Business Environment: Innovation, Technology & CSR at Greggs plc

This report examines the business environment of Greggs plc, a British bakery chain, focusing on the impact of innovation and technology on its economic progress, sales, profits, and operations. It discusses various types of innovation and technologies employed by Greggs, such as reinforcement learning and digital transaction networks, and their effects on economic growth. The report also explores how Greggs uses new technologies like social media, project management, web conferencing, and automation to enhance its operations. Furthermore, it analyzes the value of corporate social responsibility (CSR) for Greggs, referencing Archie Carroll's pyramid of CSR, and provides insights into the company's corporate governance and CSR policies, highlighting their importance in improving public image and fostering consumer trust. The report concludes that implementing new technologies and prioritizing CSR initiatives are crucial for business organizations to achieve increased sales, profits, and overall efficiency.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Several types of innovation and technology and how it impacted on the economic progress of
the country...................................................................................................................................1
How innovation and technology create an impact on sales, profits and operations ...................3
TASK 2............................................................................................................................................4
Value of corporate social responsibility for the organisation.....................................................4
Archie Carroll's pyramid of CSR................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is described as the collection of all internal as well as external
factors like employees, demand, social trends and so on. It is also considered as a set of external
factors like political, social that are being uncontrollable in nature and may affect all kinds of
business decisions. There are two components of business environment and these are internal and
external (Lam and et.al, 2021). In relation with internal it includes value system, corporate
culture, human resources and many more. On the basis of external one it comprises of micro and
macro factors. The below report is based on Greggs plc. It is a British bakery chain that deals in
products like bakes, sandwiches, sweets and many more. The company was founded in the year
1939 by John Gregg. The report involves different types of innovation and technology, impact of
operations, sales and profits of the company, importance of corporate social responsibility and
Archie Carroll's pyramid of CSR.
TASK 1
Several types of innovation and technology and how it impacted on the economic progress of the
country
Innovation and technology: -
Innovation is defined as the practical implementation of certain ideas that result into the
introduction of new products and services or making certain improvements in the existing one.
The main purpose behind innovation is to come up with new technologies that would help in
enhancing the productivity and would give better level outcomes (Mai and Hamid, 2021). In
context with technology it is the sum total of various methods and procedures being used in the
production of products and services. Both innovation and technology is important because it
helps the company in expanding their productivity and lead to attract maximum number of
customers.
Practical examples of how technology and innovation contributes to the economic
growth
The main benefit associated with innovation is that it leads to high level of economic
growth and also generates great level of output. Both technology and innovation make their
contribution in enhancing the growth of country. With respect to the company it is further being
explained below: -
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 In relation with the chosen company they has involved a transformation in which their
business produced more ideas and forward thinking solutions. Greggs used the way of
reinforcement learning technology through which they build up certain unpredictable
environments which are completely based on external level of feedback.
 Innovation and technology also contributed in enhancing economic growth with the help
of using digital transaction network services (de Flon and Lindgren, 2021). The company
mainly designed it to enable all the retailers in making a connection with present
customers.
 In terms of developing the technology, communication becomes much easier that it leads
to fast access to all the new markets. On the basis of this marketing channels get
developed and built up a positive impact on the economy of the country. In accordance
with the concept of innovation they also help in enhancing economic growth of the
country. With the help of this both employees as well as the business becomes more
productive and improve the standard of living of all the people.
How business organisations use new technologies in their operations
There are many technologies that a business organisations use in their operations
department. Greggs also used new ways to enhance their operations level. It is further being
explained below: -
 Social media: - By using new and efficient technologies businesses can use the way of
social media and emails so that customers can get the solutions to certain problems
quickly. With the help of this customers don't have to spend time too long. They use such
technology in their operations department by keeping the element of people always in the
mindset and focus of the principles of good customer service.
 Project management: - The organisations use the way of project management technology
in their operations by overcoming certain potential issues (Evanita, 2021). The
individuals are provided with several tasks and activities and with regards to certain
messages they get constant updates regarding the project. With the help of project
management the operations go on very safely which ultimately leads to better
productivity and communication. \
 Conferencing: - It is another new technology which business organisations are using in
their operations department. The company uses the way of web conferencing. With the
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help of effective connection and web cam businesses save much time as well as cost
because everyone can share and see all the necessary information through web
conferencing.
 Automation in operations department: - With the help of automation the manual
intervention in whole process of manufacturing get reduced and at the same point of time
it decreases the margin of error also (Addae-Korankye and Aryee, 2021). Through this
technology in operations department the aspect of unemployment gets decreased and
better investment in capital is done.
How innovation and technology create an impact on sales, profits and operations
Overview of the chosen organisation
Greggs is a very strong bakery chain that has been successful in food on the go market.
The company prepares fresh savoury food products at affordable prices. In accordance with on
the go eating habits the company is now found in retail parks and various shopping centres also.
The organisation has around 12 regional bakeries, 1700 shops which is operating in several
convenience locations. In context with their franchise partnerships they are also being operating
in motorway service stations as well as petrol courts. Their main priority has always being to
help people and work with those individuals who can change the world for the better and
efficient way.
New technologies and how they are being used
It is significant for every business organisation to include certain new technologies so
that they can earn more market share in a positive way (Falahat and et.al, 2021). In relation with
selected company they also implemented new technologies and developed a specific mission to
indulge into fast moving food on the go industry. In relation with new technologies they built up
various technologies which is further being explained below: -
 Simplifying operations: - The company choose Sap's business suite on HANA through
which they transformed and standardised all their operations. With respect to this the
company implemented a cloud based HR application and several ariba resolutions. In the
year 2015, the organisation used the way of retail technology through which the aspect of
stock forecasting and replenishment got improved and complete redesigning was being
done.
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 Foundation blocks: - On the basis of this new technology the company was being
provided with certain foundation blocks through which better opportunities were being
created. They enables click and deliver service across whole country. On the basis of this
transformation program it was a foundation that gave the permission to company to
research for several growth opportunities.
Sales and profits of the company before and after new technologies got introduced
While comparing the sales and profits of the organisation in context with the year 2013
and present year there are high level of changes because after the implementation of new
technologies profits were being earned. It is further being explained below: -
 Financial aspects: - In the year 2013 Greggs total sales was up to £762m which improved
the trend of like for like sales. While implementing new technologies their sales got
raised to around £811.3 million (Donner and de Vries, 2021). The dividend per share
was being maintained at 19.5 p. In terms of the year 2020, it was at 57.5 p.
 Operational aspects: - In the year 2013 the company earned profits but it was much less
than comparing with the year 2020. Greggs introduced many technologies which
attracted maximum number of customers so on the basis of this the company made a
profit of £36.7 million which was much more than comparing with earlier years.
Comment on the findings
From the above data it has been found that business organisations must implement new
technologies so that more sales and profits can be earned. Greggs also initiated new ways to
attract customers like social media, automation and certain foundation blocks. On the basis of
this more profits were being earned. While comparing with the sales of 2013 and the year 2020
company earned better profits. The main reason behind this was that now as per the present
situation of Covid-19 pandemic each individual wants that issues should be solved quickly and
everything should be done with the help of social media. So, on the basis of bakery chain they
implemented new concepts and led to better efficiency level.
TASK 2
Value of corporate social responsibility for the organisation
Corporate governance and corporate social responsibility
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The aspect of corporate governance is described as the system of all practices and certain
kinds of rules through which an organisation is being controlled and directed. It is defined as the
method through which companies are being governed and the purpose behind that. There are
four p's of corporate governance and these are process, people, purpose and performance (Zhang
and Hara, 2021). This concept is significant because it assures that all board of directors are
being accountable to certain corporate objectives and it creates a conformation with respect to all
laws and regulations. It is involved with six pillars and these are participation, rules of law,
transparency, moral integrity, efficiency and accountability.
On the basis of corporate social responsibility it is defined as a form of international
private self-regulation whose main objective is to make contribution in relation with all kinds of
societal goals. The main purpose behind this is to initiate a difference and build up a positive
image across the company. There are mainly four types of corporate social responsibility and
these are ethical, environmental, economic and philanthropic responsibility.
History of corporate governance in the UK with examples
The aspect of corporate governance is with respect to critical relationship between power,
ownership and trust. It is important for a business organisation because it is mainly concerned
with the phase of updating the wealth for the society. In United Kingdom all companies law are
indulged into statutory regulation regardless of their size. A good level of corporate governance
is significant at all diverse levels. So, by taking the example of Greggs, their corporate
governance enabled all the interests of company that involved with efficient usage of resources.
With respect to this it also led to reduction in the cost of capital for all the issuers and preserved
savings provisions.
Importance of corporate social responsibility for organisations
Corporate social responsibility is very much crucial because it determined that a business
organisation is being taking interest with respect to certain social issues that attract consumers
who share similar values. It helps in improving the public image. As on the basis of good brand
image only consumers decide whether they want to purchase the product or not. So, with the help
of corporate social responsibility it shows that the company is being committed towards helping
other people. By taking the example of Greggs they also offer a effective CSR policy on the
basis of which both consumers as well as staff members increase their funds that supports certain
society projects. This aspect is important for their organisations because on the basis of this only
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the company would feel more valued. The organisation would be able to create a difference in
comparison with other competitors. With the help of this better brand image would be initiated in
front of all the consumers.
Archie Carroll's pyramid of CSR
On the basis of this model it involves four types and these are ethical, legal, philanthropic
and economic way of responsibility. In relation with Greggs it is being explained below: -
 Economic responsibility: - All business organisations have certain economic
responsibilities that enable them to become sustained and created. In relation with Greggs
it was considered as the only method to increase their profits and involve maximum
number of resources in order to continue their level of operations. So, in order to expand
sales and profits the company enabled new business concepts which were mainly directed
towards the phase of financial effectiveness. It mainly included the phase of being cost-
effective, new strategies and technologies as well as several professional concepts
through which the main focus was on long term financial success of the company.
 Legal responsibilities: - There are various rules and regulations which a business
organisation need to follow and in accordance with that expand all operations and
functions (Iheanacho, 2021). There are certain legal responsibilities that a business is
expected to follow. In accordance with the selected company they performed in such a
manner which was consistent as per the expectations of both law and government. It also
fulfilled certain judicial obligations with regards to all community stakeholders.
 Ethical responsibilities: - On the basis of this it pursues that companies would enable all
activities and standards even if it is not as per the law. It is also involved with the aspect
that all affairs of organisation would be conducted in a fair way. In relation with Greggs
they performed in such a manner which was consistent with certain types of expectations
as per the ethical norms. At the same point of time it recognised that their ethical
behaviour goes beyond the level of compliance as per all laws.
 Philanthropic responsibilities: - It is indulged with certain voluntary activities. On the
basis of chosen company they also identified such responsibilities and got engaged with
different forms like donations of certain goods and services, community development and
making contribution to several group of stakeholders that built up the society.
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CONCLUSION
From the above report it has been concluded that in a company both technology as well
as innovation is crucial because on the basis of this only large number of consumers get
attracted. There are various types of responsibilities like legal, ethical and many more. Through
the aspect of corporate social responsibility a business is able to enhance their public image in
front of all the people and at the same point of time increase sales and profits.
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REFERENCES
Books and Journals
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management practices and the growth of Small and Medium Enterprises (SMEs) in
Ghana. Business: Theory and Practice, 22(1), pp.222-230.
de Flon, P. and Lindgren, L., 2021. The Acceleration of Digitalization and its Influence on
Business Model Innovation: A qualitative study of Swedish SMEs from the perspective of a
business developer.
Donner, M. and de Vries, H., 2021. How to innovate business models for a circular bio‐
economy?. Business Strategy and the Environment, 30(4), pp.1932-1947.
Evanita, S., 2021, June. The Influence of Learning Activities, Family Environment, and Study
Interests on the Quality of Learning PKWU. In Sixth Padang International Conference On
Economics Education, Economics, Business and Management, Accounting and Entrepreneurship
(PICEEBA 2020) (pp. 320-324). Atlantis Press.
Falahat, M., and et.al, 2021. Entrepreneurial, market, learning and networking orientations as
determinants of business capability and international performance: the contingent role of
government support. International Entrepreneurship and Management Journal, pp.1-22.
Iheanacho, L., 2021. Investigating Unethical Business Decisions Of Eastern And Western
Nigerians: The Role Of Future Self-Continuity.
Lam, L., and et.al, 2021. The relation among organizational culture, knowledge management,
and innovation capability: Its implication for open innovation. Journal of Open Innovation:
Technology, Market, and Complexity, 7(1), p.66.
Mai, W. and Hamid, N.I.N.B.A., 2021. The Moderating Effect of Family Business Ownership on
the Relationship between Short-Selling Mechanism and Firm Value for Listed Companies in
China. Journal of Risk and Financial Management, 14(6), p.236.
Zhang, Y. and Hara, T., 2021, July. Predicting E-commerce Item Sales With Web Environment
Temporal Background. In Business Information Systems (pp. 233-243).
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