Managing Innovation in Business

This report discusses the importance of innovation in business and its impact on effectiveness, efficiency, and competitive advantage. It focuses on the innovation history of Marks and Spencer, their future capabilities, and the industry overview. It also analyzes the driving factors for innovation and the impact of political, economic, social, technological, legal, and environmental factors. The report concludes with insights from the Porter's Five Forces analysis.

Managing innovation
in Business

Executive Summary
Innovation is defined as a process of creating developing and implementing a new product
services or process with having an aim to maximize effectiveness, efficiency and competitive
advantage. In this with the assistance of innovation management organisation can effectively
respond towards internal as well as external opportunities and can further take advantage of
creativity in order to introduce new product, idea or process in best effective manner. In simple
terms it is a process in which Idea or invention translate into services and products in order to
further create value from them and satisfy consumers. Recent report has been conducted on
Marks and Spencer, a British retail multinational organisation conducting their business
functions in retail industrial sector with having its headquarter in London, United Kingdom.
Company offer accessories, food, clothing, home products etc to consumers. In this report
formative discussion has been made on organisation innovation history along with existing
innovation performance of entity. In addition to this report include capabilities to bring
innovation in future in context with industry overview. Along with this report also include pestle
analysis through which entity can effectively able to identify driving factors for innovative and
further identify factors that are having significant impact on organisational performance in order
to foster organisational capability of innovation. It further assists entity to undertake use of
innovative techniques and latest trends that are prevailing in retail industrial sector.
This has been identify that Marks and Spencer constantly engage in practices of innovation
in order to develop and design their services and products effectively according to consumer
requirements. In addition to this it has been identified that organisation formulated a 5 year
transformation program in order to significantly maximize their profitability.
In relation with this, Marks and Spencer is recommended to undertake use of Emotient as
to effectively acquire knowledge related to customer segment towards services and products that
company delivers.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
The Organisation and its Innovation History.........................................................................1
The Industry............................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation termed as a procedure in which product, services or process is being developed
with the assistance of unique technology or value addition in order to effectively satisfy
customers according to the current prevailing trend in marketplace (Baldwin and Curley, 2020).
Present report is being conducted on Marks and Spencer; this company perform their business
functioning in retail sector and offer different type of product and services to customers with
having headquartered in London, United Kingdom. This report revolves around organisation
innovation history along with entity existing innovation performance. Further this report includes
entity capabilities to bring innovation in future. Lastly this report involves industry overview.
The Organisation and its Innovation History
Marks & Spencer is one of the leading international multinational brands that mainly came
into existence by Michael Marks in the year 1884. Marks were a Polish refugee started their
market stall in Leeds with having a slogan “Don’t ask the price, it’s a penny. In addition to this,
it has been evaluated that company is having 980 stores in UK provinces and 615 among them
mainly conduct their business operations in the segment of food items distribution. By exploring
organisation innovation timeline it has been identified that entity have undergone with number of
transformation over last century. This can be determined with first store of Marks and Spencer
that was open in the year 1904 in Leeds. Further in 1920 organisation adopt revolutionary policy
that effectively forecasted direct purchase through suppliers. In 1931 Marks and Spencer
launched a food unit which engaged in the process of offerings produced and canned items to
consumers. Till 1933, this entity established welfare services for their employees that provide
different type of facilities like subsidised canteens, campaign holidays, dental immunities
pension, and healthcare etc.
Marks and Spencer by continuing their innovative trend emerged out to be the first
organisation in retail industrial segment which have launched their own research library in 1934
in which new fabrics facilitated (Euchner, 2020). Further it has been identified that in 1948 with
the help of innovation Marks and Spencer came up with Food Technology Department with an
aim to develop formative relationship with producers, farmers and suppliers with an aim to work
closely with them.
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In addition to this Marks and Spencer research lab in the year 1954 undergone with a
survey which is mainly based upon women' leg sizes, this research resulted with development of
unique as well as enhanced process for stockings. In addition to this, in the same year end
respective entity “Operation Simplification” strived to radically decrease internal documentation
by almost 25 million items per annum. Organisation came up with Indian as well as Chinese
foods in teh year 1974. It has further been determined that Marks and Spencer in 1999, marked
their entry in e-commerce world and launched online shopping options to consumers via their
website. Along with this, company introduced Blue Harbour men’s range that lead organisation
to maximise their sales at great extent. In addition to this, it has been identified that Marks and
Spencer effectively conceded their operations of expansion during 2016 and started their sales
process via European market Zalando over their French, German, Dutch, Austrian and Belgian
sites effectively provide different range of kidswear and lingerie.
Illustration 1: Innovation Timeline of Marks & Spencer
(Source: Innovation Timeline of Marks & Spencer, 2019)
PESTLE Analysis
Business environment include wide range of elements that are having significant impact
upon organisational profitability and operation. It is essential for Marks and Spencer to analyse
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this factors as they acts as drivers of innovation through which entity can ensure their maximum
growth.
Political:
Political factor include influence of government upon organizational operations and
political stability in a country. It has been identified that United Kingdom is having stable form
of political environment that offer different type of programs for innovation and techniques to
entities at regular interval of time. By taking assistance of government policies and flexible
regulations Marks and Spencer can undertake use of various schemes through which they can
constantly innovate their process and procedures in order to satisfy their consumers in best
effective manner.
Economic:
It involves factors related to taxation rate, interest rate, economic stability and various
economic laws. It has been evaluated that United Kingdom offer wide range of developing
opportunities to entities in order to effectively facilitate their development and growth. With the
assistance of strong economic environment of UK, Marks and Spencer can undertake their
expansion and innovation process in order to maximize their capability of revenue generation. In
this with the assistance of innovative techniques company can effectively able to ensure the
leading position in respective industrial sector.
Social:
This factor of pestle analysis includes preference choices, taste, perception, age
distribution, education level etc of individual and society. In addition to this it has been identified
that in United Kingdom individual demands and needs are shifting towards healthy and organic
products (Moya-Dávila and Rajagopal, 2020). Along with this needs and demands of consumers
are constantly changing, this makes Marks and Spencer important to effectively engage in the
process of extensive research in order to serve according to consumer perceptions in order to
satisfy them in a well defined manner and retain their loyalty to with company for long period of
time.
Technological:
Technology is rapidly and constantly evaluating and their different type of technological
change prevailing in retail industrial sector that are widely used by leading entities in order to
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satisfy consumers. This is one of the most important driver for M&S innovation process as in
this entity by undertaking use of high-tech technology and strategies can assure maximum
satisfaction of large base of consumers through which they can maximize their profitability rate
at great extend.
Legal:
There are different type of legal rule, regulations and legislations enforced by United
Kingdom Government and is essential for organisation to abide in order to ensure their
operations being undertaken in lawful manner. In this Marks and Spencer is require to assure that
they are complying all the essential retail labour laws and policies that are subjected to
organisation operating the services in retail industrial sector in order to save themselves to get
caught in any legal obligations and penalty.
Environmental:
From past many years individual and government mainly emphasize on environmental
safety and concern. In this organisations also adopt environmental friendly measures in order to
conduct their operations in a sustainable manner (Egfjord and Sund, 2020). This makes Marks
and Spencer to undertake use of effective recycling of waste material and undertake use external
practices in order to gain support from Government and individual. It has been evaluated that
from past many years Marks and Spencer take use of environmental friendly practices and
launch their Green policy that they referred as “Plan A”. With the help of this company
effectively conduct their operations with less carbon footprints to show their positive concern
towards society and environment.
The Industry
It has been evaluated that from past many years global retail industry have significantly
witnessed immense level of transformation. These transformations have been undertaken by
organisations operating their services in this sector in order to align their business operations as
per according to modern business names. In addition to this it has been identified that entities
undertake use of cognitive computing and e-commerce at wide scale in order to ensure maximum
growth (Ghezzi and Cavallo, 2020). Along with this innovation act as most important factor for
organisations in retail industrial sector that they are using with an aim to ensure long-term
sustainability/.
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It has been identified that retail Industry came up at many innovations that are further
brought in terms of process, communication, products, consumer, services, consumer
engagement and more (Uma, 2020). In context with is this different form of innovation instances
that are being brought by leading organisations are Greggs' Vertically integrated operations
(innovation in business model), Method’s squirt bottle (innovation in packaging), HDFC Bank’s
Eva Chatbot (innovation in communication), Coca Cola's engagement programme (innovation in
customer engagement), Uniqlo’s HEATTECH design (innovation in product design), etc.
According to the above analysis it has been identified that innovation is most important tool for
organisations through which they are assure maximum success and satisfy consumers in a well-
defined manner (Huber, Wainwright and Rentocchini, 2020). This aids them to sustain their
business operations in respective industrial sector for long period of time with maximum
profitability.
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By evaluating retail industry there are number of knowledge that has been acquired in
context to this marketplace. In relation with this significant element of retail industrial segment is
being defined below with the assistance of Porter five force evaluation:
Porters Five Force Model
Threat of new entrants:
Retail industrial sector is having quite low threat of new entrants due to requirement of
large amount of capital in order to establish their business and overcome competitive force of
existing reading organisation in order to ensure effective success and long term stability
(Bonesso, Cortellazzo and Gerli, 2020).
Bargaining power of suppliers:
Bargaining power of suppliers in this industrial segment is quite low as in this it has been
evaluated that suppliers aim towards conducting their business operations with leading
organisations like Marks and Spencer in order to ensure their continuous profitability and
growth. This will allow Marks and Spencer to effectively negotiate their raw material prices.
Bargaining power of buyers:
It has been evaluated that bargaining power of buyer in retail industry is higher due to the
presence of close substitute. As, leading organisations provide same or similar form of offerings
in market segment. In this is essential for Marks and Spencer to innovate their product and
services and offer them in affordable price range as to gain loyalty from maximum number of
consumers.
Threat of substitute products:
Due to the presence of extensive competition there are number of close substitute of
services and products that are available in retail industrial sector. Along with this it has been
evaluated that organisations offer similar kind of services and products to consumers in
affordable price range (Tan, 2020). It persuade respective organisation to effectively engage in
the process of research and development in order to serve their customers with product
differentiation.
Rivalry among existing players:
There is extensive rivalry prevailing in existing player in retail industrial sector. It has been
identified that leading organisations like ALDI, Tesco Asda, and Sainsbury’s offer highly
qualitative services and products to customer. It facilitate Marks and Spencer to constantly
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evolve unique strategies and measures in order to retain their customers for long period of time
and gain significant advantages from retail Industry and maintain their leading position in same
segment.
CONCLUSION
As per the above mentioned report this has been concluded that innovation proves to be one
of the most effective and crucial tool for organisation through which they can effectively able to
assure higher profitability and maximum stake holding in respective market segment. In this it
has been identified that there are different type of factors that are prevailing in business
environment and require to be understand by organisation in order to innovate their services and
products effectively. In this pestle analysis aid organisation to identify the drivers and their
potential impact on organizational operations in order to develop strategies against them ensure
maximum profitability. In addition to this with the assistance of Porter five forces analysis entity
can effectively able to identify number of aspects that are prevailing in industry that can foster or
hinder organization innovation process. It further allows entertain to maximize their profitability
and productivity at great extent.
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REFERENCES
Books and Journals
Baldwin, E. and Curley, M., 2020. Managing Innovation in the Digital World. In Managing
Innovation in the Digital World. De Gruyter.
Tan, S.F., 2020. Managing Innovation: Technology, Consumer and Sustainability Perspective,
and the Challenges. In Leveraging Consumer Behavior and Psychology in the Digital
Economy (pp. 205-216). IGI Global.
Bonesso, S., Cortellazzo, L. and Gerli, F., 2020. Managing Innovation Through a Competency-
Based Approach. In Behavioral Competencies for Innovation (pp. 69-78). Palgrave Pivot,
Cham.
Huber, F., Wainwright, T. and Rentocchini, F., 2020. Open data for open innovation: managing
absorptive capacity in SMEs. R&D Management, 50(1), pp.31-46.
Malhotra, A., Majchrzak, A., Bonfield, W. and Myers, S., 2020. Engaging customer care
employees in internal collaborative crowdsourcing: Managing the inherent tensions and
associated challenges. Human Resource Management, 59(2), pp.121-134.
Zhang, W., Liu, Z., Shi, X. and Chen, J., 2020. Managing strategic contradictions: A resource
allocation mechanism for balancing ambidextrous innovation. Computers in Human
Behavior, p.106277.
Ghezzi, A. and Cavallo, A., 2020. Agile business model innovation in digital entrepreneurship:
Lean startup approaches. Journal of business research, 110, pp.519-537.
Calp, M.H., 2020. Knowledge Management Within the Context of Organizational Innovation.
In Advanced MIS and Digital Transformation for Increased Creativity and Innovation in
Business (pp. 26-49). IGI Global.
Clarke, B., 2020. Managing the Business of Health Care. Convetec International,.
Zapadka, P., 2020. Digital Innovation in Industrial-Age Firms: Managing the Balancing Act of
Knowledge Integration.
Nunes, M. and Abreu, A., 2020. Managing Open Innovation Project Risks Based on a Social
Network Analysis Perspective. Sustainability, 12(8), p.3132.
Uma, M.H., 2020. Managing Business Organizations: Competition Vs Cooperation. Purakala
with ISSN 0971-2143 is an UGC CARE Journal, 31(11), pp.87-94.
Egfjord, K.F.H. and Sund, K.J., 2020. Do you see what I see? How differing perceptions of the
environment can hinder radical business model innovation. Technological Forecasting
and Social Change, 150, p.119787.
Moya-Dávila, F.A. and Rajagopal, A., 2020. Managing Microfinance Institutions: Analyzing
How Relationships Influence Entrepreneurial Behavior. In Innovation, Technology, and
Market Ecosystems (pp. 85-107). Palgrave Macmillan, Cham.
Euchner, J., 2020. Managing Disruption: An Interview with Clayton Christensen. Research-
Technology Management, 63(3), p.49.
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