Tesco's Innovation and Economic Sustainability Report

This report examines the economic sustainability of businesses, focusing on the innovations companies implement to maintain and improve their market performance. It begins with an introduction addressing the challenges companies face, such as urbanization and shifting economic power, and the need for adaptation. The report then provides an annotated bibliography, analyzing several research papers. These papers explore various aspects of economic sustainability, including the impact of urbanization, the shift to electric vehicles, green growth strategies, customer-oriented organizations, service innovation, and waste management in the food system. The report also includes a research question on the use of drones in delivery systems, analyzing the economic and environmental benefits through social media data. It emphasizes the economic viability and reduced pollution associated with drone delivery, concluding with a discussion on the growing public interest in this technology and its potential for long-term business sustainability. The report uses Tesco as a case study throughout, illustrating how businesses can adapt and innovate to ensure their long-term viability.

Economic Sustainability

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ANNOTATED REFERENCES.......................................................................................................1
Research questions ................................................................................................................4

INTRODUCTION
A large number of organisations are concerned about economic sustainability of their
business. They are earning a good amount of revenue in the present scenario but they may not
cope up with various kind of problems in upcoming time because of issues like Urbanisation,
social changes, shifting of economic power etc., therefore, it is required for company to adopt
new techniques into their business to survive long term at marketplace. This assignment will
discuss about the innovation which companies do for sustaining and improving their
performance in the market. Business process of companies like Tesco will be discussed in this
file.
ANNOTATED REFERENCES
Nunn, N. and Qian, N., 2011. The potato's contribution to population and urbanization: evidence
from a historical experiment. The Quarterly Journal of Economics. 126(2). pp.593-650.
Summary
It is difficult to decide whether urbanisation can make a positive or negative impact on
the businesses of companies like Tesco. Young generation is shifting in cities and consumption
level of these places is increasing. But, on the other hand, demand of goods and services in
villages is going down.
Evaluation
Various enterprises do not like to open their stores in these regions as they do not have
capacity to generate revenue. A large segment of people living in bucolic area wants innovation
like self-service checkout machine but Tesco is not interested in spending extra money at an
unprofitable location.
Reflect
This information can be used for predicting the future trends that may take place in next
two- three years in Britain. Their influence of Brexit can make a huge impact on research.
Finn, P., Fitzpatrick, C. and Connolly, D., 2012. Demand side management of electric car
charging: Benefits for consumer and grid. Energy. 42(1). pp.358-363.
Summary
1

Every auto-mobile company understands that in next 2 to 3 decades, the petrol and diesel
variant of cars will disappear because of scarcity of their environmental issues. TESLA is
planning to sell more than 400 million electric vehicles before 2040. They are using innovation
for sustainability of their business.
Evaluation
TESLA is currently running their organisation on the right path because they are
spending huge sum on research and development. This firm may face problems relating to the
infrastructure which is needed for running electric cars.
Reflect
This source can be used in research for analysing the geopolitical tension and
requirement of innovation.
Jänicke, M., 2012. “Green growth”: From a growing eco-industry to economic sustainability.
Energy Policy. 48. pp.13-21.
Summary
Developed nation wants to expand their economy without doing any harm to
environment. Government of UK wants big firm like Tesco to expand their business by adopting
new concepts like making green building. But, same enterprise does not have to follow similar
rules in developing nations. They can do more pollution in these countries as increasing
economic growth rate and employment is their main priority. In the present scenario, they do not
care much about environment.
Evaluation
Innovation like drone delivers plays a significant role in green growth. They do not
contribute to problems and help in attaining set goals of company.
Reflect
This concept can help in understanding the difference between economies of a developed
and developing country. More research can be done on the economic and social problems faced
by underdeveloped economies.
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Mukerjee, K., 2013. Customer-oriented organizations: a framework for innovation. Journal of
Business Strategy. 34(3). pp.49-56.
Summary
Tesco is working on reducing their carbon footprint they want to promote their image as
a company who cares about their customers and the environment. This firm has a significant
contribution in polluting the environment. They are going to use some innovative techniques in
their logistic system. These efforts will provide them business sustainability because people like
to do work shop from company's store who is concerned about nature and public health.
Evaluation
Taking care of buyers is an attractive idea for staying in the industry for a long time.
Sometimes, enterprises have to listen the views of shoppers for improving their business but
firms like Apple do not believe in this strategy.
Reflect
This source may help in analysing the vision of a firm but there will be a need of
checking actual results relating to environmental goals.
Furseth, P.I. and Cuthbertson, R., 2013. The service innovation triangle: a tool for exploring
value creation through service innovation. International Journal of Technology
Marketing. 24. 8(2). pp.159-176.
Summary
Instead of doing innovation in production process, Tesco and its competitors are keeping
their focus on the 'Services'. Self-service checkout machine is its perfect example. One cannot
find much changes in the commodities which cited firm is offering but they will see better and
more facilities in the scenario as company is investing in this area.
Evaluation
Innovation in services is becoming the key factor in success and failure of an
organisation. They can provide competitive advantage to an enterprise which is crucial for the
economic sustainability.
Reflect
3

Service industry will grow with high rate as compared to manufacturing in upcoming
time. This sources cover specific area and in addition a huge segment can still become part of
further research.
Garnett, T., 2011. Where are the best opportunities for reducing greenhouse gas emissions in the
food system (including the food chain)?. Food policy. 36. pp.S23-S32.
Summary
Managing the wastage in farm land can reduce emission of greenhouse gases. It can make
the food system more effective. Tesco can use innovative techniques for minimising the wastage
of eatables which is available in their stores.
Evaluation
Livestock and farming area should be managed in a way which is beneficial for each
other.
Reflect
This source can be utilised for better management of waste. Food can be given to the
needy people. It will help organisation in completing their corporate social responsibility.
Research questions
Should drone be used in delivery system?
Sending order of a customer by drone is considered as one of the most innovative ideas of
this decade. Amazon has already applied for its patents because they understand that it is
economical and people support this mode of delivery. Drone is a flying device which is currently
being used by fitting camera in it.
Tesco can find this innovation bit expensive at initial stage but it will solve two of their
main problems. First is related to pollution and other is better service at low cost to their
customers. Both are essential for sustainability of the business. Above figure is the research
conducted on twitter by using three hashtags i.e. #GRIdronelogistic, #ISO14001dronelogistic
and #SASBdronelogistic. Transportation of goods is an integral part of Logistics sector. People
are concerned about the pollution which various vehicles create at the time of delivery of orders.
This research is conducting between 1st to 5th October, Accounting standard lose its popular in
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this middle period but public showed enormous support as #ISO14001dronelogistics got 6101
tweets i.e. the highest. #GRIdronelogistics also gained popularity as it also deal with issues
which are affecting climate change. Data is collected between 2nd to 6th October. The chances of
biasness was negligible in the whole process. Beside this issue of pollution, most of the people
are excited about this innovation. The future of drone delivery is still uncertain but it will give
some extra edge to companies who will implement this idea in their business.
Drone can be used as delivery system because it is economically sustainable. Drone does
not occur any kind of pollution it can easily get approval in from government of various nations.
Their manufacturing cost is not high and they can reduce huge amount of expenses which
currently companies are spending on logistics. If price of this kind of technology is high then
enterprises would not like to use it in their organisation but this will reduce their importance. The
concept of delivery through drone will last for a long time because it can increase the profit of a
corporation.
The number of tweets in first month was 6000, in next month it went to 7500 and in third
month it was 10000. This clearly shows that people were excited about the concept of drone
delivery.
5

Interest of people regrading to drone delivery get enhanced every month. They arte of
increment is also positive.
6

Economical sustainability is topic which easily get attention of various people. Most of
the people are concern about environment and society. This is the prime reason increased
number of tweets.
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