Impact of Digital Technology on SMEs: Unibond International Case Study

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This research project investigates the impact of digital technology on small and medium enterprises (SMEs), using Unibond International, a food processing and packaging company, as a case study. The project begins with an overview of digital technology, its evolution, and its significance for businesses. The study examines how digital tools like social media and e-commerce can enhance customer relationships, generate leads, and improve business operations. A comprehensive literature review explores the concept of digital technology, its importance in fostering customer relationships, and its benefits and drawbacks for business operations. The research aims to determine the concept of digital technology, evaluate its importance for Unibond International, assess its benefits and drawbacks, and identify the challenges in implementing it. The methodology includes research questions, a timescale, and ethical considerations. The project covers data analysis, analytical tools, conclusions, recommendations, and alternative methods, providing a detailed analysis of digital technology's role in modern business.
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RESEARCH PROJECT
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Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of the Research................................................................................................1
1.2 Background of the Research.............................................................................................2
1.3 Rationale...........................................................................................................................2
1.4 Aims.................................................................................................................................3
1.5 Objectives.........................................................................................................................3
1.6 Research Questions..........................................................................................................3
1.7 Timescale..........................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................11
3.1 Research Methods..........................................................................................................11
3.2 Data Collection Method.................................................................................................11
3.3 Data Sampling................................................................................................................12
3.4 Ethical Consideration.....................................................................................................12
CHAPTER 4: DATA ANALYSIS................................................................................................14
Analytical tools to analyse research findings and data.........................................................15
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................24
5.1 Recommendation............................................................................................................24
5.2 Reflection.......................................................................................................................24
5.3 Alternative Methods.......................................................................................................25
REFERENCES..............................................................................................................................26
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CHAPTER 1: INTRODUCTION
Digital technology is determined as an electronic technology that stores, generate and
process data. In this, information are usually shared with the help of binary codes i.e. 0 and 1.
(Taiminen and Karjaluoto, 2015).In this rapid growing world where technology is developing in
a fast mode, it is improving the rate of working done by a man. In order to know about the
simple concept of digital technology, mobile phones are the best example. Digital technology is
basically a new physical communication process that is done through satellites and fibre optics .
Social media is one of the effective form of digital technology and helps in connecting with
people in large number. According to the current market situation, density of connection is
increasing. As a result, for most of the businesses, they are creating opportunities and adding
value to their company. Digital density has increased from past three years as it has reached to a
tipping point of 5.6 billion for Facebook, therefore, as per the study it has been evaluated that
around 2,200 companies on an average shows that 58% of their business process are managed by
digital technology. This research will be based on Unibond International which is a food
processing and packaging company in United Kingdom. Since, 1995 and its establishment firm
is providing effective services and facilities to its clients. Therefore, company is working very
hard to become one of the leading company in the sector food processing and packaging.
1.1 Overview of the Research
Present report will focus on an research proposal which will define research questions
supported by a literature review. Thus, on the basis of this, research will be conducted in order to
get a relevant outcomes. Moreover, primary and secondary methods are being used which will
consider cost, access and ethical issues. In addition to this, outcomes of the research projects are
identified so that it can be communicated to stakeholders Digital technology has changed the
aspect of life for both company and individual as well. As compared to old time, now people
have computers, smartphones, laptops etc. for doing their task in a better manner. Thus, it can be
said that digital technology in companies have supported innovative thoughts of people so that
value can be generated for firm. In recent times, common use of social media is of marketing
purpose as it covers all factors of internet marketing and is considered as a simple medium for
connecting with people living in urban or remote area.
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1.2 Background of the Research
Digital technology is a mathematical based technology that works on binary system i.e. 0
and 1. With the help of digital technology a large number of data and information can be stored
in a compressed manner and this can be transferred as well (Mazzarol, 2015).Through digital
technology proper communication can be established. Further in context with company with the
help of digital technology they can increase their customer base and can generate more and more
revenues. This research is being conducted in order to know the impact of digital technology on
small and medium enterprises. As from the past few decades, digital has come up as a
indispensable tool in order to attract a large number of customers towards the company with the
help of attractive advertisements, promotions, providing customer services etc.
Henceforth, digital technology is playing a significant role as it is enable company with
social interactions through e-commerce (ChenJaw and Wu, 2016).Therefore, conducting this
research will be helpful in order to know implication of digital technology and by what
proportion it is increasing. Thus, to companies, it will give an idea about by what proportion they
have to use digital technology in order to pull attention of maximum number of people.
Topic: “The impact of digital technology on SME’s. A Case Study on Unibond
International
1.3 Rationale
Digital Technology, with the change in course of time is playing a crucial role for most
of the businesses as they are providing platform to both entrepreneurs and companies that are
already in the market. In this rapid processing world, Digital technology is improving the rate of
progress for companies. This report will aid researcher in knowing impact of digital technology
and how it is helping organisation in increasing its revenues and sales in a speculated time frame.
Most of the companies are using digital technology in order to provide better services and
facilities to its customers. For example: Unibond can use social media a part of digital
technology so as to know about choices and preferences of customers and provide services
accordingly. This will not only increase sales and profitability but will help in improving brand
image of the firm.
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1.4 Aims
Research Aim: “The impact of digital technology on SME’s. A Case Study on Unibond
International
1.5 Objectives
To determine the concept of digital technology.
To evaluate the importance of digital technology for developing strong relationship
between Unibond International and its customers.
To determine the benefits and drawbacks of digital technology on business operations of
Unibond International.
To evaluate the challenges faced by company while implementing digital technology in
Unibond International.
1.6 Research Questions
What is the concept of digital technology?
What is the importance of digital technology for developing strong relationship between
Unibond International and its customer?
What are the benefits and drawbacks of digital technology on business operations of
Unibond International?
What are the challenges that can be faced by company while implementing digital
technology in a company.
1.7 Timescale
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CHAPTER 2: LITERATURE REVIEW
This is determined as the narrative review or an article which assist researcher in having
detailed knowledge or information about a specific topic. Thus, it provides a substantive findings
which is regarded as a theoretical and methodological contributions to a particular subject matter.
Concept of digital technology
According to the view point of Kumar and Reinartz, (2018), now-a-days, digital
technology has replaced analog to digital technology with the help of pulse code modulation
(PCM). Digital Technology majorly includes components such as personal computers,
calculators, automobiles, telephones, satellite etc., Analog information makes the process more
easier to respond because it helps in converting the information into digital information. In order
to understand digital technology, the word “digital” comes from a Latin word “digitus” and it is
one of the oldest tools that was basically used for calculations. With the help of this, basic
information are converted into number which are 0 and 1 generally represented as machine -level
language.
Digital technology has another side as well company use digital technology because of
transferring information is more easier through internet( Mogos,2015). There are many sources
that are included in digital technology such as internet, social media, e-mails etc., For example:
with the change in course of time, social media has changed and evolved as a new tool for
companies where they can promote their new products or activities in order to grab attention of
maximum number of people. In relation with Unibond International, with the help of digital
technology they can connect with people and can inform them about food processing and
packaging services, they are giving to its clients. Other than this, firm will get to know about the
opinions and reviews of the products and they are providing so that modifications can be made in
order to get better results. For example: Unibond International can use this social media for
connecting with people across the globe and telling them about the work of their business. As a
result, this will not only increase the customer base of the organisation but will also provide a
great opportunity of expanding their business in wider areas.
Digital Technology is itself a very wide concept and now a days, it is in trend as
maximum number of people are active on these sites. Companies are updating their activities
which are happening on a daily basis. Main purpose of digital technology is to connect with
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people across the globe with the help of a medium internet. Therefore, after the evolution of
social media people can interact with the loved once residing in different parts of the world.
In recent times, most of the companies are opting digital technology as a platform for
promoting their activities so that respective customers around the globe can know about the new
services provided by them. Henceforth, digital technology is determined as the best tool for firms
so as to interact with customers.
Importance of digital technology for developing strong relationship between customers
According to Rodriguez, Peterson and Ajjan, (2015), digital technology is one among the
best marketing tool which is used by businesses to develop relationship with the customers in
effective manner. It can be said that organisations uses digital technology as a tool to promote
their products and services with massive population that contributes in improving its sales. Along
with this, it shares positive messages of company with the customers which increases their trust
on products offered by the same organisation. Some of the major importance of digital
technology in developing strong relationship with customers are described as below:
Loyalty rewards: For an organisation customers are very important as they are the one
who purchase goods and products provided by a respective company. In order to maintain a
better relation with customers firm can provide loyalty rewards to their consumers who are
genuine buyers. As a result, it will enable company in sustaining their customers for a longer
period of time.
Best opportunity to gain feedback: Feedback is considered as the best way to understand
the actual views and thoughts of the customers about the produce and services. It can be said that
every organisation should not leave any opportunity to take feedback from the customers. In
relation to the company they are taking reviews for the services they are providing.
With the evolution of internet and social media sites, people can connect with one
another even after living in different places. In relation with company, customers are there
valuable assets and they manufacture or provides services according to the needs and wants of
consumers. As a result, it will assist firm in retaining their loyal customers for a longer period of
time. Therefore, in order to build an effective relation with consumers, Unibond International can
implement some of the factors like loyalty rewards under which company can provide loyalty
points to regular consumers so that they can avail benefits and can get maximum benefits.
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In addition to this, company can get feedbacks and reviews from their customers so that
they can make some modifications and changes in their services if consumers are not satisfied
with the products they are providing. Therefore, both the factors
Benefits and drawbacks of digital technology on business operations
As per the viewpoint of Sigala, (2016), digital technology has come up as one of the
effective tool for companies in promoting their business in an effective manner. Most of the
companies use this because with the help of digital sharing information becomes easier. This has
some benefits and drawbacks of digital technology on business operations and these are
explained below:
Benefits of digital technology:
Generate leads for company: Digital technology to their potential customers provides a
lead through which customers can know the interest of company along with the goods and
products provided. For example: Unibond International are using digital technology leads which
is allowing consumers in learning more about the services given by the organisation.
Boost sales: Social media, a component of digital technology is the best medium through
which company can improve or enhance its sales because now a days most of the people are
active in these sites. Thus, it is crucial for Unibond International to make effective marketing
strategies with the help of professionals so that company can increase its sales and profitability.
Promote content: Digital technology, is determine as a smarter way of promoting content
or products in front of new as well as existing customers(Morgan-Thomas, 2016). Sharing, liking
and commenting make the process more reliable because it things get viral more easily
Drawbacks of digital technology:
Less control on stuffs that are shared: There are multiple users of digital technology and
companies have less control over the activities that are being done and this can be considered as
the biggest drawback for the firm. Therefore, in order to overcome this, organisation can actively
conduct forums where discussions can be done about the opinions of customers in regards to
products and services they are providing.
Negative customer reviews are harmful: As digital technology is available to every
person so chances of compliant can increase because it is not possible that consumer contact
directly to the company for registering their issues and problems. Thus, they give their reviews
and feedbacks to respective web pages or sites.
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Digital technology, has both phases if it is providing benefits to companies than there are
some limitations as well which can hamper business activities. Thus, it is important that
company consider both pros and cons for running their business in an effective manner. Like
through social media, a component of digital technology they can boost their sales and
profitability or even connect with their customers. Moreover, it has some drawback as well like
negative comments about company can harm the image of company or can effect the behaviour
of customers and they can move towards other firms who are providing same services.
Challenges faced by company while implementing digital technology in a company
Most of the companies are under going digital transformation and they are making
strategies accordingly. As a result, it is helping firm in increasing their market share, customer
engagement, revenues as well. Although, digital technology is providing benefits to the
companies but they create problems to big or small organisation while gearing up for the
achieving goals and objectives in a speculated time period. Some of the challenges that can be
faced by Unibond while implementing digital technology are explained below for better
understanding:
Organisational resistance to change: Around 10 – 15 percent of people accept change
and they prefer that new challenges and risk should be there for companies so that better
outcomes can be gained by companies. But in relation to near about 85 – 90 percent people
doesn't require any kind of change as for them it works as a pain. Digital technology, according
to its nature upsets a lot of people as it includes different kinds of new and latest technologies but
in some context it is required to understand that with the help of digital technology company can
only get benefits. Some of the reason of not accepting is that modifications in project can cost
higher which stakeholders may not agree to give (Challenges to digital transformation, 2019).
Lack of clear vision for a digital customer journey: Goals and objectives can be
achieved if clear vision is provided to employees such what are their roles and responsibilities in
order to attain set targets. For example: Unibond's vision is to improve market share by 15
percent by the duration of one year. Therefore, it is important that company first look out the
stocks and assets that are available with them so that better comes can be provided. Other than
this, it is required for firm to understand what are the needs and wants of customers so as to
provide services and facilities accordingly. Thus, in order to do so, it becomes crucial for
companies to adopt latest tools and technologies with the help of which all plans and strategies
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can be executed. Lastly, on a regular basis new potential ideas should be generated so that
business activities can be performed properly.
Ineffective gathering and leveraging of customer data: Digital Technology is used in
order to have customer data. Companies can gather this information from different sources such
as social media sites, emails, internet etc., for example: Nowadays, most of the firm have myriad
of soiled which provides information related to customer interactions. As a result, it helps
company in knowing needs and wants of consumers in an effective manner. This should be
easier in nature because simplistic approach always help in creating more and more value for an
organisation. Therefore, it will aid in getting into a superior position in the market area for a
longer period of time.
Inflexibility of technology stack and development process: With the change in course
of time, technology has evolved on a regular basis and it has helped company in having
competitive advancement. Leveraging agile processes and technologies, has supported company
with frequent results. Therefore, in relation with technology company should have flexible
environment so that whatever changes are required to make can be done easily.
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CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is an important factor for conducting any kind of research as it is
determine as a systematic approach that helps an researcher in analysing the collected
information(Mohammadyari and Singh, 2015). As a result, it will assist investigator in
illustrating a valid conclusion. Further more, in this certain tools and technologies are being used
in order to gather information in a better manner. Some of the research methodologies which
investigators can use for completing the research in an effective way are given below for better
understanding:
3.1 Research Methods Qualitative research: It is used by researcher so as to gather data and information by
focussing on elements such as survey methods, group discussion, interviews etc., Thus, it
is done for making theoretical part of the research effective as it will give different
opinions of researchers and investigator who have give their opinions in a specific topics.
Quantitative research: In this, researcher gathers data which are in numerical form or in
numbers(Molinillo and Japutra2017). Thus, it help investigator in composing the
information in a systematic manner and in statistical form. This involves methods such as
questionnaire, in-depth interview and many more.
For conducting the research in an effective manner, researcher has used Qualitative
approach and for this a set of questions were being formed in the form of questionnaire so that
data can be gathered. This will aid investigator in determining a valid conclusion
3.2 Data Collection Method
Data Collection Methods: It is consider as a process that assist researcher in collecting
data for further procedure of the research. Majorly, methods of data collection inculcates two
methods which are primary and secondary method and in order to know more these are
explained below so that it can be understood in a better way: Primary method: Under this, information which are gathered are for the first time thus,
these are considered as first hand sources(Molinillo and Japutra, 2017). Researcher
basically, collects data and information on the basis of questionnaire which is formulated,
or through interview, surveys etc., For conducing this research, open end questions were
formed so that answers can be given collected easily.
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