(Solution) Managing Innovation in Business Assignment

MANAGING INNOVATION IN
BUSINESS

Executive Summary – For a business organisation, it is required to use innovative ideas and
creative thoughts in order to make desirable modifications easily. These alterations are based on
changes in customer's demands, trends or new technologies. All these activities have a major
impact on those firms that wants to make a long-term value.. This report is based on Pashley,
which is bicycle manufacturing organisation. Firm always manages their activities from past
years on the basis of new technology and changes in customer's demands. Through this, they
easily survive in competitive market from past years. There are large number of evolution is
noticed in bicycle industry over past years. Such changes are happen in organisation because of
technological advancements. Due to which large number of problems are faced by organisation
but effective adoption of such technologies helps in accomplishment of their desired results.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
The organisation and industry overview................................................................................4
Organisations existing Innovation Performance and Capabilities..........................................5
The Industry in 2018 .............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
A business organisation is required to implement new and creative ideas in their
operational and functional activities. By this, they can make desirable modifications and
alterations on the basis of customer's requirements as well their needs. In this process, advance
technology and innovative ideas assist to make new and impactful strategy for firm (Archibald
and Archibald, 2016).
This report is based on Pashley, which is a British bicycle and work-bike manufacturing
organisation. This business firm was established in the year of 1926 by William Rath Pashley.
This report represents an organisation’s innovation history with the evaluation practices of
bicycle and its existing performance and capabilities. The PESTEL analysis model assist in
determining impact of external environmental on business organisation as well as porter's five
forces analysis uses for competitive analysis of bicycle industry. Furthermore, SWOT analysis
of firm determines the evaluation of organisation's existing Innovation Performance and
Capabilities. At last, it determine industry in 2018 after using innovation in business activities.
The organisation and industry overview
Evolution of bicycle – Bicycle industry faces rapid evolution. In 1817 Draisine is created as the
design of bicycle that can be used in future. In 1830, a impactful invention is determine as
Tricycle Velocipede. A German civil servant was looking to make some modification in past
invention of Bicycle. They were add some simple joint to make front wheel of bicycle counsel.
In 1870, High wheel Bicycle is invented by a French blacksmith with a new design. In this
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creation they introduce pedals instead of treadles in bicycles. These pedals was connected to the
front wheel of bicycle. This evolution take place by introducing Safety Bicycle in 1885 in which
inventors include different safety features, comfortable seat and efficient breaks. In 1960 and
2000, Mountain Bike as well as Racing Bike are introduced to make effective changes with
effective gearing, small pedals, flexible seat and freewheels hubs for racers and riders.
History of bicycle industry
People have envisioned bicycle as since sixteen century in which Leonardo da Vinci
making sketch of vehicle with two wheels joined by a beam. As it innovation, Hobby horse
became invented in 1700s which did not have pedals. To ride this, one needs to push them
forward. Therefore in 1816, the Germans introduced a steerable hobby horse by which in 1840,
people realize that they could balance these vehicles without touching their feet. 1860 is the year
of drastic changes in bicycle industry as in it, innovators make changes in bicycle design by
added peddles, spokes, rubber wheels and gear shifts. In 1880, a famous diamond shape bicycle
has been launched that inflated rubber tubes on the behalf of solid rubber tires. All these years
contribute major changes in overall bicycle industry.
Bicycle industry is broadly defined in each and every country as the people of each age
groups are likely to use bicycles for physical workout, amusement as well as sports activities.
Some of the bicycle manufacturing organisations are produce quality products for each age
group of individual. Basically, children are more interested in such things as they enjoy to ride
bicycle. This organisation produces normal, racing, mount hills, clubman racing, roadsters, two-
wheeler and three wheels bicycles for different purposes and uses. Pashley is a well-known
bicycle, tricycle and work-bike manufacturing organisation. The firm started its manufacturing
and treading business in 1926. The firm was founded by William Rath Pashley. They were
declared in front of public that they can manufacture all type of cycle with best services. In their
manufacturing services, they include clubman racing machine, roadsters, tradesmen's carrier
cycles and tandems as well.
William Rath Pashley was working in Austin Motor Company before First World War.
This working approach helps to maximise their engineering skills to manufacture bicycle for
humans. At that time, firm faces huge competition from other organisations (Brown and
Osborne, 2012). Therefore, William Rath Pashley realised that they need to identify market niche
before building their positive image in competitive market. At that time innovation and
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technology was not developed, so for them it was hard to identify factors of changes to maximise
growth and income easily. They take lone time to manufacture appropriate products easily.
In 1930, William Rath Pashley made different components of their products to
manufacture quality bicycles. In 1936, this organisation was incorporated with a new name W.R.
Pashley Limited which provided vending tricycle to customers and venders to selling their
products by bicycle as ice cream, dairy products and some food services.
This organisation faced strong competition from different bicycle manufacturing
organisations. Therefore, William Rath uses advance equipment to maximise capabilities of such
bicycles. All these activities are beneficial in order to capture customers’ eyes easily toward new
services. This firm not only manufactures two-wheeler cycles but also supply tricycle in several
countries. Firm expand their business structure slowly but by implementing new ideas by
analysing competition in target market. In 1940, employees of firm show their interest to produce
Motor rickshaws. Pashley started to show their interest in manufacturing Indian Motor Tricycle
in 1950.
This organisation maximises its business structure rapidly by implementing new ideas
and innovative thoughts easily (Drucker, 2014). Pashley manufactures equal wheel carrier cycles
that company sold in 1930 which had a metal carrier and the company is still selling it currently.
For a business, it requires to implement innovation in their products and services as per
customer's requirements and their needs. Through this, they can easily adopt current trends in
their business services to maximise structure of their firm in proper manner. As William Rath
Pashley used new and innovative ideas to manufacture different products that are related to
bicycle industry. In 1970, firm introduced a Royal Mail Cycle which was designed as single
speed with road-operated breakers. In 1992, different kind of changes such as wide tyres, drum
brakes and 3 gears were done on Royal Mail Bicycle. With this, in 21st century, company was
faced international competition by supply Royal mail bicycle. Firm maximises its growth and
profitability in an effective manner.
Factors driving innovation in the Pashley cycles
 Management practices – In a business organisation, management practices consider
strategic goals, maximisation of work and allowing freedom to employees. Through these
innovations, Pashley can easily face several challenges to getting maximum competitive
advantages easily.
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 Organisational Motivations – Innovation is a most effective process that uses to
enhance skills and knowledge of employees in effective manner. Pashley implement
these activities in their organisational approaches to make positive changes in bicycles on
the bases of customer's requirement and need.
PESTEL Analysis -
 Political and legal factors – These factors are related to governmental rules and policies
that they are regulate for a business organisation. For Pashley, it is require to analyse
effectiveness of these elements to implement them positively in business organisation.
Through this, they can easily expand their business in several country to maximise
structure of bicycle industry.
 Economic and social factors - Pashley is a well known bicycle manufacturing
organisation in UK. For them, it is required to make positive modifications in their
business strategy due the reason of changes in customer's demand. This industry faces
major evaluation in manufacturing process. All these changes are based on consumer's
requirement and technological changes.
 Technological factors - For Pashley, it is required to make several changes in their
business activities because this organisation faces several changes by competitive
organisations. By implementing such changes, Pashley can easily get higher competitive
advantages easily. Main reason behind these changes are to differentiate their services
from other organisations. Technology is a only aspects that aid to manage ideas and
thoughts in realistic outcomes. With the help of advance technology, management of
Pashley invent new ideas of gears in bicycles as well as some advance features. The
possibilities of these innovations could be with the implementation of technology.
 Environmental factor – Bicycle industry enhance their structure rapidly because
government of some countries promote use of bicycles. These are the ecofriendly
services that helps to protect environment from harmful activities. It helps to improve
health of human's and environment in positive manner.
Porters Five Forces Analysis
 Competitive rivalries – Bicycle industry faces lots of competition from Brompton
bicycles. This organisation also provide quality services to their customers. For this,
Pashley needs to make impactful strategy to getting higher competitive advantages from
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target market. For the competitive rivalry, organisation requires to make strong strategies
in which they needs to implement unique features for new bicycles. Through this they
can create a positive image in target market.
 Bargaining power of customers – Bicycle industry get rapid growth in several
countries. Number of customer's of bicycle has increase day by day. So for this, firm
needs to make impactful strategy to getting maximum growth by providing appropriate
services to their customers.
 Bargaining power of suppliers – Pashley needs to expand their business structure in
several countries by maximise suppliers of services. Firm faces several changes in their
business structure in which their suppliers provide appropriate contribution and services.
 Threats of substitutes – Substitute product of Bicycle are Bikes, cars and racing bicycles
that reduce its effectiveness directly. For this, Pashley needs to adopt innovation in their
services to maximise industry structure easily.
 Threats of new entries – In this sector, different small and medium scale organisations
established with impactful strategies. Pashley faces several challenges by most effective
strategies of these organisations. So for this, they needs to make positive changes in their
business strategies to getting higher competitive advantages easily.
Organisations existing Innovation Performance and Capabilities
Innovation of cycle is the most beneficial aspect because it helps in kids, youngsters and
entire youth while travelling. It helps in safeguarding the travelling duration, aids in reaching on
time, part of entertainment for kids, helpful for children's growth and so on (Evans and Johnson,
2013). However, number of companies comes with creative ideas in order to design unique
bicycles as per current needs or demands. World is becoming more advanced because each and
every organisation uses advance technology and innovative ideas in production and
manufacturing activities.
Pashley is one of the popular bicycle manufacturing company which is engaged in
produce racing and further bicycles for customers. Adrian Williams is the Managing Director of
this association whose main motive is to come up with creative thoughts to designing their
organizational products creatively to enhance their performance in market. Innovation is a vast
procedure with a few other prevailing concepts such as technology, creativity and change.
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The term organizational innovation refers to the studies of innovation in business and
public organization. The study of innovation in organization is a multidimensional, multi tasking
and context- dependant. They investigate impact of external and internal environment on
innovation and new ideas on a business organisation.
The perspective of organizational competition, performance, organizational adaptation
and progression are introduced to serve as a platform to position organizational innovation. The
main aim of this report is to investigate the extent of innovation strategy and organisational
innovation performance (Feller, Finnegan and Nilsson, 2011). At workplace innovation is an
essential part of social, economic and labour market impacts.
The impacts of innovation in work organization are discussed below:
 Product Innovation Performance: This factor represent product innovation
performance such as rate of change in consumer taste and preference. Continuous
organizational performance measured by the commercial outcomes. On the other hand,
the project performance is related to the internal efficiency. A product innovation
performance is examine by the level of customer satisfaction and overall project
performance.
 Innovation Strategy: This concept is emphasis when employees uses either internal or
external knowledge that has been credited to have influence on the performance of an
organization. From strategic management perspective, both technology push and pull
innovation strategies strive for the achievement of superior innovation performance
through the development of organizational competence.
 Innovation and Technology: It includes innovation with new technology or technical
invention to understand innovation in an organization. It contains technical related
information of an organization which includes server, software, cyber security and many
more (Herrmann and Herrmann-Nehdi, 2015).
 Innovation and Creativity: this concept includes creativity among employers,
employees, supervisors and managers to develop organizational culture and innovation.
Creativity is a subset of innovation. Creative ideas, outcomes of individuals and
behaviours can help to solve problems that arise throughout innovation process.
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Number of tools and techniques is identified through which innovation capabilities of an
association is identified such as SWOT assessment, which is one of the most useful tools that is
adopted for understanding company’s current positioning.
Thus, SWOT analysis of selected firm is discussed as follows:-
Strengths:-
 Qualitative products with advanced
features
 Facilitate customers with modern
methods (Inauen and Schenker-Wicki,
2011).
 Reasonable tricycles and bicycles are
offered by which automatically
influences customers’ minds
(Quintessentially British brands:
Pashley, hand-built bicycles with pedal
power. 2017).
 Firm has a experienced and skilled
workforce that helps to represent new
ideas in front of customers.
 Proper communication between
employees and employers which
resulted in establishment of company
image at marketplace
Weaknesses:-
 Hard to design complex features of
bicycles
 Raw materials are very costly due to
which company faces major problems
while designing products or services
(Quintessentially British brands:
Pashley, hand-built bicycles with pedal
power. 2017).
 Firm needs to manage times and funds
properly because production of advance
products require external efforts of
firm.
Opportunities:-
 After implementing advance
technology, firm can maximise
customer's demand (Laforet, 2011).
 Most kids prefer cycles for their work
to become self-independent.
Threats:-
 Competition getting maximized
because of changes in consumer’s
demands
 Choice of clients getting
fluctuatedMacro elements are changing
due to fluctuation in various other
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factors.
However, Pashley is engaging with innovation to manufacture creative products for
establishing business image at marketplace by satisfying needs of clients in a defined time
period. In fact, leaders of selected firm believe in managing things in better manner by launching
new bicycles. For example, Pashley is growing more or more from war years and improved lots
of things till today. They believes in modification of attractive model of cycles by acquiring
consent from various manufacturers as well as clients after a specific market research. Their
main motive is to satisfy the needs of customers as well as coping up with current changes in
order to gain competitive advantages. Hence, it has been analysed that innovation capabilities of
company are getting enhanced from past till the present. It has been identified that number of
improvements took place throughout the study of history of company (Owen, Bessant and
Heintz, 2013).
Pashley Resources and Capabilities
Pashley is British organisation which manufactures bicycle, tricycle and work-bike in
England. This organisation was established in 1926. They still manufactures different types of
bikes with the help of different type of resources and innovative technologies. There are large
number of resources are required to manufacture cycle which different from each other but
provides equal contribution in the process of producing different types of bicycles (Pashley
Cycles. 2017). The resources which are majorly required to produce bicycle includes human
capital, funds, raw material, innovative technologies, equipments, accessories, land requirements
etc. The availability of all the resources in appropriate manner is understood from the fact that
organisation is effectively produce all types of cycles. The capability of organisation is
understand from the fact that around 40 percent of their products are exported in different 50
nations which shows that demand is available in many nations.
Key Performance Indicators of Pashley Innovation Performance
Key performance indicators is basically used within the organisation for ascertaining the
information about the aspect that business objectives are effectively achieved or not through their
existing performance in market. This can be used by cited organisation at multiple levels to
analyse the success of their business operations and their ability about reaching towards targets
within given framework of time. These indicators are of types which helps in assessment of two
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different aspects which are known as financial and non financial. The indicators which helps in
financial assessment of Pashely organisation includes income statement. On other hand, the
indicators which depicts non financial information includes relation between employees and
culture which is persist within the organisation. From the past analysis of Pashley cycles it is
clear that they attained huge growth in their operations and able to produce innovative bicycles
with the use of new technologies. The communication process which is used within the
organisation is centralised which contributes in creation of effective teams within the
organisation.
Value chain analysis of Pashley
Value chain analysis is refers as the process which is mainly used by the organisation
regarding identification of their primary and support activities which adding up the value in final
products which are produced by the organisation. Analysis of such activities is important in
nature as it contributes in the process of reduction costs through identifying wasteful resources
and provide more emphasis on improvement of differentiation in their existing offerings. This
will represents the internal activities from which firms go through in the process of transferring
of inputs into outputs.
The Industry in 2018
For a business organisation, it is require to adopt advancement and innovation in their
business procedure to maximise its growth and performance easily. This process is beneficial for
each type of organisation as retail, telecommunication, bicycle and software as well. According
to a research, it has been analysed that consumer's are show their interest toward modern cycling
for cardio activity, sports and leisure as well. One major factor that maximise awareness about
bicycles is health and environment.
The bicycle industry in 2018 can be -
Market opportunities by distribution channels – In this new era, bicycle industry
landscape its size rapidly. Bicycles are not only uses for riding but also in sports activities and
for physical treatments. It is also beneficial for environment safety and protection because it
consider pollution free equipments. All these activities assist in getting several market
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opportunities by different distribution channels. Government of several countries also promote
use of bicycle to prevent human and environment health.
Large Structure – One of the major factor in latest trend is advancement of technology
in bicycle industry(Ritala, Hurmelinna-Laukkanen and Nätti, 2012).It has been an vast evolution
in this sector. Several organisation of this sectors are launching advance feature bicycles as well
as accessories that helps to getting effective market growth. All these activities assist to
maximise structure of this industry properly.
Bicycle industry can enhance its structure and size by using advance technology and
innovative ideas. Major requirement of these ideas is to make quality changes and modifications
in products and services. All these activities are based on customer's requirements and their
needs.
Growth of Employees – In this generation, each and every individual requires an
effective growth in their career. Bicycle industry makes new changes in its structure because of
customer's requirements and their needs. Management of such organisations implement advance
technology and innovations to maximise growth of employees easily. All these activities are
beneficial in order to enhance employees’ skills and knowledge for uses of advance technology
and innovation.
Advancement of Equipments – Such activities are more beneficial because through this
a firm can easily manage advancement of equipments in their business activities. All these
factors help to manage organisational approaches and effectiveness. William Rath Pashley used
different strategies in their business procedure to maximise its growth and income. In this new
era, Pashley can easily expand their business structure in several countries by maximising its
sells and introduction services (Ritala, Hurmelinna-Laukkanen and Nätti, 2012).
Brand Image – Advance technology always helps to maximise brand image in targeted
markets. For a firm, it is require to implement innovation to make approprite modification and
alteration on the bases of customer's requirement and their desires. Pashley can easily increase
their brand image in different countries.
Recommendation – Pashley needs to design unique features in bicycles to getting higher
competitive advantages easily. For this, they needs to use cost effective strategies while
designing products or services. They also require to manage funds and, time and resource to
getting higher competitive advantages easily. It also assessed from past year income statement of
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Pashely cycles that their profit is increased over the period of time which they are successful in
implementing innovation in their business activities. For Pashley, it is required to implement
advance technology in order to manage complex design features of bicycles easily. For further
changes, firm needs to arrange appropriate funds to manage Raw materials of bicycles which are
very costly due to which company faces major problems while designing new bicycles. Firm
needs to manage times and funds properly because production of advance products require
external efforts of firm. These are the major factors that requires for appropriate modification
and changes to attain future objectives of firm in effective manner.
CONCLUSION
As per the above report, it has been summarised that innovation is an effective and
impactful procedure that uses to make desirable modifications and alterations in products and
services. For this, a firm needs to analyse customers and market demands in order to make
effective changes properly. All these activities help to maximise firm's growth and income. By
implementing innovation in organisation, management can easily build direct connection with
customers to maximise sales of products. Managing innovation is not an easy task because it
requires time, funds and proper efforts of employees to get desired outcomes easily. These
alterations are based on changes in customer's demands, trends or new technology. In bicycle
industry, innovations take a major place which are basically depends on customer's demand and
requirement in order to providing them new and adventures experience.
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REFERENCES
Books and Journals
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Brown, K. and Osborne, S. P., 2012. Managing change and innovation in public service
organizations. Routledge.
Drucker, P. F., 2014. The Executive in Action: Three Drucker Management Books on what to Do
and why and how to Do it. HarperBusiness.
Evans, J. D. and Johnson, R. O., 2013. Tools for managing early-stage business model
innovation. Research-Technology Management. 56(5). pp.52-56.
Feller, J., Finnegan, P. and Nilsson, O., 2011. Open innovation and public administration:
transformational typologies and business model impacts. European Journal of
Information Systems. 20(3). pp.358-374.
Herrmann, N. and Herrmann-Nehdi, A., 2015. The Whole Brain Business Book: Unlocking the
Power of Whole Brain Thinking in Organizations, Teams, and Individuals. McGraw-
Hill Education.
Inauen, M. and Schenker-Wicki, A., 2011. The impact of outside-in open innovation on
innovation performance. European Journal of Innovation Management. 14(4). pp.496-
520.
Laforet, S., 2011. A framework of organisational innovation and outcomes in
SMEs. International Journal of Entrepreneurial Behavior & Research. 17(4). pp.380-
408.
Owen, R., Bessant, J. and Heintz, M. eds., 2013. Responsible innovation: Managing the
responsible emergence of science and innovation in society. John Wiley & Sons.
Ritala, P., Hurmelinna-Laukkanen, P. and Nätti, S., 2012. Coordination in innovation-generating
business networks–the case of Finnish Mobile TV development. Journal of Business &
Industrial Marketing. 27(4). pp.324-334.
Online
Global bicycle market 2018.[Online]. Available through <https://www.prnewswire.com/news-
releases/global-bicycle-market-2018-2022---market-to-grow-to-usd-4440-billion-
300613945.html>
Evolution of bicycle 2018.[Online]. Available through
<https://www.timetoast.com/timelines/evolution-of-bicycle>
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Pashley Cycles. 2017.[Online]. Available through
<https://warwick.ac.uk/fac/sci/wmg/business/successstories/pashley/>
Quintessentially British brands: Pashley, hand-built bicycles with pedal power. 2017.[Online].
Available through <http://fabrikbrands.com/quintessentially-british-brands-pashley-
bikes/>
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