Business Environment Analysis Report: Britvic PLC and G4S PLC

This report examines the business environments of Britvic PLC and G4S PLC. Task 1 focuses on innovation and technology, demonstrating their contribution to economic growth with examples, particularly within Britvic PLC. It compares sales and profit before and after technology implementation. Task 2 delves into corporate governance, defining its principles and the responsibilities of the board of directors, with a specific focus on G4S PLC. The report also explains Archie Carroll's Pyramid of CSR, encompassing economic, legal, ethical, and philanthropic responsibilities. The analysis includes financial data comparisons and provides a comprehensive overview of the companies' operational and strategic aspects within their respective business landscapes. The report concludes by highlighting key findings and insights related to the implementation of new technologies and adherence to corporate governance principles.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Demonstrate an understanding about different types of innovation & technology ................1
Practical examples of innovation and technology to contributed in the economic growth.........2
2. New technology are being used in Britvic Plc.........................................................................3
Compare sales and profit of the company before and after the new technologies......................3
Findings........................................................................................................................................4
TASK 2 ...........................................................................................................................................5
1 Demonstrate an understanding of corporate governance .........................................................5
2. Explanations of Archie Carroll's Pyramid of CSR which involves economic, legal, ethical,
and philanthropic responsibility .................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment consists of the external and internal factors which influence the
business operations. It involves suppliers, clients owners, competitors, laws and compliances,
market trend etc. For the organisation it is important to analyse the factors of business
environment so that it can smoothly run its business activities. To better understand this concept
Britvic PLC has been selected for first task and it is the producer of soft drink in United
Kingdom and G4S PLC has been selected for second task which is a British multinational
security service company. In this report, there are various topics are covered such as: define
innovation and technology, how it contributes to the economic growth and compare the sales &
profits of organisation before or after the new technology introduction. Apart from this it also
discuss about corporate governance, responsibilities of board of directors and to discuss the four
areas of CSR which is identified by Archie Carroll.
TASK 1
1. Demonstrate an understanding about different types of innovation & technology
Innovation – It is the process of translating an idea or creativity in the reference of goods
and services which can develop value or for which customer will pay. Innovation represented to
introducing and applying new ideas or methods. The particular definition of technology defined
that there are including different types of activities to uncover new ways to do things. Some time
it can create confusion regarding to act of making, inventing and producing something.
Technology – The purposeful application of information in the context of production,
design, utilization of goods and services and in the business of human activities. It is a body of
knowledge which is taking in broad way. The meaning of technology consider according to their
scenario and it is dedicated as creating tools, processing actions and the extracting of materials.
In science it can use an application which is find out solution of all problems (Hallward-
Driemeier and Pritchett, 2015).
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Practical examples of innovation and technology to contributed in the economic growth
As the innovation and technology have contributed in the economic growth of nation. As
Britvic PLC is emphasis to bring new technology which help the company to generate maximum
profits. With the help of innovation and technology production has been increased and goods can
be export to other countries because goods has been produce in bulk quantity and quality has
been also improved as a result country can generate maximum revenue which provide help in
economic growth and development (Gillon and et. al., 2014). As the economy has grow 17.4%
from the year 2010 to the year 2015. The nation which does not emphasis towards the
technology and innovation their economic growth has restricted and overall affect the
performance of overall economy growth. As the countries like UK, Chain, Russia are more
emphasised to bring innovation technology so that work can be done smoothly and effectively.
So it can be said that for the growth of an economy technology and innovation plays a vital role.
Business organisation use new technology in their operations
With the uses of new technology operations are running smoothly which is helpful for the
company. As robots are using in the production process and fix the things as per the requirement.
Britvic PLC is also using innovative machinery while production of soft drink which maximize
the production quality and efficiency. Robots are also using in auto-mobile industry as a result
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production capacity has been increase and chances of defects can be minimise which provide
help the organisation to generate higher profits. In the hotels and restaurants innovative
technology is using and robots are being used to serve the food to the consumers which help it to
reduce the labour cost and maximize the profits as well as maximize the efficiency. Now a days
without the help of innovative technology business operations can not be performed effectively
and company does not survive in the market for a long run (Saleem, 2017).
2. New technology are being used in Britvic Plc
The company is a British manufacturer in soft drinks which is based on Hemel
Hempstead and for selling soft drinks they are using their own name. The company have many
subsidiaries, manufacturers, distributes and markets regarding to their soft drink. They are
providing different types of soft drinks like Aqua Libra, 7up, DaFruta, Lipton, Maguary, club
orange and many others. They are also providing juices, liquid concentrates, syrups, sodas,
energy drinks, flavoured water and nectar drinks. To manage these different types of items
company has applied new technology of inventory management system which is combination of
technology and software. With the help of this software track each item on their manufacturing
process. It will help to reduce amount of wastage inventory and timely use raw material to
produce drinks. After the applied technology can know every step regarding to production and
time to time supply soft drinks to their clients. After that company has been progress in
manufacturing operation in GB is helping to drive significantly energy and improvements. In
2018 they are reducing indirect emission from business travel by 20% (excluding Brazil). Water
consumption at production sites was impacted but after apply technology clean and test new
products lines.
Compare sales and profit of the company before and after the new technologies
From the income statement of the company it is analysed before applied new technology
company have revenues in 2017, 1540 million after that less amount of cost of sales £724.3 after
that getting amount of gross profit which is 816.5 million. In the gross profit adjust amounts of
selling and distribution costs and administration expenses then getting amount of operating profit
£163. From operating profit less amount of finance income and finance costs then get amount of
profit before tax £138.8 then less taxation and get final amount profit after tax which is consider
as net income of the company £111.6. As per the given amount of these items compare with
2018, when new technology applied and change amount of each item. The revenue of the
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company in 2018, £1503.6 after less amount of revenues getting amount 801.6 and there are all
items adjusted in systematic way. There are presented compare sales and profit after and before
new technologies.
Particulars 2017 2018
Revenues 1540.8 1503.6
Cost of sales -724.3 -702
Gross Profit 816.5 801.6
Selling and distribution costs -443.8 -400.8
Administration Expenses -209.7 -246.2
Other Income - 11.5
Operating Profit 163 166.1
Finance Income -2.1 -1
Finance Costs -26.3 -21.3
Profit before tax 138.8 145.8
Taxation -27.2 -28.7
Profit for the period 111.6 117.1
From the above table it is getting that net income of the company increased but sales will
be down because in starting people technology easily not work properly but in future the sales
and profit will be improved continuously (Liu, 2013).
Findings
As per the scenario of apply new technology in the company it is finding that company
has been progress in their field and getting net income more compare from last years. After the
apply new technology they have been progressing in their field. There are point out some points
which is related to findings -
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 In 2018, reduced manufacturing carbon emission in the relative production approx 14%
and it further from October 2018, manufacturing electricity in GB. As a result Ireland and
Brazil is 100 % renewable with France electricity with is related to low carbon.
 Water consumption at the site of production will be managed and as impacted again this
year focus on cleaning, testing and commissioning of new production lines.
 They are reducing amount of direct emission in 2018 in the reference of business travel
about 20%
 Packaging is very important tool for soft drinks which can affect to environment so they
are focus on packing material. After use these packets use as recycle and create a circular
economy.
TASK 2
1 Demonstrate an understanding of corporate governance
Corporate governance:
Corporate governance is consist of various compliances, rules, regulations and policies
by which an enterprise is directed & controlled. The main aim of this is to protect the interest of
different stakeholders of an organisation which involves clients, suppliers, shareholders,
government etc. As G4S PLC is following the guidelines of corporate governance in order to
protect the interest of stakeholders. It emphasis to develop new strategy and take effective
decisions and it provides authority & responsibility to directors. Today's global market has
emphasis to follow the regulations of corporate governance and it develops for the value for the
stakeholders. It ensures transparency which ensures strong & balanced economic development.
Corporate governance has focuses towards moral, trustworthiness and ethical
environment. There are various benefits of it such as: it provide help to the economic growth &
corporate success and if it is strong than confidence of investors will increase and it help G4S
PLC to raise capital so that it can expand its business. It is helpful to reduce wastage, risk &
mismanagement. The brand image of organisation will increase if company follow the rules and
of regulations of corporate governance (Amore and Bennedsen, 2013).
History of corporate governance in United Kingdom:
As governance is a word which barely existed 20 years ago and it is not used only for
corporations but also for trusts, charities, authorities etc. For the organisations which are doing
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business in United Kingdom they have to follow the regulations of corporate governance. It is a
set of compliances, rules and policies and government of United Kingdom has frame various
legislations in this regard which are required to be follow by the company. For the growth of
business it is good and in UK there are various surveys has done which says that corporation
with better corporate governance are more profitable. It is required for the organisations to
protect the interest of various stakeholders which are directly or indirectly related to the business
of it. Stakeholders can be: owners, government authority, shareholders, committees, clients,
investors etc. In United Kingdom there are two corporate governance codes such as: the financial
reporting Council's UK Corporate Governance Code, The Quoted Companies Alliances QCA
Corporate Governance Code. The organisation which is registered in London Stock Exchange
have to follow the obligations which are made by the government in context to corporate
governance.
Responsibilities of Board of Directors
As the Board of Directors of G4S PLC has various responsibilities which are related to
corporate governance and it involves:
 Choose persons for board membership & evaluate the performance of board and its
committees as well as individuals directors.
 Monitor the performance and implement effective strategies for the growth of business.
 To analyse the financial statements of organisation and take decisions to minimise the
risk (Rose and Neumann, 2013).
 To make sure that all compliances and rules are following as per the requirement.
2. Explanations of Archie Carroll's Pyramid of CSR which involves economic, legal, ethical, and
philanthropic responsibility
Corporate social responsibility:
CSR is a model which instruct the organisations to be socially accountable towards
public & various stakeholders. As per this concept, company uses the resources of nations and
society such as: man, money, material, power etc so it is the responsibility of corporation to do
some favour for the benefit and development of individuals. As per this concept, a company have
to follow this model and contribute towards the CSR activities as a form of charity, donation or
any other way which is suitable for it (Evans and et .al., 2017). As CSR helps the organisations
in various aspects and it has different benefits of it such as: to prevent financial ramifications and
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it emphasis to follow the laws and compliances both nationally & internationally and if these are
not followed than G4S PLC have to pay the fines for it. It is helpful to increase the employee
loyalty towards the organisation because firm will treat all workers equal and fair as a result they
feel comfortable and which encourage them to put maximum efforts in order to achieve the goals
of enterprise. If corporation involves in CSR activities than it develops a positive reputation in
the market which is beneficial for the growth of business. So it is important for the organisation
to follow the guidelines of corporate social responsibility and all the rules which are associated
with it. As it provide helps to the organisation to achieve its objectives and goals (Groşanu and
et. al., 2015).
Four elements of CRS as identified by Archie Carroll in context to the company
This model provide a framework which is require to be follow by the organisation As
there are fours parts of this model which are based on CSR pyramid and it includes:
Economic responsibility: As per this model it is the economic responsibility of G4S
PLC which emphasis to be profitable and provide higher returns on investment to the
shareholders. It also focuses to run the business by using innovative tools and techniques.
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Ethical responsibility: According to this model, it is the ethical responsibility of G4S
PLC to manage wastage, recycling & consumption. It is the responsibility of organisation to act
morally and ethically.
Legal responsibility: According to this model, it is the legal responsibility of G4S PLC
to follow the compliances and rules which are related to health and safety, employment etc.
Philanthropic responsibility: As per this model, it is the responsibility of G4S PLC to
involves in welfare activities such as: donations, charity and development of society (IşıK, Jones,
and Sidorova, 2013).
CONCLUSION
As from the above report, it has been concluded that it is important for an organisation to
make innovation and bring new technology so that business operations can run smoothly and it
contribute in the economic growth. With the uses of new technology sales and profits of a
company will increase which provide help the corporation to achieve its objectives and targets.
Rules, regulations and compliances which are associated with corporate governance are needed
to be follow. It is the obligation of an organisation to involve in CSR activities so that it can
involves in social, economic, legal and ethical responsibilities.
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REFERENCES
Books and Journals
IşıK, Ö., Jones, M. C. and Sidorova, A., 2013. Business intelligence success: The roles of BI
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Groşanu, A. and et. a.l, 2015. The influence of country-level governance on business
environment and entrepreneurship: A global perspective. Amfiteatru Economic Journal.
17(38). pp.60-75.
Evans, S. and et.al, 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Rose, L. M., Orrenius, U. E. and Neumann, W. P., 2013. Work environment and the bottom line:
Survey of tools relating work environment to business results. Human Factors and
Ergonomics in Manufacturing & Service Industries. 23(5). pp.368-381.
Klapper, L., Love, I. and Randall, D., 2014. New firm registration and the business cycle. The
World Bank.
Amore, M. D. and Bennedsen, M., 2013. The value of local political connections in a low-
corruption environment. Journal of Financial Economics. 110(2). pp.387-402.
Liu, Y., 2013. Sustainable competitive advantage in turbulent business environments.
International Journal of Production Research. 51(10). pp.2821-2841.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of society and space.8(1).
Gillon and et. al., 2014. Business analytics: radical shift or incremental change?.
Communications of the Association for Information Systems. 34(1). p.13.
Hallward-Driemeier, M. and Pritchett, L., 2015. How business is done in the developing world:
Deals versus rules. Journal of Economic Perspectives. 29(3). pp.121-40.
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