Business Environment Report: Britivic Plc and G4S Plc Analysis

This report examines the business environment, focusing on innovation and corporate social responsibility (CSR) and their impact on economic development. The report uses Britivic Plc, a soft drink producer, and G4S Plc, a security service provider, as case studies. It explores various types of technological innovation and their effects on operations, sales, and profitability. Furthermore, it defines CSR, discusses its importance, and analyzes the CSR activities of G4S Plc, including corporate governance and the role of the board of directors. The report also references Carroll's CSR pyramid, providing a comprehensive overview of how businesses can integrate social responsibilities into their operations for sustainable development and economic growth. The document is contributed by a student to be published on the website Desklib.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Impact of Innovation...................................................................................................................1
TASK 2............................................................................................................................................3
Corporate social responsibilities and activities of chosen company in relation to CSR.............3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is considered as a sum total of whole internal as well as external
factors which influence an enterprises. Now a days innovation and corporate social responsibility
are refers as a foundation of business competencies (Alles and et. al., 2018). Both CSR and
innovation are helpful in business to improve reputation and facilitates opportunities for saving
costs. For this assessment the chosen company is Britivic Plc which is a British producer that
deals in soft drinks. Its headquarters is in Hertfordshire, UK. Another firm is G4S Plc, it is a
leading multinational security service having headquarters is in London, UK. The purpose of this
report is to explain the innovation and its impact on economic progress. Practical illustration of
innovation and impact of innovation on sales, operations, profit and so on. Defining the CSR and
its importance. Knowledge about Corporate social responsibility Model and their practical
applications are also mentioned in this report.
MAIN BODY
TASK 1
Impact of Innovation
Innovation is considered as a execution of new developed products or methods, new
marketing or organisational process into business practices, external relationship etc. It provides
an edge in penetration markets as well as facilitates a effective connection for improving the
markets that can leads towards huge opportunities mostly in developed countries (Hopkins,
2012). Technological innovation includes innovation which derived from research as well as
technology improvements that are autonomous of goods and services initiatives. Also it is a
successful execution of technical ideas that is new for the organisation for developing this. If
Britivic Plc want to perform innovation into their products that is soft drinks then it can use
various technological innovation such as semi radical, incremental and disruptive. Semi radical
technology is generally depends upon the existing knowledge regarding technology. This utilise
knowledge in such a manner which differ essentially into past. Disruptive, this kinds of
technology breaks traditional ones and it currently facilitates a new products as well as
technologies which are more accessible. It also shows the thoughts regarding present business
and supply chains. Incremental technology are considered as a small but has valued products
and process developments (Technological innovation types. 2015). It usually have advanced
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word processing program version that enable all users to create new documents kinds with more
effectual. All these types of technologies innovation aids firm to perform their work more
quickly and speedily. Gain higher profitability, information accessing become easy and also
improve the communication so that all the things are to be explained clearly to the employees,
staff, managers, executives effectively so that they can able to do their work in successful
manner. Therefore, Britivic Plc can apply the incremental technology innovation as this assists
them to improve its products that is soft drink efficaciously and also helpful to gain high
profitability. Britivic Plc is known as the fastest growing soft drinks that operates in countries
like France, Brazil, Ireland, Great Britain and so on. It is listed in London Stock Exchange and
aim to facilitates tasty drinks to their target customers. It also produces drinks under their own
brand name.
Relationship of innovation and economic development, as innovation is a always known
as new but few are more essential than another it entails huge change. It has impact on economy
as well as society that leads toward important economic growth (Crane, Matten and Spence,
2019). Into the developed nation such as United Kingdom it is considered as common but few-
times there are recessions but in some years it has been seen that total economic output enhances.
It is also expected that GDP will many times. From the perspective of economy causation is
complex. The relation among innovation and and economic growth is refers as intricate as well
as multifarious. Mostly innovation enables growth but development is also crucial for demand
and investment which leads towards innovation. Technology changes is and essential
determinant of economic growth. Rapid growth rate can be attained by technology advancement.
According to Schumpter, it is seen that technological progress is the determinant of economic
development. In case technology level become constant then growth will also stop. So, changing
technology keeps on moving economy effectively. Both innovation as well as innovation are
accountable for economic growth within developed nation. As technologies changes then imports
of capital goods enhances also the large parts of the capital goods are exported. It maximises the
national income and allow capital units to enables a labour unit to enhance production.
Innovation generally means launching something innovative into respective enterprises. It
can develop the their operations for enhancing productivity or enable firm to extend existing
products quality (Boons and et. al., , 2013). It also impacts the operations, sales and profitability
and so on. Operations are considered as the activities of business which a company engages to
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transform raw material into finished products or services. For example: if the innovation is
performed by the Britivic Plc in their products or activities then its operation get impacted. As
they want to move from offline towards online then their management also have to perform
accordingly. It has to considered the various functions such as selling process, raw material are
also change as per the innovative products (Hilson, 2012). Some modification occurs in the
working process as it will be performed quickly as a fastest manner. Sales is refers as transaction
among two parties where purchaser receives products like tangible or intangible, services as well
as another assets in exchange for money. Innovation also impact the sales as innovative products
reviews and feedbacks are good and customer of the Britivic Plc like the tastes then their sales
get increased but in case people do not like the taste of the innovated products then their sales
decreases so it is the risk for the respective firm. Profit is refers as a financial benefits which is
realised when obtained revenue amount is obtained from the business activity and exceeds the
expenditure, taxes and costs that required to sustain operation. Innovative products plays a
crucial role in profitability enhancement (De, 2012). For example: If sales of the Britivic Plc
enhances due to innovation then automatically its effects their profit. As sales increases then its
profit increases and if minimises the profitability also get reduced.
TASK 2
Corporate social responsibilities and activities of chosen company in relation to CSR
Corporate social responsibilities is considered as a approaches of business which
contributes towards sustainable development through delivering the social, economic and
environmental advantages for the stakeholders. It is the concepts that have various practices. The
main purpose of CSR is to assure that firms operate its business in such a manner which is
ethical (Edquist, 2013). This includes range of activities like performing in partnership with local
communities and so on. Corporate social responsibilities is essential for firms whether profit or
non profit, workers, customer as well. It assists company to develop their image into public,
enhances the brand awareness as well as recognition, save the costs, maximise consumer
involvement and many more. Corporate governance included a set of relations among
management, administration, shareholders, boards members and another stakeholders of the firm.
It also facilitates the framework through that objectives of the organisation are formulated and
the manner of attaining those goals as well as monitoring performance are ascertained.
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G4S Plc pays a valuable as well as crucial role into society. Through its initiatives
towards CSR , it increase their value among community where they generally operates by their
services. Respective firm corporate social responsibilities strategy is as international leader in
security and related services, CSR create a key part of their strategy. They are trusted to care
most precious assets of nation as well as to assure safety, protection and welfare of individuals
in all over the world often in complex surroundings. As per the CSR report of G4S Plc, In 2016
its progress is good into corporate social responsibilities areas are health and safety, human
rights, and anti bribery and corruption (G4S Plc CSR report. 2019). It conducted a international
human rights assessment and units of business over the group has considered local human rights
risk assessment. Also developed the awareness of communicating whistle-blowing system that
outcomes marked in enhancing problems and the policies are formulated regarding Groups' anti-
bribery and corruption.
Corporate governance is refers to a procedure through which corporation is governed. In
other word it refers to tool or technique which is used by a company in order to direct and
manage their operations as well as functions in effective and appropriate manner. In this situation
company conduct its business activities according to direction and desire of stakeholders
(Etzkowitz and Zhou, 2017). Corporate governance is beneficial for G4S organization in various
ways such as it ensure success of an organisation as well as growth of economic. Along with this
by it respective company able to gain confidence of investors in effective manners that help
company in enhancing their capital in appropriate manner. By this they also able to reduce their
capital cost which help in conducting work in appropriate manner as well as it will impact on
share price of a company. Moreover by adopting corporate governance respective company able
to minimizes its wastage, risk, corporation as well as mismanagement at workplace. They also
get help in developing and forming brand image and name in effective and appropriate manner.
This will also help G4S Plc conducting their business activities and operations in proper way
which directly leads to increase in customers base, market shares and profitability ratio in
effectively.
Board of directors refers to group of peoples who supervise or monitor activities of a
company so that activities of a business conduct in effective and efficient manner that leads to
enhancement in profitability ratio as well as market shares. Board of directors is form for any
type of organization such as profit motive, non profit motive or government agencies. These
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peoples are generally elected for represent shareholders and they develop rules as well as policies
so that company able to conduct its work in proper manner (Owen, Bessant and Heintz, 2013). In
respect of board of directors at G4S Plc, they conduct various activities which leads to
succession of respective company such as they develop fair practices at workplace by which
motivate employees and encourage them to work in effective manner. They also allocate
activities or task to employees according to there skills and knowledge which help them in
conducting work in effective and appropriate way. This will also leads to accountability of
employees that they will conduct particular work in proper manner which help them in attaining
goal as well as objectives. Along with this respective company board of director also maintain
transparency at a work place which encourage staff of G4S Plc as well as they also consider all
stakeholder while developing policies and procedures for workplace.
There are also some aspects which must be consider by board of directors of G4S Plc. So
that they conduct work in effective and appropriate manner. Such as they must take care that no
one put pressure on employees because it affect working of staffs as well as their should be
effective distribution of power which show equality among employees. Along with this
respective company board of directors also consider risk management so that they should tackle
issues as well as problems in proper ways which may occur while conducting work or may occur
in future.
CSR model is introduced by the Archie's Carroll which is a normal structure that assists
to argue how and why firm should accomplish their social responsibilities. Corporate social
responsibility includes conduct of enterprise so that they are economically profitable, law
bidding, ethical as well as socially supportive. Some characteristics of the Carroll's CSR pyramid
are that corporate social responsibilities are develop on the basis of profitability after that it
comes the requirements for enterprise to assure this follow with whole regulations and laws and
many more (D’Haen and Van, 2013). This model involves four responsibilities that are
economic, legal, ethical and philanthropic all these are mentioned below with their application
into company
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(Source: CSR Model. 2019 )
Economic responsibility, This responsibility focus on generating goods and services of
the firm required by society as well as sell them in order to make profitability. With the
assistance of this responsibilities G4S Plc business can gain profitability also this is the one
manner through which it can benefit society for longer periods. For example: Novak have
explain the firm's seven duties that are organisation has shareholders that want a reasonable
return in respects of its investment, it also has workers who required safe and equally paid work.
Also, they have consumers that demand for the standard quality at effective. Therefore, this is the
initial duties of respective company as this is effectual functioning economic unit.
Legal responsibility, It demands that companies comply the law and play operates
through the game rules. When firm ignore its legal duties the business price will be high
(Ardichvili and et. al., 2012). Through this G4S Plc can comply the laws as well as another
legislation such as health and safety, competition etc. For example: Microsoft have faced a long
going anti trust case in Europe for mistreatment their monopolistic position to disadvantage their
rivals that outcomes in difficult settlements against firm.
Ethical responsibility, This generally includes that what society expects ethically as well
as legally. Ethical responsibilities of the organisation involves their duties and it is not
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compulsory that this should be imposed through law but they are desired from ethical firm by
governments and people. With the assistance of this duties G4S Plc can performed beyond
regulations narrow needs like treatment of workers and suppliers. Also aids to work ethically as
well as morally. For example: In case of Shell in which government decisions was reversed for
oil platform disposing after a campaign as well as disagreement through people and
communities.
Philanthropic responsibility, It is placed at the top of the pyramid, this concentrates
upon more deluxe things like developing worker life quality, local societies and so on (Bar-Isaac
and Shapiro, 2013). Few duties within Philanthropic can be controversial as well as needs
abstract analysis that aimed to this. With the help of this responsibilities G4S Plc can give back
to the society by performing charitable donations etc.
CONCLUSION
From the above report it has been concluded that innovation as well as Corporate social
responsibilities plays a crucial role. Innovation furnish an edge in penetration markets as well as
give effectual relation for rising the markets that can leads towards huge opportunities mostly in
developed countries. Innovation also impacts the capital goods, GDP, national income of the
economy. Changing technology is an crucial determinant for the growth of the economy. CSR
assists them to enhance their brand value among society. Also, CSR model assists company to
develop a framework in which way it can accomplish their social responsibilities.
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REFERENCES
Books and Journals
Alles, M., and et. al., 2018. Continuous monitoring of business process controls: A pilot
implementation of a continuous auditing system at Siemens. In Continuous Auditing:
Theory and Application (pp. 219-246). Emerald Publishing Limited.
Ardichvili, A., and et. al., 2012. Ethical cultures in large business organizations in Brazil,
Russia, India, and China. Journal of Business Ethics. 105(4).pp.415-428.
Bar-Isaac, H. and Shapiro, J., 2013. Ratings quality over the business cycle. Journal of Financial
Economics. 108(1). pp.62-78.
Boons, F., and et. al., 2013. Sustainable innovation, business models and economic performance:
an overview. Journal of Cleaner Production. 45. pp.1-8.
D’Haen, J. and Van den Poel, D., 2013. Model-supported business-to-business prospect
prediction based on an iterative customer acquisition framework. Industrial Marketing
Management. 42(4). pp.544-551.
Hopkins, M., 2012. The planetary bargain: Corporate social responsibility matters. Routledge.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
Hilson, G., 2012. Corporate Social Responsibility in the extractive industries: Experiences from
developing countries. Resources Policy. 37(2). pp.131-137.
De Grosbois, D., 2012. Corporate social responsibility reporting by the global hotel industry:
Commitment, initiatives and performance. International Journal of Hospitality
Management. 31(3). pp.896-905.
Edquist, C., 2013. Systems of innovation: technologies, institutions and organizations.
Routledge.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Owen, R.J., Bessant, J.R. and Heintz, M. eds., 2013. Responsible innovation (Vol. 104).
Chichester: Wiley.
Online
Technological innovation types. 2015. [Online] Available through
<toolshttp://www.gistic.org/the-innovation-of-technologies-and-its-three-types/>
G4S Plc CSR report. 2019. [Online] Available through
<https://www.g4s.com/social-responsibility/csr-reports>
CSR Model. 2019. [Online] available through <https://research-methodology.net/carrolls-csr-
pyramid-and-its-applications-to-small-and-medium-sized-businesses/>
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