Business Environment Analysis: Next PLC's Innovation and CSR

This report provides an analysis of Next PLC's business environment, examining the impact of innovation, technology, and corporate social responsibility (CSR) on its sales and overall growth. The report begins with an introduction to the concept of the business environment and its significance for companies like Next PLC, a British international organization. It then delves into the effects of innovation and technology, highlighting their role in improving customer relationships, reducing costs, boosting market position, and enhancing employee relations. The report also assesses the significance of CSR for Next PLC, emphasizing its impact on public image, brand image, cost savings, employee engagement, and customer loyalty. Finally, the report adopts Archie Carroll's CSR model to provide a comprehensive framework for understanding Next PLC's approach to corporate social responsibility, covering economic, legal, ethical, and discretionary responsibilities. The analysis underscores the importance of these factors in achieving long-term success and competitive advantage.

Business Environment
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EXECUTIVE SUMMARY
Business environment is the integration of internal and external factor that enforces direct
impact on operations of company. It is necessary to bring innovation & technology that is
necessary for increasing success in upcoming time period. And, they provide explanation
regarding the importance of corporate social responsibility for company and they adopt CSR
model named as Archie Carroll’s is also discussed in this assignment.
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TABLE OF CONTENT
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
Analyse the effect of innovation & technology & it enforces direct effect on sales & growth of
Next PLC................................................................................................................................4
TASK 2............................................................................................................................................6
Assess significance of (CSR) of company.............................................................................6
Adopt Archie Carroll’s (1991) CSR model of organisation...................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business environment signifies external factor which is beyond or outside the control of
organisation that imposes direct effect on function of organisation. It involves customers,
suppliers, government, social, legal factor and many more. Therefore, it is necessary for
company to consider environment for performing different task & work in proper way. In this \
assignment, the organisation is taken is named as Next PLC. It is British international
organisation provide cloths, footwear’s and home products to its user for satisfying their need.
This company was founded by Joseph Hepworth in year of 1864. In this report, there is a
discussion regarding the impact of innovation and technology on sales and profit of organisation
and also they provide explanation regarding the importance of corporate social responsibility for
company and they adopt CSR model named as Archie Carroll’s is also discussed in this
assignment (Ganda, 2019).
MAIN BODY
TASK 1
Analyse the effect of innovation & technology & it enforces direct effect on sales & growth of
Next PLC.
Innovation & technology is necessary for organising work in proper way. Thus, it
imposes direct effect on increasing growth of organisation in future period of time. Innovation is
determined as a key strategic priority that helps in accomplishing sustainable competitive edge.
The organisation bring innovative ideas that helps in mobilize knowledge &experience of
individual person and generate innovative goods and services to perform work in better manner
and at reduced cost. When user purchase outcome related to innovation, the organisation focuses
on increasing its turnover. Innovation is important for success and growth of company that is
helpful in accomplishing competitive advantage over rivalries in the market. The innovation
helps in increasing productivity, sales & profitability of business organisation (Zhang and
Gallagher, 2016). Therefore, the innovation imposes direct effect on sales and growth of Next
PLC that is going to be mentioned below:
Improve customer relationship it is necessary for business organisation to bring
innovation in order to maintain superior relationship with customer. The management team of
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Next PLC focuses on bringing modification in goods and services that help in enhancing
profitability of organisation in upcoming time period.
Reduce waste & cost innovation help in reducing wastage which is arise within business
organisation and emphasize on accomplishing of goal and objective in timely manner.
Innovation helps in increasing efficiency of business organisation in future period of time. Thus,
the management team of Next PLC, they focus on bringing innovation for optimum utilisation of
resources that help in eliminating waste and leads to low cost and increase higher profits for
achieving competitive advantage over rivalries in the market (Hiroi, 2019).
Boost market position innovation can adopt anticipating in changes which is arise in
market in proper manner and grab opportunity in future time period. The management team of
Next PLC courses on differentiate their product from its rivalries through bringing innovation
within organisations that help in increasing brand image and reputation of company in front of
customer at marketplace. It help in assessing marketing trend, listening to user, advisor, supplier
& conducting research regarding competitive firm who perform their work to grab opportunity.
Improve employee relations it is necessary to bring innovation within organisation in order
to influence subordinates. Cultivating Pride within goods and desire for company to reduce
turnover and increasing productivity in future period of time. This results in increase success and
growth of Next PLC in future period of time. Thus, it is helpful in maintaining good relation with
its employees for conducting different task and operation in an appropriate manner. Thus, it is
analysed that the innovation imposes direct effect on positive effect on sales and profit of
company.
In addition to this, technology plays an important role within company and it imposes direct
effect profit of organisation. It is necessary for implementing latest technology in order to
provide better services to its user that helps in increasing their experience in future time period.
Technology is constantly evolving & organisation is based on technology to operate their
business in an appropriate manner. The company embracing innovative technologies helps in
increasing productivity and achieving competitive advantage over rival firm in the market. The
primary role of technology to increase success and growth that aids assistance in accomplish
competitive edge (Curvelo Magdaniel, 2016). Apart from this, innovation is important for
success and growth of company that is helpful in accomplishing competitive advantage over
rivalries in the market. The innovation helps in increasing productivity, sales & profitability of
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business organisation Thus, the management team focuses on executing technology for
enhancing sales and growth of Next Plc that is given below:
Business communication: Technology enhances efficiency level of communication within
company. The information technology helps company in stay connected in given time that helps
in enhancing efficiency & productivity. Therefore, the technology helps in increasing
communication within organisation that helps in interacting with one another in proper way that
is helpful in enhancing growth of organisation.
Globalization: Technology within organisation is made possible to posses’ larger reach in
global market. It helps in improvement of e-commerce that brings new dynamics to globalisation
of organisations. The advanced technology helps in bringing changes or modification in products
and services for reformulating methods of performing different functions within company. The
technology helps in bringing globalization through which Next PLC operate their business at
larger level that aids assistance in increasing success and growth in future time period.
Efficient operations: the technology can optimize operations and functions of company. It
is assess that technology is very important in generating process in efficient manner. It can assist
in reducing errors, delays in work & provide speed in performing particular task. In context of
Next PLC, the manager focuses on using technology for efficient operation that helps in
increasing success & growth of organisation (Wagner, 2016).
Thus, the technology & innovation impose direct effect on success and growth of
organisation. The Next PLC provide unique products and services by adopting innovation as well
as technology that aids assistance in increasing experience level of user in future period of time
(Ratten, 2019).
TASK 2
Assess significance of (CSR) of company
Corporate social responsibility signifies systematic commitment by organisation to behave
in ethical manner and provide contribution to economic improvement while increasing quality
life of subordinate, families and local community at large. In addition to this, the significance of
corporate social responsibility for chosen organisation named as Next PLC which is going to be
mentioned below:
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Improve public image it is important to assess brand image in order to decide whether to
purchase product from company or not. Therefore, the staff member display that they are
committed towards brand that helps another person that is more favourable for user. Therefore it
is necessary for next PLC to bring corporate social responsibility that assists in enhancing brand
image of organisation in mind-set of user at market (MARKET, 2018). The company adopt CSR
activities for performing different functions that is useful in enhancing reputation of organisation
in mind-set of user in the market.
Increase brand image if the organisation named as Next PLC is committed towards
ethical practices then it help in increasing brand awareness of organisation in front of customer at
marketplace (Schäfer, 2016) Thus, the management team of Next PLC focuses on corporate
social responsibility that enhances brand image in front of customer at marketplace.
Cost saving there are different kind of changes related to sustainability that help in
adopting less packaging, assist in decreasing cost of production. Thus, the Next PLC focuses on
making changes in order to decrease cost of production in future period of time.
Greater employee engagement as similar to user engagement, the organisation makes
sure that the employees increase their understanding regarding corporate social responsibility
strategy. It helps the organisation in increasing brand image in front of customer at marketplace.
Therefore, the company focuses on increasing commitment towards CSR in order to increase
involvement of subordinate that help in attracting and sustaining candidate for longer time
period.
More benefit for subordinate the significance of CSR for its subordinate help
organisation in being more favourable to perform their work and encourage them for personal as
well as professional growth.
Achieve benefit over competitors by implementing CSR strategy, it is beneficial for
organisation to determine social as well as environmental factor that help in increasing their
commitment towards brand during particular phase of time period. It also aids assistance in
achieving competitive edge over rivalries in the market.
The CSR provide chances & opportunity to subordinate to increase their contribution in
respect of society, government and Nation. In addition to this, corporate social responsibility
help in generating favourable word of mouth for company that help in increasing long-term
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success and growth in future period of time. CSR is important in making brand superior and
popular not among competitive but also in front of media.
Social good encourages innovation and collaboration when subordinate increases their
involvement in social activity than they become innovative as well as collaborative. There are
different kind of skills that is improved by using CSR activity and subordinate are capable to
learn more and more about client. Improve communication skill help in achieving valuable
confined insight that can improve knowledge within workforce and allow organisation to expand
their business in market (Zhou,Wang and Zhao, 2020).
Engage customer if the organisation using CSR activity than it help in maintaining
positive relationships between company and user that help in increasing their experience level in
future period of time. The organisation focuses on increasing involvement of user that assists in
managing superior relation with user for increasing sales & profit margin of Next PLC in future
period of time.
Increase sales: If the organisation adopts CSR activities for performing different work in
an appropriate manner. And, the Next PLC focuses on using CSR activities for performing task
in proper way (Alhouti, Johnson and Holloway, 2016).
Encourages customer loyalty: If the organisation adopts CSR activities by increasing
commitment towards brand then it helps in enhance loyalty and trust of user which will helpful
in increasing sales and profit of business organisation in future time period. If the organisation
fulfils corporate social responsibilities then it is helpful in increase loyal and trustworthy user
that aids assistance in enhances success of company. In context of Next PLC, the management
team focuses on increasing loyalty of user by adopting CSR activities in company.
Adopt Archie Carroll’s (1991) CSR model of organisation
The Archie Carroll is considered as a CSR model that relies on aspects in which company
should meet its corporate social responsibilities. This is determined as model that is given by
Archie Carroll and their main focuses is on different types of responsibilities of company such as
Economic, Legal, Ethical as well as Discretionary. The main motive of CSR model is to achieve
profit margin in future period of time. It is significant to analyse philanthropic duties, it requires
meeting ethical responsibilities before. It is easy to understand and focuses on various aspects
related to profit generation (Wickert, 2016). Thus, there are different component adopted in this
model that is going to be mentioned below:
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Economic: For the survival of organisation on long term basis & provided advantages to
society. The responsibilities of company are to achieve profit during the period of time. In
context of chosen organisation, they focuses on providing advantages or benefits to community
that helps in increasing profit margin in future period of time. The primal responsibility is to
increase profit margin in order to take strategic organisation decision.
Legal: It is determined as imperative for organisation to adhere as well as follow laws &
legislations that is connected to business nature, competition, employment and many more. The
management team of selected company to follow laws which will be beneficial for them to
conduct different activities in an appropriate manner. It is helpful in achieving competitive
advantage over rivalries in the market.
Ethical: It is significant for organisation to take action on ground of morals within
society that helps them in increasing brand image in mind-set of customer in the market. Their
primal purpose is to offer facilities to customer which aids assistance in accomplishing
competitive edge over rival firm in the market. It signifies to good as well as ethical behaviour of
organisation in order to organise its operation that provide better services to its user in upcoming
time period.
Philanthropic: It is the duty of organisation to earn money for providing benefits to its
stakeholder but also to its society. Therefore, the Next Plc focuses on offering advantages to
community that helps in increasing brand image and reputation in front of customer in the
market.
On the basis of above given model, it is assess that the CSR model that relies on aspects
in which company should meet its corporate social responsibilities. Their main focuses are on
different types of responsibilities of company such as Economic, Legal, Ethical as well as
Discretionary that must be followed. Therefore, the Next PLC focuses on follow legal practices
for conducting different task and work in an appropriate manner. It is also helpful in obey
practices related to law that aids assistance in performing work in smooth manner. In addition to
this, the manager of organisation focuses on contributing towards society that aids assistance in
increasing brand image as well as reputation in future period of time (Kang, Germann and
Grewal, 2016).
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CONCLUSION
On given report, it is analysed that business environment is outside the control of
company which enforces direct effect on activities of company. It includes customers, suppliers,
government, social, legal factor and many more. Therefore, it is necessary for company to
consider environment for performing different task & work in an appropriate manner. In this
assignment, there is a discussion regarding effect of innovation and technology on sales of
organisation and also they provide explanation regarding importance of corporate social
responsibility for company and they adopt CSR model named as Archie Carroll’s is also
discussed in this assignment.
REFERENCES
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