Innovation and Technological Change in Economic Progress

This report discusses the concept of innovation and its role in economic progress. It explores how Aston Martin, a British sports car manufacturer, has utilized innovation to impact its operations, sales, and profits. The report also delves into corporate governance and the responsibilities of the Board of Directors towards stakeholders. Additionally, it explains the four areas of corporate social responsibility as identified by Archie Carroll. Overall, the report provides insights into the importance of innovation and corporate social responsibility in the business environment.

Innovation

Table of Contents
INTRODUCTION......................................................................................................................3
TASK1.......................................................................................................................................3
Demonstrate your understanding of innovation, and the role of technological change in
economic progress..................................................................................................................3
A brief overview of your chosen company, and practical illustrations of how innovation
has impacted the operations, sales and the profits of your chosen company.........................4
TASK2.......................................................................................................................................5
Briefly discuss corporate governance, including the responsibilities of the Board of
Directors to the stakeholders..................................................................................................5
Explain the four areas that make up corporate social responsibility as identified by Archie
Carroll....................................................................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................9

INTRODUCTION
Innovation can be defined as an activity done by an individual to improve the existing
product or bring new technology product within the market so that it can satisfy the needs of
the customer and retain them for a longer period of time (Bain and Kleinknecht, 2016). In the
present report, the chosen organisation is Aston Martin, it is a British sports car manufacturer
which is famous for its highly designed and strong cars. In this report there is discussion
about how the innovation and technology changed the economic progress as well as impact of
innovation on different areas of Aston Martin including operations sales and profit. This
report is also discussed on the corporate governance and the corporate social responsibility of
the organisation where the responsibility of board of directors towards the stakeholders will
be discussed. In the end of this report there is discussion about Archie Carroll model related
to corporate social responsibility in context of Aston Martin.
TASK1
Demonstrate your understanding of innovation, and the role of technological change in
economic progress.
Innovation: It can be define the process which is directly related to creation of
different products and ideas for the business so that these new ideas can be implemented for
improving the services and creating a dynamic product which can satisfy the needs and
requirement of customers. Innovation is the key of success for the every organisation because
it directly impact on the economic condition of the firm as well as attract large number of
customer because of innovative products and regular changes in the product which will help
in reducing the chances related to decreasing marginal utility of product.
The role of technological change in economic progress
Changes are directly related to economic progress this is because technology is inbuilt
of unit of knowledge in tools which are directly related to the resources link to the process of
producing goods and services efficiently and innovative. Updating in technology is helpful in
economic growth and development where different opportunity will come across to the
organisations and their business by adopting regular changes in business functions. Some of
the factor which shows the technology is directly linked to the economic process are
mentioned below:
Efficiency: Changing technology will directly contribute to increasing the efficiency
of the business outputs where the rate will be increase by allowing the large quantity of the
product to the organisation and enjoying the economy of scale benefits.
Bring specialisation: Adoption of new technology in developing new methods for
achieving the goals and objectives of the organisation will bring specialisation within the
economy this is because by the adoption of technology organisation will use effective
division of labour as well as specialisation within the job so that it can contribute toward the

efficiency and bringing the specialisation in working of different individuals (Lukes and
Stephan, 2017).
A brief overview of your chosen company, and practical illustrations of how innovation has
impacted the operations, sales and the profits of your chosen company
Overview of Aston martin
In context of current report, the chosen organisation is Aston Martin. It is the
independent manufacturer of luxury sports cars which is established its business in Britain.
Company was founded in 1913 by Lionel Martin and Robert Bamford. Aston Martin primary
operates in three sites where company’s main business is of sports car and grand tour. It is
innovative organisation which is based on the concept of innovation and regularly expands its
business by allocating a part of resources on research and development for adopting
innovative products. Company leads from its vision where it always believes on the strength
and its engine as well as high class body designs which will help company in getting a
holistic design for its products.
Impact of innovation on different areas of Aston Martin
Innovation is directly linked to the increase performance of the organisation in various
departments so that it can achieve its goals and objectives in an appropriate manner by
increasing the sale of its products and services. Innovation also helped organisation in its
operation, sales and profits which is discussed below:
Operations: operation of the organisation can be defined as different functions which
are performed by the individuals who are working within the firm for achieving the goals and
objective of the organisation by completing different task. In context of Aston Martin,
organisation performs different operations so that it can achieve its business objective as well
as maintain the reputation of the organisation in the business environment. Innovation will
directly impact on the operation of the firm this is because by the use of innovation within the
organisation firm can directly improve its functioning as well as it will also promote
specialisation within the firm so that different operation will be performed in an effective
manner by bringing the specialisation (Paulus and Nijstad, 2019) . For example, Aston Martin
all the human resources of the organisation are hired by using an innovative process of talent
research. This helped organisation in hiring highly qualified employees who will perform
different operations in an effective manner and can achieve the goals and objectives more
effectively. Company also use a policy of proper training and development in an innovative
way so that individuals can learn the basic concepts behind different operations and can
improve their performance on these operations. Aston Martin famous for its sports car where
it is important for the organisation to perform different of operations so that it can achieve
maximum satisfaction for customers. By using the concept of innovation organisation started
manufacturing most safe sports car which help in saving the life of sir at the time of
unpleasant incident.\
Sales: Innovation also impact on the sales of the organisation this is because by the
use of innovation tools and techniques organisation can improve its method of recording as

well as different functions related to marketing of the product (Macneill and Jeannerat,
2016) . In relation to Aston Martin, it is a global organisation which is performing its function
at global level. Company use invests five amount or research and development so that it can
improve the chances of innovation within its product and will facilitate its customer by
effective and efficient products. Best directly impact on the satisfaction of customer and
boost the sale of the organisation. For example, Aston Martin sales is increasing continuously
where the current market share of the organisation is 20% in sports car which is much higher
in comparison of other competitors. Show using the concept of innovation helps the
organisation in improving its sales.
Profit: Innovation help organisation in increasing the profit volume by using different
functions within the firm. In relation to Aston Martin, organisation is using different kind of
functions which will help in improving the profitability ratio of the firm. use of innovative
products directly impact the performance of Aston Martin where organisation can use
innovative goods and services as well as proper motor car engines which will help in
attracting the customers towards the firm (Cancino, Merigó and Coronado, 2017). This can be
seen from the profitability ratio of the Aston Martin which is increasing continuously from
last several years. By using innovation the performance and ability of different individual will
be increased within the organisation which directly relates to the profitability of the firm
which will also increase because of proper use of resources and managing innovation within
the firm. In recent years, Aston Martin racing continuously growth and its profitability and
market share our organisation currently reading at 20% market in sports car manufacturer.
From the above information it can be evaluated that innovation is direct impact on the
performance of organisation as well as different factors which are related to the functioning
of the organisation in the current business environment. In context of Aston Martin, this can
be seen that innovation is important role within the organisation where it directly impact on
the profitability performance as sales of the organisation in a current market operations. there
are various examples which shows that innovation is the key of success to the Aston Martin
and will help the firm in increasing its market share continuously by increasing the
investment on the research and development functions.
TASK2
Briefly discuss corporate governance, including the responsibilities of the Board of Directors
to the stakeholders
Corporate governance: It can be defined as a combination of different rules
processes and laws which are formulated to perform different business operations where they
can easily control and regulate. It is directly related to the internal and external factors which
will impact on the interest of the organisation stakeholders like customer, supplier
government as well as different other stakeholders (Kazmi, Leca and Naccache, 2016).
There is videos kind of roles and responsibility which has to be fulfilled by the board
of director of the organisation towards the stakeholders of the roles and responsibilities in
relation to Aston Martin are discussed below:

Govern the organisation by board policies and objectives: The first responsibility
of board of director within the organisation is to properly regulate the organisation by the use
of different policies and objectives. This will help the stakeholders and identification of the
functions as well as saving their interest why identifying the performance of the organisation.
Arrange meetings: It is also responsibility of the board of directors to arrange the
meeting with different stakeholders within the organisation so that interest of stakeholders
can be maintained for increasing the investment and growth opportunities of the organisation
in the current business environment. This is because different stakeholders involved investors
which are important part of the organisation for running its function smoothly and meeting its
financial needs (Sharma and Tewari, 2018).
Selecting appropriate CEO: The major responsibility of board of directors toward
the sequence of the organisation is to select the appropriate person for the post of so within
the organisation so that organisation and achieve its objectives in an appropriate manner as
well as proper guidance can be maintained by entering the interest of different stakeholders to
work the form.
Managing resources: Managing resources also important responsibility which has to
be fulfilled by the board of directors within the organisation. This is also related to the
stakeholder’s interest within the firm because resources are the important part of firms
functioning and organisation can only survive by using the resources effectively. It is liability
of board of director to arrange resources for the organisation so that interest of different
stakeholders can be maintained by the long survival of the firm.
Providing information: It is a major responsibility of board of director to provide all
the related information to the stakeholders of the organisation so that they can maintain their
interest within the firm by identifies the factors related to the functioning of the organisation.
In context of Aston Martin, organisation follow-up proper structure to inform different kind
of related information to its stakeholders so that their interest can be maintained for longer
period of time.
Explain the four areas that make up corporate social responsibility as identified by Archie
Carroll.
Corporate social responsibility can be defined as that part business which is related to
fulfilments of liabilities of the organisation towards the society for using the resources of the
society. It can also be defined as social obligations which are fulfilled by the organisation to
maintain the balance between the resources used by the organisation and the output given to
the society. In relation to the Aston Martin, organisation for form proper corporate social
responsibility activities so that it can maintain the balance between the resources used by the
firm and output given to the society for benefit and welfare of the society.
For understanding corporate social responsibility there is a model which is developed
to by Carroll, this model is based on the four components which are known as Carroll
pyramid of corporate social responsibility. These four components are discussed below:

Economic: This component of the model is related to the economic relationship
which has to be established by the organisation toward the society so that it can generate a
maximum amount of profit which can be distributed to the stakeholders and shareholder of
the organisation and then can be used for the welfare of the society as a whole. The company
has to overcome with various internal and external factors which impacting the growth and
development of the organisation and then it has to use a proper strategy related to
maintenance of economic condition within the organisation for fulfilling its corporate social
responsibilities. In relation to Aston Martin Company prefer innovation within the
organisation which helped it in brand in hands mint marketing and promotional techniques
and to overcome the business market dynamics. This also helps in maintaining economy
which will be used for further fulfilments of corporate social responsibility.
Legal: It is the second layer of the pyramid which is depending on the legal
responsibilities of the organisation. It directly Street that organisation can fulfil its corporate
social responsibility by achieving the advancement in fulfilment of different laws and
regulations which are laid by the legal institute of the area where the organisation is working.
This will help in achieving its corporate social objectives as well as maintaining a proper
image within the market (Crowther, 2018).
Ethical: Ethical responsibilities are also important part of this model and our place on
the third number this is because ethical consideration made by the organisation while
performing its different operation will directly value it to fulfil its corporate social
responsibility towards the society. In reference of Aston Martin, company try to maintain
proper atmosphere within the organisation so that it can influence the moral values and rights
within the organisation and then use these functions for fulfilment of better opportunities to
its employees.
Philanthropic: It include those responsibilities which are the top of this pyramid and
are directly related to the fact that imperative to be the good corporate citizen when should
we provide imputes in improving the quality of life of the society and its people. In relation to
Aston Martin, organisation established various kind of community programs as well as
educational programs for different individuals so that they can perform their efficiency and
can give motivation to the society by improving the living standards of different individual
(Crowther and Lauesen, 2017).
Model of corporate social responsibility is important for the organisation like Aston
Martin to identify the factors related to corporate social responsibility. This model will also
develop different kind of corporate social responsibility which has to be fulfilled by the firm
while performing its function in an open market.
From the above report it can be evaluated that, that corporate social responsibility is
an important part of the organisation which has to be fulfilled by the firm for achieving its
different goals and objectives in an appropriate manner. it can also be seen that corporate
governance is important for the farm to follow the different rules and regulations and achieve
the best possible results. By fulfilling corporate social responsibility organisation can achieve

trust of three folders where the different roles and responsibilities of the board of director
towards the different stakeholders will be fulfilled.
CONCLUSION
It can be concluded from the above mentioned report that innovation play important
role in functioning of the organisation as well as the economic progress of the area where the
organisation is working. It can also concluded that impact of innovation on different areas of
the organisation is direct where it help in managing different operations as well as adoption
of efficiency within the. It can also concluded from the above mentioned report that corporate
social responsibility is the key of success for every organisation where it can be used by the
firm to fulfil its responsibilities towards the environment and society where the organisation
is working.

REFERENCES
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