conveying that which individual in
organisation is responsible for making which decision. This also discuss that which decision
should be made and how the decision making process should work. In some organisation
simplifying and clear to are two ingredient missing in the decision making process that is not
good for an organisation in long term growth(Tuerk, 2018). Ocado group plc is the organisation
that take care of this and also treat not to miss these two ingredient and make there decision
making correct and more useful for there in company.
Ethical decision implications of the company.
Ethical decision making is a process that help in evaluating and choosing the best
alternative in such a manner which is consistent with ethical principle. This helps a company to
make division under the law and work with some business ethics. As this will helps in creating a
brand name for the company and allowing the organisation to make more loyal customer in the
market and also to work without any fear of the Govt. and also this will help in making the
company more clear and solving there problems quickly(Shtal and et al., 2018).Ocado group is

a company works und3er the law and take care that they work within the policy created buy the
Govt. this also makes a trustworthy company for the employees as the know that the company
works with ethics and will not be closed soon or face any issues. This helps the employees and
they will be satisfy as there well being is going to be taken care by the company and this will
make the employees happy and satisfied in the organisation. This helps the company to make
better and decision for the growth of the company so that there will be no political [pressure on
the company and the company can work and provide he best cost things to there consumer,.
CONCLUSION
The above stated report concludes that business environment plays a very significant role
at the organisational level. It has been concluded that the impact of innovation within the modern
business organisation is very necessary so that they can properly perform into positive terms. It
has been determined that the general environment of the organisation in order to identify the
major constraints and opportunities which has been facing. It has been observed that there are
certain recommendations which are helpful for the organisation in order to improve the decision
making of the organisation. There are certain ethical implications which are very important of
decision making in their organisation. So within the organisation, innovation is very important
for their further growth and development into positive manner. That's why it is very important to
understand the importance of business environment into result oriented terms.

REFERENCES
Books and Journals
Brenkert, G.G., 2019. Mind the gap! The challenges and limits of (Global) business
ethics. Journal of Business Ethics, 155(4), pp.917-930.
Büyüközkan, G. and Ilıcak, Ö., 2018. Integrated SWOT analysis with multiple preference
relations: Selection of strategic factors for social media. Kybernetes.
Coghlan, D. and Shani, A.B.R., 2018. Conducting action research for business and management
students. Sage.CoghlanShani
Ibragimovna, F.E., 2019. Innovative technologies in the formation of students’ entrepreneurial
skills. Asian Journal of Multidimensional Research (AJMR), 8(8), pp.5-9.
Succi, C. and Canovi, M., 2020. Soft skills to enhance graduate employability: comparing
students and employers’ perceptions. Studies in higher education, 45(9), pp.1834-1847.
Tuerk, R., 2018. The Effects of Supplemental Instruction on Student Attitudes and Academic
Skills. Texas A&M University-Commerce.
Shtal, T.V and et al., 2018. Methods of analysis of the external environment of business
activities. Revista espacios, 39(12).
Phan, S., 2021. The effect of pestle factors on development of e-commerce. International
Journal of Data and Network Science, 5(1), pp.37-42.
Marcolin, C.B and et. al,. 2021. Listening to the voice of the guest: A framework to improve
decision-making processes with text data. International Journal of Hospitality
Management, 94, p.102853.
Ljubojević, G. and Dašić, G., 2018. Boards attributes and their implications on decision-making
process. Menadžment u hotelijerstvu i turizmu, 6(1), pp.19-29