Kingfisher Plc: Business Environment and Technology Impact Report

This report examines the business environment of Kingfisher Plc, a British multinational retailing company. It analyzes the impacts of innovation and technology on sales, profit, and growth, highlighting improvements in productivity, customer retention, communication, and customer base expansion. The report also discusses the importance of Corporate Social Responsibility (CSR) and applies Archie Carroll's CSR model to Kingfisher, covering economic, legal, ethical, and philanthropic responsibilities. The analysis demonstrates how Kingfisher can leverage technology and CSR to enhance its performance and maintain a competitive edge in the market, especially in the face of challenges like the COVID-19 pandemic. The report emphasizes the benefits of technology in streamlining operations, improving employee productivity, and broadening market reach, alongside the significance of sustainable practices and ethical considerations in fostering long-term success.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impacts of innovation and technology on sales, profit and growth of Kingfisher Plc................1
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment is a collection of internal and external factors such as technology, supply
and demand of products, customers, political factors and others (Čepel and et.al., 2018). It affects
performance and sales of company. This present study is based on Kingfisher Plc that is a British
multinational retailing company, founded in the year of 1982. This study is going to show
importance and benefits of technology and innovation in performance of company. Technology
is one of the effective external environmental factors that is affecting performance, sales and
growth of companies in critical manner. Further, it will discuss importance of managing
sustainability and CSR that make companies able in increasing performance, productivity and
sales.
TASK 1
Impacts of innovation and technology on sales, profit and growth of Kingfisher Plc
Innovation and technology plays a vital role in the growth and sales of companies because
technology makes companies able in performing functions in a timely and effective manner.
There is no requirement of man power as with the help of innovation and technology they can
provide services to customers easily and effectively. In regards to Kingfisher Plc it can be said
that it is an international home improvement company as it has around 1360 stores in total 9
countries. It is famous for its qualitative home improvement products such as: home appliances,
tools, home furnishing and others. There are several companies of different sectors that make use
of technology and innovation and with the help of advanced technology in its functions, it
attracts customers and increase their experience. There are some advantages and reasons that
show that how innovation and technology can help Kingfisher in growth and sales such as:
Improves productivity: Technology and innovation helps Kingfisher in providing qualitative
and attractive products to customers. When customers receive unique products then it makes
them feel valued and they are more likely to stay with the company for the long run. By making
use of technologies in marketing functions, home delivery of products, online booking of product
s and making use of tools like total quality management, six sigma and others, they can reduce
errors and can improve performance (Aristi Capetillo, 2020). Improved performance of
employees leads to productivity. So, it can be said that this improved productivity and
performance can increase sales and make them able to grow business.
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Increase customers retention rate: By making use of technology like algorithm that can solve
queries of customers can also makes them feel valued. When customers receive appropriate
solutions in an effective and timely manner then they are more likely to buy products with the
company and stay with them. It increases customers retention rate and improves image in the
eyes of stakeholders. Improved image and increased staff retention rate leads to increased profit
margin, sales and revenue. It can also help them out in taking competitive advantages and
making an effective position in the market. Due to Covid-19 and lockdown companies are facing
problems in being in the competition and attracting customers. It has affected sales and growth of
companies including Kingfisher Plc. But by making use of technologies and innovation, it can
provide unique and innovative products to customers that can make it able in attracting
customers. Innovation and technology also makes this company able to have an effective
position and increasing sales (Tabeshian, 2018).
Improves communication: It is found that Kingfisher operates in around 9 countries so, it is
important for this company to have an effective communication mode for making employees
aware about effectiveness of tasks. By making use of technology and others modes of
communication like social media platforms, mobile phones, web camera and others, company
can communicate with employees with remote area. It can held online meetings or video
conferencing by making use of web camera. It saves their time and cost and can allow them to
communicate with employees and reducing miscommunication (Lee, Leem and Bae, 2018). Due
to lack of technology, it is not possible to communicate and interact with employees in different
countries in an effective manner and it can leads to miscommunication as well as errors on tasks.
With video conferencing and communication via mobile phones and others, employers can
provide detailed information to employees in other countries that can help them out in
completing tasks.
Broaden customers’ base: Technology allows business or companies to reach new economic
market and attracting customers. Rather than just selling customers goods in the local market,
Kingfisher and other companies can reach regional, national and international market. Retail
website is known as one of the best and effective ways of selling products in different economic
markets. Website represents low cost option and it is beneficial for consumer as they can access
24*7 when they require purchasing goods and products of company. By making use of internet
services and internet advertising in reaching to new markets and attracting global customers. So,
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it can be said that it increases customers’ base that can help company in increasing profit margin,
sales and revenue as well.
Increases employees productivity: Kingfisher has 1300 stores with around 79000 employees
and it is important for this company to satisfy needs of all employees for retaining them and
making them able to increase performance. Employees are one of the most important resources
of the company and they can only help company in accomplishing goals and it is possible only
when, employees are satisfied, motivated and improve productivity. Computer program and
business software allow employees to process detailed and more information than manual
methods. It saves their time and they can perform several tasks at once by making use of
technology that can increase their performance and productivity. Improved performance boost
their confidence that is beneficial for both employees and employers and it can increase sales,
profit margin and allow company in developing business.
So, from the above discussed effectiveness and benefits of technology it can be said that it can
help Kingfisher in increasing sales and revenue. It has made life easier and has changed the
way of performing functions (Miftari, 2018).
Task 2
A. Analysis the importance of CSR
Corporate Social Responsibility – As per the Business Council CSR is consistent commitment
through business in order to contributes the economic development that enhances the
workforce life quality as well as their family members. Beyond the profit CSR focuses on
how business can be advantageous to the whole community (Alotaibi, and Liu, 2017).
In other words Over the time CSR evolved in order to becomes Corporate Sustainability as it as
it describes how a business operates culturally as well as environmental (Aribawa, 2016).
Sustainable needs a firm to look externally and internally in order to understand their social
and environmental impacts. Kingfisher educates their workers to do right things, follow
business ethics, seek energy efficiency and waste reduction as well as form green teams.
They also engage Stakeholder including suppliers, consumers as well as NGO.
The establishment of a CSR strategy is considered as a vital component of a firm’s
Kingfisher has a strong ambition in order to become leading home improvement as well as
accessible for each and everyone. It mainly highlights on consumers as putting consumer as
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the way one our shelves in order to run the business. Research focuses on its consumer
prefer durable environmental and economical friendly goods as unable to like the
complicated goods. Thus One kingfisher is also created to be core firm of the firm.
Environmental deterioration issues is one of the vital issues within every nation as well as
Kingfisher realizes its goods and products may have negative impacts on society and
environment. Developing and modifying realizes its firm strategy that are occurs in order to
reduce the risk as well as damage the firm more efficiently. Almost of the CSR activities of
the firm are included regarding the improvement of the firm (Miftari, 2018).
Through searching the behavior of the consumer as well as requirement and needs firm realizes
that sustainable goods and reasonable prices are needs of the consumer. Thus firm offers
various energy as well as water saving goods from water tap to the LED bulbs in order to
save the consumer’s money by utilizing its goods (Aribawa, 2016). Thus the consumers will
capable of buy goods. Also the firm has to cut its carbon footprint through 10 percent.
Similarly Kingfisher also set their actions as long term target. As Kingfisher done this so
that assits its consumers in order to pay less bills. The firm relatively accomplish its
purposes well.
Creates a healthier home as well as connects through nature.
Kingfisher not only care regarding deforestation and economical products but also focuses on
healthy air for consumer’s home. The firm claims about the utilizing pain products that
contains volatile organic compounds and hence contributes such as problem like asthma as
well as air in home can influence person’s health more than outside. From such activity of
CSR creates a healthy home as it appears to be more subjective as well as difficult to
measure the progress as well as outcome. As per the sustainable growth Plan as it claims that
activity can be measured through its own methods (Gaur,. and Jasmin, 2017).
B. Apply Archie Carroll’s ( 1991) CSR model to chosen firm
Every firm is having certain social responsibility towards society. They need to fulfil those
responsibilities otherwise it may impact on their reputation. Thus, it is necessary for Kingfisher
to engage in various CSR practices so that they are able to contribute towards society. Besides
that, it enables in creating a good brad image in market and in minds of customers as well.
generally, CSR practice enable firm to fulfill their social responsibilities. However, there are
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various CSR models which is available and that can be applied by Kingfisher. but the most
effective and common model is Archie Carroll’s (1991) CSR model. he provide a framework to
organization regarding how they can fulfill social responsibilities. The feature of this model is
that it says profit must cam first and then business need to comply with laws and regulations.
Moreover, before fulfilling philanthropic duty firm must fulfill ethical duties. In this there are 4
levels which can be applied be Kingfisher as well. they are explained as below
Economic- this is first level which is related to generation of profits. So, it state that Kingfisher
must generate profits in ethical and legal way. They should do that by finding out different
ways of generate profit that is legally accepted by society (Fabus, 2018).
Legal - As name show it is related to laws and regulations to be followed in conducting their
business operations. There are several rules set by society and it is required for Kingfisher to
follow and adhere that rules. Moreover, other countries as well rules must be adhered.
Ethical – here, it state that company must act in moral and ethical way. They should not do
things which goes beyond requirements. In addition, Kingfisher must avoid doing any harm to
public, society as well as employees.
Philanthropic – it state that Kingfisher should contribute resources to the community and
improve the quality of the life of the people by fulfilling their needs and act as a good corporate
citizen. Furthermore, they operate around the world are trying to maximise their profits, and
generate profit but Kingfisher need to be aware that there are some responsibilities which should
be fulfilled, for them it is important to operate in a manner consistent with maximising earnings
per share. Similarly, Kingfisher must also give some charity and donations to meet society
needs.
Thus, in this way Kingfisher can follow this model and get engage in various CSR
practices. It will help in fulfilling society needs and improving their lifestyle. Along with
that, company can also create a good image in minds of people through it. for example-
they can start charitable trust and NGO’s. also, they can contribute in other programs as
well. with that it will be easy for to solve CSR issues faced. Besides, by following
framework of model Kingfisher can initiate CSR practices. At all levels varied practices can
be formed and followed in effective way. This will be useful in sustaining for long term in
community (Bashir,. and Verma, 2017)
.
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CONCLUSION
From the above it had concluded that Innovation and technology able in performing
functions in effective manner. It is famous for its qualitative home improvement products such
as: home appliances, tools, home furnishing. Improves productivity receive unique products
likely to stay with the company for the long run and reduce errors and can improve performance
It increases customers retention rate, leads to increased profit margin, sales and revenue.
Improves communication such as use of technology like social media platforms, web camera
can communicate with employees such as held online meetings, interact with employees in
different countries via mobile phones. Broaden customers’ base that enables business in the
local market can reach regional and international market. Increases employees productivity and
only possible when, employees are motivated, satisfied can perform several tasks for both
employees and employers. Report also focused on CSR importance such as enhances the
workforce to contributes the economic development to understand their social environmental
impacts Developing strategy to reduce the risk regarding the improvement within the firm. As
Kingfisher connects through nature creates a healthy home to measure the
progress.
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REFERENCES
Books and Journals
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solutions. Enterprise Information Systems, 11(8), pp.1119-1153.
Aribawa, D., 2016. E-commerce strategic business environment analysis in
Indonesia. International Journal of Economics and Financial Issues, 6(6S).
Aristi Capetillo, A., 2020. Sustainability-Driven Innovation and Financial Performance: How
does it pay to be green?.
Bashir, M. and Verma, R., 2017. Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), p.7.
Čepel, M. and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Eikelmann, N., 2020. Application and Value Relevance of Value Based Performance Measures in
Europe. In Value Based Performance Measures (pp. 169-259). Springer Gabler, Wiesbaden.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues, 7(4).
Gaur, A.D. and Jasmin, P., 2017. Ease of Doing Business in India: Challenges & Road Ahead.
In International Conference on Technology and Business Management (pp. 77-84).
Lee, S.H., Leem, C.S. and Bae, D.J., 2018. The impact of technology capability, human
resources, internationalization, market resources, and customer satisfaction on annual
sales growth rates of Korean software firms. Information Technology and
Management. 19(3). pp.171-184.
Miftari, V., 2018. Transformational leadership communication in developing countries’ business
environment. Journal of History Culture and Art Research, 7(2), pp.259-264.
Tabeshian, A., 2018. Effects of brexit on the financial markets-an empirical study using event
study methodology and garch models (Master's thesis, NTNU).
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