Business Environment: Innovation and Technology in Economic Growth

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Running head: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
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BUSINESS ENVIRONMENT
Contents
Task 1..........................................................................................................................................................3
Task 2........................................................................................................................................................10
Reference list.............................................................................................................................................16
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Task 1
As sighted by Bailey, (2019, p.90), with the help of the innovation the companies can gain
proper benefits in their business process. Thus, the innovation can help the countries to increase
their economic development. Basically, the organizations utilize innovative technologies which
help them to manage and increase the business activities of the companies. Like this the
customers can get satisfied with innovative products and services. In the modern days the
customers always demand some innovative products and time to time the needs and demands of
the customers have been changing. Thus, the company must meet the requirements of their
customers with effective products. On the other hand, the innovation attracts the people with
several impactful features as well. However, the high quality goods can be developed by the
company with the help of the innovative technologies. In the case of the innovation it can be seen
that the companies or the people can transfer some creative ideas into the innovative products.
This can easily increase the sales of the companies. Like this the organizational efficiency can be
developed in a positive way with the help of the innovation technologies. On the other hand, it
can also be seen that the innovation and technologies can develop the economical growth of the
nation as well.
In this situation some practical examples of how innovation and technology have contributed
to the economic growth of the country can be analyzed in a proper way. as per early discussion
with the help of the innovative and new technologies the organization can develop their
performances. This is how the organizations effectively attract the customers as well as the
people of the nation to enhance their sales. As sighted by Ahn et al. (2019, p.12), however with
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the development of the sales the overall economical factor of the nation can be developed in an
effective way. In modern days the customers always want something new and effective so the
companies easily and this can provide positive effects on the growth of the businesses. In this
case it can be analyzed that, Apple Inc always believes in innovation and this helps them to get
successful in the competitive environment (Yu et al. 2019, p.89). Apple Inc easily attracts the
people with the help of the innovative products. Like this the business of the company gets
developed and they need more staffs for handling their business process. Thus, they develop the
employment opportunity for the people of nation. Like this the people can easily earn money
from the organizations and these increases the GDP of the country. Also the companies provide
effective taxes to the government with the development of their shares in the market. This also
helps them to develop the economical growth of the nation in a positive way. However, Card
Factory Plc has been chosen for this study. They deals with different kinds of greeting cards and
gifts. With the help of effective technologies the company can easily attract the customers and
increase their sales. However, Card factory also provides taxes to the government of UK and the
employment opportunity also can be given by the organization to the people of UK. So, this
helps them to increase the economical growth of the country in a well manner.
In modern days the business organizations use new technologies in their operations which
help the companies to manage and develop the operations. According to Chan et al. (2019,
p.436), with the help of the new effective technologies the companies can develop their ability in
a proper way. The technologies have been developing with innovative approach and this
provides some positivity to the company. Thus, the uses of the technologies are, development in
communication, in terms of running an organization in a positive way it is important for the
management to develop their communication as well as interaction with the staffs. On the other
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hand, the staffs also need to have proper communication with each other. This makes their
activities easier. Proper interaction with the customers is also essential for the business as this
helps them to identify the needs and demands of their customers as well. As per Ponte and Klein,
(2019, p.855), proper development in the communication process can be helpful for the
companies to increase their ability. Like this they can develop effective products and services for
the customers and this can enhance their sales. The overall operation of the organization can be
managed properly with proper interaction of the staffs as well. In this case the uses of
technologies can easily make a good platform for the business. Along with this proper customer
care can be developed by the technologies also. The customers may need some helps from the
companies time to time. Thus, in terms of helping the customers and managing good relationship
with the customer’s proper customer care service is important. In this case they can implement
new technologies for customer service and provide proper helps to the customers as well.
Development of the project management, basically in the organization proper project
management is important. As stated by Ponte and Klein, (2019, p.855), in terms of developing
the quality of the services as well as the products it is essential for the business to keep focus on
the project management. Like this they can manage their manufacturing process and they can
manufacture their products within deadlines. Thus, with the help of new technologies the
companies can manage their project management process and like this they can develop their
ability properly.
New technologies have been properly uses in Card Factory Plc. In the modern days the
technologies have been improving effectively. Like this the companies can get some benefits in
their business process. Card Factory Plc manufactures several kinds of greeting cards and they
also have gift store as well. In terms of developing new and attractive cards the company uses the
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new technologies. On the other hand, in terms of handling the business website Card Factory Plc
uses impactful software as well. This is how they interact with their customers and make their
business more effective. Thus, the usage of internet can be the most impactful factor for the
business process of Card Factory Plc.
As per early discussion the organization effective develops the cards and their interaction with
the customers. Like this the sales of the company gets increased in a positive way. However,
Card Factory Plc can be identified as the successful company but they have enhanced their
performance with the help of their new software as well as website. The sales margin of the
company can be identified with the help of the below graph.
Sources: Ponte and Klein, (2019, p.855)
Apart from this the consolidated income statement, consolidated cash flow statement and others
of this company are as follows
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Sources: Ponte and Klein, (2019, p.855)
Sources: Ponte and Klein, (2019, p.855)
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Sources: Ponte and Klein, (2019, p.855)
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Sources: Ponte and Klein, (2019, p.855)
After analyzing the above part it can be seen that, innovation as well as technologies always
can provide positive effects on the business of the companies. The new technologies help the
companies to develop their overall management along with sales. Like this they can increase the
economical growth of the nation as well. Card Factory Plc also can manage their business with
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proper uses of the technologies. In this case it can be stated that, the uses of internet as well as
website can develop their ability and this attracts the customers towards them. So, with the
development of the business of Card Factory the effectiveness of the new technologies and
innovation can be analyzed in an effective way
Task 2
According to Dias et al. (2019, p.137), corporate governance is the collection of processes,
mechanisms and relations by which companies are operated and controlled. The board of
directors of the company needs to maintain good relations with employees, customers, suppliers,
financers, community members, shareholders and others and corporate governance can help the
board of directors in this case effectively. Corporate governance can help the board of directors
to fulfill the requirements of the stakeholders easily and also help them to control the overall
business process in an effective way. Different pillars of corporate governance such as
leadership, transparency, assurance, stakeholder management, accountability and fairness can
help the board of directors to attract the investors easily and this also helps the company in
sustainability and growth as well.
In the year 2008 the version of the corporate governance has been changed. On the other hand,
in 2009 the main report of the corporate governance was written. The FRC has published
their final report on the review on 1 December 2009. A consultation on the revised UK
Corporate Governance Code closed on 5 March 2010. On 28 July 2009 the FRC issued
a Progress report: Review of the effectiveness of the Combined Code which summarized the
results of the consultations and research carried out (Ferrell et al. 2019, p.491). Lastly in 2018,
the FRC has announced the publication of the revised the UK Corporate Governance Code as
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well and in this case it can be seen that, the revised code applies to the accounting periods
beginning on 1 January of 2019.
The boards of directors always play some major to handle the business activities of the company
successfully and also they have responsibility to fulfill the requirements of the shareholders
effectively. This company G4S plc is a multinational company and therefore the board of
directors of this company plays some major role for managing their activities effectively.
Managing the activities properly can help the company to sustain in this market easily. Some
roles and responsibilities of board of directors of this company are as follows
As per Windsor, (2019, p.217), there are some responsibilities of the board of directors of G4S
plc. Proper organizational planning is running can help the directors to make the business more
effective. Like this they can easily sustain in the competitive market properly. Also effective
management of financial resources and monitoring is important. Thus, directors of G4S plc can
manage their resources to develop their activities more. The skills development is another
effective part. The directors of the company G4S plc can develop the skills of the staffs with
some training processes. Like this the business can effectively develop their performance. They
also have the responsibilities to recruit new board members as well. This may help them to
develop the overall ability of the organization as the new members can provide some supports to
the business of G4S.
The corporate social responsibility is the business approach that focusing more on the
sustainable development by delivering social, environmental and economic benefits for all the
stakeholders related to the business (González-Rodríguez et al. 2019, p.398). Corporate social
responsibility has four levels such as legal responsibilities, economic responsibilities, and
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philanthropic responsibilities and ethical responsibilities. The company G4S plc needs to follow
all these responsibilities for delivering economic, social and environmental benefits for all the
stakeholders. CSR activities can also help the company to fulfill the requirement of the society
easily and therefore with the help of this the company G4S plc can improve the society easily. As
per Shaw and Shaw, (2019, p.90), apart from this the company G4S plc is investing money for
managing the resources of the society effectively and this can also help them to protect the
resources of this society easily. The company is adapting different environmental policies for
providing benefits to the society effectively and this can also help the company to sustain in this
competitive market effectively. The company G4S plc can get many benefits by following CSR
activities and therefore with the help of this the company can increase their overall sales, can
increase the satisfaction level of the customers and also can enhance their business reputation as
well. Better customer relations and better brand recognition is the other benefits of following
CSR activities that the company G4S plc can get easily. However the company needs to run their
business successfully in this competitive market without harming the environment and therefore
it can be said that CSR activities are very important for the company to run their business
successfully without harming the environment. Four types of responsibility such as economic
responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities
are discussed in the below section (Windsor, 2019, p.27).
CSR pyramid has been developed by Archie Carroll in 1979 and he has identified four areas of
corporate social responsibility such as economic responsibilities, legal responsibilities and
ethical responsibilities and philanthropic responsibilities. However the company G4S plc needs
to identify the responsibilities effectively for improving the society successfully and this can also
help the company to run their business successfully without harming the environment. Not only
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