Sources of Innovation and Strategic Models: Unit 27 Assessment

This Unit 27 assessment discusses sources of innovation like unexpected success and demographic changes, and strategic models like SWOT and PESTLE. It also presents the marketing plan of a mask company and the McKinsey 7S model. The subject is Business, course code is Unit 27, and college/university is not mentioned.

UNIT 27 ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Innovation sources......................................................................................................................3
Presenting marketing plan...........................................................................................................4
SWOT:.........................................................................................................................................5
PESTLE:......................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation is define as process of making innovative product in the market area in order to
meet the change of dynamic environment. It is one of the most important part of company as it
helps in dealing with reducing competition and to introduce new product in the market area.
The report will discuss about sources of innovation that contributes in making new product like
unexpected success and demographic. Moreover, the report will further evaluate about
strategic model like Swot and pestel.
MAIN BODY
Innovation sources
Innovation, according to Peter Drucker, is to make new changes in order to attract large
customer and to improve the market position. The design process must begin with a thorough
and coordinated review of opportunities. In the initial stage of innovation is to determine the
room of improvement in internal process of supplier and customers.. Market-driven innovations
are required.
Unexpected success or failure :
Knowing the reason for a product's unanticipated success or failure opens up possibilities for
innovation. Sudden product flops can also provide firms with new ideas that can aid them in
developing a product that the market enjoys (Drucker, 2019).
The incongruity between what actually happens and what was supposed to happen:
There is room for innovation if things aren't going as planned. When firms keep trying to
improve something in order to decrease costs but fail, an inventor can look for alternative ways
to lower costs.
The deficiencies in a process, that are taken for granted :
If a procedure is inefficient or has a large gap, there is room for improvement. A commonly used
process may occasionally contain flaws (Arfi, Hikkerov and Sahut, 2018). By thinking outside
the box, an innovator might arrive up with an original solution that solves this problem.
The changes in industry or market structure that catch everyone by surprise :
The introduction of new, fast-growing areas opens the door to fresh ideas. These segments can
be served by innovators. "New prospects struggle to fit this same way the company has always
viewed the industry, defined it, or organised to service it," according to Drucker. As a result,
innovators are likely to be left apart for a long time."

Demographic changes :
Because demographic shifts are easier to foresee, demographic shifts offer the much more
rewarding and risk-free chances for innovation (Feniser, Dusa and Sadeh, 2018). New demands
and lifestyles arise as a consequence of demographic shifts, necessitating the development of
new products.
Changes in perception:
New needs can be formed by altering people's common perceptions. For example, a thriving
market for fitness and jogging equipment has evolved, banking on people's interest for their
health and fitness.
The changes brought about by new knowledge :
Such inventions are particularly problematic since there is usually a time gap between the
creation of new information as well as its conversion into useful technology, as well as a time
gap just before product is released onto the market (Burchardt and Maisch, 2019). "Contrary to
practically general opinion, fresh information is not always the most reliable or anticipated
source of successful inventions," according to Drucker innovation is predictable and despite its
high visibility, attractiveness, and relevance."
Presenting marketing plan
During the Covid 19 the mask company is raising their business due to high demand in t eh
market. Along with this, this industry is growing day by day due to pandemic the company is
raising their sales as well as customer is asking for it in the market. The Mask company is
trying to bring innovative idea such as biodegradable in nature as well as of clothing material
in order to attract customer. In addition to this, the company is selling this material to hospital
and general public in order to increase their sales (Gechkova and Kaleeva, 2020). Along with
this, this type of company is targeting all type of customer in order to increase their sales. In
addition to this, mask organization are selling the product in low price in order to attract the
consumer as well as to sustain in the market.
Mic Kinsey 7s model:
This is model is us in variety of situation as it helps in examining various part of the company
so that organization can work together. Along with this, it helps in improving the performance
of firm in the market. It helps in identifying ways to implement a proposed strategy (Njeru and
Kariuki, 2019). In addition to this, framework is used to check the impact of future changes in

the company and to align departments and processes so that it can accomplish organizational
goals. Moreover, according to this model there are two types of elements such as hard and soft
elements. The hard elements are strategy, structure, and system. On the other hand, soft are
shared values, skills, style and staff.
Strategy: The mask company will be adopting growth strategy by making use of digital
marketing so that it cover large area of market as well as increase the sales. Along with this, it
can also collaborate with small and large scale medical and fashion industry in order tp
expand their business and to attract customer.
Structure: The organization will be making use of functional structure so that employees have
idea about their roles and duty that need to be fulfilled by them in order to achieve company
goal (Maulina and Hendriyani, 2018). The company will be following hierarchal chain of
command in order to avoid chaos within firm.
System: There will be various departments in the company so that main goal can be segmented
and success is achieved quickly. The human resources department will be responsible for
hiring and managing the employees within company. Along with this, finance sector will be
looking for arranging the budget so that company can introduce their new product in the
market.
Shared values: The mask company will following all the business ethics in order to avoid
the intervention of government and to safe themselves from lawsuits. Along with this, the
company will be treating their employees and customer with respect in order to build healthy
relation with them. In addition to this, it will be maintaining privacy of their customers by
following data protection act.
Style: The organization will be adopting democratic style of leadership in order to guide
employees. In this style subordinates have an opportunity to share their thoughts and ideas
openly with the leader (Yulia, Bahtera and Evahelda, 2019).
Skill: The organization will be hiring candidates that technical and interpersonal skill so that
it can complete their job effectively.
SWOT:
This is known as strategic tool that help the organization in analysing both external and
internal factor that may affect company in both negative and positive way. It is an acronym of
word strength, weakness, opportunity and threat.

Strength: It is known as what is company is good and way it deals with issues by using its
power. The mask company will be selling its product in both online and offline format. That
will helps in attracting large customer. The another strength of company is that it is selling
biodegradable product in the market area which is high in demand by customer. Moreover,
with the help of expert employees company is able to introduce innovative product in the
market area that has helped in reducing the competition.
Weakness: The company is facing weakness that it has limited service line and in order to
improve the market position the company need to make innovative product. Along with this,
due to limited services there low chance of survival in the market area (Apriyanto and Riono,
2021). Moreover, the company need to fulfil the market deficiency by making use of various
marketing techniques so that sales of fir can be increased. Due to pandemic there high chance
of virus so in order reduce that company need to manage their employees so that it can run
the organization effectively.
Opportunity: This factor ism present in external market area that can contribute in success of
company. Along with this, company can make use of advance technology such as advance
machinery so that it can make good quality of product in the market. Although new product
will help organization in attracting large customer (Njeru and Kariuki, 2019). In addition to
this, the company have an opportunity to expand their business in new market area as it will
help in increasing overall growth of firm as well as improve brand image. The company can
also collaborate with other fashion brand so that it can increase their sale in the competitive
market area. Although if company is able to increase its product line then it will be able to
meet the competition as well as organization will be able to improve the market position.
Threat: This factor is also available in external market area as well as create hindrance in the
growth of the company. Along with this, the major threat is high competition due to that
company will not be able to maintain its sales (Burchardts and Maisch, 2019). In order to
reduce the impact of competition the organization will have to come up with the innovative
idea so that it can attract large customer. In addition to this, if there will be high competitor in
the market the company will have to reduce their price so that it is able to maintain their
sales.

PESTLE:
It is a strategic tool that have been used by company in order to analyze about external
factor that can affect organizational performance. Along with this, it stands for political,
economical, social, technological, legal and environmental.
Political factor- Constant changes in health regulation policies and increasing
international trade agreements might create both positive and negative impact on the new
product of the Mask company’s.
Economic factor- Inflation rate is increasing day by day so the economy affected in
health sector in terms of increase in prices of product that is why customer will not choose to go
at that place where the rate is lower (Pan, Chen and Zhan,2019). Also, if the economic growth
of UK is weak at any point of time than this product would not be proved to be success
Social factor- In the current era people are more aware about their health and safety and
are more conscious about following medical precautions . Further, the company is making
product according to the needs of the customer in order to increase the sales of organization.
Technological factor- It is the most common and dynamic factor that affect almost all
the industries because it is not possible for every firm to adopt technologies which has high cost
and not easy to operate. However, the Mask company have been constantly upgrading to latest
technologies through market research so that better customer services might be provided.
Legal factors- This factor is related to proper management of the laws and regulation at
the outlets which might impact the business both in positive and negative manner (Kara,2018).
Also, it can be said that Mask company’s have to strictly follow all health and safety and
minimum wages laws to ensure that there is no UK government intervention in the future that
might not allow the proper selling of lemon tea.
Environmental factors- Organization need to ensure that all the policies that are
developed to achieve some targets does not harm the environment in any manner otherwise the
goodwill of the company is not maintained.
CONCLUSION
From the above report it has been concluded that in order to sustain in the company
organization have to make use of innovative idea. Along with this, above report has discuss
about the seven sources that company has to follow while making innovative idea. It has also
summarized about mask firm and its new product in the market area in order to attract large

customer. Moreover, the report has depicted about MicKinsey model that helps company in
making strategic plan so that it can accomplish organizational goals in limited set of time and
effectively. Lastly the study has also analysed about strategic tool such as swot and pestle in
order to analysed about external and internal factor that will affect performance of company I
both positive and negative ways.

REFERENCES
Books and journals
Drucker, P., 2019. 7.5 Innovation practice. Professional Practice in Engineering and Computing:
Preparing for Future Careers, p.212.
Arfi, W.B., Hikkerova, L. and Sahut, J. M., 2018. External knowledge sources, green innovation
and performance. Technological Forecasting and Social Change, 129, pp.210-220.
Feniser, C., Dusa, S. and Sadeh, A., 2018, March. Factors That Determine Innovation in the
Hospitality Industry from a Managerial Perspective. In International Conference on Tourism
Research (pp. 41-VIII). Academic Conferences International Limited.
Burchardt, C. and Maisch, B., 2019. Digitalization needs a cultural change–examples of applying
Agility and Open Innovation to drive the digital transformation. Procedia Cirp, 84, pp.112-117.
Gechkova, T. and Kaleeva, T., 2020. The mckinsey 7s model in the airport system
protection. KNOWLEDGE-International Journal, 42(5), pp.843-848.
Njeru, K. N. and Kariuki, P., 2019. Influence of McKinsey framework on competitive advantage
of firms in the telecommunication industry in Kenya. Journal of International Business,
Innovation and Strategic Management, 3(1), pp.68-81.
Maulina, E. and Hendriyani, C., 2018. 7Ss McKinsey MODEL TO RESPONDING
MILLENNIAL CUSTOMER BUYING BEHAVIOR AT PT RABBANI HYPNO
FASHION. AdBispreneur: Jurnal Pemikiran Dan Penelitian Administrasi Bisnis Dan
Kewirausahaan, 3(3), p.219.
Yulia, Y., Bahtera, N. I. and Evahelda, E., 2019. A SWOT Analysis on the Implementation of
the Marketing Strategy: A Case Study in the Raja Abon Makmur Lestari, Pangkalpinang City,
Indonesia. International Journal of Business and Economy, 1(2), pp.24-30.
Apriyanto, M. and Riono, Y., 2021. A SWOT Analysis to Improve The Marketing of Young
Coconut Chips. Annals of the Romanian Society for Cell Biology, pp.13232-13240.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Kara, E., 2018. A contemporary approach for strategic management in tourism sector: pestel
analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi. 10(2). pp.598-608.