UNL1002 Business Environment: Innovation, Ethics & Competitive Edge

This report assesses the impact of innovation on modern ventures and analyzes the business environment of Hikma Pharmaceuticals Plc using PESTLE. It identifies opportunities and constraints, including the impact of Brexit, sociocultural factors, and technological advancements. The report offers strategic recommendations for improved decision-making and ethical implications, emphasizing transparency, employee engagement, and clear objectives. It concludes that innovation and ethical practices are crucial for competitive advantage and sustainable growth in the pharmaceutical sector. Desklib provides similar solved assignments for students.

BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1- Assessing the impact of innovation on modern venture company..........................................3
2- Assessing environment of HIKMA Pharmaceuticals Plc, to identify opportunities &
constraints it is facing..................................................................................................................4
3- For chosen organization...........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refer to collection and set of internal & external factors that affect
companies, either private or public, small or large, in two different manner such as positive and
negative. Each factor impact the way a company take decision and run their ventures within
specific industry. The current assignment will be based on HIKMA Pharmaceuticals Plc, which
falls under the list of successful international pharmaceutical companies in the UK. The study
will explain impact of innovation on contemporary business firms and environmental analysis of
chosen company to identify major constraints and opportunities. Furthermore, it will also specify
the two strategic suggestions on how firm can improve decision-making and ethical implications
in the context of same concept in organization.
TASK
1- Assessing the impact of innovation on modern venture company.
In the recent time, innovation is considered as one of those strategic and useful elements
that contribute to make a company productive and profitable (Lam and et.al., 2021). It may play
significant role in the context of organizational growth and success in the world of business,
where competition level between existing companies is higher. In regard to contemporary
business companies, innovation put positive impact in term of driving the attention of each
company toward introducing those products or services that people as their target market expect
to purchase or use, exchange of money or specific amount. It is fact that by introducing new item
or service in the market contemporary companies may obtain unpredictable benefits. As they
may take pleasure of increasing productivity and profitability as well as performance level,
which is not that easy for any company to do so in appropriate and systematic manner (Azamela
and et.al., 2022). When a contemporary venture company is utilizing innovation and
implementing any activity in their existing procedures, they may obtain competitive advantages
in form of building strong and recognized brand image in the business world. Innovation as key
source aid companies to anticipate market modifications more effectively and rapidly, which is
quite essential and beneficial for them to do that. It is fact that creation or innovation enable a
contemporary organization to grow more competitively than last few years or months, and move
toward unexpected success in a sector, where it may have established their outlet or physical
existence.

In today's era, it is quite challenging for a company, whether it is large or small to retain
and acquire new customers, but essential too. Therefore, they may take initiative to adapt new
and effective elements and innovation is one of that. It may aid firms to differentiate themselves
in the market and gain the attention new buyers, who are able to promote venture services and
products after obtaining appropriate satisfaction (Obeidat and et.al., 2021). Innovation affect
positively upon each contemporary venture firms in term of increasing their productivity and
competitiveness. While, it may affect in negative manner as well, which is not suitable for rapid
growth of organizations. This form of affect lead to unpredictable consequences of innovation,
that may decrease the operational effectiveness or efficiency of companies. The process of
innovation is challenging along with beneficial too. During the procedure of innovation
implementation in the workplace, sudden requirement related to resources and other assets may
lead to decrease the effectiveness of individual person as it may drive their attention toward
finding each resource and then arrange or allot according to requirement or need. Emerging need
related to varied activities such as advance technologies' knowledge in the context of innovation
process implementation may affect negatively upon contemporary venture firms. It may lead to
create more issues and complications for each company that they may emend in appropriate
manner.
2- Assessing environment of HIKMA Pharmaceuticals Plc, to identify opportunities &
constraints it is facing.
Environmental analysis is defined as process of identifying major factors that put direct
impact on organizations, their operations and functions (Buledi and et.al., 2022). This procedure
drives the attention of management toward considering each factor that affect either positively or
negatively upon the way they performance and take action in the business, for organizational
growth. In case of Hikam pharmaceutical Plc, environmental analysis play important role as it
may help to determine constraints that organization is facing & opportunities that it may grab in
appropriate manner. PESTLE analysis is the best technique or strategic model that used to define
six factors that in turn provide opportunities or might be threats. The three variables of same
concept define below in the context of chosen firm that offer opportunities and constraints and
these are;
Political factor-

Any form of change related to political factors may put direct impact on a sector and
companies that operate under that. In case of, Hikma pharmaceutical Brexit may put negative
impact on its operational success in the world of business. It may lead to decrease the
effectiveness of chosen company in form of developing plans to expand venture across national
boundaries and sustaining for longer in the market. Brexit is one of those external factors that put
adverse impact on company in form of creating challenges and constraints that firm is facing and
feel the pressure to overcome the situation. Due to the current constraint, management may drive
their attention toward making possible changes and adding more value in existing plans that is
important and challenging for them to do so appropriately. Therefore, it consumers a lot of time
and require few resources that are valuable and beneficial too. It also affects the political stability
in the nations such as UK and EU, which is also not suitable for Hikma. It is important for firm
to consider this issue and take strategic action in appropriate manner on time that enable business
to grow and succeed in the competitive world of business.
Social cultural factor-
Another factor that also put direct impact on chosen pharmaceutical company is current
one. It may lead to increase the productivity and performance as well as profitability level of
firm in term of providing chance to gain competitive advantages. It can be said that social factor
impact HIKMA, as there are several changes raise related to market trends, customers
preferences, age, buying habits, etc. These changes provide organization chance to stand
competitive in term of providing quality medicines that help to cure individuals and help to
recover their health even better than last few days or months. It makes range of products such as
Omnicef, Suprax, Amoclan, Prograf, Actos, etc. By grabbing the chance to succeed in the
market, firm may take pleasure of increasing profitability and building wide customer base,
which is not that easy for any company to do so as it needed a lot of attempts and initiatives as
well as better planning. When the ration of ageing population is increase it may lead to maximize
health care spending of individuals that directly or indirectly put positive impact on
organizational success. Therefore, it may gain chance to expand venture into sustainable and
progressive nation, where more business growth opportunities are accessible.
Technological factor-
Along with above variables, the current variable also affect Hikam, in positive term. It
may enable management to produce and sell products quickly and even better than last few

months or days. It can be said that technology advancement play significant role in the context of
organizational growth. It may provide marketing department chance to promote venture and its
products and also generate excellent awareness regarding the same in the world, which aid to
gain the attention of new customer (Filiou, 2021). It may contribute to retain existing consumers
who are trustworthy and loyal toward company. Technology advancement may support to
enhance operational effectiveness or efficiency of firm, which is important for rapid progress of
brand in the competitive external environment. By implementing new technologies in the
workplace, firm may take pleasure of increasing productivity level as it enable workers to
produce and offer medicines that people prefer to purchase according to health issues that they
are facing adversely and take the worst experience of that situation. This factor provides
organization great opportunity to grow and become a top pharmaceutical firm in the overall
sector. While, it can be assessed that this variable may put negative impact on company as well
in form of emerging requirement for skilled labour and other resources that might be expensive.
3- For chosen organization.
A- Making recommendation how they can improve decision-making in Hikma
pharmaceuticals plc
Clearing and simplifying the objective in company – The Hikma pharmaceuticals plc
can improve their decision-making by clearing and simplifying the objective in the mind of
employees (Baek, 2019). This allows business and their employees what is the focus should be
so that work is done on the right direction to achieving the organization goal and taking right
decision on the basic of the company goal.
Establishing strong, transparent accountability for decision- The Hikma
pharmaceuticals plc can established strong and transparent accountability for better decision
because transparency is most important aspect for any business. It allows the organization to
shape their activity and goodwill of the company. Strong and transparency in accountability,
generate the trust and goodwill and provide safety about the firm reputation among investor,
employees, customer, and in the market. It increases the employees' morale, boosting employees
engagement and encouraging the investor, improve the process and final result.
Employees engagement - Hikma pharmaceuticals plc can improve their decision-making
by employees' engagement when employees involve in decision-making of the company they
gain confidence and personal, professional interest in the company and their success(Freeman,

2020). This commitment increases the productivity of the company as employees, actively
participant in various activity in the Hikma pharmaceuticals plc achieving the goal. Employees
engagement important for better decision because it reduces staff turn over, improve
productivity, improve customer services, retention, achieve high profits. Employees engagement
important for organization because it can help to create the opportunity for the employees and
work toward achieving the goal of the company. It also helps the organization to increase
customer satisfaction , achieve the high productivity and improve operational efficiency as well
as profitability .
B- What are the ethical implication of decision-making in Hikma pharmaceuticals pls?
The clear objective is an ethical activity which help in decision-making of Hikma
pharmaceuticals plc. It gives clear idea about the company employees and outside the people
what is the aim of the company, what is the target of the company. It is ethical activity for the
company to show and clarifying each and every aspect to their employees, customer, inventor to
generate the trust in the company (Grote, 2020). Transparency in accountability is very
important for the company and their stake holder. It denotes clear, complete, understandable
reporting understood by every stakeholder. It creates trust on the company by Openly disclose
the revenue, profits, cost of product at the end of the year. In the globalization market,
transparency in ethical accountability, is important for the accountant to clear and fair in
accounting Because many employees and people live in their honesty and integrity. Employees
engagement is an ethical activity which help to make better decision in the companyand It is
very precious part for achieving the company goal. It is a positive concept of any organization
ethical culture, is connected with higher level of engagement (Linde, 2020). Hikma
pharmaceuticals Plc committed to ethical activity is important for employees engagement and
Company ethical activity increase the employees' engagement. High engagement employees
perform better for the organization so that increasing positive ethical activity in the company.

CONCLUSION
On the basis of above discussion, it has been identified that innovation played significant
role in the context of venture growth and success of company that has been operated and
managed its business operations within pharmaceutical sector. It enables management to deal
with some issues that affect negatively upon their performance and productivity level.
Furthermore, from above analysis, it has been determined that ethical implications and strategic
suggestions had contributed to improved decision-making procedure and make it even better than
before last few weeks or months. It has increased organizational productivity and improved level
of performance that is essential for rapid and competitive growth of companies that operate in
same industry and effort to gain competitive benefits.

REFERENCES
Books and journals
Azamela, J. C and et.al., 2022. The Impact of Institutional Creativity and Innovation Capability
on Innovation Performance of Public Sector Organizations in Ghana. Sustainability.
14(3). p.1378.
Baek J, WKim J. C., 2019. Hybrid clustering based health decision-making for improving
dietary habits. Technology and Health Care. 27(5). pp.459-472.
Buledi, J. A and et.al., 2022. Current perspective and developments in electrochemical sensors
modified with nanomaterials for environmental and pharmaceutical analysis. Current
Analytical Chemistry. 18(1). pp.102-115.
Filiou, D., 2021. A new perspective on open innovation: established and new technology firms in
UK bio‐pharmaceuticals. R&D Management. 51(1). pp.73-86.
Grote T, and Berens P., 2020. On the ethics of algorithmic decision-making in
healthcare. Journal of medical ethics. 46(3). pp.205-211.
Lam, L and et.al., 2021. The relation among organizational culture, knowledge management, and
innovation capability: Its implication for open innovation. Journal of Open Innovation:
Technology, Market, and Complexity. 7(1). p.66.
Linde L, Sjödin D., 2020. Evaluation of digital business model opportunities: a framework for
avoiding digitalization traps. Research-Technology Management. 64(1). pp.43-53.
Obeidat, U and et.al., 2021. The effect of intellectual capital on competitive advantage: The
mediating role of innovation. Management Science Letters. 11(4). pp.1331-1344.

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