Managing Innovation in Business

This report discusses the importance of managing innovation in business and focuses on Bentley, a car manufacturing company. It covers the innovation history of Bentley, its performance and capabilities, and the industry trends in 2016. The report concludes that innovation is crucial for attracting customers and enhancing profits.

Managing Innovation in
Business

Table of Contents
INTRODUCTION.......................................................................................................................................3
THE ORGANIZATION & INDUSTRY OVERVIEW...............................................................................3
The organization and its innovation history.............................................................................................3
The organization existing innovation performance and capabilities........................................................5
The industry in 2016................................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
In the world full of advanced technology and lots of competition managing innovation in
business is very crucial and important term in the organization. This project is based on Bentley
which is a car manufacturing company. It includes organization and its innovation history. After
that it’s suggest the innovation performance and capabilities in the firm. at last it mentions the
industry in 2016. The purpose of making this report is to enhance the knowledge about the
company innovation and its importance to earns the profits and revenues(Tidd and Bessant,
2018).
THE ORGANIZATION & INDUSTRY OVERVIEW
The organization and its innovation history
Bentley is one of the largest British manufacturing company of cars headquartered in UK
since 1919 and do a business all over the world. It works for maintaining the distinct identity in
the market place from other competitors for this they innovate their cars in a timely manner to
attract more and more customers and earns profits. to know the innovation history of Bentley this
report used pestle analysis and porters five forces models(Biemans, 2018).
Political factor- In 1920, political condition of the UK is very stable and income of every person
is also very good because of this the innovation done Bentley is very successful. This company
is the first who launch and manufactures the first fast car and first 3-litre with 85 PS Bentley
engine that accelerates the speed of a car to 80 miles per hour. And at this time there is no more
invention of government and tariff to export or import. This innovation can dominating the
whole market(100 years of Bentley” Volksvagenag,2020).
Environmental factor- In 1950, Bentley can innovate its car by making the four seated car that
will reduces the pollutions as four people can go anywhere in the car. The main reason of
installing this car is to go with family and friends. That is a luxury car and many peoples of UK
are very stable to buy this car. They innovate GT Convertible V8 3 model in 2019 in this low
fuel consumption is indulged.
Social factor- This factor encourage the Bentley company to innovate its new design car for ths
customers. In 1980 – 1989 organization designed a Mulsanne which is a racetrack car and covers

a 96 km/h in seven seconds and benefited form a new rear suspension design (‘'Bentley Driving
Innovation”, 2020).
Technological factor- It is the major factor that was used in the innovation of Bentley, without it
innovation is not possible. Firm innovates continental flying spur model car in 2005 and it was
the first luxury company who uses high standard of modern technology in maintaining their
ambitions and this traditions (100 years of Bentley” Volksvagenag,2020).
Porters five forces model
Power of customers - the bargaining power of customers is not so high in the Bentley as they
manufactures and offers a car with high innovative technology that will attract the customers to
buy the car at any cost(Van Lancker, Wauters and Van Huylenbroeck, 2016).
Power of suppliers- the bargaining power of suppliers are very high as they are the official
suppliers of Bentley which is related to the British Royal family. Because of this manufacturing
cost is more and the cost of the car is high. But at present the automobile manufacturers suppliers
are more this will redues the power of suppliers and it helps in innovating new and new
thisng(‘'Bentley Driving Innovation”, 2020).
Threat of substitutes- From older days substitute of innovation in Bentley is not much as they are
the market leader who innovates many new things for the very first time. But today’s
environment there are many competitors are present to beat the innovation and its
technology(Zeng, Hu and Ouyang, 2017).
Threat of new entrant- In the manufacturing industry of car there is lots of investment is needed
and Bentley is one of the luxuries car in the world and known for its innovation. Because of its
innovation in car there is no new entry was present. But now there is more new entrant come in
the market with more new advanced innovation. This will helps the company to invest more on
R&D departments to capture the whole market(Ćirić, Lalić, B. and Gračanin, 2016).

Rivalry of the firm- Competition in luxury car industry is very high as more competitors are
present in the market to beat the company sales and its innovation. But in old year’s competitors
are not more this will helps in capture the whole market(Ferreira and et. al., 2015).
The organization existing innovation performance and capabilities
Bentley is one of the world largest manufacturing company which is established in UK,
1919. It is the first company who innovates in the car manufacturing and investing more on
Research and development department. It latest and the most trending innovation in their car is
Flying Spur which is the first ever car that was launched by the Bentley. It always the market
capture and the leader in the present world. Currently or in future they could think about to
introduce a car with more new innovation which attracts the people either who buy the product
or not. In this they use 3D printing in their next car which is the latest automation with high tech
trends and biometrics, Artificial intelligence and solar power. It is the complete coverage of the
advanced technology with the brilliant innovation. It can reshape the future and the present of the
car , company and the purchaser. But because it is very luxuries car it only targets the high elite
class peoples. This is very interesting idea if innovation 3d printing. It shows the best innovation
performance and its activities by describing and manufacturing this 3D priniting car with AI,
Biometric sensor(Chen, Jiao and Zhao, 2016).
To show its capabilities in the innovation this report make SWOT analysis, which is the best
source to know the capabilities in the business relating to the innovation.
Strength Weaknesses
 Popularity – the major strength of the
Bentley is that it is very popular in
luxury and sports making car. It can
also leverage the Germany based
company that helps in making. In
innovation it is very useful strength as
they are already very popular nd with
this 3D innovation is attracts more
customers and more popular in the
 Limited reach- the major weakness of
the Bentley is that it has limited reach
to its customers, as they are nor present
in some countries where the buyers are
more. To reduce this weakness
company operates its business in the
cities where it does not exist with its
new innovation.
 Not environmental friendly- the another
weakness of the Bentley is that they are

universe.
 Car designs- the another major strength
of the Bentley which shows its
capabilities in innovation a s it is the
best and the first who design the
innovative car as their innovation is
also attractive and adorable. Because of
his best car design they think to
innovate the 3D printing car in future.
not environmental friendly as they only
focus on their revenues and its
manufacturing. But by this new
launching of 3D print innovation it will
help in reducing the same.
Opportunities Threats
 More environmental friendly- It is the
opportunity for the Bentley and to
adopts and fix this company need to
innovate the 3D print cars with more
new features that helps in making the
environmental friendly cars(Mousavi,
Bossink and van Vliet, 2018)..
 Focusing on emerging market- they
generally focus on the emerging maret
where there is more sales and more
people are attracted. to adopts this
opportunities Bentley can innovate new
design car that helps in focusing the
emerging market like India or US.
 Increasing fuel price- It is an serious
matter to the automobile sector and one
of the major threat for the Bentley. To
reduce this Bentley can introduce the
innovation in this low fuel consumption
is installed and it is the first car
company ever who invented first fastest
and low fuel consumed car.
 Competition- because of many
competitors are present in the market it
is the best source to innovate new
design time to time so that Bentley
reduce the threat of competitors.
The industry in 2016
Bentley is famous automobile manufacturer which have separate images in automobile
industry, this company is famous for its innovative and designer cars which are attractive in
looks, amazing in comfort and fastest in driving. 2016 is the year for change in automobile

industry of UK where there is trend of digitalization, electronic cars and change in method of
production because of change engine technology. This year bring number of changes which are
favorable to Bentley. Automobile industry is the biggest industry of UK which has 10%
contribution in GDP of UK. According to report published by UK government this industry
promises employment to 10% workers in manufacturing sectors of total employment which is
7% of overall employment in UK. Trend of digitalization is an important factor in this year
where Digitalization technologies have found applications across the industrial value chain and
have had helpful influence on suppliers, OEMs and end-customers. While some technologies
have more focused applications, others such as cloud computing, analytics and cyber security are
increasingly top to an unparalleled distribution of information and original applications through
the value chain.
Electronic car concept also emerged in this year when other companies like Tesla and
Tata launch their electronic cars in market. This step is taken because of change in market
polices by government to use electronic car instead of petrol/ diesel cars because they cause
pollution and leads to global warming. This is also a changing factor for industry as because of
this all car manufactures are now transforming towards electronic cars which will help in
elimination of petrol cars. Bentley is following this process from long time and use there
innovative idea to manufacture speedy cars which can run on electricity. The trend of using fully
electric engine instead of hybrid engine also started in this year where Bentley introduced
innovative idea for using the fully functional electronic engine system where there is no need to
use petrol or diesel as engine fuel to operate engine. The more innovative talk about his function
is that this engine is one of its kinds because it can reach at the speed of 200 km/h which become
world record for electronic cars speed (‘'Bentley Driving Innovation”, 2020).
With emerging trends there are also some threats which have to be faced by this industry
like impact of brexit. It is a political blunder which whole UK is facing and automobile industry
is also getting impacted from this. number of car manufactures in industry have to face it as they
are in threat that what will happen, this is because there are several changes in polices of
government which have to be consider as the key issues in from of dealers they have to identify
all these changes and have to implement on their firm . This also leads to unstable market
conditions as people are restricting themselves from buying new items which also damage the

demand and supply chain.so there are threats and trends in year 2016 for industry where Bentley
is operating its functions.
CONCLUSION
From the above described report it is to be concluded that the innovation in business is
the basic requirement to enhance the profits and attracting the customers. And it can be use from
many previous years. It includes how important for manufacturing company a innovation. It
explains the innovation history they follow from many years to attracting more customers and
maintains the image in the market place. Further its shows the performance of a company and its
capabilities that helps in the innovation process and managing it from some extent. It also
explains the industry how it will stay in the market place for longer terms(Visnjic, Wiengarten
and Neely, 2016).
.

REFERENCES
Books and Journal
Altman, E.J., Nagle, F. and Tushman, M., 2015. Innovating without information constraints:
Organizations, communities, and innovation when information costs approach zero. The
Oxford Handbook of Creativity, Innovation, and Entrepreneurship. Oxford University
Press, New York, pp.353-379.
Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
Chen, J., Jiao, H. and Zhao, X., 2016. A knowledge-based theory of the firm: managing
innovation in biotechnology. Chinese Management Studies.
Ćirić, D., Lalić, B. and Gračanin, D., 2016. Managing innovation: Are project management
methods enemies or allies. International Journal of Industrial Engineering and
Management. 7(1). pp.31-41.
Ferreira, J.J., and et. al., 2015. Drivers of innovation strategies: Testing the Tidd and Bessant
(2009) model. Journal of Business Research. 68(7). pp.1395-1403.
Frow, P. and et. al., 2015. Managing co‐creation design: A strategic approach to
innovation. British Journal of Management. 26(3). pp.463-483.
Mousavi, S., Bossink, B. and van Vliet, M., 2018. Dynamic capabilities and organizational
routines for managing innovation towards sustainability. Journal of Cleaner
Production. 203. pp.224-239.
Petraite, M., Pavie, X. and et. al., 2017. Managing innovation in multicultural environments: An
imperative of responsibility within interorganizational networks. In Intercultural
Interactions in the Multicultural Workplace (pp. 137-154). Springer, Cham.
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.

Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
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.
Visnjic, I., Wiengarten, F. and Neely, A., 2016. Only the brave: Product innovation, service
business model innovation, and their impact on performance. Journal of Product
Innovation Management. 33(1). pp.36-52.
Zeng, D., Hu, J. and Ouyang, T., 2017. Managing innovation paradox in the sustainable
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firm. Sustainability. 9(11). p.2091.
Online
“100 years of Bentley” Volksvagenag. 2020. [online]. Available through
<https://www.volkswagenag.com/en/news/stories/2019/07/the-best-in-its-class.html>.
‘'Bentley Driving Innovation”, 2020. [online].Available through
<https://www.themanufacturer.com/articles/bentley-driving-innovation/>