Innovation and Business Principles

This assignment analyzes the importance of innovation in enterprises. It delves into various financial terms used in business contexts and discusses how innovation contributes to an organization's growth. The text provides examples like marketing campaigns on Trax FM that leverage discounts to attract customers and generate revenue through sales efforts. It concludes by emphasizing the significant role innovation plays in shaping businesses.

PRINCIPLES OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................1
1.3................................................................................................................................................2
1.4................................................................................................................................................2
TASK 2............................................................................................................................................2
2.1................................................................................................................................................2
2.2................................................................................................................................................3
2.3................................................................................................................................................3
2.4................................................................................................................................................3
2.5................................................................................................................................................3
TASK 3............................................................................................................................................4
3.1................................................................................................................................................4
3.2................................................................................................................................................4
3.3................................................................................................................................................4
TASK 4............................................................................................................................................5
4.1................................................................................................................................................5
4.2................................................................................................................................................5
TASK 5............................................................................................................................................5
5.1................................................................................................................................................5
5.2................................................................................................................................................6
5.3................................................................................................................................................6
5.4................................................................................................................................................7
5.5................................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Business innovation is an organization's process for introducing new ideas, workflows,
methodologies, services or products. Business innovation should improve on existing products,
services or processes; or it should solve a problem; or it should reach new customers. Sainsbury
is consider under this report for study.
TASK 1
1.1
 Market Structure & Demand: Usually there are few, but larger kind of business buyer
deal by organizations related to business market. Moreover, these buyers are much
concentrated geographically (Tasioulas, 2015). The demand involved in the business
market is the derived demand that finally comes from the demands of final consumers. In
certain cases the business markets deal with the inelastic demand, which is not influenced
by the price changes of the relative products or services especially in the short run.
 Nature of Buying Unit: In the consumer purchase, the participants involved are less along
with relatively little efforts. But in case of business purchase, there are many more
participants involved in the purchase process & also the increased professional effort.
 Kinds of Decision & Decision Process: The purchasing decisions of the business buyers
are more complex than the decisions of the consumer buyers. Complex economic &
technical considerations, large sums of money & interactions among different people at
various levels have taken place in the business purchase process.
1.2
The B2B market interactions are usually quick at the offset, particularly in terms of
recruitment, as we gain clients as they are in desperate need to assistance to bring on new team
members: however, the main intent of this market is to ensure a good relationship with the
companies so that in future we can do repeat business.
Comparatively, the services market is usually quite quick but varies amongst different
individuals. Most of the candidates I deal with are looking for numerous opportunities in a short
span of time.
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1.3
The goals of a company are shaped by the business markets they are involved in. For
example, my company, which is in the B2B and service markets quick markets, has meetings at
the beginning of the week to set targets for each of our team and to discuss how we are going to
move forward with clients and candidates in mind. These goals are reviewed at the end of the
week in our company meeting.
1.4
There are many legal obligations that a company will have to adhere to. As I am talking to a large number of people daily I need to make sure that I do not
discriminate against them based upon age, sexuality, disabilities, beliefs, sex, etc.
 As my company deal with a large amount of information on a range of people (holding
CVs, emails, numbers, addresses), it is important that we make sure this information is
protected and secure within our system.
Sainsbury’s would need to consider the sales of goods element of this act, and a limited
company or sole trader would be interested in trade marking and patenting their ideas once the
begin to grow.
TASK 2
2.1
The process of translating an idea or invention into a good or service that creates value or
for which customers will pay. To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need (Ramadani and et. al., 2015). Innovation
involves deliberate application of information, imagination and initiative in deriving greater or
different values from resources, and includes all processes by which new ideas are generated and
converted into useful products (Innovation, 2018). In business, innovation often results when
ideas are applied by the company in order to further satisfy the needs and expectations of the
customers. Business innovation is an introduction to a new idea to product. This example does
not necessarily have to be new to the market but does concern new product, new production
methods, new market, or new forms of organisation.
2.2
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Business innovation is an introduction to a new idea to product. This example does not
necessarily have to be new to the market but does concern new product, new production
methods, new market, or new forms of organisation.
 Challenge assumptions/ rules
 Communicate differently
 Compare your idea to other areas where a similar issue or benefit is seen
 Connect: Make connections and links between the issues and other contexts &
applications
2.3
The government are constantly focused on improving business in the UK and offer help
to those businesses who’re in need. Online you can get support to get improve and grow your
business through ways of business innovation (Ruggie, 2014). Often local authorities also offer
businesses help to get going. Greenwich council offers a business start-up plan which helps local
people set up their own innovative businesses.
2.4
In order to create a product or service you firstly must come up with an idea. The next
step is to consider is their a market for your product, do people want to buy it? Then you must
create strategic plan to decide how you’re going to sell your product. The next step is to create a
prototype of your product and test it with your target audience. Once you’re happy that your
products works and it’s what your target customer wants on the market then you must promote
and finally launch your product to the market.
2.5
There are many benefits to innovation but there are also many risks.
Benefits: Risks:
Profit/Margins increase. New product is not accepted by the market.
Helping to personalise your services. There is no capacity to implement the innovation.
Finding new business opportunities. The company has become dependent on the new product.
Giving you an advantage over your competitors. The company was overtaken by partners when
the innovation is done in partnership / risk of transfer of know-how.
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Satisfying consumer needs. Excessive concentration of resources and attention on the new
product at the expense of quality and marketing of the existing products.
Securing a market strategic position (Addo, 2014). To innovate it might imply high investments
that are not paid back during the product life cycle.
The implications of innovations can include the expense cost of creating new ideas or products,
sometimes small companies may even have to look at expanding to innovate and also resource’s
play a huge part, if you only have a small team of employees who’re all extremely busy then it
makes it practically impossible to innovate effectively. An example of this is at our company
(Street League) we’re currently looking at new innovative ways to use social media to enhance
our academies however it’s difficult to do that with a small team so we have to handle our time
management well in order to innovate.
TASK 3
3.1
Financial viability is extremely important in any business because making financially
viable decisions can determine whether your business is successful or not. Making sure
something is financially viable simply means to ensure its profitable and you can afford it.
3.2
It’s very important to make financially viable decisions because if you make the wrong
decisions it can land your company in debt. When making a financial decision it’s key to really
think about what the consequences might be if your decision isn’t financially viable. If a
company decides to spend money on items that are expensive but won’t really improve their
business then they will soon find themselves in lots of debt, they could have to make cut backs or
make people redundant to survive as a business (Backer, 2015). That’s why it’s vital to carefully
think about every decision you make in business.
3.3
Turnover – The amount of money a company has taken over a period of time.
Gross Profit – The amount of money a company has made after allowing for the cost of its
product and the cost of selling the product (Ronen, 2014).
Net Profit – Net profit is the actual profit a company has made after working expenses.
Debt – Debt is an amount of money that you owe to someone or a company.
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Credit – Is the ability to allow a customer to obtain goods or services without paying for them
first but with the knowledge they will pay for them at a later date.
TASK 4
4.1
A budget helps you to be organised when it comes to managing your finances, in terms of
a business it helps you work out what money you can afford to spend on expenses while still
making a reasonable profit. An example of this in our company might be we have a £100,000
budget for a year and in that year we have to try stay within that budget (Guitián, 2015). The
company may need to spend £30,000 on new venue, £20,000 on a new member of staff, £50,000
thousand on equipment across the organisation and a further £10,000 on building rent. If that was
the case and they over spent by £10,000 it would mean that money would eat into the companies’
profits therefore it’s important to try stick to your budget when possible.
4.2
When managing a budget it’s important to leave some room for compromise, that way
you can allow for unexpected costs. A company should always calculate their Income and
Expenses. After they determine their financial goals, they can implement a plan for reaching
them (De Felice and Graf, 2015). To do this, they will need to determine their income and their
expenses. Most companies budget on a yearly/monthly basis because most bills follow a monthly
schedule. A budget can also change throughout the year depending on profits, if your company
have a large increase in profits you may be able to afford to increase your budget to match the
growth of your business just as if your company have a dip in profits you may also have to
reduce your budget. The best way to manage a budget is to constantly keep an eye on what
you’re spending a review your budget regularly.
TASK 5
5.1
Marketing involves a range of processes that are used to find out what customers want,
these are known as the 4ps. They stand for Price Product Production and Place. These are the 4
main principals of marketing and one you find out it will help you market your product
successfully.
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5.2
Each company will have a slightly different way in how they sell their product, for
example in a retail shop such as All Saints the staff may approach a customer when they come
into the shop and politely offer assistance, then will then allow you to shop and only help you
when needed but in other more high end retail stores staff may be told to personally assist each
costumer individually in order to try make a sale.
In radio terms our process is as follows, our sales team will meet with potential clients
who may be interested in a radio add, they will then ensure they can produce what the customer
requires and give them a price (Vom Brocke and et. al., 2014). If the customer is happy they will
send the add off to our productions team to have it made, once the customer is happy with their
finished add they will choose a slot for it to be aired and it will be on the radio. Our sales team
will then bill the client and ensure they’re happy with the work.
5.3
Market research is vital when setting up a business or preparing to sell a product. If you
don’t know the market you’re entering into it’s very likely you won’t find it easy to compete
(Schmithüsen and et. al., 2015). The way to conduct market research is to start by finding out
who are your main competitors in the market, so as an example if you were setting up a mobile
phone company you may want to look at O2 or EE. It’s important to think about what your
competitors do well at as well as thinking about what they could improve on. If a business can do
well at the same things as its competitors but at the same time offer something new and different
then it’s likely to succeed.
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5.4
The brand of an organisation is it’s identity and it means everything. MacDonald’s, Apple, Nike
would never have been successful with out those famous iconic brands and logos. Your brand is
what makes you as a company, because once a customer likes your brand they will continue to
come back to buy more from you. In our place of work we use our brand to promote everything
we do. At events we use mascots wearing the logo and also flags with the logo on. Our cars are
all branded which all contributes to promoting us as a radio station.
5.5
Marketing helps generate sales leads then it’s the job of a sales team to execute the deal.
For example on Trax FM we might run a marketing campaign offering new customers a discount
in air time, that in turn will attract people to call our sales team and enquire about the deal which
hopefully the sales team will then be able to turn into revenue.
CONCLUSION
From the information, it can be summarised that innovation play a significant role in an
enterprise. Various financial terminology are there which used in a business.
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REFERENCES
Books and journals
Addo, M.K., 2014. The reality of the United Nations guiding principles on business and human
rights.Human Rights Law Review. 14(1). pp.133-147.
Backer, L.C., 2015. Moving forward the UN guiding principles for business and human rights:
Between enterprise social norm, state domestic legal orders, and the treaty law that
might bind them all. Fordham Int'l LJ. 38. p.457.
De Felice, D. and Graf, A., 2015. The Potential of National Action Plans to Implement Human
Rights Norms: An Early Assessment with Respect to the UN Guiding Principles on
Business and Human Rights. Journal of Human Rights Practice. 7(1). pp.40-71.
Guitián, G., 2015. Service as a bridge between ethical principles and business practice: A
Catholic Social Teaching perspective. Journal of Business Ethics. 128(1). pp.59-72.
Ramadani, V. and et. al., 2015. The context of Islamic entrepreneurship and business: Concept,
principles and perspectives. International Journal of Business and Globalisation. 15(3).
pp.244-261.
Ronen, J., 2014. On the invariance of accounting principles to business models: a discussion of
the Singleton-Green and Page articles.Journal of Management & Governance. 18(3).
pp.707-716.
Ruggie, J.G., 2014. Global governance and “new governance theory”: Lessons from business
and human rights. Global Governance. 20(1). pp.5-17.
Schmithüsen, F. and et. al., 2015. Entrepreneurship and management in forestry and wood
processing: principles of business economics and management processes (Vol. 42).
Routledge.
Tasioulas, J., 2015. Human Rights, No Dogmas: The UN Guiding Principles on Business and
Human Rights.
Vom Brocke, J. and et. al., 2014. Ten principles of good business process management.
Business process management journal. 20(4). pp.530-548.
Online
Innovation. 2018. [Online] Available through<https://www.businessnewsdaily.com/5167-
innovation.html>./
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