Managing Innovation in Business

This report explores the importance of managing innovation in business and focuses on Bentley Motors as a case study. It discusses the existing innovation performance and capabilities of the company and provides insights into the industry in 2016.

Managing Innovation
in Business

INTRODUCTION...........................................................................................................................1
The Organisations existing Innovation Performance and Capabilities........................................1
Executive Summary.....................................................................................................................4
Industry in 2016...........................................................................................................................5
CONSCLUSION.............................................................................................................................6
REFERENCE..................................................................................................................................7

INTRODUCTION
Innovation is the process of introducing something new in market that helps to run and
continue a business effectively. This is important for organisation to understand the current trend
and bring changes in their organisation accordingly. This is continual procedure in which a
management by trying to bring new ideas and thoughts on the basis of regularly. This helps to
increase the organisational productivity and profitability. To understand about this Bentley
Motors has been taken that is automobile company, manufacturing different models of cars by
using innovation in order to increase the brand image and retain their customers regularly. The
main purpose of this report is to increase the understanding about innovation and its important
that help to capture high market share by growing business. Thus report covers Organisation and
its Innovation History, existing innovation performance and capabilities. Moreover, it contain
industry in 2016.
The Organisations existing Innovation Performance and Capabilities
Innovation is the application of new ideas and thoughts that are introduced by a person who have
special knowledge and experience in order to attain the business goals and increase their
capabilities by introducing different types of products and services. it is required in every stage
that suggest ideas how a business can grow and take competitive advantages. If organisation is
able to accept the challenges and innovation in their business then it can get success in global
business environment (Alexander and Joe, eds., 2019) . Bentley Motors is automobile company
that is operating business by using new technology and innovation in their organisation that helps
to increase the organisational p5roductivity and profitability. For instance, management are using
innovation for introducing new model of car that is Bentley Continental GT that is full of new
technology and best feature that attracts customers and increase organisational brand image. To
maintain the capabilities and improving organisational performance VRIO analysis is used such
as:
Capabilities Valuable Rare Inimitable Organised
Finance ✔ ✘ ✘ ✘
Global
distribution
✔ ✔ ✘ ✘
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channel
Brand image ✘ ✔ ✔ ✘
Innovation ✔ ✔ ✔ ✔
Valuable – This means organisation should have enough resources that can uses to
perform well and increase the profitability. There is require many resources who are main
element to run and continue a business. In Bentley Motors, there are many important and
valuable resources such as finance, global distribution channel, brand image and innovation that
helps organisation to improve the organisational productivity. Finance help to run all functions
and activities by purchasing raw material, finished goods, hiring staff etc. that helps to run a
business. Global distribution channel is used to deliver and provide cars at different areas or
stores that increases number of customers. Brand image is another valuable resource that
maintain customer trust and aware people by providing new products. On the other side,
innovation is highly important that helps to bring changes in product or car design that helps to
improve the organisational productivity and capabilities (Siltaloppi, 2020).
Rare – This means resources which are rarely available for other organisation or
competitors and helps existing company to improve the organisational productivity. Finance is
easily available resources that can be get by other organisation to run a business. Where as global
distribution channel, brand image and innovation are rare resources that create difficulties for
new and other organisation to face the competition. Global distribution channel helps Bentley
Motors to sale and distribute the cars globally that helps to increase the organisational
performance and capabilities.
Inimitable – This means resources which are inimitable for other company and helps to
increase the high profits in competitive market. In context to Bentley Motors, Brand image is
inimitable resources that cannot be in imitate by other organisation and helps to increase the
productivity and profitability by improving performance. This also helps to inform and aware
people regarding new product and services in their organisation that helps to attain the high
market share.
Organised – This means all activities, functions and resources in organisation should be properly
managed and organised that can help to take the competitive advantages. In context to Bentley
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Motors, innovation is main resources is important to manage by organisation and managers in
order to sustain in competitive market and get competitive advantages.
Therefore, by using VRIO analysis Bentley Motors is increasing capabilities and
organisational performance by managing innovation and other resources effectively. This also
helps to get the competitive advantages. The managers of such organisation are managing all
resources effectively which helps to maintain the high productivity and profitability in
competitive market (Huang, Chen, Yu. and Zhu , 2019).
SWOT Analysis – This is a framework which is used by organisation to know the
capabilities, strength, weakness and opportunities at the time of running a business. In other
words, it is a strategy planning which is used by internal management in order to get
effectiveness of organisation. The SWOT analysis in context to Bentley Motors are as defined:
Strength Weakness
 Bentley is best automobile company in
UK that is operating business at
different places.
 Good integration in supply chain
 Constantly using technology and
innovation to drive cost down that
increases organisational productivity.
 Technical and talented people
 It has diversified product portfolio
 In Bentley, management are facing
challenges due to having many
competitors.
 Changing needs and wants of people
continuously.
 High innovation and technology cost
 Increasing interest rates.
Opportunities Threats
 Focus on people needs and current
trend.
 Bringing innovation and new model of
cars.
 Management are working on online
sales by growing the business.
 Expansion to grow automobile industry
by making attractive design of cars.
 Government support and easy
 Aston Martin, Rolls Royce, BMW etc.
are main competitor.
 Increasing in inflation rate.
 Changes in government regulation.
 People buys low quality and low prices
products that creates threats for
organisation.
 No barriers on new entrants
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regulations.
Executive Summary
Executive Summary
It is that kind of document in which an section or short document is produced in order to carry
out business. This is an summarization of report or proposal that is related to report in such a
manner that the person reading the report can analysis the condition of the company in easy
manner before even reading the whole report in detail. In other words this is considered to be that
kind of summary that is helpful in analyzing the condition of the company that has been there in
the market. Also help in analyzing of those factors that can be responsible for its rate of growth.
Company Background
Bentley is an luxury car company in UK and consist of large market of such luxurious car. It is
has its headquarters in Crew, England. This company was founded by Bentley Motors Limited
by W.O. Bentley in 1919. It is an subsidiary company of Volkswagen Group. Vision of the
company is to create extraordinary cars and provide luxury to its customers. Also it creates world
most desirable luxury cars. Luxury and high performance car is one of the very first priority of
the company. Also the company aims at gaining customer satisfaction. The company also knows
the value of its customers that is why it likes to entertain them with its finest luxury cars. It has
also a very trustable force required to build these luxury cars. That is why this company is able to
fulfill its vision (Van Lancker, Wauters, . and Van Huylenbroeck, ).
Product and Service Description
As Bentley makes luxury cars and has a very wide variety of it in the market. Also it has a huge
customer base. Product sell by Bentley is luxury cars because of which it has its value in the
market. Services provided by these are also very smooth. Such product produced by the company
is very unique and also has helped in gaining of customers at large. Due to its uniqueness people
are attracted towards the cars produced by it. Product and services that has been produced by the
company is able to satisfy its customers. Also has helped in capturing market at large. The cars
made by the company is very fast and luxurious. It can be said that it a perfect blend of class and
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speed together. Lot of things has to be kept in mind while forming these cars in order to satisfy
customers.
Market Analysis and Strategy
As Bentley has a very large market all over the world in terms of marketing analysis of Bentley
can be done with the help of SWOT that is going to help in analysis of strength, weaknesses,
opportunities of an company like this which has been explained further in this report. The
strategy that has been used by the company to develop itself in the market is product
development. As it is an luxury car selling brand and has to understand the needs ofv its
customers. This can only be done through launching of product or getting feedback over last
pproduct launched.
Industry in 2016
This means that an important sector which produces goods and services in an economy.
These covers almost all aspect that is related to business and is able to sell products,
services. In other words it can be said that an industry is that kind place where goods and
services are being produced to be distributed in the market. Various industries are present
there in the market and is related to al most every aspect of business from small to an
larger scale. After industrial revolution all of a sudden there has been a growth of
industries at very fast rate. After there has been Brexit and UK has decided to leave or
vote out of EU this is going have an drastic impact upon the growth of industries in UK.
It is going to effect housing growth and housing transactions that is implication as new
policies are going to be formed by government of UK is going to become very difficult
for various industries to maintain its growth in market. Also it can be observed that after
the Brexit scenario lot so industries is going to be effected in UK and is going to reduce
buying capacity of customers. So, profit gaining of industries is also goping to reduce.
Impact of Brexit Upon industry is going to be very dynamic lot of industries can face
challenges that has not been faced by them. So, quitting from EU is also going to make
market suffer a lot in UK. As in 2016 there has been an drastic change in UK and its
policies regarding industries that gave boost to organization and industries to grow.
Industries of automibil was on its peak and was facing lot of success in that particular
industries. The government has to form strategies that makes easily and tarde becomes
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strong. Industries were growing at very faster rate during thayt time and now after the
Brexit industries in UK has been effected by the policies because new strategies are
required to be formed by UK government.
CONSCLUSION
From the above report it can be concluded that innovation is main process and activity that
should be used by organisation in order to run a business and increase profitability. Managers are
responsible to perform business action properly that helps to get the competitive advantages by
managing organisational performance. In this, existing position is analysed by management and
formulate plans that helps to get the competitive benefits. On the other side, VRIO model should
be used by company for the purpose to know the capabilities and improving organisational
performance.
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REFERENCE
Books and Journal
Alexander, B. and Joe, T. eds., 2019. Managing innovation: understanding and motivating
crowds (Vol. 32). World Scientific.
Siltaloppi, J., 2020. Managing the innovation process.
Huang, H., Chen, J., Yu, F. and Zhu, Z., 2019. Establishing the enterprises’ innovation
ecosystem based on dynamics core competence—The case of China’s high-speed
railway. Emerging Markets Finance and Trade, 55(4), pp.843-862.
Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the
bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
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