AB Foods Plc: Assessing the impact of Technology and CSR strategies

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This report examines the business environment of AB Foods Plc, a leading British international food retailing and processing organization. It assesses the impact of technology and innovation on the company's profits, progress, and sales, highlighting both positive and negative effects. Furthermore, the report evaluates the importance of corporate social responsibility (CSR) for AB Foods Plc, applying Archie Carroll's CSR model to illustrate how the company can integrate economic, legal, ethical, and philanthropic responsibilities into its business practices to enhance its brand image, stakeholder relations, and overall sustainability.
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BUSINESS ENVIRONMENT
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Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK 1.......................................................................................................................................................2
Assessing impact of technology and innovation and how it has affected profits, progress and sales of
AB Foods Plc..........................................................................................................................................2
TASK 2.......................................................................................................................................................4
Evaluating importance of corporate social responsibility for the AB Foods Plc......................................4
Applying Archie Carroll’s CSR concept in the context of organization..................................................6
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9
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INTRODUCTION
Business environment considered as combination of factors and key elements that
significantly influence functions and operations of organizations whether it is small or large,
public or private. Each factor put direct impact on existing and in the future practices of a
company, in two manners such as positive and negative as it relies upon extent of factors. The
current assignment will be based on AB Foods Plc, which falls under category of leading British
international food retailing and processing organization in the London, UK. The study will
explain technology & innovation impact upon organization and how it also affected its sales,
growth and profitability. Furthermore, lastly the report will define significance of corporate
social responsibility for chose firm, by applying Archie Carroll’s CSR model.
TASK 1
Assessing impact of technology and innovation and how it has affected profits, progress and
sales of AB Foods Plc
In the world of business, it is quite challenging and risky to run a venture or organization
within a specific industry. AB Foods Plc is one of those organizations that effort to enhance its
operational efficiency and increase profitability, for which it may take varied elements or forces
into its consideration such as innovation and advanced technologies.
Impact of innovation upon organization success, profits and growth-
Innovation refer to process of developing new and innovative product or service, which
contribute to provide unexpected benefits to a company in term of increasing revenue the most. It
may put positive impact on brand image of chosen firm (Nimfa and et.al., 2021). For example,
Associated British Foods is a diversified global food, retail and ingredients group firm that
operates within 53 nations. Innovation in term of new range of vegan food items may affect
positively upon organizational continuous success within retail industry, where key rivals already
existing and developing plan to give tough competitive to well-known firms like chosen one. It
helps to retain potential customers and gain the attention to new who tend to buy quality items
from the most trusted food brand in the nation just like AB foods Plc, because it takes better care
of what people expect from and how to satisfy their need, which in return contribute to increase
number of customers visit, then extent of sales and finally profits margin of enterprise that is so
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important and beneficial for its rapid progress (Dalgıç and Fazlıoğlu, 2021). It can be said that
successful exploitation of unique ideas and concept is significant and valuable to a firm as it
enables it to enhance process of selling goods, bring new items and improve existing according
to current market needs.
On the other hand, innovation may put negative impact on sales and productivity as well
as profits margin of companies, when new idea may do not work appropriately due to lack of
understanding about current market expectations from a brand, lack of strategic planning and
strategy formation & implementation into practical way. Selection of effective and useful
innovative idea in term of offering vegan food items, may contribute to increase sales and effect
on organizational progress in positive way as in recent time population within any nation may
prefer to purchase vegan food products because these are good for health. When firm offer each
item with paper packaging system, it may retain profitable customers who conduct repeated
purchase activity and also refer other do not so, which increase profits margin of brand.
Impact of technology upon organizational progress, sales and revenue-
Just like above, there are varied components and forces accessible in the corporate world
that affected sales, operations and growth of many companies. Technology is one of those
elements that put positive impact on AB Foods Plc, revenue in term of increasing speed or
operation effectiveness of production as well as marketing department (Fu and et.al., 2021).
Robotic technology may affect positively upon productivity of company when it adopts and
utilize at workplace to pack food items and deliver on time to customers, without making any
major mistakes that affect negatively upon brand image and market reputation. In today’s
competitive business environment, each firm whether it is large or small, consider varied
approaches in term of technology implementation at their working areas according to needs, size
and requirement, which help to enhance their performance level and also support to grow
ventures excellently (Ballestar and et.al., 2021).
Technology in the context of marketing department also play vital role in term of putting
positive impact on their productivity, which directly or indirectly may contribute in increasing
sales, generating revenue and progressing brand rapidly. For example, Instagram as social media
channel is the best and most advanced technology in this world that made a marketer capable to
promote their venture or company in excellent way and take pleasure of maximizing web traffic,
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which gain the attention of new buyers who are interested in purchase of AB foods Plc items in
bulk. It allows marketing team to generate organizational and its goods awareness worldwide,
without conducting too much efforts and consuming time as it enable them to create an official
account on platform and add key data about firm, which help a customer to take decision without
any issue (Junaidi, 2020). It can be said that technology implementation always supports to
enhance productivity and performance of company, which provide incredible benefits.
While it may put negative impact on sales and progress of enterprise, when workers are
unable to utilize advance technology because of not having proper understanding about that. It
may lead to decrease the operational efficiency of company and decrease its sales as well, which
is not beneficial for continuous growth of venture in retail industry against main competitors that
run their companies under same sector or market.
TASK 2
Evaluating importance of corporate social responsibility for the AB Foods Plc
Corporate social responsibility is defined as self-regulating venture framework that
contribute to make a company socially and environmentally accountable to itself, public and
their key stakeholders (The Importance of Corporate Social Responsibility for Your Business,
2018). By practicing and developing plans in the context of CSR, organizations may conscious
of the sort of impact they are having on each aspect of economic, society, environmental and
social. Those firms that adopt and implement their businesses practices according to this model
may have gain benefits of increasing productivity and building excellent brand image in market
where they may operate under.
It can be said that corporate social responsibility plays vital role in organizational context
in varied terms. For instance, in regard to AB Foods Plc, this concept place importance in its
business growth and rapid success within retail industry (Sánchez‐Torné, Morán‐Álvarez and
Pérez‐López, 2020). It may demonstrate that how a firm may take an interest in wide social,
environmental and sustainability problems, more than just those that affect its profitability,
which assist to gain the attention of consumers who may share similar values. This self-
regulatory organizational concept plays crucial role in regard to excellent growth of brand in
term of driving the attention of its management towards forming effective strategy and plan,
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through which they may take action to reduce carbon footprint that help to prevent environment
from impact of negative factors.
It is actually important and beneficial that chosen brand operates under industry and run
its venture in a way that easily and effectively demonstrates social accountability (Tamvada,
2020). It may see as good activity or initiative for firm to take account into environmental as well
as social problems. It may support organization to build influencing and strong image in market,
which help to gain the attention of profitable stakeholders such as customers, suppliers,
investors, etc.
Corporate social responsibility (CSR) concept it essential for AB foods Plc, in term of
improving its public image in retail sector. It is important to do so, as target market may assess a
brand market image, while thinking about purchase products and services according to their
needs and requirements. Building or improving a market reputation is quite challenging for any
company whether it is large or small. But with CSR concept it become easy for chosen
organization to do so in term of developing effective strategies, adopting methods and
implementing each on excellent as well as systematic way. Not just because of this reason, firm
may accept and conduct each activity according to chosen model and effort to prevent
environment from hazards for more motives that may benefit venture in several terms (Islam and
et.al., 2021).
CSR it essential because it contribute to maximize brand awareness & recognition, when
firm may commit to conduct ethical practice such as improving quality and quantity according to
customer’s needs and using raw materials that are easily recycle. In recent time, buyers and
government in each nation may expect to companies for reducing their carbon footprint, which
help increasing brand awareness and developing good reputation quickly (Nguyen and et.al.,
2020). By considering this practices into consideration, management within firm may use
recyclable materials such as paper for purpose of packaging products that save land and water
from being polluted. Instead of using plastic packaging items, organization may utilize paper that
help to make environment sustainable and prevent from negative impact of pollution. Usage of
paper may provide benefits to company in term of saving cost as it may accessible in bulk that
may support to decrease its production costs.
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Furthermore, by embracing corporate social responsibility, AB Foods Plc may stand out
from its rivals in industry where several brands operate and manage their functions, in order to
achieve strategic goals. CSR is one only model in corporate world that contribute to grow a firm
rapidly and incredibly without facing an issue that affect overall process of success in retail
market. Organization may take initiative to utilize sustainable systems, which enable it to shout it
from rooftops. It may effort to stop air, land and water pollution by using sustainable and
recyclable items, which play important role to retain potential buyers and gain the attention of
new that in turn build wide and loyal customer base.
Applying Archie Carroll’s CSR concept in the context of organization
Archie Carroll’s proposed four stages, corporate social responsibility model in 1979,
which presented in form of pyramid as strategic framework, which clearly define how and why a
company take social responsibility into their consideration, while being operated under a specific
industry.
Through this concept, developer may efforts to highlight the four most significant and
essential types of accountability of companies that they have to play in appropriate and
systematic way. It may apply in the context of AB foods Plc, that distinguish its venture into
varied groups to achieve strategic objectives and aims (Talonen and et.al., 2021). According to
this concept, firm may take initiative to consider four phases and conduct practices accordingly
that help to be a sustainable brand in retail sector.
Economic responsibilities-
It is the first layer of corporate social responsibility pyramid that Archie Carroll’s may
create to define who a firm may take initiative to be sustainable. For example, AB Foods plc may
take effort to produce those items that customer prefer to buy and consider current market trend
that they follow. Furthermore, it is essential that organization may determine need to individual
customer by conduct a continuous market research, for which they may hire people or build a
specific team of players who are able to do so systematically.
Legal accountabilities-
It is quite important and helpful for any company to follow terms, conditions, laws and
regulations related to their ventures in appropriate manner, which enable them to be competitive
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and sustainable forever (Lu and et.al., 2020). As per the second stage of corporate social
responsibility pyramid, AB Foods Plc may comply with laws and business regulations in term of
taking all the precautions regarding customer and worker’s safety at workplace when they reach
and work to obtain desire outcomes and achieve set strategic goals effectively, without making
any major mistake that impact sales of company. It may effort to comply with nations as well as
legal regulations, which is quite necessary for firm to do so as it help to be competitive and
sustainable in market. This responsibility may contribute to build good image of its venture,
which is not so easy to beat by any organization as it supports to increase sales that is fact.
Figure 1: CSR Model
(Source: Understanding the Four Levels of CSR, 2019)
Ethical responsibilities-
Just like above, ethical accountabilities may also drive the attention of AB foods Plc to
take initiative to conduct fair and ethical business practices in term of providing equal career
growth chances to all workers instead of making differences between existing and new. By
conducting fair practices, firm may build a positive and influencing image of its venture in
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market, which contribute to attract individual buyers as new customer and retain them with
current for long run that help management to take pleasure of increasing number of customers
and then profitability over than expectations. Furthermore, it may also take initiative to be
environmental friendly company in term of using recyclable raw materials for products
packaging and workplace cleaning like hand gloves.
Philanthropic responsibilities-
This type of responsibility occupies small space at top of CSR model pyramid that drive
the attention of AB Foods Plc to reduce its carbon footprint and may use natural resources to
serve quality goods to customers, for example instead of using chemical, it may use natural
essence to give color to each item. It may give same respect to people, which they obtain from
them in term of repeated purchase and word of mouth promotion in market where more potential
customers exit and tend to stay connect with a brand which may have good reputation in market.
this king of accountability is more than just doing what is suitable, but it is those things that may
hold actual to firm values to give back to target market.
CONCLUSION
On the basis of above discussion, it has been determined that organization has gained
competitive edge, increased sales, productivity and enhanced its performance extent, by adopting
innovation concept and using advance technologies such as digital marketing platforms. By
utilizing social media channels marketer has generated excellent brand awareness and attracted
potential customers that outcomes in builds strong and wide consumer base. Furthermore, from
above analysis, it has been concluded that by conducting CSR practices and reducing carbon
footprint, firm has builds its strong brand image in market that helped to gained the attention of
potential business investors as well as other stakeholders who are interested to work with brand
for longer time in order to obtain and provide several benefits.
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REFERENCES
Book and Journals
Ballestar, M.T. and et.al., 2021. Impact of robotics on manufacturing: A longitudinal machine
learning perspective. Technological Forecasting and Social Change. 162. p.120348.
Dalgıç, B. and Fazlıoğlu, B., 2021. Innovation and firm growth: Turkish manufacturing and
services SMEs. Eurasian Business Review. pp.1-25.
Fu, X.M. and et.al., 2021. Diffusion of industrial robotics and inclusive growth: Labour market
evidence from cross country data. Journal of Business Research. 122. pp.670-684.
Islam, T. and et.al., 2021. The impact of corporate social responsibility on customer loyalty: The
mediating role of corporate reputation, customer satisfaction, and trust. Sustainable
Production and Consumption. 25. pp.123-135.
Junaidi, J., 2020. Impact of Digital Marketing on the Growth of E-Service Sales. International
Journal of Psychosocial Rehabilitation. 24(01). pp.1219-1229.
Lu, J. and et.al., 2020. Modified Carroll’s pyramid of corporate social responsibility to enhance
organizational performance of SMEs industry. Journal of Cleaner Production. 271.
p.122456.
Nguyen, T. and et.al., 2020. Impact of corporate social responsibility on organizational
commitment through organizational trust and organizational identification. Management
Science Letters. 10(14). pp.3453-3462.
Nimfa, D.T. and et.al., 2021. The Impact of Innovation Competitive Advantage on Product
Quality for Sustainable Growth among SMEs: An Empirical Analysis. Int. Journal of
Business Science and Applied Management. 16(3).
Sánchez‐Torné, I., Morán‐Álvarez, J.C. and Pérez‐López, J.A., 2020. The importance of
corporate social responsibility in achieving high corporate reputation. Corporate Social
Responsibility and Environmental Management. 27(6). pp.2692-2700.
Talonen, A. and et.al., 2021. Refining the Economic Dimension of Carroll's CSR Pyramid by
Taking Organization Form into Account. Electronic Journal of Business Ethics and
Organization Studies. 26(1).
Tamvada, M., 2020. Corporate social responsibility and accountability: a new theoretical
foundation for regulating CSR. International Journal of Corporate Social Responsibility.
5(1). pp.1-14.
Online
The Importance of Corporate Social Responsibility for Your Business. 2018. [Online]. Available
Through: https://www.highspeedtraining.co.uk/hub/importance-of-corporate-social-
responsibility/
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Understanding the Four Levels of CSR. 2019. [Online]. Available Through: <
https://thecsrjournal.in/understanding-the-four-levels-of-csr/>
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