Managing Innovation in Business

This report discusses the importance of innovation in business and how to manage it effectively. It covers strategies, market entry options, market segmentation, and more.

Managing Innovation in
Business

EXECUTIVE SUMMARY
Innovation plays very much important role within the organization as it assist in gaining
competitive advantage and sustainability in the market place. It is always essential for
organization to conduct continuous research and development to occur emerging wants of
consumers in order to provide one of best products and services to the end users. Respective
report is based on Ashanti marketing solutions wants to enlarge business opportunities with new
product into new marketplace. The main aim of respective report is to build strategies and access
information with help of various kinds of tools to build products as per the consumer choice and
preferences.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................5
MAIN BODY..............................................................................................................................................5
PESTEL ANANLYSIS...........................................................................................................................5
MARKET ENTRY OPTIONS................................................................................................................7
MARKET SEGMENTATION................................................................................................................9
PORTER’S GENERIC STRATEGY.....................................................................................................11
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................13

INTRODUCTION
Innovation denotes the introduction of something new by accessing the needs and
demand of consumers. Without innovation organization can not able to get progress and sustain
for long time in market (Zhu and et.al., 2019). Innovation is one of core reason for the modern
existence although it has some sort of unwilling consequences, change is inevitable in nature but
bring positive impact on the organization and its level of profitability. respective report is based
on Ashanti marketing solutions which is a marketing firm and supplies various services such as
promotions, advertising, public relations and many more. To enlarge business opportunities they
want to enter into new market with new product in order to remain competitive in marketplace.
To gain positive outcomes it is very much potential for respective organization to conduct
through research by using PESTEL analysis for accessing external environment. Market entry
tools or modes to choose one of best mode to enter into other market for enlarge business
opportunities. It also includes the consumer analysis by using STP to position products in wider
marketplace. Finally it includes porter’ generic strategy to analyze effectiveness of market and
amend business outcomes.
MAIN BODY
PESTEL ANANLYSIS
External business environment composed various kinds of outside factors that directly
influence on the business operations of organization. The external business environment broken
down into the micro and macro environment. PESTEL analysis is the important kind of
framework of macro environmental factors avail for environmental scanning of strategic
management in potential manner. in context of Ashanti marketing solutions wants to enlarge
business opportunities, in that regards they want to enter with new product within new market for
gaining potential outcomes. As a senior marketing consultant of Ashanti marketing solutions
suggested to bring new product that is web designing as organization already deals in
advertising, promotions, public relations etc. In web designing the different aspects consist such
as building of websites, visual interface design, user experience design and search engine
optimization in German market. It proved beneficial for respective organization as German

market place is very much developed in nature and it is Fourth largest national economy in
Europe market. Here are the PESTEL analysis of UK marketplace:
Political environment: In political environment consist of the various factors that directly affect
business works and practices such as government regulations, entry and exit regulations, political
regimes and taxation (Zhu and et.al., 2019). In context of Ashanti marketing solutions as per the
recommendation have to enter into German market as it is fourth largest national economy. To
effectively analyze political changes organization have to evaluate tax rates that is approximately
30 to 33% if the tax rises it adversely impact on organisational profitability and sustainability.
Economic environment: In economic environment consist of interest rates, inflation, economic
growth and many more aspects. In context of Ashanti marketing solutions due to advent of
Brexit in UK market place organization may face problem of selecting the potential candidates in
their organization as well as it affect on profitability of organization. In that regards it is potential
to analyze different kinds of factors in order to gain desirable outcomes.
Social environment: In social environment consist of change in taste and preferences of
consumers for giving one of best products and services to the end users. in context of Ashanti
marketing solutions they analyze that organization always want to become technologically
advance, in that regards aimed to bring new product that is web designing. It is very much in
trend in marketplace that organizations to reach at large no. of consumers potentially design their
own website that provides adequate knowledge and information to consumers that potentially
helps them in taking validate decisions.
Technological environment: In technological environment consist of using one of best and
technologically advanced tools and techniques that directly enhance the level of consumer
experience in potential manner (Teplov, Albats and Podmetina, 2019). In context of Ashanti
marketing solutions, to provide advance tools they aimed to bring new product that is web
designing, search engine optimization and many more to enhance consumers experience in
potential manner.

Legal environment: In legal environment consist of various kinds of aspects such as various
kinds of HR practices, laws and regulations that potentially accessed by organization while
entering into new nation. In context of Ashanti marketing solutions which aimed to enter into
new market with new product analyze that they obliged to follow the various kinds of practices,
regulations that proved beneficial in gaining potential outcomes.
Environmental environment: In environmental factor consist of climate, weather, geographical
locations and many more aspects that directly influence on organisational works and activities
(Szutowski, Szulczewska-Remi and Ratajczak, 2019). In context of Ashanti marketing solutions
by analyzing the trends of German marketplace need to pay attention on CSR activities and
environmental protection regimes to remain competitive in the market place in potential manner.
From the above analysis it has been evaluated that PESTEL framework proved very
much beneficial for organization in taking important kind of decisions in potential manner. In
context of Ashanti marketing solutions, German marketplace is very much appropriate for
respective organization as by collected information with help of PESTEL analysis.
MARKET ENTRY OPTIONS
Market entry is one of most critical attribute in strategizing that involves the deal the
market research to customize target consumers (Saiz-Alvarez, 2019). It is major decision making
of organization to choose one of appropriate market entry mode by which potential outcomes
should be reaped in effective manner. there are number of entry mode opportunities in front of
organization by analyzing the pros and cons of each factor provides the valuable insights and
assist in crucial decision making.
Strategic Alliances: SA is kind of agreement in between the two or more than two independent
organisations cooperate for manufacturing, development or selling of products and services into
the wider marketplace to attain business objectives (Radziwon and Bogers, 2019). Majorly three
core concepts come under Strategic alliance that is joint venture, equity strategic alliance and
non equity strategic alliance. For taking effective decision it is very potential for senior
marketing consultant to analyze both positive and negative aspect of respective entry mode for
organization.

 Positive aspect: The important outcomes that reap by organization by using respective
factor that it assist in improving the current operations of organization by collaborating
with other business entity. It provides ease of entry and exit from the other nation after
accomplishing organisational goals and objectives.
 Negative aspect: Although some sort of disadvantages associated behind using
respective tool of entry is that partners of organization may misrepresent regarding their
level of competency that actually not associated with them. with sometimes partners get
fail to commit resources and capabilities to their partners that directly influence their
performance in adverse manner.
Mergers and Acquisitions: M&A is the process of collaborating self interest of two
organization into the one unit for gaining potential outcomes (Pearlson, Saunders and Galletta,
2019). the main motive behind respective entry mode is to combine the synergy in which whole
is greater than the sum of its parts. Respective entry mode chooses while two organization have
the same business size and potentially recognize their advantage for enhancing profitability, level
of efficiency and capabilities in potential manner. for taking appropriate decision it is very
important to analyze the positive and negative aspect of respective mode of entry:
 Positive aspect: Major advantages of M&A that it directly improve the economies of
scale that helps in purchasing of raw material in larger quantity that lessen down the cost.
It enhance the market share as two companies of same nature combine with one another
by align their resources mutually.
 Negative aspect: It has been analyze that while an organization associated with other
organization need to spend lots of money and efforts that is not possible for every kind of
organization. As it required strong relationship with other organization that operate in
business environment in potential manner. it bring stock price at lower level and rise
opportunity cost that directly influence operational activities of organization in adverse
manner.
FDIs: The acronym of FDI denote the foreign direct investment is signifies when an individual
or organization owned 10% or more from the foreign country (Ottosson, 2019). With help of
FDI organization can be able to controlling ownership in entity of other nation. Respective kind
of organization directly involved oneself in day to day operations in order to achieve the

desirable outcomes. In respective mode of entry organisations not only bring money but also
share knowledge, skills and technology with them.
 Positive aspect: FDIs proved beneficial for the global economy as well as investors and
recipients. In respective tool capital goes to the businesses with the motive of gaining
growth and sustainability also individual investors also gain extra benefit of lower risk
that proved beneficial in gaining desirable outcomes (Naqshbandi, Tabche and
Choudhary, 2019).
 Negative aspect: On other hand countries that not allow other companies for foreign
ownership plays strategically important role. Respective factor directly lower down the
comparative advantage of nation that hinders their self interest.
From the above analysis it has been recommended that all tools have their own advantages
and disadvantages that directly affect their performance. In that regards it is potential to
collect necessary knowledge and information for taking potential kind of decisions. In
context of Ashanti marketing solutions that deals at relatively small scale to lower down their
risk by gaining profitability need to utilize strategic alliance. Joint venture which is important
part of Strategic alliance. There are large no. of firms that work in the same field so it proved
beneficial for them to gain desirable outcomes.
MARKET SEGMENTATION
Market segmentation is the chain of activities that helps to divide the market in regards of
potential consumers within groups, segments or on basis of their characteristics (Mariev,
Nagieva and Simonova, 2020). Respective kind of segment consisted with consumers who have
same kind of likings and will respond equally in respect of organisational marketing strategies by
sharing same kind of trait, interest and needs. Here are the segmentation of new consumers of
Ashanti marketing solutions.
Segmentation: It is very much potential for an organization to segment market that rely on four
different categories that are demographic, geographic, behavioral and physiographic.
Demographic segmentation: It related with the consumer income, earning, classification of
population, gender and other aspects (Mandal, 2019). In context of Ashanti marketing solutions

they majorly segment their consumers that are organization associated with marketing of
products and services. the organization that belong from higher income group.
Geographical segmentation: In respective segment customers targeted of specific areas to
market them in potential manner. in context of Ashanti marketing solutions they deals in major
areas of German market in order to enlarge business opportunities.
Behavioral segmentation: In respective segment market marketers analyze the way consumers
tend to behave in respect of organization products and services. in context of Ashanti marketing
solutions by providing their products at reasonable price range can be able to reach at large no. of
consumers and initially by providing sales promotion able to enchant large no. of consumers in
potential manner.
Physiographic segmentation: In respective segmentation consist of consumers attitude, interest
and opinion should be analyzed in proper manner. In context Ashanti marketing solutions due to
largely demanded technological advancement organization gain positive response from side of
consumers (Loon and Chik, 2019).
Targeting: It is very much potential for an organization after segmenting the market need to
target in the wider marketplace. With the help of KPI, PESTEL analysis organization can be able
to set one of their best price, distribution network and supply chain networks and many more
aspects should be finalized in order to gain desirable outcomes. By analyzing all respective
aspects it has been analyze that the target consumers are organisations that are giants and
working for providing marketing facilities to others. By setting pricing at reasonable range that
accessible for every kind of consumers proved very much beneficial to reap important kinds of
outcomes. with they possess strong distribution network that helps in supplying products and
services in accurate and timely manner.
Positioning: The final stage of STP marketing process is positioning of products into the wider
market place in order to serve the end users in potential manner. to position in market oneself it
is very important to ask the question from oneself the reason behind purchasing of products from
side of consumers (Lenssen and Smith, 2019). As it directly related with creating the unique
selling proposition that build distinctive effect in organisational products and services that
directly enhance consumers experience in potential manner. In context of Ashanti marketing

solutions the one of most important aspect in their products that they are pioneer of their field
and by providing products that are very much technologically advance directly influence
consumer purchasing decisions in potential manner.
So from the above analysis it has been evaluated that segmentation, targeting and
positioning of the products and services as per the consumers choice and preferences plays very
much important role. By segmenting products as per consumer choice not only contributes in
profitability but also in sustainability into wider market place. In context of Ashanti marketing
solutions by positioned oneself into market in distinctive manner able to gain desirable outcomes
in potential manner.
PORTER’S GENERIC STRATEGY
A firm’s strong relative position in the industry help to determine whether an
organization gain profitability above or below the industry average. The above the range of
profitability denotes the long term sustainable competitive advantage of organization. In
respective two basic kind of competitive advantage that possess by firm is low cost or
differentiation effect (Kupeshova, Lazanyuk and Kareke, 2019). Respective factors of
competitive advantage collaborate with organisational scope of activities for which an
organization put one of their best efforts in order to remain competitive. Here are the three
generic strategies that helps in achieving average performance within the industry that are: cost
leadership, differentiation and focus.
Cost leadership: In respective generic strategy of gaining competitive advantage sets to become
the low cost producer in the whole industry. The cost advantage largely rely on the varied kind of
organisational structure of industry. It also includes the economies of scale, proprietary
technology, easy access to raw material or many other tools that helps to deliver products and
services to the end users in positive manner. it is the characteristic of low cost producer that they
can be able to exploit all kind of cost advantage as while an organization achieve and sustain the
cost leadership it become the above average performer in their industry (Clinton and Whisnant,
2019). As it is very much in demand within the industry to produce products that are highly
affordable in nature as it enhance consumer base with their profitability in positive manner. in
context of Ashanti marketing solutions cost leadership proved very much important aspect to
reach at large no. of consumers by identifying their needs and wants in potential manner.

Differentiation: In respective generic strategy firm majorly seeks to be unique in nature in the
industry by adding values and capabilities that helps to attract large no. of consumers towards
organisational products and services. In respective strategy organization select one of more other
kinds of attributes that plays very important role for many buyers in the industry and it can be
only possible by positioned oneself as very unique in industry. By conducting the through
research and development organization can be able to serve their consumers in best manner as
researchers can be able to identify needs and wants in potential manner. IN context of Ashanti
marketing solutions respective factor proved very much beneficial for them as they take entry
into new market with new products. In that regards build a unique proposition helps them to gain
competitive advantage in positive manner.
Focus: The generic strategy of focus states about the choice of narrow competitive marketplace
with in the industry in order to serve limited area in positive manner. while an organization serve
to a limited area they can be able to serve them in positive manner that build distinctive image in
market. In that regards researcher focus on segment or group of segments in their industry that is
profitable in nature and can provide sustainability of marketplace. Respective strategy provides
the important kind of two variants that are as follows:
In cost focus organization seek the cost advantage by focusing on their target in order to serve
them in most positive manner. the another variant is differentiation focus strategy that seek
difference in their target market. Both the segment create difference in the focuser’s target
segment and other kind of segment of industry (Bouncken, Kraus and Roig-Tierno, 2019). In that
regards it is very much potential for them to choose one of best target segment and build the
products and services as per their choice and preferences to remain always competitive in the
marketplace.
Differentiation leadership: By using respective tool, the business can be able to target larger
people by aiming to achieve the competitive advantage by adding values in their products and
services. In respective strategy involves the opting one or more wide criteria availed by buyers in
the market to reap important outcomes. so respective strategy proved very much beneficial in
creating distinctive image in market by adding values in positive manner.

From the above discussion it has been evaluated that for an organization it is very
important to build strategies and tactics after analyzing market, competitors, consumer behaviour
and many other aspects (Alexander and Joe, T. eds., 2019). As assembling information proved
very much beneficial for an organization in taking crucial kind of decision making in order to
remain competitive in marketplace. it has been analyze that Ashanti marketing solutions by using
differentiation strategy in which they provide web designing that are technologically advance
and cost effective in nature. Respective factor helps them to enchant large no. of consumers
towards purchasing their products and services in positive manner. in that regards it is very much
potential for organization to collect necessary knowledge and information by considering various
aspects in mind so that viable decisions should be taken in positive manner. as it has been
analyze that respective strategy is very much rare in nature as it required huge investment and
skilled labour force to bring into practice but helps to sustain in marketplace for long duration.
CONCLUSION
From the above report it has been concluded that for every organization bring innovative
products and services plays very much important role in gaining desirable outcomes in potential
manner. Before bringing new products and services into new market required the through
research and development in order to collect important kinds of insights and information to reach
at valid conclusion. To gain potential insights organisation need to analyze external business
environment, internal environment, competitors and potential strategies to take appropriate kind
of decisions. Hence, by collecting all important information organization have to reach at valid
kind of conclusion in order to remain competitive in marketplace.

REFERENCES
Books and journals:
Alexander, B. and Joe, T. eds., 2019. Managing innovation: understanding and motivating
crowds (Vol. 32). World Scientific.
Bouncken, R.B., Kraus, S. and Roig-Tierno, N., 2019. Knowledge-and innovation-based
business models for future growth: digitalized business models and portfolio
considerations. Review of Managerial Science, pp.1-14.
Clinton, L. and Whisnant, R., 2019. Business model innovations for sustainability. In Managing
Sustainable Business (pp. 463-503). Springer, Dordrecht.
Kupeshova, S.T., Lazanyuk, I.V. and Kareke, G.T., 2019. Risk Management in the Innovation
Project. Central Asian Journal of Social Sciences and Humanities, 1(1), pp.9-12.
Lenssen, G.G. and Smith, N.C., 2019. Managing Sustainable Business. Springer.
Loon, M. and Chik, R., 2019. Efficiency-centered, innovation-enabling business models of high
tech SMEs: Evidence from Hong Kong. Asia Pacific Journal of Management, 36(1),
pp.87-111.
Mandal, P.C., 2019. Managing and Applying Innovation in New Product Development-
Strategies and Initiatives: Managing and Applying Innovation in NPD. International
Journal of R&D Innovation Strategy (IJRDIS), 1(2), pp.21-30.
Mariev, O.S., Nagieva, K.M. and Simonova, V.L., 2020. Managing innovation activity factors in
Russian regions through econometric modeling. Upravlenets, 11(1), pp.57-69.
Naqshbandi, M.M., Tabche, I. and Choudhary, N., 2019. Managing open
innovation. Management Decision.
Ottosson, S., 2019. Developing and Managing Innovation in a Fast Changing and Complex
World. Springer Books.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2019. Managing and using information
systems: A strategic approach. John Wiley & Sons.
Radziwon, A. and Bogers, M., 2019. Open innovation in SMEs: Exploring inter-organizational
relationships in an ecosystem. Technological Forecasting and Social Change, 146,
pp.573-587.
Saiz-Alvarez, J.M., 2019. Managing social innovation through CSR 2.0 and the quadruple helix:
A Socially inclusive business strategy for the Industry 4.0. In Organizational
transformation and managing innovation in the Fourth Industrial Revolution (pp. 228-
244). IGI Global.

Szutowski, D., Szulczewska-Remi, A. and Ratajczak, P., 2019. Managing innovation processes
in industrial sector. Qualitative study. Economic research-Ekonomska istraživanja, 32(1),
pp.282-300.
Teplov, R., Albats, E. and Podmetina, D., 2019. What does open innovation mean? Business
versus academic perceptions. International Journal of Innovation Management, 23(01),
p.1950002.
Zhu, X. and et.al., 2019. The fit between firms’ open innovation and business model for new
product development speed: A contingent perspective. Technovation, 86, pp.75-85.