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

This report provides a comprehensive analysis of the business environment of Royal Mail PLC, focusing on the impacts of innovation and technology on sales, profits, and overall growth. It examines the importance of Corporate Social Responsibility (CSR) for the organization, exploring the application of Archie Carroll’s CSR model. The report delves into the influence of internal and external factors, including employees, supply and demand, competition, and technological advancements. It also discusses the benefits of corporate governance and business ethics, as well as the advantages of implementing CSR activities. The report highlights specific innovations like radio frequency identification and the introduction of new technologies such as robots for parcel sorting, as well as the challenges and issues related to communication and technology within the company. The analysis emphasizes how these elements contribute to the company's economic development, customer satisfaction, and overall market position.

Business Environment

Executive Summary:
Business environment is referred to as all the factors that have direct or indirect impact
on the functioning of an organisation. The impact of the business environment may either be
positive or negative. This report talks about the importance of innovation and technology and
what role do they play in the economic development of the organisation due to which
organization will be able to grow and sustain. Also, various issues pertaining to communication
and technology are discussed briefly with the importance of corporate social responsibility and
the concept of corporate governance explained because of which a healthy and happy
environment will be created in the premises. When the Royal Mail PLC will implement the
Archie Carroll's model of CSR, it gains certain advantages on the execution of various
responsibilities along with technological innovation.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Assess the impacts of innovation and technology and how it has affected the sales, profits and
growth of Royal Mail PLC..........................................................................................................1
TASK 2 ...........................................................................................................................................4
Evaluate the importance of Corporate Social Responsibility (CSR) for the organisation..........4
Apply Archie Carroll’s (1991) CSR model to the organisation .................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment of an organization can be referred to as the group of all the factors
both internal and external like employees, supply and demand, competition, suppliers,
technology and innovation etc. All these factor either affect the functioning of the company
directly or indirectly (Cepel and et. al., 2018). The external environment consists of
technological, political, legal etc. whereas the internal environment comprises of customers,
managers and employees.
The Royal Mail PLC is a 500 years old mailing service and courier private limited
company based in the United Kingdom that was founded in the year 1516. The company is
headquartered in London, UK. The company has operations throughout the United Kingdom.
This report explains the impacts that innovation and technology have and how do they
affect the sales, profits and growth of the Royal Mail PLC. The report also describes the
relationship between innovation and economic development. It further explains the importance
of Corporate Social Responsibility for the company by the application of the Archie Carroll's
model.
TASK 1
Assess the impacts of innovation and technology and how it has affected the sales, profits and
growth of Royal Mail PLC
Technological Innovation refers to the execution of an idea related to technology to the
organization or institution conducting it. Technological innovation impacts the organizational
people by distorting the markets and changing the importance of resources. New technology can
either be of importance and enhance the business or it may render the growth of the business if
no proper knowledge is known. Both innovation and economic development go hand in hand
with new and innovative ideas developed and implemented which in turn leads to the generation
of high output and and profitability with the same amount of efforts put in (Clarke and Xu,
2016). the more innovative products a company will produce, more will be the development of
the economy.
With technological innovation and economic development relating to each other,
similarly technological advancements and the economic development also are proportional to
each other. On the other hand, the economic development depend on a number of factors like
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transport, banking, health, education and the type of technology that is used by that particular
company. Nowadays, even that start ups use the latest technology available in the market in
order to be more productive and improve performance. The terms 'innovation' and 'technology'
are used in abroad sense. Innovation not only enables more efficient operations but also
providing a better experience to the customers (Erasmus, Strydom and Rudansky-Kloppers,,
2016). With technological advances becoming more and more important Royal Mail is in the
planning stage of introducing robots for the process of parcel sorting and other procedures like
loading and unloading of parcels. This will not only help in cost reduction but also coordinated
functioning of all the departments within the company. Innovation and technology both have
proved out to be beneficial for the customers in the postal and courier industry like the delivery
services are made fast and easy with more convenience and attractive prices.
Implementing technological innovation has impacts on different aspects of The Royal
Mail PLC such as the process of parcel delivery is made easy. Customers receive their parcels or
mails on time without any delay. In cases where there is a delay in the delivery of the courier, the
customer is informed well in advance in order to avoid hassles with the client. Royal Mail treats
its customers as priority. The delivery service is made fast due to introduction of new
technological systems in the organization. The customers can now make payment for their orders
and couriers at the time of delivery (Evans and et. al., 2017). Being such an old company, The
Royal Mail has adopted all the technological advances in order to come up to the level of its
competitors. This has led to the growth of the company to a new level along with increased sales
and therefore increased profits. Innovations like radio frequency identification has proved
to be a game changer in the organizations offering postal and courier services. However, it is
expensive and most companies have not been able to afford the same but Royal Mail has been
able to purchase and install it for a better functioning and in improving the overall sales and
profits. The customers now have an option of getting the delivery of their order on the same day
the order is placed which has been a very good option in attracting the customers because no one
wants to wait for 3-4 days to receive their order. Also, the customers will be willing to shop the
products offered on the Royal Mail's website. There are numerous other innovations and
technologies that are still under planning and development stage, 3D printing being one of them.
Technology overall, has empowered the customers and their expectations.
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New IT technologies have made the working processes inside the company easier as
earlier, the sorting of letters was done manually. But now it can be done not only manually but
also automatically. Machines are installed that help in sorting the mails and shipments on a daily
basis which automatically determine the size and weight of the packages in turn reducing the
manual labour and hence orders can be managed optimally (Fabuš, 2017). Technology is
frequently thought to be similar to creativity and innovation. When a package reaches the
customer or the recipient, the company has introduced a new concept of electronic signature
hence there is no need of carrying a pen and paper every time. Postal companies deal with a huge
amount of data day in and day out, therefore as a result the data processing is made fully
automatic. This has resulted in reduction in the risk of losing valuable data and it getting
misplace. Royal Mail has also introduced barcodes to the packages they receive along with the
stamps which have resulted in not only speeding up the process of sorting parcels but also in
carrying additional information of the recipient like personal offers and discounts. Also, use of
ERP systems has reduced the chances of any error taking place within the company premises.
The Royal Mail is also planning to introduce different types of electric transportation vehicles
that will not only save the environment from any kind of harm but also carry out the process in
less time and more effectively (Hamilton and Webster, 2018).
There are various financial and ICT issues that affect the functioning of the company.
Information and communication technology comprises of all the technological advances that
help employees as well as the organization in using and processing data. As important as
communication and technology is for the organizations, it comes with its own drawbacks and
issues like the installation of the latest technology involves a lot of time and money. With the
increase in the number of rules and regulations has made it very critical for the company to
properly evaluate and then apply the technology that will prove out to be the most fruitful. There
may be security issues in the protection of all the data, emails, messages etc. from hackers. These
issues can cause serious problems. Therefore, the company should build control systems in order
to avoid such situations and protect all the information. Also, the overall management of
different functions- from sorting to arranging to logistics can be done through the use of various
soft wares. Adopting such communication and technology practices can make the courier and
postal services more efficient. Internet of Things (IoT) is a modern technology that is now
widely being used in the postal companies which helps in the exchange of information between
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different objects. It has made tracking the package or the shipment way more easier than it was
before. But there are disadvantages like customers have disclose their personal information to the
company which will put their personal data at risk.
TASK 2
Evaluate the importance of Corporate Social Responsibility (CSR) for the organisation
Corporate governance can be referred as the rules, laws and procedures which are
developed by government in order to control, operate and regulate business operations and
functions effectively. It includes two factors such as internal as well as external which have
impact on the interest of an organisation's stakeholders, considering customers, suppliers,
management, shareholders and government regulators. A company gains a number of benefits
by adopting as well as implementing corporate governance and ethics at the workplace which
help in the functioning of the company in a coordinated manner. Business ethics is an important
aspect of corporate governance. In simpler words, it can be defined as combining the values of
the organisation such as trust, transparency etc. and transforming the same into policies that need
to be followed. Processes or activities that can be counted under corporate governance include
plans regarding specific actions, measuring the performance of the employees, decisions
regarding important subjects. The management is responsible for creating and developing
corporate governance within the company (Ledgerwood, 2017).
When there are a number of people from different backgrounds working under one roof
in a company, there are chances of unfair practices taking place. There fore in order to avoid
such situations, business ethics are formulated by an organization in order to protect its
shareholders, stakeholders, customers, employees etc. making use of each other in a negative
way. Business ethics also help the management in making effective decisions and enabling a
smooth functioning of the business functions and avoid malpractices and make a better public
image. This in turn improves the brand image and the reputation of the company.
Corporate social responsibility or CSR can be defined as a concept wherein organizations
compile the various social and environmental concerns in their business functions and while
interacting with the stakeholders (Mawejje and Okumu, 2016). Corporate Social Responsibility
is an important concept for the success of any organisation as the customers are becoming more
and more aware about the environment. Conducting CSR activities shows that a business is
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conscious about the environment but also gives the employees of the company a sense of
satisfaction and happiness. It also strengthens the relationship among the employees as well as
the management and hence result in inculcating the habit of working together among them.
Organisations like Royal Mail, that conduct CSR activities leave a good and positive impact on
the community and betters the financial performance of the firm.
It is a win win situation for both the company as well as the employees as they get a
feeling of esteem and self-confidence that they work for a company that is conscious about the
environment. It also helps in making the firm stand out from its competitors and create a brand
name as well as solve social problems which in turn leads to increased sales, profitability and
customer loyalty (Nguimkeu, 2016). There is reduced absenteeism and more regularity to work
among the employees. There are 2 types of CSR activities – internal and external. Internal CSR
activities are carried out within the organization such as- water conservation, corporate
governance, conducting training and development programs etc. Whereas external CSR activities
are carried out within the area where the organization is located or for the society and include
activities like- environmental protection, development of the community, healthcare etc.
Apply Archie Carroll’s (1991) CSR model to the organisation
Archie Carroll's model of Corporate Social Responsibility is framework that is based on
the question of why organisations should conduct CSR activities in order to meet their corporate
social responsibility. The model was developed in 1991 and focuses on four major
responsibilities, namely, Economic, Legal, Ethical and Philanthropic responsibilities. Each one is
explained below with reference to Royal Mail PLC -
 Economic Responsibilities – These responsibilities say that a company has an economic
responsibility towards the society as it is the society that permits the company to be
created and sustained. It may sound unusual but the society expects a firm to be created
and then sustain in order to fulfil their needs and the only way it is possible is when the
company sustains itself and is profitable (Prajogo, 2016). Profits are necessary for any
and every organization to be able to grow and build a brand name. If Royal Mail is not
able to make profits and sustain itself in the business environment gradually it will have
to either shut the businesses or it will become a topic of debate.
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 Legal Responsibilities – These are the responsibilities that speak of following and
obeying the laws and regulations. All companies are expected to abide by the laws and
regulations in order to run their business. The ground rules include laws and regulations
for employment, health and safety of the employees etc. While abiding by these laws,
businesses too have their own expectations like Royal Mail has to follow certain laws
pertaining to federal, state and local laws, providing service that meets the minimal legal
requirements of the region and conducting themselves in a company that abides by the
laws of the country.
 Ethical Responsibilities – Ethical responsibilities speak of acting and morally and
follow ethics. If an organisation takes up ethical responsibility speaks that the company
will accept those those activities as well as policies that are though not listed in any law
but are still expected from it by the customers. The Royal Mail PLC recognizes and
respects activities and policies that are ethical and are adopted by the society. The
company also does not compromise on any responsibility that it takes up in order to
sustain itself in the business environment (Ricciardi, Zardini and Rossignoli, 2016).
Examples of these type of responsibilities include treating the employees, customers as
well as the suppliers.
 Philanthropic Responsibilities – The word “philanthropic” means seek to encourage the
welfare of someone. Therefore, these responsibilities are all about giving back to the
community or the society. They are optional but still considered as important for an
organisation to sustain in the competitive business environment. Being discretionary but
still philanthropic responsibilities are considered to be very important (Lee, 2017).
Considering that, The Royal Mail conducts activities like donations for charities,
volunteering programs that benefit the society etc. at regular intervals which not only has
helped it in creating a brand name but also making it survive for more than 500 years.
CONCLUSION
From the above report, it can be concluded that business environment both internal and
external form an important part in an organisation. Also, with new technologies making their
way in the industry makes it essential for a company to update itself and to be able to have a
competitive advantage over its competitors. The companies should come up with new and
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innovative ideas to introduce or implement in their existing products so that it is able to grow as
well as sustain in the competitive business environment today.
Corporate governance on the other hand also serves to be an important component of the
corporate social responsibility of an organisation as all organizations have some or the other sort
of responsibility towards the environment and the society. Therefore, an organisation must
conduct various type of CSR activities in order to grow and sustain themselves for long and also
help develop and maintain good employee relations.
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REFERENCES
Books & Journals
Cepel, M. and et. al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness. 10(2). p.21.
Clarke, G., Li, Y. and Xu, L. C., 2016. Business environment, economic agglomeration and job
creation around the world. Applied Economics. 48(33). pp.3088-3103.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Evans, S. and et. al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Ledgerwood, G., 2017. Greening the boardroom: Corporate governance and business
sustainability. Routledge.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Mawejje, J. and Okumu, I. M., 2016. Tax evasion and the business environment in Uganda.
South African Journal of Economics. 84(3). pp.440-460.
Nguimkeu, P., 2016. Some effects of business environment on retail firms. Applied Economics.
48(18). pp.1647-1654.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171
pp.241-249.
Ricciardi, F., Zardini, A. and Rossignoli, C., 2016. Organizational dynamism and adaptive
business model innovation: The triple paradox configuration. Journal of Business
Research. 69(11). pp.5487-5493.
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