Managing Innovation: Theories, Historical Development, and Future Pathways

This document discusses innovation theories related to the selected organization, Just Eat. It explores Schumpeter's Theory of Innovation and diffusion theory of innovation. It also provides a historical development of Just Eat and offers recommendations for future development pathways.

Managing Innovation
Assessment

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Explain in detail about innovation theories related to selected organisation............................................3
Explain the historical development of one or more product or services in context to organisation..........5
Recommendation of future development pathways of goods and services..............................................7
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Innovation is the important term in business sector which means that this is the important
areas where organisation can expand their business in market. This is the biggest opportunity
with company as they can use latest technology which help them to enhance their productivity
and increase their profitability ratio. The innovation is the term which is important as they can
grow and innovate new products and services so that they can gain competitive advantage. By
introducing and developing new products and services they can sustain in market and compete
with their competitors. Just eat is taken as base company in this report. Just eat is an online food
order organisation which is launched in order to deliver their food items. The headquarter of Just
eat is located in London and they are operating in countries which include United Kingdom,
Canada, Australia and other countries. There are 3600 employees are working in organisation
which help them to achieve business objectives and can operate their business smoothly. The
report includes innovation theories such as Schumpeter’s Theory of Innovation and diffusion
theory of innovation. According to this their they can effectively innovate their products by
analysing and identifying the needs and opportunities of market in food industry. There is
historical development which explain about detail history of selected organisation. There is some
recommendation which will them to explore for future development.
MAIN BODY
Explain in detail about innovation theories related to selected organisation
Innovation is one of the most important which help organisation to enhance their
productivity which lead to increase profit and sales of organisation. In other words, it can be said
that when innovating product organisation should analyse their competitors related to their new
innovation and then develop strategies to innovate other new innovative product in market (Cai
and Li, 2018). This also help organisation to maintain their position in market. In this way they
can satisfy the requirement of customers by producing better quality of products. When
organisation is innovating products they have to develop strategies so that they can save time and
help in attracting customers in market. Manager of Just eat can effectively develop their online
channels so that they can build better customer experience so that they can understand the taste
and preferences of customer. So, that selected organisation can innovate the new food item
according to the requirements of customers. The innovation theories include diffusion, radical

sustaining, incrementally sustaining and Schumpeter’s innovation theory. Schumpeter’s and
diffusion of innovation theory is adopted by Just eat which is mentioned below:
 Schumpeter’s Theory of Innovation: This theory is introduced by Joseph A.
Schumpeter, he stated that they have to perform their work by innovating new products.
In turn organisation can earn profit and remain competitive in market (Calabrò and et.al.,
2019). In this way they create new ideas that which type of products and services they
should introduce in market to enhance their performance. To attract customer
organisation should increase the satisfaction level of customers and reduce the cost of
production in market. So, customers can buy their goods and services from their stores
and market. This model has two part where first part include reduction in production cost
by adopting new technology, accepting new tools, process and equipment’s.
By analysing and adopting first factor organisation can easily operate their business
smoothly. On the other hand, second part is to innovate and produce different types of
product so that they can satisfy the need of customers. In relation to Just eat, they can
develop strategies and implement them successfully which help them to maintain the quality
and quantity of food items. This also help them to remain competitive in market for long
time. The manager and supervisor of Just eat can effectively develop new food items, meal
and beverages and can sell them at low price which will help them to generate profit as
compared to their competitor.
 Diffusion Theory of Innovation: This is the second and most important innovation
theory which will help selected organisation to achieve their set objectives. As this theory
is given by E.M Rogers in the year 1962. The diffusion theory refers to the theory where
new technology and ideas are there which help organisation to explore their ideas and
knowledge to people (Dodgson, 2018). In this type of theory is applicable when they
innovate the products by analysing and understanding the strategies in market. In this
way they can introduce the product which will help them to remain competitive in market
for long time period and can meet the demand of customers. Diffusion theory include five
factors which are laggards, innovator, late majority and early adopter along with
majority.
Innovator means the person who innovate new goods and services in marketplace
which lead to increase the market share. In context to Just eat, as they sell food and meals

thorough online which means that he is the innovator of market. The second factor is
early adopter means after introducing goods and services in market they analyse and
identify the review which is done on the innovating product. In relation to Just eat, they
innovate the varieties of food items and then take reviews from customers after delivering
the product that how they have liked the product and ask the questions such as about the
taste, any changes, suggestions to improve and so on. The third factor is early majority
which means that that before any adopting and purchasing the products from market.
Moreover, the last factor is laggards purchase new goods and services in market. With the
reference to selected organisation which is Just eat, this is best innovation theory which
should be adopted by them. With the help of this they can analyse and understand the
change in trend, taste and preferences of customer in market. By identifying this they can
easily innovate the recipes of food items and sell them online which will help them to
remain competitive in market for long time.
From the above analysis and understanding of theory, the Schumpeter’s theory of
innovation is the best theory which is adopted by Just Eat. This also help them to innovate new
variety of food such as during the current pandemic, people are emphasising on vegetarian,
healthy and organic food (Dogan, 2019). As they can identify which type of food is mainly
consumed by people that means according to the needs and requirements of customers. In this
way they can explore more opportunities in future which will ultimately lead them to achieve the
set objectives in effective manner. So, Just eat can effectively supply and deliver their food items
online which help them to attract their customer. They can increase their sales because people are
ordering their foods online during the situation of Covid-19 because customer are not moving out
of their house. The respective organisation can easily satisfy the needs and demands of
customers.
Explain the historical development of one or more product or services in context to organisation
Historical development of Just eat is as it is founded in August 2001 and is founded by
Jespher Buch, Per Meldgaard and Hernrik Ostergaard and they have launched their services.
With their technological partners they have expanded their business internationally in Netherland
and Ireland in year 2007 and 2008. In addition to this, organisation has developed their business
in India in order to increase business operations and process (Gil, Rodrigo-Moya and Morcillo-

Bellido, 2018). They invest huge amount to acquire company in future and they raised £30 to
invest in next year. In April 2012, company has acquire filmybelly.com and in the upcoming
month Just eat raise more money of £40 for funding. The market their products as well as
services by launching marketing campaign in United Kingdom which is Don’t Cook which is
distinct from their rivals in Spain which lead to increase in sales and revenue in business.
In April 2014, they have listed their organisation on the London Stock Exchange and
maximize their stake of up to 80% in Alloresto. Management has started their joint venture with
their competitor which is iFood and have stake of 25% in their business. Afterwards, they have
launched their services in Canada and sold their online food delivering services. In year 2019,
Just Eat and Takeaway.com has decided to merge their business to develop performance and
productivity and deal their merger in worth £9bn which helps them to grow their market share.
Competition and Markets Authority has passed their order for merger on 4 February 2020 but
they have not investigated yet so they have said to be a separate company until and unless they
complete their procedure (Tokareva, Smirnova and Orchakova, 2019).
In January 2020, Just Eat partnered with McDonald’s in United Kingdom which helps
both of the enterprise to competitive with Uber Eat and remove his monopoly in market in online
food ordering services. But there was problem in merger of Just Eat and takeaway.com that the
Competition and Market Authority in United Kingdom has not approved their merger due to
some issues in investigation. In Great Britain, Just Eat costs £699 for restaurants to join in and
13-14 percent for any order made via the websites or smartphone app. The fees account for over
90 percent of the company's sales. Even Though just Eat demands that restaurants have proof
that their local councils are registered for service, 35 non-registered restaurants with no hygiene
ranking were identified during a 2017 audit (Helfat and Raubitschek, 2018)
In October 2018, a BBC study showed that the Food Standards Agency in Manchester,
Bristol and London appeared to a hygiene rating of 0.5 of the takeaway outlets in England. When
Just Eat has expanded their business they took a method to address all the industries in market
and each of them had its own specific growth known as a distinct entity. Although, every
enterprise received the consideration which they desired, as time passed by, there was an evident
rise in production time and overall productivity as well as the wide range of items has delivered
their items.

Just Eat has dive into process improvement environment to ready the application creation system
and codebases for its upscaling targets. They sought a third party approach that could
immediately support everyone in order to reduce protracted fixed periods and to spend precious
money on development procedures for a wide variety of initiatives. Following some tests they
has its internal CI stack as Just Eat discovered which might require a special solution to handle
the technology of CI and probably have lot of extensions and functions in order to support their
mobile application development efforts (Kostis, Kafka and Petrakis, 2018).
Just Eat has delivering their online food services across 23 countries in world. Just Eat is
one of the successful brand because they are able to focus all of the promotional activities on a
major product from the small institutions and competitive as they can give their customers the
widest possible range of restaurants as well as cuisines so organisation can attract clients across
the market.
The business model of Just Eat is the customer segments as they have different model of
organisation as they operate their business across the world such as Germany, china, India as
well as Brazil which helps them to develop their activities as well as performance. The online
food ordering services in countries assist them to expand their business through websites and
other platform due to COVID pandemic. These resources of Just eat give convenience to their
customers in order to increase profitability and productivity (Kuzma and et.al., 2020).
However, the business of Just Eat and Takeaway.com is performing very well in the
specific locations. It has made significant investments in its infrastructure, leading to stable,
flexible network which does not break down in the periods of high demand and their order.
Consumer adapts various processes to make their venture adapted as well as implement their
technology to distinct them from their competitors.
Recommendation of future development pathways of goods and services
The current and future trend in market is that the selected organisation has to use the
latest technology in order to produce goods and services. With the help of this Just eat can meet
the demand of customer which help them to increase profit ratio. They main recommendation is
that they can develop their business by reducing the carbon emissions which will help them to
fulfil the social responsibility (Proctor, 2018). They can also develop strategies as they can use
proper resources which will help them to reduce the wastage of food. In the year 2020, there is a

situation of Covid-19 which impact their sales and revenues because of the lockdown. But after
the post lockdown, they can take various measures and initiative which will help Just eat to
develop their business. As they can prepare and deliver the foods by complying all the rules and
regulation made by government which include cleaning their equipment and tools, clean the floor
and food preparation areas and many others. If the selected organisation follows this rules they
can effectively enhance their business and achieve business objectives. They can also develop
strategies and implement them in an effective manner. the most important recommendation is
that they can market their products on social media such as Facebook, Instagram and other social
media websites which will help them to attract customer to take their foods or order them online.
The another recommendation is that selected organisation which is Just eat should use different
techniques such as packing their products in an attractive way which help them to gain
competitive advantage. The online channel is the best channel to produce and deliver their foods
online (Reficco and et.al., 2018). The main thing is that they have to develop their new app
which help customer to book their order in an easy way.
The app developed by them is that customer search food then they order according to their wish.
After ordering their foods Just eat receive their order and deliver the food by packing them. Then
customers pay their bill amount online. The best strategy which can be developed by Just eat is
that they can give offers, promotions and discount to their customers which will effectively help
them to attract their customers. They have to use new and latest technology so that they can keep
records of their customers and can analyse the current trend so that they innovate and make new
recipes which will help to attract customers. As for future development the selected organisation
can improve their channel by marketing on social sites and they can also expand their business in
other countries. In other words, it is also recommended that they can effectively use their
resources and reduce the waste from food which will help them to utilise their resources in
proper manner (Shchepakin and et.al., 2018).
As they can also take various initiatives during the current pandemic situation as they can
instruct their deliverymen to wear mask in proper way, sanitize their hands and other
instructions. This will help Just eat to run their business smoothly as they can easily manage their
activities and functions.

The main strength of organisation is that they have increased their sales during the pandemic of
covid-19. By developing strategies, they can effectively sell or deliver their products online. The
main strength of Just eat is that they are selling online as people are more focused on purchasing
online. So, this is the major strength where they can attract people to purchase their food online.
The future development for Just eat is that they can sell vegetarian food which include green
vegetables, healthy food and organic food items (Szopik-Depczyńska and et.al., 2018). This is
the major part where they can innovate their food and recipes which help the to take attention of
customer in market.
This will also help them to increase their sales and revenue in market. In this way they
can explore their business and can get various opportunities so that they can develop new
recipes. For this they innovate recipes according to the needs and requirements of customers in
marketplace. They can gain competitive advantage and can explore their business in future. They
can develop their menu according to food items served by Just eat. They can market their
product by positing attractive images, innovative menu and so on which help them to attract
customers so that they can sustain in food industry for long time period.

CONCLUSION
From the above discussion, it is analysed that innovation is very significant term in
business sector which means that organisation have to innovate their goods and services
according to the changing environment. With the help of this they can gain competitive
advantage which help them to sustain for long time period. in this way they can achieve business
objectives in effective and efficient manner. There is innovation theory which is Schumpeter’s
Theory of Innovation and diffusion theory of motivation. The selected organisation has adopted
Schumpeter’s Theory of Innovation which will help them to analyse and understand the current
and future trend in market. According to that they can innovate their products according to the
trend in market. In other words, it can be said that they can deliver their products by taking
various measures which include cleaning in food preparation areas, tools, equipment and so on.
The report discusses about the historical development which means that how the selected
organisation has been developed and how they have grown their market share. In this way they
can effectively achieve the business objectives by delivering their products online. In last report
tells about the recommendations that can be adopted so that they can expand their market and
can satisfy the business objectives.

REFERENCES
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