Analysis of Next Plc: Innovation, CSR, and Business Performance

This report provides an in-depth analysis of Next Plc, a UK-based retail company. It explores the company's approach to innovation and technology, examining their impact on economic progress, operational efficiency, sales, and profitability. The report also evaluates Next Plc's corporate social responsibility (CSR) initiatives, including an assessment of Archie Carroll's four areas of CSR. The analysis covers how the company uses technology to enhance its operations, increase productivity, and gain a competitive advantage. Furthermore, it discusses the importance of CSR for organizations, highlighting its role in fostering customer loyalty, providing a competitive edge, and promoting business sustainability. The report includes data and findings related to the company's performance and technological advancements.

Next Plc

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
1. Understanding of innovation and technology and their impact on economic progress of
country with emphasis of enterprise............................................................................................1
2. innovation and technology can create impact on operation, sales and profit of company......3
TASK 2............................................................................................................................................5
1. Evaluation of importance of Corporate social responsibilities for organization.....................5
2. Four areas of CSR as identified by Archie Carroll..................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation and technology refer to a process of using technology for innovation of new idea,
concept, service and product in market (Dougherty, 2017). It helps business to get various
advantage in market as it helps them to increase their profit level and also reduce cost of their
operation. Corporate social responsibility of a company is their duties towards society which
include work for social development and do not affect environment in which they are working.
This project report includes study of Next plc which is UK based organisation providing their
service in international level. Company is providing retail service in clothing and footwear at
different parts of world. This project report includes Understanding of innovation as well as their
impact on economic progress of country and impact of technology on profit, dales of company. It
also includes evaluation of corporate social responsibility of company and explanation of Archie
Carroll’s pyramid of corporate social responsibility.
MAIN BODY
TASK 1
1. Understanding of innovation and technology and their impact on economic progress of
country with emphasis of enterprise
Innovation and technology: Innovation is a process of introduction of new service n
product with helps of technology (Nübler, 2018). In this process technology has been used for
purpose of innovation which increase competitive in market place. Innovation in technology
create many benefits for a business as it helps them to reduce cost of their business and also
saves efforts and time of company. It provides them competitive advantage to a firm and provide
them opportunity to increase their market share.
Contribution of innovation and technology in economic progress: There are various
ways in which innovation and technology contribute in economic progress of country.
Innovation provide various opportunity to country to create employment for people living in that
country. It helps business to use these technologies to sale their product and service to another
country. It also helps people to identify new business idea which create more business in
country. It increases in per capita income of people of that country. There is various other benefit
which contribute in economic progress of country and these are as follows:
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Provide employment opportunity: Innovation and technology create employment
opportunity in a country which provide employment to various people (Aykol, Herring and
Anapolsky, 2020). Innovation and technology create various business opportunity and to
compete work of business, they need ore people. This need provides employment opportunity to
people living in that country. As next plc is using various new technology which helps them to
increase their business and also create their production level. To fulfil their requirement, they
need more employees to work for them. It helps them in creating more employment opportunity
in UK.
Increase GDP: Innovation and technology helps to create more employment opportunity
in an economy which helps them to increase income of people living in that country. It also
assists to reduce unemployment rate in that country. This will also help to increase growth
domestic product of that economy as it increases buying power of people living in that country.
It also increases their demand and supply for that county. It helps business to expand their
market share at international level which increase their export that s a good indication of growth
of economic progress of country. Next Plc is using innovation and technology to create
employment opportunity in UK and also exporting their goods in various country. This will help
them to increase their production capacity which increase gross domestic product of economy of
country.
Increase national income through tax: Innovation and technology helps people of
particular country to open various business which increase income of people living in that
country (Costantini, Crespi and Palma, 2017). This income also contributes in national income of
country as it allows them to pay tax to government of that country. Next Plc is using innovation
and technology and creating various opportunity in economy of UK and also paying tax to
government of that country. This will create development opportunity in country of UK.
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Use of technology in operation of business: Business is using technology and innovation in
their operation in many ways as it provides various benefit to business. These use of technology
in business are as follows:
Productivity: Technology and innovation provide opportunity to business as it helps
them to increase their productivity level and also reduce cost of their operation. It helps them to
save efforts in their operation and save time of company. Next Plc is using innovative technology
which helps them to increase their productivity as company is serving in international market in
different parts of world.
Acceleration: This innovation and technology provide acceleration to growth and profit
of company as it provides them competitive advantage in market (Gil-Garcia, Pardo and Nam,
2016). It also provides them economy of scale as company is producing product and service on a
large scale. Next Plc is using innovative technology which helps them in accelerating their
growth level as it provides them competitive advantage in market and helps them to compete
with other market player presented within same industry.
Product development: Innovative technology helps business in developing new product
and service in market which helps them in enhancing experience of their customers and allow
them to provide additional service which make them different at work place from their
competitors. Next Plc is using innovative technology in new product development which helps
them to differentiate themselves from those of competitors in market.
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2. innovation and technology can create impact on operation, sales and profit of company
Overview of company: Next Plc is one of company which is using is UK based company
and is one of largest retailer in clothing, footwear as well as home products. Company has own
more than 700 stores in all over world and providing their service in different parts of world.
Company is founded in year 1864 by Joseph Hepworth. They are providing their service in Asia,
Europe, UK and other parts of world. Company is having mor than 44193 employees which are
working for growth of company.
Technologies use by company: Next Plc is using various software and digital
transformation for their product and service which helps them to increase their profit level. These
digital technology and software are used buy company. The company is buying this software to
manage their work and work force (Kuo, and Smith, 2018). Their new database helps tm in
providing more customer insights which provide them information relate to their customer and
allow company to understand preference of their customers. This also helps them to build good
relation with their customers and this digital transformation also makes them competitive in
market place with their competitors. Company is using digital technologies to sale their product
to their customers as it increases their business reach in market. This technology also helps them
to open new ways for supply chain which helps them to provide their product to their customers
and company is also opening their physical store which helps them in connecting with
customers.
Comparison of profit and sales of company using innovative technologies:
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From above mentioned graph, it can be interpreted that profit ad sales of organisation have
increase due to adoption of new technologies. This profit will increase in future as cost of
installation of these technologies can impact on profit level but its advantage is for long period of
time. Use of these technologies in operation of Next Plc helps company in increasing their level
of sales and also their profitability level in compare to previous year.
Findings: Technology and innovation plays very important role in growth and survival of any
organisation (Gupta, Kumar and Karam, 2019). Adoption of technology in Next Plc helps them
to remain competitive in market place and also increase their area as well as profit. It helps
organisation to get competitive advantage and also provide them opportunity to accelerate their
growth and allow them to develop new product to enhance their serving for their customers.
TASK 2
1. Evaluation of importance of Corporate social responsibilities for organization
Define Corporate Governance and Corporate Social Responsibility (CSR): The term
corporate governance is a combination of various systems, procedures and rules which are
governed operated in business and controlled. It can also affect internal and external stakeholders
that should be affects interest of firm stakeholders which include customers, supplier’s owners,
government and management (MARKET, 2018). It is also providing framework for attaining and
accomplishing those objectives which encompasses each and every management phrases and
internal controls to measurement of performance and corporate disclosure of firm. Government
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structures should identify their distribution of rights, roles and responsibilities among various
different participants in their business enterprise.
Corporate social responsibility consists of concept of management where firm can
integrate their social and environmental concerns to their business with their stakeholders. It is
generally determined and understood through which a firm accomplish their balances of
economic, environmental and social to meet their objectives in a society. It refers to any
integrated effort to improve their firm position with their environmental and social impact in a
business enterprise. It is a term which describes a firm to improve its efficiency in an
organization and improve their society at large in an efficient manner.
History of Corporate Governance in the UK with examples
Governance is a word which is existed 20 years ago and it is commonly used not just in
firms but also in charities, universities and national health trusts. The UK corporate governance
consists of laws, rules and practices which is to be ensure that there is firm to operate with
integrity those responsible for their management to their actions (Schäfer, 2016). The main
purpose is to encourage investor and confidence for public in UK companies and to promote
their encouragement to economic stability. UK corporate governance has should be influenced
on some people in corporate governance in European Union and United States. In December
1992, Cadbury report was established on financial aspects of corporate governance which was
attached with a code of best practice. It is aimed to be listed firm and looking especially for those
standards of corporate behaviour and some ethics which is to be followed by Cadbury code. It
should be efforts to improve their corporate governance in several nations which is resulted in
series of reports and code of conduct should be mentioned that need for governance in matter of
international concern.
Importance of CSR
 It helps to encourages customer loyalty: People are always giving charity in association
with high numbers and to attract those customers to keep their loyalty and corporations
need to be pay attention what customer wants (Lau, Lu and Liang, 2016). For Next plc,
certain business feel like customers are living out their values by supporting their brand
when buying from firms are more likely to recommend it.
 Business gives competitive edge: Customer should be care about their businesses and
much part in social issues and they will be loyal to their firms align with values. In case
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of Next plc, corporations cater those customers who have a competitive edge through
firms and might be offer various products or services but a responsibility makes them
more appealing.
 It can become business more sustainable: When some firms decide to make more
sustainability and need to be focused that needs to be more creative and innovative
things. Most of innovation creates forces a firm to stay relevant and reliable according to
their customers want and needs. This ability is adapted to significant for longevity and
sustainability in business enterprise.
2. Four areas of CSR as identified by Archie Carroll.
Pyramid of corporate social responsibility is a framework that various aspects why
organizations which should meet their corporate social responsibility (Moon and Knudsen,
2018). This pyramid was developed by Archie Carroll and identify four main points to be
developed such as economic, legal, ethical and Philanthropic.
Economic responsibilities: These responsibilities are basic and most important elements
of business enterprise. It has to be quite to generate maximum amounts of profits which
shareholders are us and state that economy as a whole. With relation to Next plc, this lowest
level of pyramid represents a firm responsibility which is profitable or not. Employee lose their
jobs in this case before firm starts and being profitable is a way to able to survive a long-term
business. This is also meaning that firm produce goods and services which are needed at
reasonable price.
Legal: This is related to management law for firm and compliance various laws and
regulations laid to society and authorities which is related to ensure that nature of firm and its
business operation. In case of Next plc, it is most important responsibility in business that will
show how firms conduct their business in marketplace. Through taxes, fines and legal
interventions of all sorts citizen that empowers their leaders to govern with relation that firm
conduct their business.
Ethical responsibility: This responsibility consist that talks about moral values, customs,
norms and rights which is related to law and expectations of society (Sen, Du and Bhattacharya,
2016). It should be referring that there is a good and ethical behaviour of firm while conduct that
business operations as serve as guideline for upcoming years. With context to Next Plc, if firm
should not obey their law but is should also ethically. It is best for firm to be ethical as this goods
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and services from firm as well and being friendly, treating their suppliers in manner and
employees should be treated properly.
Philanthropic: This responsibility stands up a pyramid and it harps to fact that is creating
a good citizen and should provide improving their quality of life and its people. To what extent,
it is desired and expect by society from corporate firm. In case of Next plc, firm needs to be
identifying that carbon footprint their part in pollution and using natural resources. Liable firms
are qualifying that hold the true values for firm and back to society and without fulfilling their
other responsibilities a business cannot maintain.
CONCLUSION
From above mentioned project report, it can be concluded that Innovation and technology is
important for an economy as well as business conducted in that country. It provides them
opportunity for growth and development as it creates employment opportunity in that country
and also increase GDP of that country. These are various benefits that a firm get from innovation
as it provides them various opportunity for their business and also helps them in getting
competitive advantage in market. It helps them to get benefit of economy of scale as technology
allow them to increase their productivity. It also helps them in enhancing experience of their
customer by providing them effective service and also handle data of their customers effectively.
It also helps them to increase market share of company and increase their expansion level in
market place There are various social responsibility of business is following for society as they
are working for society which helps them to get benefit in market ass people are aware of social
concern which helps them to attract customer which are socially aware.
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REFERENCES
Books and Journals
Aykol, M., Herring, P. and Anapolsky, A., 2020. Machine learning for continuous innovation in
battery technologies. Nature Reviews Materials. 5(10). pp.725-727.
Costantini, V., Crespi, F. and Palma, A., 2017. Characterizing the policy mix and its impact on
eco-innovation: A patent analysis of energy-efficient technologies. Research
policy. 46(4). pp.799-819.
Dougherty, D., 2017. Organizing for innovation in complex innovation
systems. Innovation. 19(1). pp.11-15.
Gil-Garcia, J.R., Pardo, T.A. and Nam, T., 2016. A comprehensive view of the 21st century city:
Smartness as technologies and innovation in urban contexts. In Smarter as the new urban
agenda (pp. 1-19). Springer, Cham.
Gupta, S., Kumar, V. and Karam, E., 2019. New-age technologies-driven social innovation:
What, how, where, and why?. Industrial Marketing Management.
Kuo, T.C. and Smith, S., 2018. A systematic review of technologies involving eco-innovation for
enterprises moving towards sustainability. Journal of Cleaner Production. 192. pp.207-
220.
Lau, C., Lu, Y. and Liang, Q., 2016. Corporate social responsibility in China: A corporate
governance approach. Journal of Business Ethics. 136(1). pp.73-87.
MARKET, R.Y., 2018. Corporate social responsibility. URL: http://globelink.
ca/wpcontent/uploads/2018/05/Corporate-Social-Responsibility-2018. pdf.
Moon, J. and Knudsen, J.S., 2018, July. Corporate social responsibility and government.
In Academy of management proceedings (Vol. 2018, No. 1, p. 12777). Briarcliff Manor,
NY 10510: Academy of Management.
Nübler, I., 2018. New technologies, innovation, and the future of jobs. Confronting Dystopia:
The New Technological Revolution and the Future of Work. pp.46-75.
Schäfer, H., 2016. 26 Corporate Social Responsibility Rating. A Handbook of Corporate
Governance and Social Responsibility. p.449.
Sen, S., Du, S. and Bhattacharya, C.B., 2016. Corporate social responsibility: A consumer
psychology perspective. Current Opinion in Psychology. 10. pp.70-75.
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