Business Environment Analysis, CSR, and Innovation at Royal Mail PLC

This report provides a comprehensive analysis of Royal Mail PLC's business environment. It begins with an introduction to the business environment and the selection of Royal Mail PLC as a case study. Task 1 examines the impact of innovation and technology on the company, including practical illustrations of how these factors affect sales, profits, and overall growth. The report highlights Royal Mail PLC's adoption of new technologies like automated sorting machines and intelligent letter sorting machines and their positive effects on operational efficiency. Task 2 focuses on the importance of Corporate Social Responsibility (CSR) for Royal Mail PLC, discussing corporate governance and the history of CSR in the UK. It also explores the benefits of CSR, such as improving public image and gaining competitive advantages. Finally, the report applies Archie Carroll's CSR model to Royal Mail PLC, analyzing how the company meets its social responsibilities, emphasizing the economic, legal, ethical, and philanthropic dimensions of CSR within the organization.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Impacts of innovation as well as technology...........................................................................1
2. Practical illustration of the ways innovation impacts sales, profits together with growth of
the entity.......................................................................................................................................2
TASK 2............................................................................................................................................4
3. Importance of CSR for the entity.............................................................................................4
4. Application of Archie Carroll's CSR model (1991) to the company.......................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business environment is absolute combination of set of conditions or factors that
influences business to great extent. It connotes institutions, external forces and internal factors
which are on the far side to control and affects functions of enterprise. Some factors may have
direct influence while other operates indirectly (Boddy. 2016). By using analysis tools, corporate
strategy managers of firm understands business environment so to deal with challenges, open
new frontiers to achieve growth, improving business image, meet competition and determine
threats with opportunities. For understanding the abstract idea of business environment, Royal
Mail PLC is selected. The entity is one of postal service addition to courier entity that has
headquarters in London, United Kingdom since the year 1516. The assessment includes impacts
that it further covers importance of corporate social responsibility and application of Archie
Carroll's (1991) CSR model to the business.
TASK 1
1. Impacts of innovation as well as technology.
Concept of innovation and technology
It is the concept that involves procedures for adding additional aspects to develop new
commodities or services which fulfils unaddressed requirements and solves needs that were
ignored in past. It majorly emphasis towards technological aspects of commodities despite of
covering full enterprise business model. With this concept, companies adopts latest method
addition to techniques in the operations so to maximise level of productivity together with
profitability (Cadle, Paul and Turner, 2014.). The concept helps in entity in embarking the
journey by identifying the significance of technology as innovation source for achieving
sustainability within market competitiveness. In context to Royal Mail PLC, the entity followed
traditional methods in order to deliver commodities but after online mode as well as
digitalization, general public prefers to send their information through e mails rather then letters
which has decreased their profit margin. To overcome this, Royal Mail Plc has launched E-
Commerce venture so to provide encrypted communication services through online across the
country. By using the technology, the organisation was benefited in maximising its operational
functions.
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In present era, information communication technology has emerged as one of leading
industry that brings various new innovation as well as job opportunities that helps in developing
economy and also beneficial for the business enterprises. Technology advancement determines
growth of economy that further leads in maximising efficiencies, revenues and productivity of
the organisation. When business adopts latest innovational technologies, they are able to perform
operations in distinct manner and improves effectiveness together with efficiency of their key
operations that reduces overall product cost that are to be offered to customers for fulfilling the
unmet needs. Through innovation, various beneficiary outcomes are achieved such as enhancing
customer base, entering in new market, improving profitability along with productivity levels. It
overall increases standards of living by providing jobs to people and contributing in
infrastructural development that impacts positively on economic growth. Further, it also
contributes in identifying opportunities for expansion of UK market at international level.
The management team of Royal mail Plc has recently installed new machine that is
automated parcel sortation machine in one of their Bristol Mail Centre in order to speed up
delivery of parcel services. The managers has replaced manual sorting procedures as it was time
consuming and required huge efforts (Chava and et. al, 2013). Technological usage ion
operations improved the capability to process parcel that helped in improving effectiveness
together with efficiency to great level. In present duration, Royal Mail PLC has only sorted 12%
of parcel through the machine and they are expecting to enhance it till 80% in coming five years.
In addition, more utilisation of technological innovation shows reduction in costs that can lead in
maximising profits of entity and also improves entire operational efficiency that reduces labour
force and makes delivery practices more faster.
2. Practical illustration of the ways innovation impacts sales, profits together with growth of the
entity.
Organisational overview: Royal Mail PLC is UK based organisation which performs
postal services along with courier facilities. The headquarters of the entity are situated in the year
1515 at one of the city in London, UK (Royal Mail PLC. 2019). The company provides wide
services including parcel services, delivery facilities, letter post and EMS. At present, more than
162000 people are employed in which around 143000 people have belongings from UK and rest
are from other nations. In the year 2011, a agency was established for staffing purpose as well as
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recruiting temporary employees by Royal Mail PLC. It also has subsidiary entity such as general
Logistics System which delivers parcels and letters within or outside the nation.
New technology adopted by entity
Royal Mail PLC has adopted the latest technological machine that is Automated Sorting
machine and Intelligent Letter Sorting machine that has improved speed along with efficiency to
sort the letters and deliver them to appropriate person. In addition, it also installed other
innovation that was Parcel Sorting Machine that comprises conveyor belts as well as scanning
technology which automatically sort all the parcels as per the names and dispatch them to mail
centres so that they are further processed to final destination. With this innovational technology,
organisational managers are able to manage bulk of parcels that are required to be delivered on
continuous and ongoing basis (Eling and Schaper, 2017). Through the automated machine, more
than 90% parcels are effectively sorted and delivers to correct person. Moreover, after adoption
of technology and innovation, the company was successfully in maintaining its position in the
competitive market and made various changes in its workings so to follow the emerging tends.
Sales and profits of Royal Mail PLC before and after launching new innovational
technologies.
When new and updated technology with innovation are adopted by business enterprise
then they are more benefited in maximising the sales volumes and profit. Technological changes
improves effectiveness as well as efficiency that leads in reduction of various costs to deliver
commodities. At Royal Mail PLC, the manages uses Automated Sorting machine, Intelligent
Letter Sorting machine and Parcel Sorting Machine which sorts the parcels and letters
automatically and reduces efforts of humans to sort the letters or parcels. With installation of
such technologies within operations, the revenue and profits were increased that are mentioned in
the table.
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The above table interprets that after adoption of the technologies, there was enhancement
in sales and profit of the Royal Mail Plc from 2016 to 2019. in the year 2016, the company
earned revenue of £ 9251, in 2017, revenue of £ 9776, in 2018, revenue of £ 10172, in 2019,
revenue of £ 10581 was earned (Annual report, 2017). in addition, it resulted in increasing
overall business profits that were in 2016, profit of £ 248, in the year 2017, profit of £ 273, in
2018, profit of £ 398 and in 2019, profit of £ 409 was achieved by the entity. Earlier, the entity
was using traditional methods to sort and deliver letters and parcel that takes more time in deliver
and resulted in reduction of customer base. But after adoption of the innovational technologies, it
has achieved huge growth. As per the changing trends, the company needs to adopt more
technologies so that they can also maximise the profits and achieve growth to huge heights.
TASK 2
3. Importance of CSR for the entity.
Corporate governance
Corporate governance is characterised as assemblage of laws, rules and procedures on the
basis of which business activities are operated, regulated along with controlled by managers. It is
one of technique through which organisations are managed and directed so to carry forward
operations in accordance with stakeholders' desires (Morrison, 2017). With this concept,
organisational management is able to direct together with control practices of internal people and
comprises responsibilities such as building strategies, adopting suitable leadership style for
maximising performances of individual and productivity of organisation. In context to Royal
Mail PLC, corporate governance helps in executing operational activities systematically and
effectively. Major role of corporate governance at the entity is to establish suitable system
wherein workings are managed, directed addition to controlled. Through this concept, elements
such as accuracy, security, accountability along with accountability are more emphasised by
Royal Mail PLC. It is mandatory to follow the compliances so to make implementation of
operational activities smoother along with minimum complexities.
Corporate social responsibility
It is described as self regulated model of business which assist company to become social
accountable for themselves, general public addition to stakeholders. It aims in contribution
towards societal objectives of activist, charitable nature and philanthropic for ethically oriented
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practices (Franks and et.al., 2015). As per the concept, when entities acquire raw materials,
infrastructural services and many more for society then it is their responsibility to make
payments from their profits so to contribute in societal development and enhancing standards of
living. In context to Royal Mail PLC, the company contributes fixed proportion of its profit
reserves to develop society and resolves its issues that facilitates in making good image in the
market. In addition, the entity is also benefited in representing positive reflection of the efforts
they have made towards managing and developing welfare of society in front of stakeholders.
History of Corporate-governance in the UK
The concept of corporate governance was introduced 20 years ago with the objective to
check listed companies as well as ensuring that all the standards addition to ethics are followed
by them or not (History of corporate governance of UK. 2019). Earlier, organisations were not
forced to contribute their profits for societal development. But due to emergence of the concept,
it was necessary for all companies to follow the regulations and laws as stated by government so
to make contributions from their profits for development of society. Entities like Royal Mail
PLC follows all guidelines that are stated within corporate-governance so to manage and execute
the activities properly for achieving desired revenue and making contributions. organisational
managers works in compliance with the CSR so to provide accuracy, accountability and
transparency in their contributed proportions in order to restrict government interference
possibilities in operations of business.
Importance of CSR for Royal Mail PLC
All entities contributes fixed proportion of their profits in the societal growth soi to attain
numerous benefits. In context to Royal Mail PLC, the importance of corporate social
responsibility are as follows:
Improves public image: CSR builds corporate image more stronger in the eyes of
general public or market segment that influences them to make their decisions to use the services
of the entity or not. In context to Royal Mail PLC, the employees performed volunteering
activities for charity services that represented the commitment of brand for helping others.
Gaining competitive advantages: When CSR is embraced by an organisation, then they
stands more strong within pertaining rivalry in the business environment (Needle, 2015). A
company successfully establishes themselves by taking commitments towards considering social
addition to environmental issues and providing effective solutions. It helps in nurturing assets
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such as reputation as well as trust that improves overall organisational dynamics. Managers of
Royal Mail PLC contributes their services in improving community addition to deliver suitable
solutions to uncountable issues which differentiate the company from other firms that are
working in the market.
Management of Royal Mail PLC makes huge contributions in CSR so to acquire
beneficiary aspects that will further help in generating higher profits. In present time, the entity
spends 2% of its annual profits towards societal development an social welfare.
4. Application of Archie Carroll's CSR model (1991) to the company
Archie Carroll's model is a framework that organisations adopts for analysing the ways
and reasons to meet social responsibilities. The essential features of the model are that CSR is
based on profit foundation, focuses on business needs for ensuring compliances with legislation
and regulations along with meeting ethical duties (Okeyo, Gathungu and Peter, 2016). The
advantages of the framework is that it assist in framing strategies that further helps in increasing
volumes of profits and level of production. Within the model, certain elements are part of it that
indicates emphasis of the company on various responsibilities including ethical, economic,
philanthropic addition to legal. The elements in context to Royal Mail PLC are as follows:
Economic responsibilities:
 One of economic responsibility of Royal Mail PLC is to be profitable so that they can
contributes in growth of economy.
 Businesses needs to fulfil economic responsibilities for surviving addition to gaining
benefits in long term duration.
Legal responsibilities:
 In this, organisations have responsibility to obey all the governed regulations otherwise
not able to succeed in market.
 Royal Mail PLC have responsibility to adopt legislations like health and safety act,
employment act and equality act.
 While developing any programs, managers are required to ensure fulfilment of all
legislative accepts (Prajogo and Oke, 2016).
Ethical responsibility:
 Ethical responsibilities assist that the business must ensure performing activities and
operations in ethical manner.
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 For Royal Mail PLC, it is essential responsibility to follow ethics at the time they
executes the activities to deliver services to customers across nation.
Philanthropic responsibilities:
 Businesses have responsibilities in making contributions towards community for
providing welfare and developmental aspects to society (Reyes, Roberts and Xu, 2017).
 It is concerned with performing activities for betterment of society by spending particular
percentage of profit volumes in developing society.
 Entities like Royal Mail PLC needs to get engaged in various charitable activities so to
donate for society as well as engage manpower in volunteering activities.
Through this model, authorities of Royal Mail PLC understands their key responsibilities
and the ways so that they can contribute in corporate social responsibility. The application of
model states that the selected entity was benefit with this model in fulfilling responsibilities they
have for society. With this, the managers made various provisions so to achieve their long term
objectives by executing operational activities as per the legislations or laws governed by the
political system. The company followed all legislations such as equal compensation act,
employment act, health and safety act and many more so to fulfil their legal responsibilities
towards society. In addition, the organisation also performs all its operations in ethical manner
that helps in keeping record of its activities and ensuring that no harm are made to society and its
development.
CONCLUSION
As per the above assessment it can be concluded that companies are required to properly
evaluate the external forces addition to internal factors that influences execution of workings and
strategies of company. For reaching to the goals, it is essential to adopt technological innovations
by the company so that they can improve operational effectiveness and increasing their profits
with sales volumes that can help in achieving business growth. By fulfilling corporate social
responsibility, businesses maximises productivity, improve brand image and sustain in
competition. Archie Carroll's model helps firms to analyse the responsibilities they have for
society and its development.
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REFERENCES
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Economics, 109(3), pp.759-774.
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Morrison, J., 2017. The Global Business Environment, (4th edition), Palgrave.
Needle, D., 2015. Business in Context, An Introduction to Business and Its Environment, (6th
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Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
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Online:
Royal Mail PLC. 2019. [Online]. Available through: <https://www.royalmailgroup.com/en>
Annual report. 2017. [Online]. Available Through:
<http://www.annualreports.com/HostedData/AnnualReportArchive/R/LSE_RMG_2017.
pdf>
History of corporate governance of UK. 2019. [Online]. Available through:
<https://www.frc.org.uk/directors/corporate-governance-and-stewardship/uk-corporate-
governance-code/history-of-the-uk-corporate-governance-code>
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