Impact of Innovation and CSR on Vivo Energy plc's Business Environment

This report provides an executive summary and detailed analysis of the business environment of Vivo Energy plc. It explores the impact of innovation and technology on the company's sales, profit, and growth, highlighting the adoption of technologies like data analytics, cloud computing, digital oil fields, and automation. The report also emphasizes the importance of corporate social responsibility (CSR) for Vivo Energy plc, examining corporate governance, brand image, and employee motivation. It discusses Archie Carroll's model of CSR and the financial implications of social responsibility initiatives. The report concludes by summarizing the key findings and emphasizing the significance of innovation, technology, and CSR in the company's overall success, providing a comprehensive overview of Vivo Energy plc's strategies and performance within its business environment.

Business Environment

Executive Summary
Innovation and Technology have various impacts on Vivo plc and that also affects the
sales, profit and growth of the company is discussed. Social responsibility is very important for
any of the business. Vivo energy plc company also do the corporate social responsibility.
Technology and innovation is done by the company because they understand the change of
market trends and its need. CSR model is evaluated and financial issues are analysed.

TABLE OF CONTENTS
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1........................................................................................................................................4
Effect of Innovation and Technology and its affect on sales, profit and Growth of Vivo plc....4
TASK 2........................................................................................................................................7
Importance of social responsibility for vivo energy Plc..............................................................7
Archie Carroll's model of CSR....................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is basically an environment which most people or individuals has
used to conduct or run different business-related activities in order to gain huge profit margins.
On the other side, business environment is a set of many business activities which top-level
management of a business has conducted for the purpose of achieving better outcome in marker
place. A business has been always affected by factors which involves in its business
environment, that’s why currently the management of each company or business prepares a
specific plan in order to systematically deal with the impact of different factors. This report
discusses business environment of Vivo energy PLC. Basically, vivo energy is a British
petroleum venture, headquartered in London, United Kingdom. This report discusses innovation
and technology as well. On the other side, some major impacts of different technologies in
organisation growth also have been discussed in this report. Then, four areas of CSR (Corporate
Social Responsibility) also have been covered in this report.
TASK 1.
Effect of Innovation and Technology and its affect on sales, profit and Growth of Vivo plc
Innovation can be defined as the concept of improved or new product that differs considerably
from business’s previous products or services that has been made accessible to potential users or
brought into use by the business. Technology can be defined as the use of technical knowledge
for practical idea or application, whether in industry or in everyday life to solve problems or
invent useful tools (Psomas, Kafetzopoulos and Gotzaman, 2018). Vivo Energy plc uses the
concept of innovation for the development of application of ideas and technologies to improve
goods and services and make their production more efficient. Innovation is an important driver
of economic progress that benefited the consumers, business and the economy as whole.
Innovation has contributed in the economic growth of UK; because UK corporate focus on
innovation which leads to higher productivity means that same input generate the greater output.
As the productivity of the companies rises, more goods and services are produced leading to
growth of UK’s economy. Technology constantly throws up new and innovative ways of altering
the way company works, providing the benefit to Vivo energy to get that extra five or ten
percent. Vivo invest and deploy right software and hardware that can make company more
efficient (Kim and Park, 2018).

Discussed below are the points that describes Vivo Plc uses new technologies in their operations-
Business Communication – Technology has increased the efficiency of business
communication. Employees, technicians, professionals, field workers don’t travel here and there
in the office to receive information related to projects, tasks and assignments. Instead, the
information is communicated to them through mobiles, emails, message and notifications on the
software used by the company. Information technology has helped the business to stay connected
at any given time, increasing their efficiency, productivity and the abilities to react when
difficulties arise.
Optimize Management – Technology helps Vivo energy to optimize management. It helps
company to compete with its rivals and the larger companies in operational efficiency with the
help of technological equipments and digital tools. Technology is changing the resource
management and modifies the way that companies work.
Customer Service – Technology has brought company closer to their client and customers. Vivo
energy use emails and social media to answer the queries of the customer, but now they use
easily accessible technology which provides offline chats that avoid customers to spend time
long finding answers to straightforward queries.
Conferencing – Lot of time was consumed in business meeting, discussions which lead to delay
in decision making process of company. But with the help of web conferencing, company can
connect to anyone they want to at any time and take decisions on time and become more
productive.
Outsourcing – one of the greatest way Vivo energy, is using technology in its operations is
through outsourcing. The company took this decision so that it can focus only on the best, and
source some functions to different small company who work from them. This simplifies their
practices and company can work more effectively (Sait and et.al., 2018).
Vivo Energy plc, commonly known as Vivo energy is the British petroleum company, which
have its operations in many countries across Africa, it supplies, store, distribute, retail range of
petroleum products. The following are some new technologies that are adopted by the Vivo
Energy plc –
Data Analytics – Data volume in the Vivo Energy grows with the rapid speed and handling big
amount of data efficiently is very important for the company. The company generate extreme
volumes of data on regular basis. Previously, large amount of data was expensive for the

company and such huge cost can impact the financial position of the company. Using data
analytics helping the company in improving production by 6-8%, reduces the risk and helped in
better decision making for the company.
Cloud Computing – until a decade ago, companies supply chain was straightforward, companies
had full visibility and control over the full supply chain. Vivo Energy felt that that the workload
is increasing and expanding each year, which brought the concept of cloud computing in
existence in the company (Zhu, Wang and Wang, 2019). Cloud computing, helped company in
knowing specific industry verticals in pushing into successful digital integration.
Digital oil fields – Vivo Energy plc uses the concept of digital oil fields which combines the
business process management with the digital technologies to automate the workflows for
increasing productivity, reducing cost and minimising the overall risks associated with the oil
and gas operations.
Automation – Because of the new challenges faced by the company, the concept of automation
was introduced to create efficiencies that make both environmental and financial sense as
opportunity exist from the wellhead to the petrol pump. Automation has the capability to
optimise supply chain, spare part management, workforce deployment and several organisational
inefficiency.
Technology and Innovation has helped the company in maximising the sales with the help of
digital technology. Vivo energy use the digital platforms for marketing and promoting its
products, traditionally, company used the method of face to face meeting with clients and this
approach was time consuming and needed lot of investment but with the help of Digital
marketing company performed remotely best and that increased its sales thrice more. Recent
technological advancement of the company such a cloud computing, oil field digitalisation has
opened the new doors of opportunity (Mgunda, 2019). Company used different technologies
which helped them in cutting that extra cost of expenses and which ultimately helped in
increasing the profits of the company. When the sales are maximised, company’s efficiency and
productivity is increased leads to the growth of the company. Innovation and technological
advancement by Vivo energy has given not only the company competitive edge among its rivals
but has also maximised its productivity, means the same input generates greater output, which
leads to the growth of the company.

TASK 2
Importance of social responsibility for vivo energy Plc
Corporate governance:
Corporate governance is the set of rules and laws under which company do their business,
regulated and controlled. Corporate governance policies must be transparent and stakeholders
should have knowledge about that. Company should have a defined code of conduct for the
board of directors and for members. Corporate governance in UK started in 1990 with the
Cadbury company related to their finances. It shows that the company focusing on corporate
ethics. Then it is adopted by many companies of UK. Corporate governance is very good for the
business. Company which follow this carefully are more profitable. It says that internal factor
and external factor both affects the interest of the stakeholders which include shareholders,
employees, management, customers, government etc (Huda and et.al., 2018).
In Vivo energy plc board of directors form the corporate governance of the company in keeping
in mind the objectives of the company. Company should treat equally to all the shareholders and
should not do discrimination with their employees. They disclose about the rights of shareholders
to them at the initial stage only and also guide them about how to exercise it. Company don't
want any communication barrier they communicate all the important information to their
shareholders, employees and investors and other concerned people. Corporate governance should
be accountable, fair and transparent. Board of directors protect the right of the stakeholders. It is
well-defined policies. It binds the company to follow all the ethical practices. It erases the
unethical practice from the organization. Poorly structured organization show bad corporate
governance (Buchanan and et.al., 2018).
Importance of corporate social responsibilities:
Vivo energy plc understand the importance of social responsibility and how it influences the
business:
Social responsibilities create good brand image of the company. They give donations and do
charity in the society. Company had started a campaign in which they emphasize on carbon
reduction. Company should do advertisement for their work in social responsibility through
social media platforms but posting their activities on them so that citizens can come to know
about the social responsibilities of the company which will increase the brand value of company
and also attract more customers towards the company. Consumers will prefer them more because

they think that along with earning profit, company is also thinking about the society, so they will
feel that if they purchase from them then indirectly they are also contributing in the society.
Employees of the company should also have information about the social responsibilities which
their company is doing. Employee will feel good by knowing this, and they get motivated and
feel that they are also contributing in the society via company which will improve their
productivity.
Social responsibility will create good market image and increase the market share of the
company. Sales and revenue of the organization will increase. Company can survive and sustain
in the market for long period and ensure their growth if they do social activities. Vivo energy plc
do programs related to the awareness for the environment. In these programs company educate
people and especially the young generation that how earth is important and how one can save it
(Tilt, 2016). Company also eliminated all the activities which was creating pollution in the
environment and had made strategies for waste reduction. Companies should also adopt
sustainability. Innovation and new technologies are adopted by the company. This had reduced
the operating and functional costs of the company. Company can also make good customer base
along with old customers new customer get attracted towards the company because carrying
social responsibilities by the company.
Company can easily beat the competitors who are not doing social responsibilities because this
will give advantage to the company who is doing. While doing their advertisement for the
products they can add this that they are indulging in social responsibilities which help in gaining
trust of the consumers and beating the competitors. Company will get the loyalty of the
customers (Ali, Frynas and Mahmood, 2017). Eg a company who is contributing 2% of their
sales in education then this will attract customers then customers will ready to pay more also for
that product because they know that their purchase will help the company in contributing
towards education. By doing social responsibility vivo energy plc increase the productivity and
morale of their employees. Corporate social responsibility will also build company's relations
with the government.
Archie Carroll's model of CSR
Vivo energy plc use this model to do the corporate social responsibilities. This model has 4
dimensions which are:

Economic responsibilities: economic responsibilities are very important part of the business.
Company have to make profit for all the stakeholders. Company have to overcome all the factors
which are affecting the growth of the business. For attaining profit vivo energy plc had made
strategies relating to their costs, processes etc. to sustain for the long period economic activities
plays a vital role. To beat the competition, social responsibilities are very necessary. Company
had adopted marketing strategy or technique through which they can attract more customer base
and generate high revenue. Company do their advertisement using online platforms which saves
time, money and attract large group of customers (Farrington and et.al., 2017). If company will
not able to generate profit then they will not be able to pay their workers on time and many
employees can lose their jobs.
Legal responsibilities: company follow all the law and legal guidelines which is given by the
government. Company cannot ignore the rules which are set by government for doing business.
Government care about the people because they are for them, so they monitor companies on the
basis of laws. These laws make sure that company do not follow any of the unethical practice in
carrying out their business activities. Company have to follow the strict guidelines of the
government because it is mandatory to follow and no company can skip this. Vivo energy plc
design their product by keeping in mind the legal requirements for that. Laws also regulate the
competition, government always want the healthy competition in the market.
Ethical responsibilities: these are not compulsory to follow but every company should follow
ethical ways to do their businesses. Society do not tolerate any unfair activities done by the
company. If any company do any unfair means while doing the business and society get
information about that then company's sales can effect that because trust of the public will no
longer be there on the company, and they will not purchase products of that company and as a
result profit of the company will reduce. Vivo energy plc do not do any kind of discrimination
with their employees. They treat them equally and give them salary on time. Rewards and
appraisal are also given to them to motivate them (Advantage, 2020).
Philanthropic responsibilities: under this company pays back to the society. It is voluntary and
discretionary. Company do charity and participate in the well-being of the society. If is very
necessary for the company to do. It is the high level of corporate social responsibilities.
Companies in past if done any pollution or exploit anything then by doing philanthropic
responsibilities company will get second chance to improve their image in front of the society. If

they care about the society then society will care about them if company will prioritize society
then society will help company to increase their revenue by purchasing products or services from
them. Company also have responsibilities towards their staff. They should take care about their
rights.
CONCLUSION
It can be concluded that upper management of business needs to be very active in order to
adopt different technologies within its workplace for improving own productivity and
performance at the international level. On the other side, it needs to hire those people within its
workplace who has an excellent skill of innovation, because innovation is everything to a
business in current highly competitive market place. It can be also concluded that, Vivo energy
have to fulfil its obligation of CSR on time for putting very excellent impact on different people
or customers within marker place.

REFERENCES
Books and journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies. p.65.
Ali, W., Frynas, J.G. and Mahmood, Z., 2017. Determinants of corporate social responsibility
(CSR) disclosure in developed and developing countries: A literature review. Corporate
Social Responsibility and Environmental Management. 24(4). pp.273-294.
Buchanan. and et.al., 2018. Corporate social responsibility, firm value, and influential
institutional ownership. Journal of Corporate Finance. 52. pp.73-95.
Farrington, T.. and et.al., 2017. Corporate social responsibility: reviewed, rated,
revised. International Journal of Contemporary Hospitality Management.
Huda, M.. and et.al., 2018. Empowering corporate social responsibility (CSR): insights from
service learning. Social Responsibility Journal.
Kim, Y.K. and Park, S.T., 2018. Impacts of innovation motives and activities on innovation
Performance. Indian Journal of Public Health Research & Development. 9(8). pp.585-
591.
Mgunda, M.I., 2019, December. The Impacts Information Technology On Business. In Journal
of International Conference Proceedings (Vol. 2, No. 3. pp. 149-156).
Psomas, E., Kafetzopoulos, D. and Gotzamani, K., 2018. Determinants of company innovation
and market performance. The TQM Journal.
Sait, S.S., and et.al., 2018, November. Impacts of technology assessments on firm performance.
In AIP Conference Proceedings (Vol. 2044. No. 1. p. 020009). AIP Publishing LLC.
Tilt, C.A., 2016. Corporate social responsibility research: The importance of
context. International journal of corporate social responsibility. 1(1). pp.1-9.
Zhu, J., Wang, Y. and Wang, C., 2019. A comparative study of the effects of different factors on
firm technological innovation performance in different high-tech industries. Chinese
Management Studies.