Innovation Technology and its Impact on Economic Progress and Company Operations, Sales, and Profitability

This report discusses the understanding of various types of innovation and technology and their impact on economic progress and company operations, sales, and profitability. It also evaluates the importance of corporate social responsibility for a firm and explains Archie's Carroll's Pyramid of CSR. The case study focuses on Aston Martin Lagonda (Plc), a British luxury sports car manufacturer. The report provides insights into the company's use of new technologies, its profitability and sales after implementing new technology, and its corporate governance practices. It also highlights the importance of CSR for the company and applies Archie's Carroll's Pyramid of CSR to analyze its CSR initiatives.

Innovation Technology
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1. Understanding of various types of innovation and technology and its impact upon country
economic progress.556................................................................................................................3
2. How innovation and technology have impacted the operations, sales and profitability of
company.694................................................................................................................................3
TASK 2............................................................................................................................................3
1. Evaluation of importance of corporate social responsibility for firm......................................3
2. Explanation of Archie’s Carroll’s Pyramid of CSR................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
Innovation technology is considered as a procedure in which firm embarks into a journey
where technology significance as a source of innovation has been determined as key success
aspects for enhance competitiveness of marketplace. This is essential for organisation as it helps
them to accomplish customer needs and bring uniqueness within society (Bender, Henke and
Lamarre, 2020). The chosen company for this report is, Aston Martin Lagonda (Plc) is known as
the British independent luxury sports cars manufacturer. Its headquarters is in Gaydon, UK. The
topics which are going to be discussed in this report are innovation and technology, its
contribution towards economic growth of country as well as their impacts upon firm’s sales,
operation and profit. Moreover, corporate governance, history of UK CG, CSR and its
importance for entity are also explained. Apart from this, application of Archie’s Carroll’s
Pyramid of CSR is also described in this report.
MAIN BODY
TASK 1
1. Understanding of various types of innovation and technology and its impact upon country
economic progress.
Define innovation and technology
Innovation is defined as the procedure of translating an idea into product or services
which develops value or for which consumers will pay. Technology is considered as the
application of scientific knowledge and transformation of machines, techniques ad tools
developed through individuals.
Practical example of how innovation and technology have contributed towards economic
growth of country.
Innovation and technology both is regarded as the economic progress driver which
benefits customers, enterprises and economy as whole. Within economic terms, innovation
explains application as well as formation of new technologies and ideas which develops products
or forms its production more effectively (Carcello, 2020). Economic growth considered as
enhancement into inflation adjusted product or services market value generated through
economy as time passes. For example: The European Central bank intent to maintain price
stability. So, through specifying interest rates, it influences financing circumstances into
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economy as well as eventually, whole demand for products or services. Although, the longer
term development is the economy potential, that based upon innovation which also impacts their
competency to attain its authorization. Therefore, as innovation has profound impacts upon
micro economic environment, the ECB observes their improvement as well as investigates the
societal and ecological pre-situations which allow innovation. Thus, one of the key advantages of
innovation and technology is their contribution towards economic development (How does
innovation lead to growth?. 2020).
How business utilises new technologies into their operations.
Organisations of whole sizes are going through with digital imperative, new technology
effectually or deal with competitive obsolesce. In about 78% of business feels, attaining a digital
transformation will become essential to their firms. Although, the necessity to opt new
technologies, around 63% of them feels that rate of technology change is very much slow. So,
problem comes in terms of in effective training, incapability of new technology to existent
methods as well as just dissatisfied or habit oriented person (Implementing New Technology in
the Workplace. 2020). Moreover, it enables business to develop their performance and product or
service efficiency. Along with this, technology has board range of positive impacts upon
management and several ways it may affect business operations. New technology provides
various techniques and applications like e-mail, live chat system, and other all these assists
business manager to communicate effectually with employee and monitor projects. Also, the
technology like e- files boost up the process of work flow as well as may save papers, printing
and other costs. This also increases accounting methods and develop effectiveness of screening
and hiring of competent staff. Apart from all these, business utilises new technology for
facilitating security to firms. New technology brings e- security system and biometric alarm
system that helps them to be safe from hackers.
2. How innovation and technology have impacted the operations, sales and profitability of
company.
Overview of company
Aston Martin Lagonda (Plc) is considered to be one of the most leading independent
luxury car group with having above 100 of designs as well as automotive quality across 2 brands.
It is established in year 1913 by Lionel Martin and Robert Bamford with having headquarters is
in Gaydon, England, UK. It mainly manufactures luxury sports cars and grand tourer. Moreover,
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they are operating in about 53 countries and above 160 locations. In year 2019, its revenue is
around $ 1.3 billion and approx 2, 450 employees who are working with them (Aston Martin
Lagonda (Plc), 2020).
New technology and its uses in company
As there are various new technology, which are utilising within automobile industry for
advancing their services and operations. Such as Artificial Intelligence and machine learning rare
boosting now a day and also may plays essential role in future as well (Carroll, 2020). Various
car manufactures are utilising algorithms which use data to automate the setting up procedures.
For example: Aston Martin Lagonda (Plc), luxury car manufacturer has ejected their legacy
services of antivirus cyber security in respect of new SentinelOne which is a platform of
endpoint protection. This leverages artificial intelligence as they seek to safeguard their
manufacturing, supply chain and others. Moreover, some other new technology helps them to
introduce self driving cars and others.
Comparison of profitability and sales of company after new technology get introduced.
Figure 1, Aston Martin Lagonda (Plc)
(Source: Aston Martin Lagonda (Plc). 2020)
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TASK 2
1. Evaluation of importance of corporate social responsibility for firm.
Define corporate governance
Corporate governance is considered as the accumulation of procedures, norms or rules
through which enterprises are regulated, performed or controlled. It encompasses internal as well
as external aspects which impacts firm’s stakeholders, involving suppliers, clients and others
(Hills, 2020). This assures transparency that ensures stronger as well as balanced economic
growth. Moreover, it also assures that whole shareholder interests are protected. For example:
Aston Martin Lagonda (Plc) opt process which contributes towards assuring modern slavery do
not occur into their business or supply chain. Moreover, it has ultimate accountability for tax
strategy. Its Boards of directors include executive vice president, Chief financial officer and
various non executive directors. Along with this, some of the committee such as audit
committee, nomination committee, remuneration committee and boards.
History of corporate governance in UK with examples
The United Kingdom corporate regime includes norms, practices, rules and many others
that assures firms performs with integrity and who are accountable for its management are also
responsible for its actions. Their intent is to inspire investors as well as public confidence within
UK and hence, it promotes economic stability. The revolution initiated in year 1990s with
Cadbury report upon corporate governance. Along with this, the UK corporate governance code
set out good practices standards for some listed organisation upon composition of board and
development, accountability, remuneration and others. The code is introduced through financial
reporting council known as FRC. For example: IN YEAR 2002, Dereck Higgs, an investment
banker was rendered as brief to seek again at corporate governance. In year 2003, Higgs report
came out, but greeted with horror through few growing firms with claims that they put an
unrealistic burden upon non executives and marginalised chairman role. The FRC consulted and
generate a revised code which was obeyed by various Higg’s suggestion
Define Corporate Social Responsibility
Corporate social responsibility is considered as the management aspects whereby
organisations incorporate environmental as well as social concern in its practices of business and
relations with its stakeholders.
Importance of CSR for organisations
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CSR is considered to be the most essential aspects in developing firm’s public image. At
present time, it become important for all types of business to perform CSR activities (Misback,
2020). As per Aston Martin Lagonda (Plc) sustainability report, it concentrates upon sustainable
luxury business by promotion of accountable and economic development. As they apply social,
ethical and environmental principle into their supply chain. Moreover, both ethical as well as
accountable supply chain is not only follow the norms but lead accountable practices of business.
In addition to this, it is also essential as this develops brand value, enhanced sales, maximise
consumer involvement, get advantage over competitors and many others.
2. Explanation of Archie’s Carroll’s Pyramid of CSR.
Archie’s Carroll’s Pyramid of CSR is developed in year 1991, it states that en entity must
accomplish their accountability upon four different levels that are economical, legal, ethical and
philanthropic. This is considered as a framework that helps firm to understand that how this must
be undertaken fro accomplishment of societal accountability that they has (Morrison, 2020). The
initial level is economical dimensions or profitability, second one states regulatory
responsibilities, third one is needed by firm for remaining ethical in their practices and last one is
philanthropic. So, the respective model is applied in Aston Martin Lagonda (Plc):
Figure 2, Pyramid of CSR
(Source: Pyramid of CSR. 2019)
Economic: It is considered as the base level of CSR pyramid, that shows accountability of
any firms for always being profitable that assists them to sustain f longer duration into
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competitive business environment. This is not possible for Aston Martin Lagonda (Plc) to
accomplish their intent effectively without having profitable practices. So, this can be determined
that respective company accomplishing their accountability and practices has been profitable that
enables them to effectively perform their business operations.
Legal: This level of CSR pyramid states that, accountability of all business is to follow the
several norms that govern as well as observe their practices. In respect of Aston Martin Lagonda
(Plc), there are various norms that they must comply like employment laws and many other
regulations. So as a growing manufacturer in automobile industry, the regulations that monitor
their regulations have enhanced significance and relevancy as well. Moreover, its management
should also assure that all practices are performed as the legal norms that is provided through
respective country government
Ethical: The compliances with legal norms is not only the accountability of company but
they should be ethical in their activities. Such as using low standard equipments and charging
higher prices for that is something unethical (Narula, 2020). So, the Aston Martin Lagonda (Plc)
management has to developed and ethical policy that put down stress on developing effective
relation with client through facilitating value proposition to them, standard quality cars and many
more.
Philanthropic: Respective level of firms translates to become an effective corporate
person as well as contributes towards developing individual’s life standards and society as well
(Tai and Chuang, 2020). Large amount of investment are done by Aston Martin Lagonda (Plc)
into recycle resources and develop sustainability into their practices.
Therefore, this has been determined that Aston Martin Lagonda (Plc) is undertaking actions
that assist them to accomplish their social accountability effectively. Moreover, they are a
responsible corporation as it appropriately accomplishing the accountabilities upon several CSR
Pyramid level.
CONCLUSION
As per the above report, this has been concluded that, it is important for organisation as it
helps them to accomplish customer needs and bring uniqueness within society. Moreover, this is
helpful into economic development. CSR is considered to be the most essential aspects as it is
helpful in developing firm’s public image. Also, corporate governance encompasses internal as
well as external aspects which impacts firm’s stakeholders, involving suppliers, clients and
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others as well as also assures that whole shareholder interests are protected. Apart from this,
Archie’s Carroll’s Pyramid of CSR helps firm to understand that how this must be undertaken
for accomplishment of societal accountability that they has in more effective and efficient way.
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REFERENCES
Books and Journals
Bender, M., Henke, N. and Lamarre, E., 2020. The cornerstones of large-scale technology
transformation. McKinsey Quarterly. 4.
Carcello, J.V., 2020. Governance and the common good. Journal of Business Ethics. 89(1).
pp.11-18.
Carroll, A.B., 2020. The pyramid of corporate social responsibility: Toward the moral
management of organizational stakeholders. Business horizons. 34(4). pp.39-48.
Hills, H., 2020. Lloyds Bank. Open and Distance Learning: Case Studies from Education
Industry and Commerce. p.12.
Misback, A.E., 2020. Lloyds Bank Corporate Markets plc. Fed. Res. Bull.. 104. p.25.
Morrison, S., Pitt, L. and Kietzmann, J., 2020. Technology and financial services: Marketing in
times of U-commerce. Journal of Financial Services Marketing. 20(4). pp.273-281.
Narula, R., 2020. Globalization and technology: Interdependence, innovation systems and
industrial policy. John Wiley & Sons.
Tai, F.M. and Chuang, S.H., 2020. Corporate social responsibility. Ibusiness. 6(03). p.117.
Tricker, R.B. and Tricker, R.I., 2020. Corporate governance: Principles, policies, and practices.
Oxford University Press.
Walker, K. and Dyck, B., 2020. The primary importance of corporate social responsibility and
ethicality in corporate reputation: An empirical study. Business and Society
Review. 119(1). pp.147-174
Online
How does innovation lead to growth?. 2020 .[Online]. Available through:<
https://www.ecb.europa.eu/explainers/tell-me-more/html/growth.en. >
Implementing New Technology in the Workplace. 2020 .[Online]. Available through:<
https://www.selectonellc.com/blog/introducing-new-technology-to-your-organization>
Aston Martin Lagonda (Plc). 2020. .[Online]. Available through:<
https://www.astonmartinlagonda.com/about-us>.
Pyramid of CSR. 2019. [Online] Available thru
<https://link.springer.com/referenceworkentry/10.1007%2F978-3-642-28036-8_238
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(Bender, Henke and Lamarre, 2020)(Carcello, 2020)(Carroll, 2020)(Hills, 2020)(Misback, 2020)
(Morrison, 2020)(Narula, 2020)(Tai and Chuang, 2020)(Tricker and Tricker, 2020)(Walker and
Dyck, 2020)
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