Business Environment Report: Impact of Tech & CSR on Next PLC Sales

This report provides a comprehensive analysis of the business environment, focusing on the impacts of innovation and technology on a company's sales, profits, and growth, with a specific case study on Next PLC, a British multinational retailer. The report delves into how innovation and technology, including AI, machine learning, and other digital tools, influence business operations, customer relationships, and market positioning. It examines the economic impact of technological advancements and the role of corporate social responsibility (CSR) in business strategy, evaluating its importance for the organization and explaining Archie Carroll’s CSR model. The report includes an assessment of how Next PLC uses new technologies, comparing sales and profits before and after technology implementation, and discussing the impact of technology on the company's communication, globalization, and operational efficiency. It also addresses challenges such as lack of knowledge, pace of change, and funding in adapting new technologies. The report concludes with a summary of how the selected company employs technology in its operations and its implications on the business environment.

Business Environment

EXECUTIVE SUMMARY
The business environment includes external power conditions and structures outside the
management of the organisation which influence the operation of company. Innovation and
technological development are needed to increase progress and prosperity in the future. The
significance of corporate social responsibility of enterprise and they follow Archie Carroll’s
(1991) CSR model in this project.

Table of Contents
INTRODUCTION.................................................................................................................................4
MAIN BODY........................................................................................................................................4
TASK 1.................................................................................................................................................4
Assess the impacts of innovation and technology and how it has affected the sales, profits and
growth of one of the following companies........................................................................................4
TASK 2.................................................................................................................................................7
Evaluate the importance of Corporate Social Responsibility (CSR) for the same organisation.........7
Explanations of Archie Carroll’s Pyramid of CSR............................................................................8
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
The term business environment refers to all individuals, organisation and other factors
beyond the control of business which influence their development (Abuselidze and Gogitidze,
2020). The importance of this is to improve efficiency, help with scheduling, address issues
related, help in the development of useable assets and enables then investment opportunities
to be seen. In addition to this, environmental sensitivity may be an emergency alert and signal
for administrator to detect different risks on time which helps them to make planning for
future and decision making. However, it includes clients, vendors, public, educational, legal
and many more. Next PLC is considered in this report. It is a British multinational company
which provide various products and services such as footwear, clothing and home care goods.
The headquarters of this enterprise is in Enderby, England, UK and is founded by Joseph
Hepworth in year 1864. This report covers innovation and technology which impacts the
company sales, growth and profit, importance of corporate social responsibility along with
the model of CSR which is Archie Carroll’s model.
MAIN BODY
TASK 1
A corporation is a legal body comprising a group of persons engaged in and running a
corporate or industrial undertaking. It is also possible to differentiate between private and
public corporations. Both have various ownership arrangements, rules and standards for
financial statements. A corporation is an entity or a company licenced under the company's
law. It can be a restricted or unrestricted undertaking, private or public entity, a limited
undertaking or a joint-stock corporation. Next Plc is a type of public limited company. It is a
public corporation type, according to United Kingdom statute, some territories in the
Commonwealth and the Republic of Ireland.
Assess the impacts of innovation and technology and how it has affected the sales, profits and
growth of one of the following companies.
Innovation and technology is for various tasks and works in an effective manner. It is
the way which directly impacts the firm’s development and revenue in the future. Innovation
is a crucial business goal to help them to remain in competitive position. In context to Next
PLC, they bring creative ideas which contribute to the mobilisation of person expertise and

experience and to create innovating products and services to improve and minimize cost of
work. They insist on raising its turnover while buying linked to creativity. Innovation and
technology have contributed to the economic growth of the country which is mentioned
below:
 Improve customer relationship: It is important for successful business to introduce
creativity in efforts to keep supreme relations with customers. In context to Next PLC
managing committee works on changing products or services that contribute to
growing the organisations revenue and profitability in future (Akhtar and Sushil,
2018).
 Minimize waste and cost: Innovation helps to reduce waste in corporate
organisations and enhances the successful achievement of mission and goal.
Innovation continues to make corporate organisation more efficient in the future. Next
PLC focuses on providing creativity that helps them to eliminate duplication for the
best use which lead to reduced costs and better profitability to achieve sustainable
advantages over industry competition.
 Develop market position: Innovation will take anticipation of improvements in the
market in an adequate way and take advantage of opportunities in the future. Next
PLC's managing team distinguishes the commodity from its competition by
introducing creativity in enterprises that contribute to the business's brand name and
reputation on the industry. It helps to evaluate marketing trends, to listen to users,
consultants, suppliers and carry out competitive company analysis, which takes the
opportunity to carry out their work (Burke and Cowling, 2020)
 Improve worker relations: Fostering satisfaction in products and seeking to decrease
sales and increase production in the future. This will boost Next PLC's success and
prosperity in the future. It is thus beneficial to maintain a decent relationship with its
employers in order to carry out various tasks and operations properly.
In the enterprise, the technology performs a significant function which directly impacts
the business revenue and earnings. It is important to incorporate the most up to date
technologies to best serve the users to enhance their service in future. A technology is
continuously changing and integrates team of Next PLC making efforts on technology to
properly run its operations. The selected organisation that employs creative technology helps
to increase competitiveness and achieve comparative dominance over competing companies
on market. Technology primary function is to increase performance as well as growth that

contribute to competitiveness. There are various technologies which are adapted by Next
PLC such as Artificial intelligence, machine learning, internet of things, block chain as well
as autonomous database which helps them to develop their business performance and
productivity (Dima and Meghisan-Toma, 2018). Inventory demand is predicted by machine
learning algorithms which helps them to cut waste and production prices. In general,
Artificial intelligence for appeal transforms the production and manufactures the goods and
whether they are sold and delivered to the customer. First clothing with the “smart stickers”
was mostly created in the form of QR codes which are logged and traced on a block chain.
The following are the roles of technological change in economic progress which is as:
 Business communication: Technology improves communication of selected
company for the better performance of enterprise. The information technology
encourages company to remain linked over a period of time to improve production
and productivity.
 Globalization: Modern technology contributes to innovations or improvement in
goods or services in order to revise processes for conducting business process. The
technology continues to push globalization to a higher degree from which Next PLC
is operating its company that will support growth and development in upcoming
decades.
 Efficient operations: Technological is capable of improving business processes and
activities. In effective generation of processes, it is assessed that software is very
relevant. It may help to reduce mistakes, job times and accelerate the accomplishment
of such tasks. In connection to Next PLC, the manager reflects on the use of
productive technologies to help increase organisational performance and
development.
The financial and ICT issues for key business functions
 Lack of knowledge: When entity adapts ICT system in their business as in initially
no one has proper skills and knowledge which is needed for the business activities. In
context to Next PLC, the management of enterprise has used this technology then they
have many problems to use this for the functions (Hamilton and Webster, 2018).
 Pace of change: New methods of dealing in corporate structures are extremely
complex to formulate as they are completely opposite from the established order and
demand a change in policy and expertise in organisation.

 Funding: The proper coordination and funding of ICT use in development
programme in selected enterprise is still a major problem. Financing and pressures to
reduce the overhead and administrative expenses also make it impossible for them to
prepare adequately as core ability for expansion projects.
When the Next PLC has introduced their new products in year 2019 then the sales and
profit of that year was £ 3,917.10 million and profit £ 599.10 million and after innovating
new technology in their business it increase their sales and profit as the customers are
buying more and make decisions to purchase from their brands. However, the sales in the
year is £ 3997.50 million and profit £ 610.20 million. By attract5ing customers in market
place, improving promotion and advertising campaigns, evaluating cost structure which
helps organisation to increase their income in business. On the other hand, various
business plans helps management of Next PLC to maximize the sales and profit of
enterprise.
Understanding, demonstrating economic impact on a country
Technology has profoundly impacted the world economy and its use has been related to
industry change, increased quality of living and stronger foreign exchange. Technological
progress has increased processes dramatically and reduced market costs. However, this
outcome for the nation's technological economic effects. Technology may save time, by
adding to a total benefit of a company, to the production of a product or service. Technology
may improve the productivity of a company's production rate and allow the moving or
rendering of increased efficiency and productivity. The technologic transformation
effects the transforming immensely in the way firms and countries coordinate their
manufacture, exchange products, spend their money and build new and innovative products
into international economic framework. Technology is commonly recognised as the primary
engine of nation, regional and city industrial development Technological innovation makes
even more improved products and services produced more efficiently which relies on growth.
Employment, unemployment with the technology
Digital technology growth and transformation will lead, due to rapid automation, to systemic
unemployment throughout many sectors. The use of emerging technology reveals the need
for skills, not education, is increased. Technology has expanded the rates of productivity and
frequency where enterprise is taking place significantly, both in production as well as in

connectivity. Organizational technology has enabled employees become even more
successful. Technical advances allow lower prices to result, technological unemployment is a
direct consequence of innovation. It notes that technical innovation does not induce a long-
term rise in unemployment, but developments in technology are affecting the types of work
available.
How business organization use new technology in their operations.
For example Amazon, the latest example of this dedication in the logistics sector, on
consideration of their staff and the clients, is the launch of Amazon Robotics in UK in the
new completion hubs in Dunstable, Duncaster, Manchester and Warrington. The robots are
sliding behind a structure of racks where they are stored and they are being lifted from the
centre. Robots help to accelerate the delivery time of purchases and reduce the way workers
move around the racks, make it easier to store goods for sale or collect new orders from the
customers. The Amazon satisfaction teams are committed to innovative distribution speeds in
our production facilities while allowing the consumers to choose more at lower prices. All
three of these consumer wishes were affected by the developments in their new centres, while
also providing a job atmosphere perfect for the staff.
Introduction of Next Plc
Next plc is a British international manufacturer of clothes, boots and home goods based in
Enderby, UK. There are about 700 supermarkets, around 500 in UK and about 200 in Europe,
Asia and the Middle East. There are 300 shops. Next is the United Kingdom's leading clothes
retailer, with Marks & Spencer overwhelmed early in 2012 and 2014. It is a member of the
FTSE 100 Index, and listed on a Stock Exchange. In 1864 the firm was established as a
designer under its name of Joseph Hepworth & Son by Joseph Hepworth, in Leeds. Hepworth
was originally in alliance with James Rhodes, but in 1872 the collaboration was broken.
Hepworth himself quickly developed the business and was a leader of large chains production
in England. By 1884, 100 outlets were available. Hepworth has been on the prepared dress
market for most of his history. The firm brought Hardy Amies in 1963 to reinforce its ready-
to-wear fashion line in Savile Row's famous artist.
The impact on sales with using technology
The Next Plc before adapting technology they have no such profit and impacts the sales of
the company. On the other hand, affect adapting technology they have increase their business

performance and sales. In order to increase the quality and reliability of different working
procedures, organisations implement emerging innovations. Bad investment decisions can
trigger not only revenue damage but also employee frustration. Technology offers companies
the opportunity to attract and expand revenue to new clients. Many technology forms will
affect a company's sales operation. Examples cover digital communications, e-commerce,
social networking sites and ways of payment.
Discover Next plc. its corporate and infrastructure managers, and the new software
acquisitions and digital development projects. The next 28545 Next plc. workers from the
public identify on again and cloud apps per year. Their database gives user insights and
qualitative knowledge on the company's software and applications. Next plc will be able to
invest more to strengthen its partnership with Oracle, United Nations 4, Kronos, or to find
new vendors as part of its broader project to compete effectively with digital and IT
transition, to prevent risks from emerging forces or to fulfil inner requirements in order to
increase corporate efficiency.
The Next Plc trained their employees and motivate at workplace.
Training at this stage is necessary because skilled and professional employees are normally
able to prepare and put it into action in order to gain competitive benefits. The Next Plc has
undergone preparation and growth workshops for the recruiting and transfer of skills on the
job. The community or atmosphere of company is another means of transferring information
in workplaces. This approach motivates workers to gather knowledge to grasp the job. In
order to promote a good market, it's vital to us to build an atmosphere in which we recruit and
maintain the best people across Next Plc who function closely and value our integrity,
appreciation and motivation strategy.
TASK 2
Evaluate the importance of Corporate Social Responsibility (CSR) for the same organisation
Corporate governance is the mixture of policies, procedures or laws that oversee manage and
influence enterprise. Corporate social responsibility is a management philosophy that
companies the problem of environmental and social into the activities and relationships
between firms and stakeholders of businesses (Húdik and et.al., 2019). There is various
importance of corporate social responsibilities of Next PLC which is mentioned below:

 Improved public image: The employee displays their commitment to a product
that makes an individual more user friendly. It is important for the selected
organisation to add corporate responsibility to the market which helps them to
strengthen the brand equity and credibility of the group. The business takes CSR
practices to conduct various that help them to improve brand value and enterprise
credibility in view of consumers in market place.
 Increased brand image: Brand image is an important part of business venture in
order to gain success and progress. In context to Next PLC, as it engages in fair
activities and helps them to increase organisational brand visibility in the industry
before the consumer. Therefore, the administration of Next PLC relies on
corporate social responsibility which helps them to improve brand value for
customers on the industry (Konovalova, and et.al. 2018).
 Cost savings: There are various types of environmental improvements that help
reduce labelling which help to lower manufacturing costs. The Next PLC is also
focused on changing manufacturing costs in the future.
 Greater employee engagement: The Company ensures that workers have greater
awareness of the social responsibility policy of corporations. It allows the
enterprise to increase the brand value in the market in order to attract large
number of customers in market place. The selected entity is also focusing on
increasing the contribution of CSR to enhance managerial participation in
recruiting and maintaining long term candidates in their business.
 Give advantages to subordinates: The importance of CSR to its specific aid
organisations in facilitating their work and encouraging them to develop both
individually and professionally.
 Achieve benefits from rivals: It is helpful for organisations to define social and
environmental considerations through the implementation of the CSR strategy that
help to strengthen their contribution to brand within a given timeframe. It further
supports the promotion of a strategic advantage over business rivalries (Liu and
Yang, 2019).
Explanations of Archie Carroll’s Pyramid of CSR
The Archie Carroll is regarded by the organisation as a CSR model based on the ways
in which its social obligations can be met. This is defined as a standard provided by Archie
Carroll and its main emphasis is on various kinds of corporate duties, such as economic,

legal, ethical and discretionary. The principal aim of the CSR model is in practice to reach a
gross profit. Philanthropic tasks are important to be analysed and ethical norms must be met
before they are met. It is clear to comprehend and reflects on different facets of income. The
CSR pyramid states that companies must participate in decisions, activities, strategies and
procedures that meet all four sections concurrently. The sustainability company must aim to
earn revenue in order to follow the legislation and participate in moral standard and
responsible business person in realistic terms and in management as well. CSR practises raise
understanding of CSR and in turn give rise to optimistic perceptions toward its purchase of
CSR goods. All of which ultimately adds to the company's positive standing and financial
success. There are various factors which are followed by Next PLC which are explained
below:
 Economical: For the long term existence of organisation and for humanity. The
company’s responsibility is to make gains over a period of time. In context to Next
PLC, the management aims to provide incentives or opportunities to the society that
contributes in order to increase in profits in the upcoming years in order to make
successful directions in the future. However, the primary obligation is to maximize
the profit margins (Moktadir and et.al., 2020).
 Ethical: It is important for organisation to perform actions based on morality within
community which helps them to build efforts to support them to increase the identity
and credibility of the company in the market place. Their primary objective is to have
its users a responsible service that helps them to contribute to a strategic edge over the
competing firms in the industry. It indicates the organisations ethical as well as
responsible to coordinate its activity in the future which will enable its users with the
best quality facilities.
 Legal: It signifies that this is especially required to comply with both the regulations
and acts relating to industry, trade, welfare, etc. to organisations and too many others
in order to linked with others. The executive committee of the companies chosen
would comply with legislation that would benefit them from the proper conduct of
various operations. However, this helps them to benefit over competition in the
industry is beneficial.
 Philanthropic: The organisation has a responsibility to raise money for its
stakeholders, as well as its community. The Next Plc therefore focuses on providing
group benefits that contribute to enhancing brand name and business value of

customers. The shortest area is philanthropy at the tip of a hierarchy. Corporations
have also been blamed for their environmental impact, their contribution to
deforestation and the use of land and resources.
From the above analysis, it is evaluated that the corporate social responsibility
concept is focused on facts of the company’s social responsibility. They concentrate mostly
on the various kinds of business obligation that should be performed by businesses which
include economic, legal, ethical and philanthropic. In context to Next PLC also insists on
following corporate policies and working appropriately in order to perform various tasks and
activities. It is also useful with the law related research which helps them to run their business
smoothly and efficiently (World Bank, 2019). Furthermore, the management of a company is
focused on helping society to improve its public value and credibility in the future. However,
on the top of the pyramid there is philanthropic responsibility and in the bottom line of the
pyramid is economic responsibility.
Corporate Social responsibility: Corporate governance has a key role to play in ensuring
business performance and development. The trust that the company is able to collect capital
effectively is maintained only through sound corporate governance (Crane, A. and et.al.,
2019). Corporate responsibility is a concept that characterises a family of specialist
professions that helps a company remain sustainable by holding four primary key
stakeholders accountable: consumers, staff, investors and societies. CSR shows you are a
company who is interested in broader social problems not so much in others who affect its

gross profit, which attracts people who have the common ideals. It allows appropriate for the
company to function sustainable manner.
Importance of Corporate Social Responsibility
It encourages customer loyalty: There are huge numbers of people who give charities.
Particularly active are teenagers. Next Plc has to pay attention to what people talk for to
retain consumers and maintain their loyalty.
It gives a competitive edge: Customers are concerned with the role of a company in social
affairs and are committed to companies that feel their beliefs are in line with them. Next Plc
sells the same goods and services, but their focus is one of corporate accountability.
It makes a business more sustainable: Next Plc chooses to concentrate on corporate liability,
it must be more imaginative and inventive. It cannot be "company as usual." Encouraging
innovation and ingenuity allows an enterprise to remain competitive and to adapt as its buyers
seek.
CSR can reduce costs: The "business as normal" aim was to make money, but corporate
accountability does not mean that an organisation loses income. It will actually cut prices.
Next Plc cut their prices for remains in the competitive position.
Provide subordinates benefits: The importance of CSR in promoting their work and helping
them to thrive personally and professionally with their own unique support groups.
Factors
The responsibility for meeting moral duties – businesses should comply with the legislation
and the restrictions; industries are accountable for acting conscientiously or socially and for
choosing what creates the most, if any damage; and lastly, the fact that enterprises should be
responsible are philanthropic.
Economical: The next PLC wants to offer the society, which leads to the growth of earnings
in the next few years, benefits or prospects, in order to lead in future good ways.
Ethical: Next Plc has to take decisions focused on ethics within the society, which lets it
develop initiatives to assist it in increasing the firm’s reputation and prestige on the market.
Legal: In compliance with laws which may result from the correct conduct of different
activities, the administrative team of the chosen organisation.

Philanthropic: Therefore, Next Plc concentrates on delivering group opportunities that
further improve consumers' brand name and market reputation. Philanthropy at the end of a
pyramid is the longest field.
CONCLUSION
From the above analysis, it is concluded that the innovation is important for every
business venture which helps them to introduce new product and services as well as
technology in order to attract new customers and encourage them to make purchasing
decisions towards its brand. It is assessed that an entity is not regulated by the business
environment, which has direct impacts on organisational practises. Clients, manufacturers,
legislation, legal and social factors and several more are included. For companies to carry out
various tasks & act in an acceptable manner, it is important for them to understand climate.
This task discusses the effects on company revenue of creativity and technologies and also
provides an overview of the value of corporate social responsibility for businesses, and it
adopts a CSR model called Archie Carroll's. CSR shows that you are a company interested in
broader social problems, not just the ones that influence the profit margins that draw
consumers that have the same ideals. It is also business-friendly to run sustainably. The
importance of Corporate Social Responsibility such as improved public image, increase brand
image, cost savings, greater employee engagement, give advantages to subordinate and
achieve benefits from rivals.

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