Managing Innovation in Business

Managing Innovation in
Business

Executive Summary
Innovation is defined a creation, development and implementation of new method, idea,
device or something new. Main motive behind this is to attain more growth, development and
sustainability in respective marketplace area. This report discusses the importance of innovation
along with its impact upon organisation development and growth. Report involves discussions
upon Marks and Spencer which is conducting its operations in retail industrial sector and offer
different types of products and services to customers with high quality. It has been evaluated that
company believes that innovation is most important factor through which many advantages can
be gained in terms of long term sustainability, higher profitability, maximised effectiveness and
more. This makes company to implement different types of innovative practices in order to serve
customers in a well define and effective manner. According to the analysis it has been
determined that in order to assure success it is essential for an organisation to implement
innovation within their organisational workplace practices in order to maximise its profitability
in a well define and effective manner. In addition to this it has been underlined that innovation
allows entity to gain more competitiveness as compared to other rivals. This report is being
segregated in three parts, first part of this report includes Marks and Spencer innovation history
in which explanations is being given related to the use of innovation within company from past
many years. In addition to this, report also include PESTLE analysis through which organisation
can evaluate its strength, weaknesses, threats and opportunities. While on the other hand, second
part of report involves formative discussions upon existing performance of entity along with its
capability which is acting as key factor to bring innovation. Lastly, present report states overview
of retail industry in the year 2016.
It is being determined that Marks and Spencer management effectively engages in the
practices of innovation that facilitates them to design and develop attractive and unique services
and products to customer. In addition to this, it has been underlined that M&S management
developed a 5 year transformation programme in order to enhance organisational success at great
extent. Furthermore, Marks and Spencer is being duly recommended to take advantage of
Emotient as to have effective and accurate awareness of sentiments of consumers in terms with
the behavioural pattern towards the delivered services.

Table of Contents
INTRODUCTION...........................................................................................................................1
The Organisation and its Innovation History .............................................................................1
The organisations existing Innovation Performance and Capabilities........................................3
The Industry................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation is termed as a procedure of innovation in which introduction of new methods,
goods and creation, development and implementation of new product is being done with an aim
to improve effectiveness, efficiency and gain competitive advancement (Zhang and et. al.,
2020). In this process technology plays major role through which needs as well as demands of
customers can be fulfilled. This report has been made on Marks and Spencer, which is
performing its business operations as leading British retailing organisation while having
headquarter in London, United Kingdom. Company offers wide range of clothing, accessories,
home products, food etc. and many other services to customers through online channels and
advanced stores. In this report formative discussions has been conducted on innovation
performance of company along with its capabilities to enforce innovation.
The Organisation and its Innovation History
Illustration 1: Innovation Timeline of Marks & Spencer
( Source: Innovation Timeline of Marks and Spencer, 2019)
PESTLE Analysis
PESTLE analysis is defined as a strategical frame work that allows an organisation to determine
its strength, weaknesses, threats and opportunities. This will further facilitate them towards
framing strategies for overcoming weaknesses and gain growth opportunities. PESTLE analysis
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of Marks and Spencer is defined below through which entity can effectiveness drive innovation
for company in past.
Political:
United Kingdom offers stable political environment through which companies can
undertake their process of innovation is effective manner. With the help of political support
Marks and Spencer, R&D department take advantage of flexible tax regulations, R&D Tax
Credit for private organisations and flexible programs for Patent Box schemes. Main aim behind
this is to continuously engage in the process of innovation as to assure future development and
growth.
Economic:
Innovation plays a major source through which company can assure high revenue and
long term suitability. Marks and Spencer is conducting its business services in the developed
countries like UK. This assists entity to ensure continuous expansion and innovative practices in
order to gain more competitiveness as compared to other rivals.
Social:
According to the analysis it has been evaluated that there is continuous change in the
needs, taste, preferences, choice and behavioural aspects of customers. It has been evaluated that
in the passage of time there is so many changes seen in the behavioural pattern of customers that
are forcing companies to engage in the process of innovation (Latilla, Franzo and Chiesa, 2020).
In this Marks and Spencer in order to assure more competitiveness continuously engages in
innovating practices in order to serve customers as per according to their needs and demands in a
well define and effective manner.
Technological:
Technology acts as most important factor that facilitate entities towards rapid expansion.
This factor is enforcing negative as well as positive aspects upon organisations that are required
by them to abide in order to ensure long term suitability and growth. Technology is enforcing
Marks and Spencer to implement high-tech and advanced measures into their processes. This
company is already leading in adoption of technology prior to their rivals which makes this
entity first British retailer with its own research lab. In addition to this, it has been underlined
that Marks & Spencer introduces interactive display at Marble Arch. With the help of this
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viewers can able to investigate content, formatted to fit the size and resolution of the screen, as
well as being able to read explanations of each zone.
Legal:
It is essential for an organisation to adhere all the legal regulations, practices and laws in
order to ensure long term sustainability within industry. Negligence of legal obligation will
facilitate entity to face many legal obligation and heavy penalties from government authorities.
Marks and Spencer management makes sure that company adhere labour laws, innovation
copyrights and other necessary legal abiding in order to have a positive image in respective
industrial segment.
Environmental:
Many nations around the world are enforcing and encouraging organisations to adopt
sustainable business practices. In addition to this, individuals around the world are also
concerned towards environmental safety. In order to respect sentiments and laws of countries and
individuals Marks and Spencer undertake advantage of sustainable practices as much as possible.
For example, Marks and Spencer take use of non-fossil fuel and renewable energy capacity and
made partnership with green power partners in order to conduct its operations effectively.
The organisations existing Innovation Performance and Capabilities
Marks and Spencer is conducting its business services in retailing segment as a leading
British Multinational corporation (Sanz-Llopis and Ostermann, 2020). Entity is having its
headquarter in London, United Kingdom and listed on London stock exchange. This company
offers wide range of services and products with unique and innovative features.
Existing innovation performance
Marks and Spencer a leading organisation in retail industry is conducting its services in
the provinces of Europe and have partnership with a retailer company, TRUE which is a special
customer investment. Existing performance of M&S is efficient that attracts large base of
customers in a well define and effective manner. Furthermore, it has been underlined that
collaboration of Marks and Spencer with True allows company to enhance its customer base and
network . Along with this, this collaboration also facilitate Marks and Spencer to undergoes in
transformation process and serve consumers via digital expertise and gain their attraction in an
effective manner. Furthermore, this is being evaluated that in 2017 M&S undergoes in a 5 year
transformational programme through which entity gained access of more opportunities for
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growth and development. With the help of this company also assured high sales as well as
profitability in a well define and effectively manner. Along with this, according to the analysis it
has been evaluated that Marks and Spencer digital and marketing team undergoes with the
innovation process of restructuring and have set up a customer insight partnership with Star
count.
In addition to this it has been evaluated that in context with Marks and Spencer food
segment company duly introduced wide range of technical themes by making significant analysis
of future needs and preferences in food industrial segment (Shi, Zhang and Zhang, 2020). With
the assistance of this process company aim towards offering high quality products and services to
customers with innovative packing style and new variants along with high quality services and
other facilitate. Furthermore, it has been underlined that company research and development
team engaged in the process of extensive research as to understand mindset of customers and
further attract them towards these themes with the assistance of promoting messages related to
importance of healthy and nutrients enrich diets. Along with this management of Marks and
Spencer significantly make reduction in campylobacter with their poultry segment as to
effectively adhere all the essential and effective food standards that are being enforced by food
authorities. Along with this, it has also been underlined that Marks and Spencer also initiated
innovative practices in healthy food range segment and make introduction of Company's Plan A
innovation fund as to undertake various innovation and innovative practices for former plan. In
this plan company aim towards undertaking significant advantage of testing fresh meat cuts and
vacuum packing. With the assistance of this, M&S is aiming to reduce 75% of unnecessary
packing requirements while offering high quality fresh quality products to customers through
which entity can assure high sales as well growth in respective industrial sector.
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The Industry in 2016
Global retail industrial segment is going through intense transformation with the passage
of time. Each and every segment is affected with this issue as every organisation have touched
with the transformation (Lobo and Samaranayake, 2020). According to the analysis it has been
evaluated that retail segment have been gone through significant transformation such as e-
commerce, digitalization, cognitive computing and more. In order to assure more competitive
advancements than other rivals every organisation undertake advantage of innovative practices in
order to ensure long term sustainability and maximised profitability.
As per the evaluation it has been underlined that innovation is basically linked with
customer engagement, process, consumer services, communication, products. There are some
types of innovation transformations that organisations has been underdone through such as
Gregg's Vertically integrated operations, in this company brings innovation in its business
model, Cocoa Cola's engagement programme within this entity innovated its consumer
engagement segment, HDFC Bank's Eva Chatbot in this organisation brings innovation in its
communication aspects and more.
By looking upon above discussions this has been underlined that innovation in retail
industrial sector plays most important role that facilitates entities to assure high growth and
success in a well define and effective manner (Egfjord and Sund, 2020). Innovation facilitate
entities to have more competitive advancements than other rivals while assuring long term
sustainability.
Capabilities
As per the above mentioned analysis it has been underlined that Marks and Spencer is
having significant capability to introduce and embrace innovation in their working structure in a
well define and effective manner. Innovation will facilitate M&S to assure high growth,
development and profitability with great effectiveness. It has been determined that Marks and
Spencer is having efficient past innovating performance, this increases company capabilities to
undertake advantage of innovating practises in a well define and effective manner. This has been
evaluated that Marks and Spencer significantly introduces interactive display which is basically
made up of moving panels. With the help of this company allow their customers to investigate
content, read explanations of each zone and fit resolution of screen (Marks & Spencer introduces
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interactive display at Marble Arch. 2014). With the help of this innovation capabilities company
is aiming towards assuring more competitiveness as compared to other rivals in industry.
Illustration 2: Retail Trends
( Source: Retail Trends, 2016)
Retail industry evaluation significantly assists in undertaking knowledge related to this
market segment. Mentioned below there are some certain elements of this sector is given with
the assistance of Porter Five Force model:
Porters Five Force Model
Threat of new entrants:
In order to establish business in retailing segment it is essential for new entrants to make
heavy investments (Bahl, Lahiri and Mukherjee, 2020). This indicates low threat of new entrants
as they are required to invest large amount of capital as to attract customers towards there
offerings. With the help of this opportunity Marks and Spencer can ensure more profitability and
maximum shareholding.
Bargaining power of suppliers:
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Marks and Spencer's are performing its organisational offerings in retail industrial
segment as a leading organisation. Suppliers of this segment wants to conduct their operations
with leading entities those who posses leading profitability and shareholding in marketplace. It
indicates low bargaining power of suppliers as Marks and Spencer is having effective consumer
base and competitive shareholding. This allows company to have negotiation power and conduct
cost effective business.
Bargaining power of buyers:
Customers are king of marketplace who are having power to affect organisational
operations of an organisation. In terms with retail industrial sector it has been evaluated that
consumers are having option to buy products and services from rivals who are offering same or
similar form of services and products in affordable price range. In order to assure more
competitive advancements Marks and Spencer with the help of innovative practices can offer
unique offerings to customers.
Threat of substitute products:
There is high threat of substitute in respective sector as organisations engaged in this
segment offers products and services with some how same or similar features. Thus, in this
scenario Marks and Spencer with the help of continuously engaging in innovation and
differentiation process can enhance attention among customers towards organisational offerings
through which company can assure more base of customers.
Rivalry among existing players:
Within retail industrial segment competitive rivalry is high, due to aggressive competition
Marks and Spencer is facing threat from competitors like ALDI, Sainsbury, TESCO, Asda and
more. These rivals are offering same or similar form of services and products to customers which
is increasing extent of rivalry in this sector (Hilbolling and et. al., 2020). In order to assure
higher competitiveness Marks and Spencer with the help of innovation can attract customers
towards unique and attractive offerings.
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SWOT Analysis
STRENGTH WEAKNESSES
Marks and Spencer is having low threat of new
entrant which is one of its strength.
M&S is facing related to low investment in
online advertisement.
THREAT OPPORTUNITIES
Marks and Spencer is having threat related to
high level of competitiveness and substitution.
Marks and Spencer is having opportunity to
expand their product and service range in new
geographical area.
VRIO ANALYSIS
Valuable
 Financial resources of Marks and Spencer are highly valuable.
 Company local food products and valuable resources as they are highly differentiated
 According to the VRIO analysis of Marks and Spencer it has been evaluated that
company employees are valuable resources as they generate greater value for firm.
 It has been evaluated that distribution network of M&S is highly valuable
 According to M&S VRIO analysis it has been evaluated that company cost structure is nit
valuable
 It has been evaluated that Marks and Spencer research and development of company is
not a valuable resource.
Rare
 According to Marks and Spencer VRIO analysis it has been evaluated that financial
resources of company is rare.
 Local food products of company are not rare as these can be found easily in market.
 As per the VRIO analysis employees of Marks and Spencer are rare.
 According to Marks and Spencer VRIO analysis patent are rare resources of firm.
 Marks and Spencer distribution network is rare resource.
Imitable
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 It has been evaluated that Marks and Spencer financial resources are costly to imitate.
 Local food products and not costly to imitate.
 It has been evaluated that employees of Marks and Spencer are nit costly to imitate.
 Marks and Spencer patent are very costly to be imitated.
 It has been determined that distribution network of Marks and Spencer are costly to get
imitated.
Organisation
 The financial resources of Marks And Spencer Group Plc are organised to capture value.
 The Patents of Marks And Spencer Group Plc are not well organised according to VRIO
analysis of Marks and Spencer.
 It has been evaluated that the distribution network of Marks And Spencer Group Plc is
organised.
CONCLUSION
According to the above mentioned analysis it has been determined that innovation is
playing most important for growth and development of an organisation through which they bring
unique and innovative offerings in organisational workplace structure. Innovations act as a
strategic tool through which entity can assure more competitive edge in respective industry. It is
essential for an organisation to firstly determine its strength and weaknesses in order enforce
innovative practices into organisational workplace structure. Along with this, with the help of
porter's five force analysis entity can also determine the extent of competition in industry. This
will allow entity to undertake opportunities for growth.
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REFERENCES
Books and Journal
Zhang, W and et. al., 2020. Managing strategic contradictions: A resource allocation mechanism
for balancing ambidextrous innovation. Computers in Human Behavior, p.106277.
Hilbolling, S and et. al., 2020. Complementors as connectors: managing open innovation around
digital product platforms. R&d Management, 50(1), pp.18-30.\
Bahl, M., Lahiri, S. and Mukherjee, D., 2020. Managing internationalization and innovation
tradeoffs in entrepreneurial firms: Evidence from transition economies. Journal of
World Business, p.101150.
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.
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Latilla, V.M., Frattini, F., Franzo, S. and Chiesa, V., 2020. Organisational change and business
model innovation: an exploratory study OF an energy utility. International Journal of
Innovation Management, 24(04), p.2050036.
Peterková, J., Czerná, K. and Macurová, P., 2020. Evaluation of innovation activities and
innovation management model of selected innovative companies. In SHS Web of
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Ojha, D., Struckell, E., Acharya, C. and Patel, P.C., 2020. Managing environmental turbulence
through innovation speed and operational flexibility in B2B service
organizations. Journal of Business & Industrial Marketing.
Gjergji, R., Lazzarotti, V., Visconti, F. and Marco, T.G., 2020. Innovation performance and
technological collaboration with business partners in family firms. Piccola
Impresa/Small Business, (1).
Sanz-Llopis, J. and Ostermann, M., 2020. Innovation in project management through framing
and challenge redefinition. International Journal of Managing Projects in Business.
Eriksson, D. and Bard, L., 2020. Managing innovation from a leadership perspective in an IT-
consultancy firm-A case study of Cybercom Group.
Shi, X., Lu, L., Zhang, W. and Zhang, Q., 2020. Managing open innovation from a knowledge
flow perspective: the roles of embeddedness and network inertia in collaboration
networks. European Journal of Innovation Management.
Lobo, S. and Samaranayake, P., 2020. An innovation management assessment
framework. Benchmarking: An International Journal.
Online
Marks & Spencer introduces interactive display at Marble Arch. 2014. [Online]. Available
through<https://www.thedrum.com/news/2014/05/02/marks-spencer-introduces-interactive-
display-marble-arch>
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REFERENCES
Books and Journals
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