Business Innovation: Identify and Implement Project - Semester 2

This project comprehensively addresses the identification and implementation of business innovation strategies. It begins with an introduction, followed by two main assignments. Assignment 1 delves into external and internal sources of business information, including marketing problems, competitor analysis, internal processes, and customer trends. It explores the benefits and costs of business innovation, including cost reduction, increased productivity, and brand value enhancement. The assignment also covers risk management, key steps in identifying risks, and the importance of employee recruitment, selection, and training. Assignment 2 focuses on a case study of a restaurant, Pesto, analyzing its current market position, traditional culture, and the competitive landscape. It identifies innovative practices like theme-based ambience, healthy organic drinks, and a dedicated website. The project includes a cost-benefit analysis of these opportunities and assesses their compatibility with business goals and key result areas (KRAs). Finally, it includes a role-play scenario to demonstrate practical application of the concepts.

IDENTIFY AND IMPLEMENT
BUSINESS INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Assignment 1...................................................................................................................................4
1....................................................................................................................................................4
2....................................................................................................................................................4
3....................................................................................................................................................4
4....................................................................................................................................................4
6....................................................................................................................................................5
7....................................................................................................................................................5
8....................................................................................................................................................5
9....................................................................................................................................................6
10..................................................................................................................................................6
11..................................................................................................................................................6
12..................................................................................................................................................6
13..................................................................................................................................................6
Assignment 2...................................................................................................................................7
PART A.......................................................................................................................................7
A. .................................................................................................................................................7
B. .................................................................................................................................................7
C...................................................................................................................................................7
D...................................................................................................................................................9
E...................................................................................................................................................9
F.................................................................................................................................................11
G. ...............................................................................................................................................12
H.................................................................................................................................................12
I..................................................................................................................................................14
PART B..........................................................................................................................................14
A.................................................................................................................................................14
B. ...............................................................................................................................................14

C.................................................................................................................................................14
D.................................................................................................................................................14
E.................................................................................................................................................14
PART C..........................................................................................................................................15
Ability to meet the business objective with the help of changes made in business...................15
Part D.............................................................................................................................................16
Role Play....................................................................................................................................16
REFERENCES..............................................................................................................................19

INTRODUCTION
MAIN BODY.
Assignment 1
1
The marketing problems of business and customer face from external source which
include periodical and newspaper, government publication and reports, trade associations and
foreign government and international agencies which shows the informational data of market and
customer demanded. For example: Economics times include financial data, capital market, stock
trading (Jacob, Boyd 2020).
2.
The external source are Competitor website, annual report, social media tools and of
competitor that are using as a strategy. Example: How social media marketing are uses by the
competitor to reach new market, Competitor website shows tremendous insight and data base
shows the reliable data of stakeholders.
3.
The internal business process, system and efficiency can be known through Marketing
sales team, customer support team and general management. Where Marketing team denote the
efficiency of company to promote product, customer support shows the feedback and general
management shows the overall company performance in market.
4.
Internal sources of information about business markets can be known through customer
trend shows the demand for the product in market and competitor business method can know
through marketing methods used by them. Demand can be known through size of market and
marketing methods can be seen on website or social media.
5.
A. It helps the company to go with Cost effective and increase the profit margin for long
term goal.
B. It helps to build the relationship with customer and make reliable and loyal customer
for longer term.

C. The four type of cost that implement with new business are Direct cost, Indirect cost,
Operational cost, Opportunity Cost.
D. The four benefits are rewards, being your own boss, income and flexible hours for business.
E. Legal issue are arisen from government side, Security issue arise for employees or
customers, ethical issue are code of conduct.
F. Three Metrics are Break even point which shows company is at zero level where no
profit nor loss has been occurred in financial year, leads generation and leads converted shows
data that is enquired about the product and converted them to make purchase, net income ratio
shows net profit of the company earned.
6.
 Improve Productivity of the business that is by increasing the efficiency in employees
and management. Ex. Less time-consuming process.
 Reduce cost of business and leas to increase in profit margin. Ex. Adopting the latest
technology for production.
 Brand value of the company increased by adopting innovative technology and methods
like social media which also gain trust through reliable sources.
 Partnership with other companies lead to growth of company who also want to use
innovation in their organization Ex. Vodafone and Idea.
 Increases turnover and profitability with the innovative products in the market. Ex Apple.
7.
A. Through leadership employee negativity reduced were leaders motivate employee to achieve
the target and with efficiency working (Min, Han, 2017). This reduces the stress and negative
vibes around the employee for working.
B. Creating culture of learning help the employee to work for organization and learn innovative
things to build their career and skills in specific field.
8.
Organization have adopted the changes as the environment is dynamic. This changes brings
some risks which are Resistance is a conman factor of risk which are not acceptable by
employees but can be eliminated through bring changes slowly and step by step. Leadership is
required when changes are adopted in the company. Leander can reduce chances of mitigate by

employees through motivation and training. Forcing changes is another form of risk where
management and employee should be understood of required change and can be reduced by
acknowledge them for change in all levels for need of change.
9.
Key steps are Identified risk by anticipating the pitfalls of management, analysing the risk factors
that how deeper effect on management, prioritize risk shows impact which risk effect most and
which effect the least, Treatment of risk to solve them and Monitor risk by communicating with
stakeholder and monitor the potential risk.
10.
Market size of product and demands for product in market, Relationship with the customer and
make them loyal by gaining trust which build strong relation between consumers and business,
Ability to mange cash flow of the business that run smooth and managed, whereas Management
skills set help to maintain position in market (Mishan, Quah, 2020).
11.
Effective recruitment and selection of employees for the success and growth of company.
Retention of quality employees to grab the business opportunities and employees training and
development should be given to them to achieve the target goal of the company.
12.
Identifying opportunities for creating new strategies: Business should identify the
innovative opportunities that can give them benefits for growth.
Sequencing Opportunities: Prioritizing opportunity is the best way to find success for any firm
Testing new plans: Testing made the company assure about their innovation.
Build support innovative plans: Building support from several plans help the company to assure
about its plan (Antikainen, M and et.al., (2017, April)).
Learn from Innovation efforts: learning to become easier from trials.
13.
Make your intentions clear- making plans became more important when it comes to
strategy development. Initiate- starting from begging is very essential think about the process -
which you are willing to carry forward.

Assignment 2
PART A
A.
Pesto currently offer fast food meal which was served for years without any innovation in their
menu which offers traditional and obscure Tuscan recipes that are not offered by every Italian
restaurants. The menu also offers meat, vegetables, cheese and variety of olives and olives oil
and average spending of Pesto is $25. While customer preference are declining in fast food
sector and moving towards healthy organic food. As the restaurant emphasize the organic
ingredients that are directly sourced from Italy, where customer just want Pesto to add healthy
and casual dining at the restaurant. Whereas business trends are changing in the country and
Pesto is affected very much as the consumers average spend for dinner is $15.20 while dining at
Pesto average per person is set to be $25 which lead to customer lead to shift to other restaurants
due to price. Also, the demand for Italian food is also declining so dinning at Pesto will be less
preferable by the locals. Hence, Pesto offers a traditional form of food and need to be updated
from trending market and demands of customer (Nemeschansky, 2020). Also, Pesto is capable to
meet the demand of market through offering of ethnic ingredient and organic meat for the
consumer which are highly preferable by healthy people.
B.
The traditional culture which was followed by Pesto that they are offering the fast food to
customers which included the meat, vegetables, cheese olives and olive oil which was not a
healthy food. They also offer only Italian cuisines which was slowing declining in trends. But
include Tuscan and Ligurian cuisine for the Australians which was served by few restaurants
only. Pesto should change some of their traditional culture to cop up with new trends in the
environment which are healthy and ethic culture of food instead of fast food they should convert
it to organic healthy food with fine dinning at place. As they just have to modify their menu and
focus more on healthy food by using of organic ingredient and meat which was using earlier.
C.
The two most acclaimed restaurant in the metro region around Australia is Cha Char –
Eagle St. Pier and the Otto Ristorante.

Restaurants Marketing and
customer retention
Business relationships Business methods or
USP
Cha Cha Char –
Eagle St. Pier
 Provides high
quality meals
to its
customers.
 Offering
pleasing
ambience and
offering
discounts.
 It timely makes
use of the
technology to
provide as
reminder to
communicate
with the
suppliers in
time and
establishing
better relations.
 The main USP
of it is the river
view it
provides to its
customers
which adds to a
proper
ambience (Cha
Cha Char.
2020).
 Specialized in
quality food.
Otto Ristorante  It offers valued
offers and
discounts to its
customers
which helps in
retaining them.
 It
communicates
its customers
about the
special events
or the prices
put on for a
special
occasion in
order to make
 It maintains a
good relation
with its
suppliers
across the
different
locations
which helps
them in
grabbing stuff
at the
reasonable
price and at
first the fresh
and healthy.
 Specialized in
high quality
Italian food.
 Attractive
décor and
ambience.
 Suitable for
organizing
various events
and occasions
(About Us.
2020).
 Official
website for
getting order
and offering

them informed
and remain in
their mind.
information.
Based on the above, it can be analysed that the Pesto’s is being lacking behind in terms of
providing a new environment which the customers are more looking towards. The restaurant
failed to identify the change the customers taste and preferences which resulted into its
operational inefficiencies. Therefore, the two major inefficiencies are the type of meal that
customers wants and the ambience.
D.
Determining innovative practices.
The Pesto’s can implement the three innovative approaches which will help in grabbing
more customers which are — setting the ambience to the theme based, offering healthy and
organic drinks to the customers and creating its own official website with various features which
will help in taking reviews and feedback from the customers (Tyce, 2020).
E.
Cost benefit analysis (CBA)
Opportunity Assumptions Approx. costs Potential returns
and benefits
Feasibility (Yes/
No/ May be)
Theme based
ambience
 It will
require
approxima
tely 6
months.
 It will
require to
hire a
interior
decorators
team.
Approximate cost
= $80700
Cost of building =
$75000
Cost of marketing
= $1200
Cost of handling
business relations
= $3000
Cost attached to
business risk =
 This will
grab and
attract
more
customers
(Lunkes,
Rosa, and
Lattanzi,
2020).
 Providing
a soothing
May not be
feasible as it
depends upon the
perception of the
customers which
varies person to
person.

 Budget=
$75000
$1500 ambience
which will
help in
retaining
customers.
 This will
increase
the
profitabilit
y of the
restaurant.
Healthy organic
drinks
 Time
required
will be
one week
for
preparing.
 Budget =
$21 per
drinks
Approximate
budget = $6070
Cost of material =
$170
Cost of labour =
$2500
Research and
development =
$3000
Cost of marketing
= $400
 It will
draw the
attention
of the
health
conscious
customers
(Nguyen,
Pham,
Phan, and
Than,
2020).
Yes, it is
economically
feasible as the
restaurant is
meeting with the
changing needs of
the customers.
Official website  Developin
g website
will
require 1
months
time.
 Budget=
Approximate
budget = $6070
Cost for creating
website = $7500
Cost of IT staff =
$9500
 Through
this,
costumers
can gain
informatio
n about
the
Yes, it will be
feasible if
implemented as it
will add value to
the business from
short to long
term.

$7500 restaurant
and the
products
and
services it
is offering
along with
the feature
of online
reservatio
n.
 It will be
profitable
as it will
create a
brand
image of
the
restaurant.
F.
Assessing the compatibility of each opportunity with the business goals and KRA targets
Theme based ambience: The unique ambience and structure of it will grab the attention
of the customers especially those who loves to visit the unique places. This will help in meeting
up with the KRA of satisfying the customers along with reducing the customers complaints
leading to 100% customer satisfaction (Rowthorn and Maciejowski, 2020). This will increase
the revenue base useful in achieving the KRS of staff retention as higher revenue will lead to
higher salary increment.
Healthy organic drinks: This is mainly for target group of health conscious people
looking for healthy drinkable products. This will help in expanding the customer bases resulting
into customer satisfaction KRA targets.

Official website: This opportunity will help in grabbing the customer's attention,
gathering customers feedback based on which decision can be made. It consequently leads
to satisfying the customers.
G.
The potential impact of each opportunity on the culture of the organization, in particular
with regard to:
1. complexity of change for the organization
2. staff motivation levels
3. impact on business relationships
4. impact on influencing innovation and continuous improvement processes for the future
Theme based Website Development Organic Energy Drink
1. With the changing in
traditional methods to innovative
themes based interior are applied
This lead to capture new
market and opportunities
nationally and internationally.
These lead to new line of
product in the house which
comes with market analysis
and survey of consumer
demand
2. This will increase the
efficiency staff working
environment with positive
surroundings.
It motivates the staff as new
emerging changes are adopted
by company.
It motivates the staff as new
product line is added which
is more demanded.
3. Business relationship will
increase which attract new
customer and experience of
leisurely dining.
It leads to connect with new
business and increase the new
opportunities.
These lead to new
relationship with
stakeholder and new
consumers in new market.
4. Innovation and continuous
improvement for future growth
from theme based restaurants
increase the customer base.
These are the new technology
of doing business and
communicate with the world
through internet and marketing.
Change in taste in organic
energy drink with timely
leads to continuous growth
and innovation.
H.