Business Environment: A Case Study of AVEVA Group plc and G4S plc

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Running head: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
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BUSINESS ENVIRONMENT
Contents
Task 1..........................................................................................................................................................3
Task 2..........................................................................................................................................................8
References.................................................................................................................................................15
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Task 1
1. Demonstrating an understanding of different types of innovation and
technology and how they have impacted the economic progress of the
country, with particular emphasis on business organizations
Innovation and technology
As per You et al. (2019, p.268), innovation always play a major role in economic growth of the
country and this also helps businesses to grow easily as well. Innovation is the process of
developing new ideas for growing the business easily and this also helps then to develop creative
thoughts for enhancing their business process successfully. In the modern world everything is
changing and in this situation innovation and technology can help the people to fulfill their
requirements easily. Innovation is the process of translating the idea into an effective good or
services that create value for the customers. Companies are focusing on adapting innovative
strategies for making their business process better and this also help them to fulfill the need and
want of the customers effectively. Proper innovation can help the company to get better
opportunities in this market easily and this also helps them to improve their business process
successfully. Most often companies are using innovative ideas for fulfilling the requirements of
the customers easily and therefore it is very important. On other hand technology can help the
company to make innovative ideas into effective services easily and using proper technology can
help the company to make the overall process easier (Recica et al. 2019, p.8). Basically
technological innovation is the process of implementing new technologies for developing the
work activities of the company easily. Manufacturing and implementing new technologies can
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help the company to enhance their business process successfully and this also helps the company
to gain competitive advantages over other competitors easily.
Practical examples of how innovation and technology have contributed to the
economic growth of the country.
Technology and innovation both play a major role in the economic growth of the country and
therefore companies need to focus more on these things for enhancing their business process
successfully in this competitive world. Using innovative ideas and implementing latest
technologies can help the companies to make their business process innovative and easier. This
also helps the company to enhance their profits easily and therefore it has contributed a lot to the
economic growth of the country as well.
As stated by Quinlan et al. (2019, p.89), companies can use innovative ideas for developing
customer relationship easily and developing customer relationship also helps the company to
attract the customers towards their company easily. Apart from this the companies can develop
customer loyalty with this concept and therefore it is very important for the companies to run
their business successfully in this market. Different companies are using different services for
attracting the customers easily. Like this the company Amazon is using drawn for delivering
their products quickly. This helps the company to attract their customers towards the services
easily and also helps them to increase their sales easily as well.
Here the company AVEVA Group plc has been selected here for conducting the study. AVEVA
Group plc is a British multinational company and this company is mainly dealing with
information technology services. The company is adapting different ideas for satisfying their
client easily and their innovative approach is to provide security to their clients regarding
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protecting their key information successfully. The company can implement this software in
different departments for protecting and handling the data effectively. Therefore the overall
business process of this company can be developed with the help of these latest technologies (Lu
et al. 2019, p.317). Improving the business process can help the company to earn more profits
easily and this also helps the company to create job opportunities for the people easily as well.
Therefore this helps the government to solve unemployment issues in the country easily. Apart
from this the company is giving appropriate taxes to the UK government while doing their
business successfully in this market. Therefore the economic growth of the country can be
developed and technology as well as innovation both plays a major role in this case.
Describe how business organizations use new technologies in their operations
Companies can use innovative ideas and can implement latest technologies for enhancing their
business process and they can use latest technologies in their operations for improving their
productivity easily. According to Uribe‐Bohorquez et al. (2019, p.82), the overall activities of the
company can be handled in a proper way by implementing new technologies in their business.
The usage of new technologies in the operations of the company is as follows
 Developing the communication: The Company can develop their communication
process by implementing latest technologies in their operations. This helps the company
to share every detail with the employees easily and on the other hand this helps the
company to improve their services easily. As per Stanković and Novaković, (2019,
p.1422), Adapting latest technologies can also help the company to increase the customer
satisfaction easily and this also helps them to make their business process better than
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before. Implementing new technologies can be success factor for the company and this
can also help them to maintain good relations among the staffs as well.
 Proper customer service: Customer need and want is changing time by time and
therefore implementing new technologies can also help the company to fulfill the need
and demand of the customers easily. The company needs to give proper services to their
customers for attracting them towards the company easily and therefore in this case the
company can implement latest technologies to offer effective services to their customers.
This is how proper customer management in the company can be developed (Trad and
Kalpić, 2019, p.230).
 Project management: Project management is also very important for the company to
fulfill their goals easily and this also helps the company to develop their projects easily.
The company needs to focus more on their project management activities for running
their business successfully in this competitive market and adapting latest technologies
can definitely help them in this case. As stated by Sousa and Rocha, (2019, p.257),
company needs to complete their projects in the right time and therefore implementing
latest technologies can help the company to complete their projects in the right time.
Implementing latest technologies can help the company to manage their production and
selling process effectively. Thus the company gets many benefits by implementing new
technologies in their business process.
2. Give practical illustrations of how innovation and technology have
impacted the operations, sales and the profits of the company
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New technologies and how they are being used by AVEVA Group plc
AVEVA Group plc is an information technology company and they are doing their business
effectively in the competitive market of UK. The main product of this company is their
information technology software. They want to develop their information technology for
increasing their sales easily. The main objective of this company is to develop the plan design
management system for 3D processes (Harrington et al. 2019, p.252). The company first
develops their services with the help of computer aided design techniques and then they use 3D
techniques for attracting the customers easily. Like this the overall sales of the company can be
increased with the help of this.
Compare the sales and profits of the company before and, after the new
technologies were introduced
At the beginning the company is focusing on computer aided design techniques, but later they
have kept focus on their 3D techniques for attracting the customers easily. The company is
getting many advantages by using this and the overall profit of the company has increased as
well. The below graph has shown the increasing profit of the company after technological
innovation.
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Sources: Harrington et al. (2019, p.252)
Findings
After analyzing the overall study it can be said that implementing new technologies can help the
company to improve their business process successfully and this also helps the company to
attract their customers easily as well. The company AVEVA Group plc is dealing with different
software and therefore implementing 3D technology can help the company to increase their sales
easily. Thus it can be concluded that technology and innovation has positive effect on the
business.
Task 2
1. Demonstrate an understanding of corporate governance.
Corporate governance
Corporate governance is the set of rules, practices and processes that helps the company to
manage and control their business process effectively. The board of directors of the company
plays a major role to balance the interests of a company’s shareholders customers, management
teams, financers, suppliers and the community and corporate governance can help them in this
case definitely. Corporate governance can help the company to fulfill their strategic objectives
easily and this also help the board of directors to control the overall business process
successfully. Different pillars of corporate governance such as fairness, accountability,
stakeholder management, leadership, assurance and transparency can help the board of directors
to attract the investors easily and like this the company can grow in this competitive market
successfully.
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Brief history of corporate governance in the UK with examples
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. As per Xu and Koivumäki,
(2019, p.307), 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 (Witjara et al.
2019, p.89). Lastly in 2018, the FRC has announced the publication of the revised the UK
Corporate Governance Code as well as accompanying Guidance on the board effectiveness. In
this case it can be seen that, the revised code applies to the accounting periods beginning on 1
January of 2019.
Responsibilities of the Board of Directors
As stated by Metaxas et al. (2019, p.299), the board of directors has the responsibility to manage
the overall activities of the company in an effective way. In the company G4S plc the boards of
directors also play a major role to handle different activities of this company effectively. This
company is a British multination security providing company and therefore they have to manage
their overall services in an effective way for gaining success in this competitive market easily.
Different responsibilities of the board of directors of this company are as follows
 Organizational planning: G4S plc is running their business successfully in many
countries and proper organizational planning is needed to manage their services
effectively. Without proper organizational planning this company sustain in the global
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market easily and therefore the boards of directors need to focus more on proper
organizational planning for managing their overall activities in an effective way. Proper
organizational planning can also help the company to sustain in this competitive market
successfully.
 Managing the financial resources: Monitoring and managing the financial resources
can help the company to do their financial activities successfully. Financial resource
management is very important for business to run their business successfully in this
market. The board of directors of this company G4S plc needs to focus more on
managing the financial resources effectively for developing a proper financial plan
successfully. This also helps the company in resource development as well.
 Developing the skills: The Company needs to develop the skill of the employees for
managing their overall activities in an effective way. Employees are very important for
the business and therefore board of directors need to focus more on this for doing their
business successfully in this market. They play a major develop the skill of the
employees for developing the performance of the organization successfully (Parente et al.
2019, p.275). Like this the company can gain effective business development in the
competitive market successfully.
 Recruiting new board members: Board of directors always need to effective decisions
for running the business successfully. However the requirements of the company is
changing time by time and therefore board of directors need to recruit new board
members for handling the overall business activities in an effective way. Thus the board
of directors of this company G4S plc has the responsibility to recruit new board member
for running their business successfully.
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2. Explanations of Archie Carroll’s Pyramid of CSR: - Economic
responsibilities, legal responsibilities, ethical responsibilities and
philanthropic responsibilities.
Corporate social responsibility
Corporate social responsibility is the responsibility that can help the company to improve the
society by delivering economic, social and environmental benefits for all the stakeholders of the
company. In this case companies are adapting different environmental policies for improving the
society easily and along with they are investing money for managing all resources effectively.
CSR activities help the company fulfill the need and requirements of the society and therefore
with the help of this the company can run their business successfully in this competitive market
(Brewster et al. 2019, p.41). CSR activities can provide many benefits to the company such as
increasing sales, increasing customer satisfaction level, increasing business reputation, better
brand recognition and others. Therefore this can help the company to run their successfully in
this market. Four types of responsibilities are available in the case of corporate social
responsibility such as economic responsibilities, legal responsibilities, ethical responsibilities and
philanthropic responsibilities and both of these responsibilities can help the company to solve
economic, legal and ethical issues effectively.
3. Understanding of the four areas of CSR as identified by Archie Carroll.
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Archie Carroll has identified four areas of CSR and this can help the people to identify the four
areas of corporate social responsibilities easily. Carroll’s pyramid can help the company to
identify their four key responsibilities easily and this also helps them to run their business
successfully in this changing environment easily. However corporate social responsibility can
help the company to achieve their business objectives easily and this also helps the company to
improve the society effectively as well. However companies are facing many issues to sustain in
this market easily and therefore in this case CSR activities can help them to solve their business
issues in an effective way. Four areas are available in this Carrroll’s pyramid of CSR and these
can be identified as direct philanthropic giving, ethical business practices, economic
responsibility and environmental sustainability initiatives. Four layers are available in this
pyramid and both share different responsibilities. This helps the managers to identify different
types of obligations that society expects from the businesses. Different layers of Carroll’s CSR
pyramid are as follows
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