Impact of Innovation on Ocado Group PLC: Business Report

Business environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Assess the impact of innovation on modern business organisations...........................................3
Assess the general environment of the company to identify the major opportunities and
constraints which it is facing.......................................................................................................5
For the chosen company:............................................................................................................6
Ethical implications of decision making in their company ........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is defined as the collection of different internal as well as external
factors that that are related to business such as employees, supply and demand, government
activities, market trends, economic changes and innovations that have power to influence
business in both positive and negative manner. Business environment consist various
opportunities as well as threats that enable business to attain determined goals and objectives in
efficient manner. Proper understanding of business environment helps organisation to take
effective decisions and develop planning for future. In this report the chosen organisation is
Ocado Group PLC which is online grocery solutions and logistic organisation founded in 2000
by Jonathan Faiman. Headquarter of respective organisation situated in Hatfield, England, UK.
This report covers impacts of innovation in modern business organisation. Pestle analysis
regarding organisation and recommendations to improve business decisions and ethical
implications in business decision-making process is mentioned in this report.
TASK
Assess the impact of innovation on modern business organisations
In current business environment various innovations are adopted by the organisation to
run business in efficient manner and gain sustainable competitive advantages. In impacts
business performance, productivity and profitability. As Ocado is the online retailing
organisation which is one of the most innovative tech company in the world. Respective
organisation brings various innovation through using artificial intelligence and machine learning
in business operations. Organisation adopts end-to-end e-commerce to enhance its reach to
customers (Cristofaro, 2020). Organisation also start using fully automated warehouses that
consist various technologies such as internet, big data, machine learning and various other that
boost performance level of business and provides competitive advantages. Some impacts of
innovation is organisation are mentioned below:
Improves business sales and customer relationship: Innovation is the aspects that plays
important role in enhancing business sales as well as organisational relationship with customers.
Through adopting innovation organisation can improve its products and services that reduce the
risk of losing customers and become more innovative then other competitors. Ocado Group
invest time and money in innovation such as e-commerce that bring organisation more close to

customers and maintains effective relationship through provide quality products and services to
customers. Customers can purchase products from online modes on time with efficiency that
enhances organisational sales and profitability ratio.
Reduce waste and cost: Implementation of innovation is the factor that help businesses to
reduce wastage and overall cost of process which is in the favour of organisation. It helps
business to maintain effective positioning and concentrates on long-term objectives of business.
Ocado Group PLC adopts artificial intelligence and machine learning that enhances overall
operational efficiency of organisation. Innovations facilitates business to eliminates the
bottlenecks, enhance effectiveness of working process as well as reduce employees and
machinery idle time that reduces overall cost of production process (Bai Cordeiro and Sarkis,
2020). As implementing innovation , facilitates business to reduce waste that helps business to
complete business operations with lower cost, enhance profitability margin, enhance
competitiveness and improve organisational customer services.
Maintains effective market positing: Through adopting innovations in business
operations, organisation can quickly anticipate changes in market and get competitive advantages
by becoming first mover. It helps organisation to differentiate business practices and products
from other competitors that enhance organisational customer base and market share. Ocado
Group PLC analyse market trends, needs and demands of customers and activities of competitors
than take decisions regarding bringing innovation in organisation that help to attain determined
objectives. As current business environment, the trend of online shopping is enhances so, Ocado
Group PLC adopts e-commerce to provide its products and services to customers through online
mode that help business to enhance the ratio of sales and profitability.
Improve employees relations: Innovation at workplace stimulating for employees.
Organisation provides regular training to employees regarding adopting changes and perform in
efficient manner. Ocado Group PLC implements various innovations such as adopting artificial
intelligence and machine learning as well as provide training to employees regarding these
changes that reduces employees turnover rate and boost productivity (Chawinga and Chipeta,
2017). As organisational employees provides various ideas of innovation that lead business
towards success. Respective organisation understand employee point of view and take regular
feedback regarding innovation that improves their morale and retain them with organisation for
longer period of time.