Anglia Ruskin University Business Environment Report on Innovation

This report delves into the significance of innovation and technology in the modern business landscape, emphasizing their impact on economic growth and corporate governance. It defines innovation and technology, providing real-world examples of their contribution to national economic progress. The report then focuses on Next Plc, a case study illustrating how new technologies influence operations, sales, and profits. It analyzes Next Plc's adoption of technologies like same-day click and collect, website label launches, and Next Unlimited services, comparing sales and profit figures before and after these implementations. Furthermore, it explores corporate governance and corporate social responsibility (CSR), defining them and tracing the history of corporate governance in the UK. The report also highlights the importance of CSR for organizations, using Next Plc as an example and referencing Carroll's pyramid of CSR. The analysis underscores the vital role of innovation and technology in achieving business success and fulfilling corporate responsibilities.

INNOVATION AND
CORPORATE
GOVERNANCE
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EXECUTIVE SUMMARY
The innovation and technology is essential for the organization and the economy using the new
technology and follow the organization corporate governance achieve the new heights satisfy the
more customers retain the loyal customers. In the modern era if stay in the market so have to
create new and innovative ideas are very essential. The corporate social responsibility (CSR) of
an organization is equally important as the other functions of a business. The impact of CSR
affects the stakeholders, customers and even the employees of the company. It also helps in the
recognition of brand and attracts various investors to be a part of the business. Organization
creates everyday new and innovative ideas to increase their productivity, sales and profitability.
It is very essential for the organization to innovate unique ideas for their products and services so
through that more and more attract there customer if the innovative products gets the attraction
so the organization easily compete with their competitors. Many of the big organization invest
huge amount for the corporate social responsibility it is the main responsibility to do something
for our society and community. By using the new technology the organization provide better
customer services so if the customers get the good services whether it is the pre and post services
the new technology get the attraction of the customers and if organization satisfy the customer so
they become the loyal customers of the particular organization. Technology play a vital role for
the communication by using the different devices it can promote their products and services also
quickly know about customer is satisfy or happy with our products or not if they are not satisfy
so with the help of technology know customers feedback also ask to customers why they are not
satisfy, what problem they face with the particular product and solve their problem.
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Table of Contents
TASK-1............................................................................................................................................4
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK-2............................................................................................................................................7
2.2Corporate governance history in UK..........................................................................................8
2.3 Corporate social responsibility for the organization..................................................................9
2.4 Corporate social responsibility for Next Plc..............................................................................9
2.5 CARROLL’S PYRAMID of CSR...........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
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TASK-1
INTRODUCTION
In the today’s changing environment the customer taste and preference is a change every
day for that innovation in the product or services is necessary to stay in the market for the longer
period of time. Business have to produce innovate new ideas for their services and product.
Every organization has to follow the structure of corporate governance like processes, practices
and set of rules to properly manage the organization (Larivière, and et. al., 2017). For the
business it is important to follow rules and regulation also they have to produce innovative ideas
through that it generate more profit and stay into the market , every organization have their own
set of rules and procedure so can manage their organization operation or whole staff. This project
report is about the Next plc company innovation and technology, how it affect the economic
growth of the country, compare the sales and profit of the company before and after introduce
new product, Next plc corporate governance and Archie Carroll’s pyramid of CSR will be
discussed.
MAIN BODY
1.1 Definition of innovation and technology
It can be stated that innovation is all about to generate and develop new and innovative
ideas for the new services, process and products behind this aim of improving competitive
advantage and efficiency. The technology is the process, skills and methods to easily achieve the
objective the innovation and technology play a vital role in the success of the any organization.
Organization should purchases new technology because it save the time also fewer efforts put for
the particular work. (Kahn, 2018). They both are important for the organization it increases
productivity so by that profitability is automatically increases. The continuous innovation and
proper use of technology is a sign of long term growth of the company.
1.2 Innovation and technology contribution towards the economic growth of the country
The innovation and technology contributed to the economic growth of the company if the
new technology is daily launch into the organization or market and creative ideas produce
through that company sales as well as profitability increases by that it directly improves the
economic growth of the country. The silver stone technology cluster company was established in
the year 2017 it is the technology and software company by support the activity of high-tech it
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cover radius in the 60-minuts it is the medium and small size business more focus on motorsports
it involves in different sector like electronic, defence, aeronautics, marine, medical devices and
green energy it create more innovation in this sector for the United Kingdom economy it is a
fundamental engine room. It contribute more to economic growth of the economy by creating
innovative or creative ideas and more use of the technology it generate more profit also increase
their productivity so more contribute the Economy GDP by that it helps in the growth of the
economy (Hashmi, and Alam, 2019)
1.3 New technologies uses in the organization
In the market everyday new technology launch into the market and all the organization
uses it to improve their productivity and profitability with the help of new technology business
can give competition to their competitors. Organization uses new technology because with the
help of that it provide quick and better services to their customer, technology helps in the
production process it save time and resources, by using the technological devices business get in
touch with their stakeholders and customers.
1. Customer services
It is the responsibility of the business to provide good customer services so in the
technological era business uses innovative ideas and with the help of that try to provide better
customer services. Many of the business uses innovative technology and ideas so with the help of
that quickly take customers feedback and also solve their queries. Through the better and quick
services customer are always happy and satisfied (Iqbal, Hassan, and Habibah, 2018).
2. Automation
The automation help every business like the wholesalers and retailers to records their sales
and stock control for that they use long barcodes but now the new innovative barcode scanning
software helps in real time data collection, stock control process, take decision related to
purchasing and accounting.
3. Communication
There are various innovative technological devices come into the market that are very
helpful in the communication. In the organization technology play a vital role by using the
technological devices or platform it connected with their employee or also solves their queries
such as cell phone, text messaging, Email and social networking. (Evseeva, Obukhova, and
Tanova, 2017).
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1.4 Overview of Next Plc Company
Next Plc is biggest retail sector industry it is the public limited company founded in 1864 it
is the British multinational footwear, home products and clothing retailer the founder of the Next
plc is Joseph Hepworth. It served in the areas are United Kingdom, Asia, Middle East and
Europe Next Plc have a total 700 store. In the year 2012 Marks and Spencer overtake the Next
Plc because in the United Kingdom it is one of largest clothing retailer. NEXT Plc has a various
business segment NEXT Plc sourcing, NEXT financing, NEXT online, International retail and
NEXT retail (Upadhyay, Kumar, and Akter, 2021). It use the various innovative technology that
increase their sales and profitability it also more invest towards the corporate social
responsibility the total 44,193 employees working at the NEXT Plc and its current net income is
286.7 million.
1.5New technologies of Next Plc
In the Today’s modern technological era our economy moves toward the technology it is
very important for every business to uses new or unique technology for their business operations.
The next plc generates innovative ideas and new technology to survive in the market for longer
period of time and to easily compete with their competitors NEXT plc have a many competitors
in the market. There are some new technology introduce by the Next Plc and also some
innovative ideas.
1. Same day click and collect service
Recently NEXT plc starts their same day click and collects service reason behind to start
this service is to provide more comfort to the new and loyal customers, with the help of this
services customer know about the availability of particular stock at their nearby local store of
NEXT plc. Customers can reserve or book their products in advance without any extra payment
and receive delivery of reserve product within fifteen minutes so at their home customer can
book their products in advance without visiting at local store. At the occasion of Christmas many
of the customers reserve their gifts in advance for their loved one so with the help of this service
it order and within fifteen minutes receive their products.
2. Focus on marketing
To focus on marketing and more improving it Next plc use Extend their digital marketing
by using the Next Unlimited technology and improve the performance of the website also the
customers journey
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3. Next Unlimited
Next Plc start their Next unlimited services in the only USD 20 Per annum the customer get
the collection and unlimited delivery of the goods it is the new service and the technology to
attract the customers. NEXT Unlimited aim is offer products to their customers in the smaller
quality with the fast delivery services so by following this concept it increases their sales.
3. Website Label Launch by Next Plc
The new website of NEXT plc give more comport to their customers through this new
website customer can give their order before 10 pm and this particular ordered goods delivery is
received by customer on next day.
1.6 Compare the sales and profit of the Next Plc
NEXT Plc sales and profit is increased by using the different innovative technology for the
products and services.
£ Million
New technology Sales before
technology
launch 2019
Sales after
technology
launch 2020
Profit before
technology
launch 2019
Profit after
technology
launch 2020
Same day click
and collect
295 355 65 69
Next Unlimited 298 370 51 63
Website Label 764.3 892.3 134.8 163.3
1.7 Comment and finding
By launching new technology the Next Plc sales and profitability is increases and as
compare to 2019 its profit and sales is increased, Next Plc get more profit by website Label.
TASK-2
2.1Meaning of Corporate Governance and Corporate social responsibility
The corporate governance and corporate social responsibility is very important for the
organization, Corporate Governance involves business own policy and set of rules to manage the
organization it maintain the proper balance between the social and economic goals and also
between the communal and individual goals. Corporate governance encourages the organization
to efficient and proper use of the resources without any wastage. Organization aim is to work for
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the interest of the society so for that organization contribute something towards the community
and society it is necessary for all the business because if we receive something from the society
so it is the responsibility of organization give something in return. The star bucks organize at
their workplace social responsibility programmes to increases their employee morale (Bhagat,
and Bolton, 2019). The Corporate social responsibility of treating the outside and inside
stakeholder of the organization in socially responsible and ethically manner, human development
is increase if it behaving socially responsible.
2.2Corporate governance history in UK
The corporate governance of UK has evolved over a period of years. But now, the model of
UK corporate governance is one of the successful governance model that influenced many
different countries. This gives a rise to the opportunity for the investors to expand their
operations in the country where there are less obligations placed upon business to carry out the
smooth functioning (Bhagat and Bolton, 2019). There are various necessities for the company to
register itself under the London stock exchange. To a great extent, corporate governance is been
used in trust, companies etc. The main focus of the governance is to manage risk, accountability
and integrity for the proper functioning of the economy.
The corporate governance of UK includes laws, codes of training and market direction. A portion
of these laws and guidelines get from European law, however some are explicit to the United
Kingdom. The City Code on Takeovers and Mergers likewise has a significant task to carry out
in charge exchanges, and has legal power. Each organization's constitution, which will likewise
force administration necessities, has legitimate impact as a legal agreement. The main code of
training is the UK Corporate Governance Code which is distributed and refreshed intermittently
by the Financial Reporting Council which is likewise a legal body (Moore and Petrin, 2017). The
current release of the Code was distributed in 2014. The FRC has as of late demonstrated that no
significant changes are normal until the following booked audit in 2019. A couple of outlines
have attested that associations with better corporate administration are more profitable;
researchers have seen that it is only the more useful associations that can deal with the expense
of the time and effort to guarantee they follow best practice (Yeoh, 2019). There is no
vulnerability, regardless, that the premium of financial backers and various accomplices for
extraordinary organization is strong and continuing. Monetary patrons, affiliations and the public
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authority are out and out dynamically obligated to sentence a business that fails to keep the set
principles and systems.
2.3 Corporate social responsibility for the organization
Corporate social responsibility comes under the top priorities of the companies. It allows
the organizations to contribute towards society, customer and environment for the sake of
company’s stakeholder’s well-being. CSR creates positive impact for the organization as a
whole which paves for a longer and sustained growth.
1. A business who adopts CSR gets a competitive advantage over the other rivalry firms.
2. The business does not remain the same but has more innovation and becomes
sustainable with the help of CSR (Agudelo, Jóhannsdóttir and Davídsdóttir, 2019).
3. Customer loyalty is enhanced as they feel that they are a part of an organization that
creates value for the society.
4. CSR also opens up new opportunities for the businesses, attract new investors and
employees.
2.4 Corporate social responsibility for Next Plc
The operations of NEXT PLC impact the stakeholders in many ways and it takes every
possible step to make it positive. As a dealer in retail industry, it has to adhere with the global
issues such as climatic change, human rights and sourcing (Lu and et. al., 2020). Putting CSR
into practice, it is of utmost importance to the company and it can be quoted by the given
points:
1) It helps the company to work in an ethical manner.
2) Helps to recognise and respect human rights.
3) Helps to build positive relationship with the company’s suppliers and partners.
4) It helps delivering value to the customers.
5) By providing support to charitable trust and community organisations, it makes a positive
image for the brand.
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The main focus of “NEXT” is to develop its supplier relationships in a way that boosts up
the efficiency of the company. The company will continue to target the focus on reducing
the effect of packaging and enabling transparency to where and how they sell their
products. NEXT CR plan incorporates building up new ways to deal with the wellbeing
and government assistance of workers, environmental change, waste and asset use.
2.5 CARROLL’S PYRAMID of CSR
1. ECONOMIC RESPONSIBILITIES
The company’s ultimate goal is to make profits. Without profits, it can’t undertake
various activities such as payment of salaries, purchase of raw materials and other
investments. It also needs to supply its products at an affordable price. This is the basic level
of responsibility of a company.
The aim of NEXT is to provide exceptionally well designed clothes and other accessories
with best quality to its customers through maintaining better work relations with the suppliers
so that they can get the materials on the time that will be attracting customers and variably be
generating higher profits.
2. LEGAL RESPONSIBILTY
The second important motive of a business is to comply with the legal laws by
following all the regulations such as, taxation. If a business fails to imply these in the
business, it can face huge legal repercussions (Brin and Nehme, 2019).
The implications of legal laws on NEXT PLC has a great impact as it conducts its business
operations around the world so it is a necessity to take permissions from the government,
respects the rights of their labour and giving them a safe work environment.
3. ETHICAL RESPONSIBILITY
A company should not only abide by legal laws but also work ethically. The companies
should follow ethical practices so that more customers get attracted towards it as they feel
comfortable purchasing from a company that is morally correct.
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For the smooth conduct of the business operations, NEXT PLC follows in house code
practices which ensure that the business works in compliance with the ethical standards and
following the safety working conditions for the workers.
4. PHILANTHROPIC RESPONSIBILITY
This is the highest level responsibility that measure the criticism faced by businesses for
using environment’s resources, creating pollution etc. It is the duty of the businesses that they
give whatever they take in order to create a balance between the resources.
NEXT PLC identifies that it has a duty and commitment to attempt to reduce the immediate
effect of its business operation on the environment, currently as well as in future. It also
offers help to a wide number of charities big or small with a noble cause, everything being
equal, by working with them to give most advantages to them.
CONCLUSION
It can also be concluded that the innovation and technology is essential for the every
organization it improve the productivity. The Next plc is more amounts invest in the innovation
and technology like in the communication, automation, communication new technology of the
Next Plc is same day click and collect, Website label and Next Unlimited so after launch this
technology its profitability and sales is increases. The profitability is improved by the corporate
governance by using the proper rules and policy and when the more profit is generate so it more
contribute towards the corporate social responsibility and benefit to the economy or society. It
can also concluded organization have various social responsibility like economic, legal, ethical
and Philanthropic. Every business take something from the society it is everything for
organization without the customers or society it can’t make profit so the responsibility of the
organization to contribute more and more for their society.
REFERENCES
Books and journal
Agudelo, M. A. L., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of the
history and evolution of corporate social responsibility. International Journal of
Corporate Social Responsibility, 4(1), pp.1-23.
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