Innovation Challenge Report: Corporate Social Responsibility at M&S

This report analyzes the innovation challenge faced by Marks & Spencer (M&S), a UK-based retail firm, focusing on corporate social responsibility, sustainability, and industry challenges. It examines the drivers behind M&S's decision to replace plastic packaging with organic paper, addressing environmental concerns and enhancing brand image. The report delves into sources of innovative ideas, utilizing Drucker's Seven Sources of Innovative Opportunity, and explores the application of a strategic innovation model based on Brainstilling, Brainstorming, and Brainstilling. Furthermore, it discusses suitable leadership approaches, including authoritarian and participative leadership, to ensure successful implementation of the organic packaging initiative. The report also covers the formulation of an innovation implementation approach, emphasizing the benefits of organic packaging for enhancing business performance, sustainability, and customer satisfaction.

THE INNOVATION
CHALLENGE

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Corporate social responsibility, sustainability and industry challenge in need of an innovation
response.......................................................................................................................................3
Sources of ideas which can influence the development of innovation and creative solution.....4
Strategic innovation model.........................................................................................................6
Most suitable leadership approaches...........................................................................................7
Formulation of innovation implementation approach.................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation refers to the modifications or changes in the existing ideas, products,
processes etc. so that the business firms can cater the increasing demand and needs of their
customers. Innovation is very essential for the companies in order to enhance the satisfaction and
experience of their customers which will assist the company in achieving sustainability at the
workplace. Also firms can improve their productivity and performance in the market by using
the assistance from innovative ideas. The taken firm for this assessment is Marks and Spencer
which is a UK based retail firm having operations throughout the globe. This assignment will
cover the corporate social responsibility, sustainability and industry challenge in need of an
innovation response. Further sources of ideas which can influence the development of innovation
and creative solution will be discussed. Application of the strategic innovation model along with
the most suitable leadership approach for the innovation response proposed will be done in the
end.
Main body
Corporate social responsibility, sustainability and industry challenge in need of an innovation
response
M&S is a global retail firm based in UK. Due to operating the business at global level,
company needs to consider several factors such as corporate social responsibility, sustainability
and industry challenge so that their response for the innovation can be acquired by the firm
(Blackwell and Eilon, 2013). These factors drives the innovation too due to which the company
has decided to modify their existing plastic packaging by replacing it with organic paper so that
company can enhance their performance and productivity. This innovative product is chosen by
the company after analysing that the people and the retail industry is facing environmental
concern. These factors are discussed below:
Corporate social responsibility: It refers to the activities of an organisation for improving
the life standard and living standard of the local people of the destination in which the business is
performing their operations. This factors drives the innovation as company faces various issues
in performing the corporate social responsibility activities due to which they could not be able to
perform the CSR activities in an effective manner. This new packaging will allow the M&S to

perform the CSR activities as company can hire the local people for developing the paper
packets which can be used for packing the products due to which local job opportunities will
enhance.
Sustainability: It refers to the process through which an organisation can perform its
operations and function in the market for a long period of time. This factor also drives the
innovation as if any firm wants to sustain in the market then they needs to develop effective
products and services through which customer satisfaction can be enhanced (Carayannis, Barth
and Campbell, 2012). M&S developed the concept of new packaging in response of this factor
due to which company can protect the environment as well as can provide the products to the
customers in an effective manner. This will also reduce the cost of company in packaging which
can be used for other business purposes so that sustainability can be achieved at the workplace.
Industry challenge: This is the term which is used by the business firms for showing the
competitive rivalry and issues which are faced by the business organisations in their industry.
Retail industry is facing various issues associated with the environment protection as they
generates more pollution and wastage in the environment while performing the business
functions. The company has decided to use the organic packaging in response of the
environmental concerns faced by the retail industry. This organic or paper packaging will reduce
the use of plastic in the business performance which will reduce the pollution done by the retail
firms in performing the business operations.
Through these above discussed factors, it can be said that the M&S is implementing the
organic packaging for enhancing their business performance and productivity which can be
achieved by improving their brand image in the market. The company has taken this initiative for
reducing the impact of their operations on the nature due to which customers will appreciate the
firm for the same. Through this new packaging, M&S can fulfil the different requirements of the
corporate social responsibility, sustainability and industry challenge so that productivity and
sales of the products can be enhanced which will also enhance the profitability of the firm.
Sources of ideas which can influence the development of innovation and creative solution
New ideas for modification in the business are generated based on the recent trends an
changes in different factors of the business environment. These ideas can provide higher
competitive edge to the firm in the market place over the competitors. These ideas can be

grasped from different sources. For determining these sources, Drucker's Seven Sources of
Innovative Opportunity is being taken which was published in the Drucker's famous book
Innovation and Entrepreneurship (Faaij, Jager and Kok, 2013). This book provides the different
sources of innovation and creative solution which is discussed below:
 The Unexpected: There are various unexpected situations exist in the market which can
pose threat for the sustainability of the company at the marketplace. These unexpected
situations are seen as opportunities by the M&S due to which managers of the M&S got
the inspiration to deal with such situations through innovative ideas and solutions.
Through this aspect of Drucker model, M&S can gain more productive and better results
from these unexpected situations so that better ideas can be developed along with the
solutions for overcoming these situations.
 Incongruities: The success or failure of any firm depends upon the way through which
products and services are provided to the customers. Incongruities means inconsistency
which can impact the business of M&S in implementing the new packaging. For this,
M&S is conducting the market research so that better and innovative ideas can be
developed for determining the suitable manner through which products can be provided
to the customers. BY this, M&S can determine the incongruity of new packaging so that
proper modifications can be done by using the innovative ideas and challenges.
 Process Needs: This is also an essential source for the innovative ideas in which the
managers of M&S determine the new and innovative ideas for fulfilling the potential
gaps in the various organisational processes for achieving the organisational goals. After
determining the gaps, company can determine the suitable idea or solution for closing the
gap so that better growth can be achieved through this new packaging in future time.
 Industry and market structure change: The competition in the retail industry is
increasing due to the availability of large number of firms. Due to this competition,
organisations needs to develop new and innovative solutions for staying ahead of the
competitors as well as manage the changes in industry and market. Through this, M&S
can perform its business functions effectively through implementing the organic
packaging in the products (Gaskell and et. al., 2013).

 Demographic: This is also an essential source of innovative ideas as change in
demographics directly impact the profit and sales of the company. The company needs to
search for new ideas so that the changes in demographics can be managed for eliminating
their negative impact in order to achieve the sustainability. Managers at M&S are
brainstorming the innovative solutions for managing the changing demographics so that
success can be achieved by the company through organic packaging.
 Change in Perception: This also impacts the firms as preferences and perception of the
customers changes with trends. This can impact the business of M&S as the sales and
profit of the firm can also influence. For this, M&S needs to determine the changes in
perceptions of the customers so that the modifications can be done accordingly. This can
be done by generating new ideas so that customer satisfaction can be enhanced along
with the experience.
 New Knowledge: This is also a source of ideas as new knowledge brings new ideas which
can be used by the firms for enhancing their growth and success. Through these new
ideas, new packaging in the products can be done in an effective manner so that the
customer satisfaction and experience can be enhanced through which company can
achieve their organisational goals.
These sources of ideas are helpful for the firms in determining the changes so that new
ideas and solutions can be generated for achieving the sustainability at the market place. The
company can enhance their performance and productivity from these sources as new and
innovative ideas and solutions are provided to the employees for effectively managing the
development of new products
Strategic innovation model
Strategic innovation is the process of reinventing or redesigning the strategies of an
organisation in order to drive business growth as well as to generate value for the company and
its various stakeholders so that firm can achieve competitive advantage. In order to develop a
strategic innovation model, 3b's of the innovation creativity model has been used in this section
which is beneficial in generating new innovative ideas (3Bs of Strategic Creativity, 2016). These
3 b includes Brainstilling, Brainstorming, Brainstilling which are discussed below:

Brainstilling: It is the process of stilling the brain so that better and wide picture can be
developed for assessing the impact of new ideas. If favourable result are gained then idea can be
implemented otherwise rejected. In this stage, managers of M&S determines the ideas through
which organisation can achieve the sustainability as well as improved performance.
Brainstorming: It is the process of producing better ideas from the different persons of
organisation so that more number of ideas can be gathered for implementing in the business
process. In this stage, managers of M&S gathers the suggestions from their employees so that
proper and suitable idea can be selected for improving the performance and productivity.
Brainstilling: It is the last stage of this model in which managers evaluate and analyse
the selected idea so that proper and appropriate results can be obtained (Tidd and Bessant, 2018).
In this stage, managers of the M&S evaluate their chosen idea of implementing the paper
packaging in their products rather then using the same old plastic packaging. This idea is selected
by the managers of M&S after determining that paper packaging reduces the industrial waste as
it can degrade with time in the soil which will also support their protect the environment
campaign.
Through this 3b of innovation creativity model, M&S can develop the proper idea which
is paper packaging so that it can be implemented in the business process and products. Through
this packaging, company can reduce their cost of plastic usage as paper is comparatively cheaper
then plastic.
Most suitable leadership approaches
There are various leadership approaches which can be used by the managers or leaders in
order to ensure the successful implementation of the organic packaging. Through these
approaches, the managers can ensure that proper support and guidance is provided to the
employees so that they can perform their work for improving the sustainability and performance
of the company. Some of these are discussed below:
Authoritarian leadership: This approach of leadership is useful for the M&S managers
through which they can develop effective strategies and took the decisions themselves and
demand compliance from the employees (Lawton and Katsomitros, 2012). Through this, the
managers can take quick decisions for implementing the organic packaging in the business when

the situation is particularly stressful. This style is useful in taking quick decisions in which no
time should be taken.
Participative Leadership: This approach of leadership states that the managers needs to
consider the views of their employees in decision making so that better decisions can be taken
(Smith, Fressoli and Thomas, 2014). This approach can be used by the managers of M&S in
implementing the organic packaging in the products provided to the customers. Through this
style, employees can give their suggestions and ideas for implementing the project in proper
manner so that complications can be avoided. Through this style, productivity of the employees
can enhance which will also enhance the chances of successful implementation of the organic
packaging.
Transformational Leadership Style: This approach of leadership is also essential for the
managers and leaders which was first described in the late 1970s. Through this approach,
managers and leaders can motivate their employees and team members for bringing more efforts
in the organisational functions (Phelps, 2013). This approach is beneficial for the managers of
M&S in motivating their employees who are engaged in the production of new packaging. The
managers of M&S are emotionally intelligent, energetic, and passionate and are committed to the
organisation in achieving its goals. Through these qualities, they can motivate their employees so
that they can achieve higher performance for the success of new packaging in the products.
These approaches of leadership are very beneficial for the M&S managers in ensuring the
success of this project so that performance can be achieved. However suitable leadership
approach for the firm is participative leadership style in which they can gather the views and
suggestions of their employees so that high productivity and growth can be achieved.
Formulation of innovation implementation approach
In order to implement the innovation in the business functions, M&S can use the 3 steps
which are used for innovation implementation. Through these 3 steps, M&S can ensure whether
their innovation will sustain in the market or not (3 Key Steps to Go from Innovation to
Implementation, 2018). These three steps of the innovation implementation are as follows:
Identify the innovation: In this first step, organisation i.e. M&S needs to determine the
importance of new innovation in terms of solving the present issues and challenges. They needs
to determine the benefits of the new innovation so that success can be ensured. The organic

packaging is beneficial for the company in reducing the impact of their business operations on
the environment which is the major concern for the retail firms (Owen, Bessant and Heintz,
2013). Through this new packaging, M&S can also perform their CSR activities in proper
manner by increasing the employment opportunities for local people as the paper packets are
provided by them.
Involvement of right people: In this second step, the company needs to determine the
right people who are capable of developing the organic packets so that the size can be developed
according to the quantity of the products. Also the company needs to provide the related
information to these employees and other stakeholders for gathering their ideas and concerns
regarding the implementation.
Testing and evaluation: It is the last stage in which the managers of the M&S monitor
the overall process of implementing the innovation from the development to the implementation.
The managers can use the measurable standards such as KPI for re-evaluating the short and long
term goals which will be accomplished through the new innovation (Panopoulos and Sarri,
2013). Sample is developed first in this stage which upon success will be developed at large
scale.
CONCLUSION
From above report, it is concluded that the firms needs to determine the factors for which
innovation can be done in order to enhance the profit and sales of the company. The companies
needs to determine the sources of ideas so that proper innovative ideas can be developed. Firms
also needs to apply the innovation models along with suitable leadership approaches for ensuring
the growth. Effective innovation implementation approach is useful for implementing the
innovation in successful manner

REFERENCES
Books and Journals
Blackwell, B. and Eilon, S., 2013. The global challenge of innovation. Elsevier.
Carayannis, E.G., Barth, T.D. and Campbell, D.F., 2012. The Quintuple Helix innovation model:
global warming as a challenge and driver for innovation. Journal of innovation and
entrepreneurship. 1(1). p.2.
Faaij, A., Jager, D. and Kok, M. eds., 2013. Global warming and social innovation: the
challenge of a climate neutral society. Routledge.
Gaskell and et. al., 2013. Publics and biobanks: Pan-European diversity and the challenge of
responsible innovation. European Journal of Human Genetics. 21(1). p.14.
Lawton, W. and Katsomitros, A., 2012. MOOCs and disruptive innovation: The challenge to HE
business models. London: Observatory on Borderless Higher Education.
Owen, R.J., Bessant, J.R. and Heintz, M. eds., 2013. Responsible innovation (Vol. 104).
Chichester: Wiley.
Panopoulos, A.P. and Sarri, K., 2013. E-mentoring: The adoption process and innovation
challenge. International Journal of Information Management. 33(1). pp.217-226.
Phelps, E.S., 2013. Mass flourishing: How grassroots innovation created jobs, challenge, and
change. Princeton University Press.
Smith, A., Fressoli, M. and Thomas, H., 2014. Grassroots innovation movements: challenges and
contributions. Journal of Cleaner Production. 63. pp.114-124.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Online:
3 Key Steps to Go from Innovation to Implementation. 2018. [Online].
Available through: <https://www.naylor.com/associationadviser/3-steps-innovation-to-
implementation/>
3Bs of Strategic Creativity. 2016. [Online]. Available through:
<http://kotelnikov.biz/coach/creativity_strategic_3b.html>