Innovation Plan Assessment 2022

Running head: INNOVATION PLAN
INNOVATION PLAN
Name of the Student:
Name of the University:
Author Note:

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INNOVATION PLAN
Table of Contents
ASSESSMENT 1 –Written Questions:...........................................................................................5
Answer 1:.........................................................................................................................................5
Answer 2..........................................................................................................................................6
Answer 3..........................................................................................................................................7
1. Autocratic leadership style:.........................................................................................................7
2. Democratic leadership:............................................................................................................7
3. Laissez-Faire Leadership:........................................................................................................7
4. Strategic leadership:.....................................................................................................................8
5. Transformative leadership:......................................................................................................8
Answer 4..........................................................................................................................................8
Answer 5..........................................................................................................................................9
Political factors:...........................................................................................................................9
Economic factors:........................................................................................................................9
Technological factors:.................................................................................................................9
Social factors:..............................................................................................................................9
Legal factors:.............................................................................................................................10
Environmental factors:...............................................................................................................10
Financial strength of the concerned firms:................................................................................10
Talent acquisitions:....................................................................................................................11

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Market presence:........................................................................................................................11
Answer 6........................................................................................................................................11
Risk management policy formation:..........................................................................................11
Risk identification and reporting:..............................................................................................11
Risk management strategy formation:.......................................................................................12
Risk management strategies implementation:...........................................................................12
Risk monitoring:........................................................................................................................12
Supporting strategies:................................................................................................................12
Answer 7........................................................................................................................................12
Answer 8:.......................................................................................................................................14
ASSESSMENT 2 – Written Report:..............................................................................................15
Introduction:..................................................................................................................................15
About L’Oreal and the innovation:................................................................................................15
Execution of the innovation:..........................................................................................................16
Step 1.........................................................................................................................................16
Step 2.........................................................................................................................................16
Step 3.........................................................................................................................................16
Step 4.........................................................................................................................................16
Step 5.........................................................................................................................................17
Step 6.........................................................................................................................................17

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Step 7.........................................................................................................................................18
Evaluation of innovation thinking and creativity ideas:................................................................18
Drivers, enablers and conditions at L’Oreal:.................................................................................19
An Innovative practice to be implemented in L’Oreal:.................................................................19
Conclusion:....................................................................................................................................19
Report 2:........................................................................................................................................20
Introduction:..................................................................................................................................20
Step 1 and 2. Identifying the relevant stakeholders for implementation the innovation and
determination their requirements as well as introduction of information about innovation:........20
Step 4. Promote team working approach:......................................................................................24
Step 5. Resources:..........................................................................................................................24
Step 6:............................................................................................................................................24
Step 7. Identifying and establishing mechanisms at systems and process levels to support
innovation:.....................................................................................................................................28
Report 3:........................................................................................................................................29
Step 1.............................................................................................................................................29
Appendix A....................................................................................................................................29
Appendix B....................................................................................................................................29
Step 3. Self-assessment:.................................................................................................................29
References:....................................................................................................................................31

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INNOVATION PLAN

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INNOVATION PLAN
ASSESSMENT 1 –Written Questions:
Answer 1:
The approach of people towards innovations have undergone a positive change over time,
especially in the last few years. People or stakeholders in this case, hold innovation positive in
several aspects. Chang and Taylor (2016) point out that consumers, the primary stakeholders
today hold innovation an essential part of new product development. The discussion to study the
change of perception among consumers and other stakeholders regarding innovation can be
initiated by taking a leaf out from the article ‘Green Marketing”: an analysis of definitions,
strategy steps, and tools through a systematic review of the literature’ by Dangelico and
Vocalelli (2017). They introduce the product concept which the manufacturing companies used
to apply in the past to a large extent. These companies at that time manufactured goods by
considering that consumers would buy products if they are easily available, affordable and of
superior quality. The next concept as mentioned by Terho et al. (2015) is the sales concept
which takes into account that products would sell into the market if they are available, affordable
and of superior quality. These two concepts which were are not prevalent today did not take into
account the requirements and expectations of consumers. These two approaches functioned in
situations which consumers owing to limited knowledge about new products, forced to consume
products available in local markets. They were as a result either not aware about innovation or
were reluctant about it. The companies at present use marketing concept holds consumers’
expectations as parameters of manufacturing and selling products (Merrilees 2016). Companies
today carry out innovations to manufacture products to create value for customers. The
customers today perceive innovations as gateways to create more values to them. The
companies today gain participation of consumers by gaining feedbacks from them which the

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INNOVATION PLAN
former use in making product strategies. Thus, consumers today thus perceive innovations as
integral components of product manufacturing processes which would create value for the
amount they spend to purchase products.
Answer 2.
The theory and thinking of innovation have great role in the business organisations.
Innovation is not only necessary to bring about customer satisfaction and revenue generation but
also to ensure that the business organisation operate in ways so as to minimise expenses in order
to retain a major portion of the revenue earned in the form of net profit. According to Alexander
and Jaakkola (2015), the first role which innovation plays in business organisations is leading
them towards manufacturing products (goods and/or services) which would create value and
satisfaction to customers, thus paving ways for revenue generation. The second role can be
considered as the continuation of the second role. Business organisations in order to ensure
customer value creation and revenue generation by manufacturing appropriate products,
concentrate on acquiring raw materials and work-in-progress inventory as per customer
expectations. This means that business organisations apply innovation theory and thinking not
only in product manufacturing but in supply chain management as well. The third
implementation of the innovation in business operations is selling. The companies in order to
make products available to customers as per their convenience use wide networks of distributors,
retailers and their own outlets as well as ecommerce platforms (Torres, Singh and Robertson-
Ring 2015). This generates high revenue which innovation theory and implementation in
business operations lead to financial sustainability. The fourth way in which companies
implement innovation even in disposing wastes which are the bye products of their production
process by recycling a portion of the same to the feasible extent. Thus, in other words innovation

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INNOVATION PLAN
theory and planning has paved ways for business organisations to encourage environmental
sustainability and establish themselves as socially responsible corporate citizens.
Answer 3.
The following are the five of leadership styles explained in brief:
1. Autocratic leadership style:
Autocratic leadership style is the leadership style in which leaders make decisions
without consulting their subordinates and followers. The leaders following this style of
leadership expect prompt execution of command from their subordinate and do not expect any
feedback. This style of leadership provides limited flexibility of operations and inhibits
innovation. The employees operating under autocratic leadership style experience low level of
involvement in their job and suffer from low job satisfaction.
2. Democratic leadership:
Democratic leadership consists of leaders involving the entire in forming decisions and
usually give importance to the opinions of the followers. This type of leadership enables the
junior employees to express their feedback on the decision taken by the leader which in turn
creates a positive impact on the latter (Iqbal, Anwar and Haider 2015). Khan et al. (2015)
mention that this style of leadership allows a great of leader and follower collaboration and
enables greater degree of flexibility.
3. Laissez-Faire Leadership:
This style of leadership is characterized by the lack on control of intervention and control
of leader over the employees. According to Wong and Giessner (2018) this type of leadership is
appropriate in situations when followers are fully to their respective performances. However, in

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INNOVATION PLAN
reality this does not happen and some sort of control from the leader is required for the followers
to achieve their targets.
4. Strategic leadership:
Strategic leadership is the leadership style in which leaders align their leadership style
with the strategies of the company concerned. Vargas (2015) point out that strategic leadership
results in leaders leading their respective subordinates as per the business requirements. This
form of leadership is adapted to the market conditions and is appropriate for experienced
employees.
5. Transformative leadership:
Transformative leadership encourage transformations in the methods of operations of the
employees usually outside their respective comfort zones or perception about the level of
performances which they can achieve. The transformational leaders encourage followers to be
innovative and be responsible for their actions (Nguyen et al. 2017).
Answer 4.
Innovation holds great significance in the industry and organisational context. Innovation
enables the organisations to align their operations with the macroeconomic context. The
macroeconomic factors like political factors are going continuous change. The management of
the organisations have to embrace these changes in order to ensure that they are able to sustain in
the market. For example, the Government of Australia in order to control environmental
degeneration in Australia mandates all companies to ensure that they do not cause damage to the
regions of environmental importance in Australia like the Great Barrier Reef as per
Environment Protection and Biodiversity Conservation Act 1999 (Environment.gov.au.

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2019). This means that companies housed in Australia are required to operate in environmentally
sustainable ways to as to ensure that they comply with the laws. Thus, innovation ensures that
business organisations and consequently, the industries as a whole comply with the laws by
adopting innovative ways of operations.
Answer 5.
The following are the nine critical success factors which impact the innovation in
business organisations:
Political factors:
The political factors have deep impacts on the success factors of innovation in different
nations. The government of the developed and emerging view innovations as the means to
encourage entrepreneurial growth and associated economic growth. That is why governments of
these nations support innovations. Thus, political factor is one of the important factors which
encourage innovations.
Economic factors:
Economic factors have direct impact on the success of innovations. Factors like
availability of materials and strong financial networks encourage innovations. Factors like
poverty and weak financial conditions on the contrary impede innovations.
Technological factors:
Availability of advanced technology boost innovations. Technological factors like cyber
threats on the other hand impede innovations.

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Social factors:
Social factors play a very significant in encouraging innovations. For example, the
customers today demand more innovative goods and services which are more aligned to their
needs. They are hold innovations as methods of creating high quality products and consequently
value for them. These factors as a result encourage innovation.
Legal factors:
Laws enacted by the governments both at the union and local levels have great impacts
on the success rates of innovations. Most of the countries have enacted intellectual property
rights (IPRs) laws which provide the owner of these IPRs exclusive rights to use for business
purposes and take actions against firms breaching these IPR laws. The firms, both new and
existing are encouraged to bring about more innovation in their business aspects like product
lines and operations. Thus, legal protection to IPRs are to a great extent responsible for
attributing success to innovations.
Environmental factors:
The companies today are under continuous pressure to integrate environment
sustainability and profitability. The companies today carry out innovations to bring about
products which cause minimum damage to the environment and at the same time generate
revenue. Thus, it is evident that environment sustainability necessitates innovation in business
organisations.
Financial strength of the concerned firms:
Financial strength of the firms bringing about innovations have great impact on the
success of those innovation. The firms which are financially strong are capable of embracing
more innovations compared to their financially weak counterparts.

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Talent acquisitions:
The firms which are able to acquire superior talents are able to bring out more
innovations compared to the firms which are not able to acquire talents. Highly skilled
employees drive their innovative strategies undertaken by the management of the concerned
company.
Market presence:
Firms having stronger market are more likely to be successful in bringing about
innovations. This is because stronger market presence attributes firms with all the above
advantages.
Answer 6.
The risk management process which management of the companies embracing
innovation should involve all the departments and employees irrespective of their designations.
The following are the main steps which could be implemented in companies in these direction:
Risk management policy formation:
The management of the firms aiming to bring about innovation in products should form
risk management policies. The risk management policies should clearly layout how risks would
be identified and dealt with. The policies should enable engagement of stakeholders in order to
enable more effective risk management.
Risk identification and reporting:
The employees of the companies concerned should identify and report risks as per the
risk management framework. The risk identification process of the company should involve

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external stakeholders like representatives of suppliers who can enable the company to identify
the risks.
Risk management strategy formation:
The management upon gaining information about risks should form strategies to manage
them. The management should gain participation of the middle managers and external
stakeholders like risk consultants in the risk management process.
Risk management strategies implementation:
The lower level employees should implement the risk management strategies made by the
management. They report any newly identified risks during the course of executing the strategies
formed by the apex management.
Risk monitoring:
The management of the companies should monitor the effectiveness of the strategies
formed to manage the risks. The risk management strategies may be amended from time to time
to ensure their effectiveness in managing the risks.
Supporting strategies:
The management of the companies concerned should adopt supporting strategies to
ensure effective risk management. The supporting strategies would include risk training of
employees and acquisition of resources like modern installations like modern manufacturing
software.

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Answer 7.
The following are the main challenges which business organisations may face during the
course of innovation implementation and ways to the overcome these impediments to the
feasible extent:
Risks or challenges Ways to deal with them
Financial factors The management of the concerned companies should hold
meetings with the investors and financial institutions for
loans to make financial resources available for the
innovation. The management bodies of these companies
should create bodies of funds to drive innovations. The
management should also either utilise overdraft facility or
borrow loan to support R&D towards innovation.
Technological challenges The management of the companies concerned should
adopt modern technology. The technology should allow
real time communication of innovation data among the
departments involved.
Environmental threats The companies should ensure that their innovations
damage the environment. The aim of the innovation
would also be to achieve environmental sustainability.
Resistance from employees The management of the companies concerned should
initiate organisational changes as support strategies to
support innovation adoption. The management should
train the employees to make them realise the importance

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of innovation.
Answer 8:
The management of the companies embracing innovations can engage their employees in
making the strategies in the direction of the innovations. For example, the marketing employees
should communicate with customers to gain information about their expectations. They should
report these expectations to the marketing managers who would form strategies to incorporate
these expectations with the product strategies. This way the management can engage employees
in the innovation process. The management can also encourage employees to express ideas
regarding the innovation. This way the management can again engage employees.

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INNOVATION PLAN
ASSESSMENT 2 – Written Report:
Report 1:
Introduction:
Innovation has emerged as a necessity of the business organisations to sustain in the
market. Innovation does not only ensure that companies are aligned to ensure customer
satisfaction but are adapted to the changing macroeconomic environment as well. Multinational
business organisations today in order to ensure higher compliance with the environmental laws
in power in most of the countries, adopt the strategy of innovation to a great extent. The aim of
the report would be to explore innovations which multinational companies embrace. The
company which would provide substratum to the research would be L’Oreal S.A., the world’s
largest cosmetic company based in France.
About L’Oreal and the innovation:
The core business of L’Oreal S.A. is marketing superior quality skincare products. The
company is the largest cosmetic company in the world and positions itself as the marketer of
high-end cosmetic products. The brand is a high end fashion brand and collaborates with several
entertainment industries around the globe. The purpose of the company is expressed by the
catch line which reads, ‘Beauty for all’. The purpose of the company finds expression in the
superior quality products which the company markets before both men and women. The size of
the business of the company spans around more than twenty nations in the world. This means
that operational aspects of the company including innovations are extremely complex and
embrace several nations. The broader operating context driving these innovations in L’Oreal is to
ensure that the company is more aligned environmentally (Loreal-finance.com. 2019). This is

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evident from the fact that company is going on introducing products made from natural sources
like different types oil extracted for vegetative seeds (Rose 2018). The innovation which would
be considered would be innovation in products which L’Oreal is ushering by using natural
ingredients like coconut oil in its products.
Execution of the innovation:
Step 1.
A meeting would be held to interact and communicate with the employees including
peers, juniors and superiors. The aim of the meeting would be creating awareness among them
about the importance of innovation to L’Oreal and its subsidiaries. The second aim of the
meeting would be shedding light on the current practices of innovation which L’Oreal brings in
the products it markets. The third aim of the meeting would gaining ideas from the attendees of
the meeting.
Step 2.
Suitable professionals should be identified among the attendees to generate honest
feedback and support on the innovation.
Step 3.
A wide range of stakeholders would be interviewed in order to gain new ideas on the
innovation which could be carried out at L’Oreal. The stakeholders would include technical
exprts, subject matter experts, junior employees, senior employees and peers. The meeting would
also be attended by other relevant stakeholders like management and external stakeholders like
suppliers.

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INNOVATION PLAN
Step 4.
A brainstorming session would be held in order to ensure that participants generate fresh
ideas. These ideas would drive the future innovations at L’Oreal.
Step 5.
Qn
no. Questions Yes No May
be
No
response
1 Do you think L'Oreal is an innovative company?
2 Do you think innovation is important to gain market
sustainability?
3 Do you think L'Oreal's innovation are aligned with the
market.
4 Do you think innovation drives profit generation?
5 Do you think innovation at L'Oreal encourages
environmental sustainability?
6 Do you think innovation is important to manage the
risks the company faces?
7 Do you think departmental heads should drive
sustainability?
8 Do you think employees play important role in
innovation?
9 Do you think customers contribute towards innovation?
10 Do you think technology drives innovation?
Respondent details
Name and position of personnel involved
Date of meeting/ session
Points discussed in the session
Signature of attendees
Step 6.
Prior permission would be acquired from the stakeholders like the employees of the
organisation including both senior and junior employees. The departmental heads would also be
approached for appointment. The aim of the appointment would be gaining feedback and ideas
from these respondents on the innovations which are taking place in L’Oreal at present as well as

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INNOVATION PLAN
gaining feedback on the future innovation. The interview would also lead to generation of new
ideas which could be incorporated with the innovation at L’Oreal.
Step 7.
The personnel concerned must analyse the ideas and feedback gained from the
employees. He must then prepare a report on the innovative thinking generated during the course
of discussion which would be presented before the management of the company from
consideration and implementation.
Evaluation of innovation thinking and creativity ideas:
The innovative ideas and creative ideas which L’Oreal implements are extremely
effective. First of all, these ideas have enabled the company to introduce new products aligned
with the demands of the consumers and provide them with superior quality of products. This has
maximised customer satisfaction and enabled the company generate higher amount of revenue.
Secondly, the innovative ideas which the company implements has enabled it to introduce
products made from natural ingredients like clay and argon oil. This products have enabled the
company to reduce its impact on the environment, thus establishing itself as a socially
responsible corporate citizens not only in its home country, France but also in its host markets
like Australia. The fourth benefit which innovation has ushered on L’Oreal is that the company is
collaborating with government bodies in its host markets like Australia to promote
environmental sustainability within their respective economies. This means that the innovation
has enabled the company to collaborate with larger numbers of the stakeholders. The fifth
benefit which innovation has ushered on L’Oreal is that the company has gained the market
position to encourage sustainability and innovation among other companies as well. Thus,

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embracing of innovation has enabled L’Oreal to enforce innovation and environmental
sustainability in the entire global cosmetic industry.
Drivers, enablers and conditions at L’Oreal:
Several factors at L’Oreal drives innovation in the company. First of all, the company is a
listed company which is capable of sourcing immense capital from the securities market. This
ensures that the company is able to source the immense amount of capital which it channelizes
towards its product manufacturing operations. Secondly, the company operates in more than
twenty countries in the world and generates huge revenue. The management of the company then
channelizes the revenue towards production of the products. The third driving factor which
drives innovation in the company is its collaboration with several cosmetic laboratories and
designers which enable it bring about open innovation in its products. The fourth driving factor
which drives innovation in L’Oreal is its trained human resources.
An Innovative practice to be implemented in L’Oreal:
An innovative practice which can be implemented in L’Oreal is that the staff would use
minimum amount of paper in the office work. They would use the digital platform to send and
receive emails which would enable them to reduce consumption of paper. This operational
practice practice would promote sustainability at L’Oreal offices around the globe.
Conclusion:
It can be concluded that the management of L’Oreal should adopt innovation more
strongly in future. The company should infuse innovation in its operations to a greater extent to
ensure that the company is embrace sustainability to a greater extent. The management of the
company should provide training to its employees to encourage innovation among them. These

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INNOVATION PLAN
practices would boost innovation in the climate of L’Oreal and enable it to gain higher level of
sustainability.
Report 2:
Introduction:
Carrying out innovations to introduce environmentally sustainable products has emerged
as one of the crucial strategies which L’Oreal implements to establish itself as a socially
responsible global corporate citizen. The aim of the report is to implement the innovation plan to
strengthen the sustainability level. The plan would involve formation of strategies which would
ensure that the company is able to acquire sustainably sourced raw materials.
Step 1 and 2. Identifying the relevant stakeholders for implementation the innovation and
determination their requirements as well as introduction of information about innovation:
The following are the main stakeholders which would be taken into account to implement
the innovation in the products marketed by L’Oreal. The requirements of the stakeholders in
regards to sustainability in the products of the company would also be shown in the table below:
Types Stakeholders Requirements
Methods of
Introduction of
innovation to
stakeholders
Internal Management (Apex
management and
management of its
subsidiaries)
Makes strategies for adoption of
innovative strategies to attain
sustainability and implement the same.
Meeting,
brainstorming
and making
innovation
strategies to
make L'Oreal's

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product line more
sustainable.
Internal Employees
1. Implements strategies made by the
management.
2. Interacts with external stakeholders like
customers and gain information from
them regarding innovations they expect in
L'Oreal products.
3. Communicates the feedback from
external stakeholders to managers
Meetings, emails
and training
sessions.
External Government -Home
country(France)
1. Forms bilateral agreements with other
countries which allows L'Oreal expands
into them to gain access to their
sustainable supply chains.
2. Makes IPR laws which enable L'Oreal
protect its innovations from
infringements.
3. Encourages innovation in sustainable
manufacturing of products by providing
facilities like tax rebates and awards.
Holding meetings
with the relevant
government
officials, press
release etc.
External
Government -Host
countries(the USA, the
UK, India etc)
1. Forms bilateral agreements with France
which allows L'Oreal expands into them to
gain access to their sustainable supply
chains.
2. Makes IPR laws which enable L'Oreal
protect its innovations from
infringements.
3. Encourages innovation in sustainable
manufacturing of products by providing
facilities like tax rebates and awards.
Holding meetings
with the relevant
government
officials, press
release etc.
External Customers(Global) 1. Expects high quality products from
L'Oreal which are sustainable.
2. Provide feedback to bring about the
innovations.
3. Generate revenue for L'Oreal
Advertisement on
the official
website, print
advertisements,
audio visual
advertisements
and digital
marketing.
External Suppliers
1. Provides environment friendly
materials like organic clay and organic
argan oil.
2. Provides information about more
sources of sustainable raw materials
which can contribute to the sustainability
product strategies of L'Oreal.
Advertisement on
the official
website, print
advertisements,
audio visual
advertisements
and digital
marketing.
Meetings

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INNOVATION PLAN
External Investors (like Nestle)
1. Provides capital by investing in the
shares of L'Oreal.
2. Provides ideas about innovation to
L'Oreal
Advertisement on
the official
website, print
advertisements,
audio visual
advertisements
and digital
marketing.
Meetings
External
Distribution channels
(wholesalers, retailers
etc.)
1. Distributes the products in the global
market.
2. Generate revenue by selling products to
customers especially in markets where
L'Oreal has no direct presence.
3. Communicates information gained from
customers to the company.
Advertisement on
the official
website, print
advertisements,
audio visual
advertisements
and digital
marketing.
Meetings
External Economy Goes on continuous change and requires
L'Oreal to embrace innovation to adapt. All of the above
External Technological partners
and R&D firms
1. Conduct R&D on behalf of L'Oreal.
2. Provide ideas to L'Oreal.
Advertisement on
the official
website, print
advertisements,
audio visual
advertisements
and digital
marketing.
Meetings
External Competitors
Introduce sustainable products thus
requiring L'Oreal to carry out innovation.
Advertisement on
the official
website, print
advertisements,
audio visual
advertisements
and digital
marketing.
Meetings

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INNOVATION PLAN
Innovation
Suppliers
Govt. Customers
Investors
Economy
Technological partners
Distribution channel
Competitors
Management
Employees
Figure 1. Table showing stakeholders of L'Oreal to be considered for product innovation
(Source: Reference)

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INNOVATION PLAN
Step 4. Promote team working approach:
The management of L’Oreal should promote team working approach which would
support open communication and consultation to share innovative ideas. The managers should
follow eliciting group activity. First of all, the managers should identify the need or the
problem. The information about the need or the problem should come from the stakeholders. For
example, the customers may reveal they expect more sustainable products from L’Oreal. The
government of a certain host nation, say Australia may report that all L’Oreal products are not
made from sustainable ingredients. The second step should be listing the problems or issues and
consider managing them. The third step is brainstorming which means that ideas would be
stimulated in a small team of 6 to 10 people in a non-evaluative way. The fourth and the last step
is thinking out of the conventional areas to come up with more disruptive innovative solution.
Step 5. Resources:
The resources required to implement the strategy of bringing about more innovation to
attribute the products with more environmental sustainability are material resources, financial
resources, technological resources, knowledge resources and human resources. As far as the
arrangement of the resources are concerned, the first and the most important resource is human
resources since this is the resources which mobilises all the other resources. The second most
important resource is financial resource because this resource is mobilised to acquire the other
three resources. The other three resources namely, technological resources, knowledge resources
and materials resources are of equal importance since they are interdependent.
Step 6:
Risks of L'Oreal
Ris
k
Documen
t control
Risk
identifie
Risk
Category
Risk
Descripti
Impact of
the risks
Risk
respons
Owner
of risk
Precautiona
ry
Owner of
Risk

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INNOVATION PLAN
no informati
on r on
e
categor
y
recommenda
tions
response
action
1
Profit and
Loss
statement,
balance
sheets
Falling
profits in
spite of
strong
marketin
g
strategies
Market
risks
1. Market
risks can
originate
due to
introducti
on of
new
products
by
existing
competit
ors
and/or
entry of
new
firms
with
similar
products.
2. Loss
of
materials,
technolo
gical
resources
and
manpowe
r due to
fire and
explosion
s
1. Fall in
revenue and
losing of
consumers.
(short term
impact)
2. Losing
investors,
and supply
chains due
to falling
capacity to
give
positive
ROI.
(medium
term)
3. Goodwill
risk and
losing of
global
market
position
(long term
loss)
4. Reduced
productivity
due to
increasing
accidents
and loss of
resources
Strategic
decision
s,
marketin
g
strategie
s
Finance
departme
nt,
Marketin
g
departme
nt, Risk
manager,
Engineer
1. Formation
of a strong
risk
management
strategy.
2.Use of
moern risk
management
systems
3.Strengtheni
ng marketing
of products,
introducing
new and
innovative
products with
less
competitors
Conducting
marketing
analysis
Marketing
departme
nt
2 Risk
register
Employe
es,
customer
s or any
other
stakehold
er
Vary
WHS
risks to
employee
s due to
collision
with
objects
etc
Loss of
productivity
, actions
from Safe
Work
High to
very
high
Manage
ment
Safety
training of
employees
Managem
ent and
the
concerned
departme
ntal heads
3
Unjustifie
d loss of
capital,
Unjsutifie
d loss of
data,
Unexplain
able alter
of
informatio
n
Employe
es,
customer
s or any
other
stakehold
er
Cyber
theft risks
1.Cyber
attack
would
cause
loss of
ICT data
and
designs
which
would
attract
huge
security
risks
towrads
the
company.
2. Cyber
attacks
1. Loss of
sensetive
business
data.
2. Loss of
financial
resources.
3.
Unauthorise
d access to
the
business
strategy
information
of the
company.
4. R1
High
Apex
manage
ment and
all the
departme
ntal
heads
1. Tightening
of security.
2. Allocating
new email ids
and
passwords to
each
employees.
3. Mandating
subordinates
to obtain
approval of
superiors to
accede to
specific
information.
4. Making it
compulsory
for all
Apex
managem
ent and all
the
departme
ntal heads

26
INNOVATION PLAN
lead to
loss of
customer
and
financial
data of
extreme
business
significa
nce. Loss
of
customer
data and
financial
resources
online
lead to
R1
employees to
exchange
official
information
exclusively
on the
formally laid
path of
information
sharing.
5. Employees
holding
assistant
managers and
beyond
should lock
their systems
using a four
layer
password
security.
4
Cannot be
document
ed
Employe
es,
customer
s or any
other
stakehold
er
Natural
disasters
Natural
disasters
lead to
loss of
resources
,
inventory
and
assets
Depends on
the
seriousness
and
intensity of
the
calamities
Immedia
te
Governm
ent,
security
personne
l etc
Evacuation
Governm
ent,
security
personnel
etc
5
Governme
nt and
legal
websites
Apex
managem
ent
Change in
legislation
s
pertaining
to retail
sector
Change
in laws
require
companei
s to
comply
with the
new
laws.
1. Damage
to existing
housing
stock
2.
Unproducti
ve
maintenanc
e costs
3.Requires
W adapt the
relevant
areas of
operations
as per the
laws
Immedia
te
Apex
manage
ment and
all the
departme
ntal
heads
Compliance,
OHS
strategies
Governm
ents
6 Financial
statements
Apex
managem
ent,
finance
departme
nt, CFO
Economic
risks
1.
Increase
in cost of
materials,
cost of
labour
etc.
2.
Scarcity
of funds
due ti
withdraw
al of
financial
support
either by
Requires
construction
to adapt the
relevant
areas of
operations
as per the
laws
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
manage
ment and
all the
departme
ntal
heads
Formation of
strategies
Apex
managem
ent and
finance
departme
nt

27
INNOVATION PLAN
governm
ent or
companie
s funding
the
project.
7 Risk
register
Apex
managem
ent,
security
officer
and any
other
employee
Fire,
exlosions
Loss of
materials,
loss of
equipme
nt, injury
of
employee
s, loss of
productiv
ity,
casualty
in case of
large
scale
explosion
s
Companeis
lose
productivity
,
employees,
resources
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
manage
ment and
all the
departme
ntal
heads
Risk
management
strategies
Apex
managem
ent and
finance
departme
nt
8 Financial
statements
Apex
managem
ent and
top
managers
including
CFO
Goodwill
risks
The
company
may
loose
trust of
stakehold
ers
Companeis
lose
productivity
,
employees,
suppliers,
patents and
assets
Immedia
te
Apex
manage
ment and
all the
departme
ntal
heads
Risk
management
strategies
Apex
managem
ent and
finance
departme
nt
9 Financial
statements
Apex
managem
ent and
top
managers
including
CFO
Capital
risks
Weakeni
ng of
capital
base due
to lower
generatio
n of
capital
L'Oreal lose
productivity
,
employees,
suppliers,
patents and
assets
Immedia
te
Apex
manage
ment and
all the
departme
ntal
heads
Strengthenin
g marketing
of products,
introducing
new and
innovative
products with
less
competitors
to boost
revenue
generation
and
strengthen
goodwill
Apex
managem
ent and
finance
departme
nt
10 Financial
statements
Apex
managem
ent and
top
managers
including
CFO,
R&D
head
Technolo
gical risks
1.
Modern
technolo
gy leaves
perevious
technolo
gy
versions
redundan
t.
Requires
L'Oreal to
carry on
continuous
research on
product
technology,
operation,
ecommerce
technology
etc
Immedia
te
Apex
manage
ment and
all the
departme
ntal
heads
Requires W
to carry on
continuous
research on
product
technology,
operation,
ecommerce
technology
etc
Technolo
gcial
officer

28
INNOVATION PLAN
Step 7. Identifying and establishing mechanisms at systems and process levels to support
innovation:
The management of L’Oreal should identify and establish mechanism within the systems
and process levels to support innovation. For example, the managers should hold meetings on
monthly basis both among themselves and with their junior level employees to increase
knwoldge about innovation.

29
INNOVATION PLAN
Report 3:
Step 1.
Appendix A
Incident Emotions experienced Reaction Effect on workplace
relationships
What I would
do next time
Meeting Energetic and proactive Happy Positive Encourage it
Meeting Indifferent and negative Indifferent Negative Deal with it
Manager's meet Conflicting thoughts Unhappy Hostile Deal with it
Press conference Energetic and proactive Happy Positive Encourage it
Training Lack of interests Indifferent Negative
Motivate the
trainees
Appendix B.
Student’s name: __________________ Date: ________________
Participant’s name Signature
Alex John
Christin Andrews
April Williams
John Andrews
Angelina Chris
Stephen Gupta
Md. Alam
Step 3. Self-assessment:
The managers should conduct self-assessment of their leadership style to point out their
strengths and weaknesses. The review of the leadership style of the manager reveals several
strengths. The first strength which comes to light post review is the power to take decisions. The
second strength of leadership which comes to the forefront is the power to resolve conflict.
However, two weaknesses also comes to the forefront upon reviewing the leadership style of the
manager concerned. The first weakness is that the manager is impulsive while the second

30
INNOVATION PLAN
weakness is lack of conflict management. They should take corrective and improvement actions
consisting of trainings and mentoring to adjust their leadership style with the requirements of the
situation.

31
INNOVATION PLAN
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