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The advancement of technology has impacted the functionality of trade entity to a greater extent. The technological and environmental innovation helps in better handling of wide range of business operations that has been followed by business organisation. The technical innovations that have been followed by an enterprise will support a good growth and development of enterprise (Savrul, Incekara and Sener, 2014)
For the report, Rolls Royce has been taken for assessment. It is a UK based, luxury auto mobile manufacturing firm. It lays an emphasis on advance usage of internet and effective utilization of technical tools and techniques like cloud storage for the better handling of business operations that will support better growth and development of business operations. Besides this, the Archie Carroll model of Corporate Social Responsibility that has been followed by cited organisation for effective growth on economic and social level (Moroni, Arruda, and Araujo, 2015).
1.) Demonstrate your understanding of innovation, and the role of technological change in economic progress.
Innovation is the process to develop a new product or improve the work quality of existing item to meet the operational needs and demands in a better way. It helps to handle the business operations that will lay a very deep impact on growth of economic conditions of a company. Apart from this, innovation also involves the adoption and implementation of wide range of organisational functions that will help in better growing and development of an organisation as well as a country. The better management of business operations and functions will help in suitable management of wide range of requirements of their stakeholders as well as customers, who are associated with a business entity (Reynolds and Rohlin, 2014). The effective following and utilization of technical advancement and innovative processes will help in better handling of the tangible and non tangible assets of Rolls Royce and this will help in better and sustainable rise in its productivity and profitability of an organisation. Besides this, the adaptability of innovation will also support the R & D department in an enterprise and will support efficient management of intellectual property of a business and lead to development of high quality products and services. The advancement of technology which has been adopted by a trade firm will help it to have a good economic stability and support a better rise in functional capabilities of an organisation. Other than this, the adoption of innovation will cause the firm to develop a good product or services to gain a good customer satisfaction level, that will support an effective rise in its economic conditions. The rise in effectiveness will lead a better formation of strategic plan, depending over environmental conditions of an enterprise. The development and delivery of high quality product with better functional capacity and quality will support a better management of high level of operations that will aid in meeting targeted goals set by a business organisation to gain a good revenue and economic stability in market (Smith, 2017).
Besides this, the technological advancement and economy is also closely related to each other. The level of technology utilized by Rolls Royce will help it to manage and plan its functional actions on the basis of trade environment and gaining a good control over the business operations that are followed by firm. An enterprise will gain a good growth by utilising high level of the latest technology that supports a better revenue generation and improving economic viability. The organisation has to look after constant development of technology and innovation that will support a better rise in its economic conditions. The advancement in technological innovation will cause the business entity to improve its functional calibre with the passage of time, to meet changing requirements of its clients and stakeholders. Other than this, the adoption of innovations and advance technological tools and techniques will aid in increasing economic growth of a country in which Rolls Royce is operational. It will help in rise in capital generation and supports more R & D process to develop innovation and better technologies. Although capital formation and high work force help in improvement of business operations but the technological advancement is important for a company as it help in better managing and executing of business operations (Sodeyfi, 2016). Other than this, the relationship of technical advancement and growth of economy is closely related. The country which supports more development of technology and innovation tends to have higher economic growth and development. Other than this, the high implementation of the latest technical tools and measures increases efficiency of the work force and help in gaining better profit margin and economic stability, by increasing the output. Thus, it can be said that better innovation and technical advancement is one of the major determinant factor of growth and development of economy of a nation. The innovation not only helps to improve the efficiency of an enterprise but also help in increasing its efficiency that will help in better rise in operational capability of organisation.
2.) Practical illustrations of how innovation has impacted the operations, sales and the profits of Rolls Royce
Innovation will lay a deep influence on Rolls Royce, that helps it to develop high quality products and services on the basis of wide range of business operations. For instance, Rolls Royce is deeply impacted by growth and development of various different technological advancements and innovative measures that have contributed on a large scale for a good growth and development of business operations of cited luxury auto mobile manufacturing firm. The effective utilization of latest and innovative services on production or manufacturing level to produce a significantly high class of cars and its equipments (Menychtas and et.al., 2014). In recent time, Rolls Royce used an Advance3 demonstrator that helped the firm in better development of civil aerospace engines and increase its work efficiency and revenue count. The use of this innovative and advance technology will support the firm to test its engines and calculate the effectiveness of its cars to deliver maximum utilization of fuel and have low emission count, supporting environmental concerns and CSR policies, followed by auto mobile firm.
Apart from this, the active simulation process that is been taken in utilization for a better growth and development will aid in identifying the effectiveness of technological measures that are been followed by a business entity. The adaption of innovative technology has not only helped the organisation to develop high quality product and services but also have helped in better formation of better designs that will improve the efficiency of its aerospace engines and luxury cars. Other than this, the utilization of Advance3 demonstrator will support a better testing and maintain the various quality parameters that are been set by company for better customer satisfaction level. This tool will help Rolls Royce to deliver high level of economic and environmental performance outputs, that will help in better sales and generation of profits for the business organisation (Khan and Quaddus, 2015). The Advance3 works on technology of “work splitting” that contains two stage high pressure turbines and one single stage intermediate pressure turbine. The core part is attached to Trent XWB fan system further attached to Trent 1000 low pressure turbine system. This structural setup forms the complete demonstrator engine, that help the firm to have a better assessment of its engine efficiency.
This system is attached to a digital simulator that crates the variety of condition in which the engine is ought to operate. The testing will help in getting a good idea about the operations and will help the organisation to have a good strategic idea about the different components like gearbox and wheel alignment system that are been connected to business operations and will help in suitable rise in functional capacity of a luxury auto mobile firm. Other than this, the UltraFan technology developed by R & D department of firm, will help in increasing the effectiveness of its engines and other machineries, that are incorporated in its cars. It will help the better utilization of gearbox to generate a good acceleration and high bypass ratio. This has helped the firm to increase its fuel efficiency and its better consumption. This has helped the firm to develop a better and environmental friendly product that helps the company to achieve an economic stability by getting a good customer support and funding or financial resources, to carry out effective development and research process in the organisation. Also, the utilization of innovative and latest technologies will improve its productivity and meeting of operational requirements of organisation in a better way (Huang-Horowitz, 2015). The utilization of advance digital methods to collect the data and its analysis will support a good management of business functions. Rolls Royce is also known to provide advance customer support which is improved using the cloud computing and internet measures, to provide its clients with a good customer satisfaction level. This approach will improve the overall customer contentment level and aid the auto mobile enterprise to give out better output and have an economic stability.
1.) Demonstrate your understanding of corporate governance, including the responsibilities of the Board of Directors to the stakeholders and, the 5 basic principles of corporate governance.
The corporate governance is the system that will help in meeting the needs and demands of user to have a better execution of functions that are been followed by a business entity. It is a set of rules and regulations that help in better handling of different operations on higher level, which will help in suitable rise in effectiveness and operational capacity of a business organisation like Rolls Royce. It involves the better management of company's constituent bodies i.e. Board of directors, stake holder, organisation's management, customers, suppliers, financier or investors, governmental bodies and the customers or clients. It helps in creation of a frame work in the firm that help in better handling of business operations to develop a better action plan and have a control over the internal functionality and decision making process that affect the overall performance and revenue generation (Georgescu and Popescul, 2015).
The stake holders are group of people that lay a deep influence on functionality of an organisation like Rolls Royce. They consist of share holders who are generally the legal owners of a company who enjoy benefits from firm in form of dividends and part in company's profit. The Board of directors or BOD will involve the operations related to Rolls Royce and will hold the responsibility for better management of wide range of business operations. It may involve the executive and non executive members, who are accountable to share holders or stakeholder of luxury auto mobile firm. It involves the members like CEO, CTO, executive and non executive officers and directors from various department of business organisation. They look after the better handling of business operations and gain a good control over the business organisation (Kljucnikov and et.al., 2016).
The 5 basic principles of corporate governance that are been followed by Rolls Royce is as follows:
- Governance structure: This principle involve the strategy or policy that lay an impact on operations of Rolls Royce must be headed by an effective board, that will look after all functionality and implementation of innovative technologies. This will involve the better allocation of role s and responsibilities in an organisation that should be clearly identified. This approach will reduce the communication gap and support effective implementation of different business operations that are been followed by cited luxury vehicle firm.
- Structure of BOD and various committees: This involves the appointing of free minded executives and directors that will look after the better management of functionalities of Rolls Royce. The management committees must involve a better combination of directors, executives and non executives members, that will promote a better decision making process and avoid the domination of one group over other members. Also, the board should be compatible to match the sophistication and quality standard of cited firm (Cull and et.al., 2015). This will support the effective promotion of implementing the innovative and latest technical measures to maintain quality standard of Rolls Royce.
- Risk governance and Internal control over operations: The BOD will look after the corporate governance that will support a good adoption of innovative operations to mitigate the risk factors, that are associated with the manufacturing operations. This will support the organisation to adopt and develop comprehensive risk management system and approach to minimize the treats caused by external and internal factors affecting Rolls Royce.
- Reporting and integration: The committee member and the BOD will look after the better handling of operations that will lead to the better handling of quality management approaches. The proper reporting will involve the information details and output of the innovative measures and the preventive measures are been suggested to reduce the threats for Roll Royce (Cascio, 2018.). Besides this, based on report received, the management or BOD will further look after better implementation of innovative technical measures to sustain the quality standards of company.
- Relationship with stake holders: The core motive of corporate governance is to develop a good relationship with the stake holders involving share holder, investors, suppliers and clients of company. This will help in enhancing the revenue generation and maintaining the product and service quality standards, that are been set by auto mobile firm.
2.) Explain the four areas that make up corporate social responsibility as identified by Archie Carroll. Give relevant practical examples
The Corporate social responsibilities or CSR is the major factor that will help the firm to grow and develop in a much effective and better way. This will help in suitable handling of different operations that will help in better rise in good will of Rolls Royce towards its customers. Archie Carroll, 1991 stated that the development and following of appropriate CSR policies will help in better management of business operation's that will help in suitable handling of business operations of company. Other than this, it will help Rolls Royce to develop a good control over its operations and managing a wide range of its social responsibilities that will help in improvement of business operations and will help in diminishing any sort of legal constraint that will impact the business operations followed by organisation (Cai and Yang, 2014). It will also help cited auto mobile firm to maintain its environmental and economical obligations in a better way.
The Archie Carroll CSR Pyramid is as follows:
- Economic: It is the core responsibility that is been followed by the organisation, regardless to size and scope. Rolls Royce being one of the major auto mobile brand will look after the better measures to sustain and attract more and more customers after the globalization and handling of business operations. This approach will help the auto mobile firm to sustain in market for a long term and cater more and more customer's with passage of time. It is the ethic, that is required by the society for better maintaining of the business operations of the company and meet the operational requirements of their customers. For instance, Rolls Royce will look after the fulfilment of economic obligations that will be looked after to gain a good customer support in market (Botha, Kourie and Snyman, 2014).
- Legal: this approach involves the following of different legal obligations that are been imposed on Rolls Royce by legislation or governmental bodies in various countries of its operation. The fulfilment of different law related measures like Employee welfare, safety at work place and competition measures, that will help in better handling of different operations that will help in better growth and development of business organisation. It will help in maintaining the CSR of Rolls Royce and will support the effective rise in functionality of business firm. Other than this, the following of laws will help the firm to operate effectively in a business environment, sustaining its productivity and revenue generation. For example, Rolls Royce will follow all the laws and rules decided by trade unions and government to sustain in market (Blahová, Haghirian, and Pálka, 2015).
- Ethical: This measure involves the company to act ethically and morally that will help in the supporting of wide range of business operations that will support better rise in effectiveness of Rolls Royce. The following of legal and ethical code of conduct will help Rolls Royce to draw a better brand image that will help in suitable gaining of customer base and involve the better management of business operations that supports the better rise in operational capability of organisation. It includes the better and ethical behaviour with employee's, customers, and suppliers, who contribute in better development of cited firm in a better way. For case, Rolls Royce will see through the effective management to have a better management of wide range of ethics as per the code of conduct that is required to be followed.
- Philanthropic: It is the approach of giving back to society what you have gained from it. Although it is not an obligation but following this approach will help as firm to improve its business operations. This involves the approaches like donation, sponsoring a social cause or giving out charities. Besides this, the implementation of different innovative approaches that helps the firm to make its services environment friendly and clean to use will also help in maintaining the CSR of the company. For instance, The implementation of Advance3 demonstrator and UltraFan will help in improving fuel efficiency of its cars and reduce the emissions, that will help in maintaining the CSR of the company in a very effective and better way (Botha, Kourie and Snyman, 2014).
Thus, this can be concluded that the better management of business environment will help in increasing the effectiveness of an enterprise in a better way. The report laid an emphasis on advance usage of internet and effective utilization of technical tools and techniques like cloud storage for effective handling of business operations which will support better growth and development of business operations. Besides this, the Archie Carroll model of Corporate social responsibility that undertaken by cited organisation for effective growth on economic and corporate level help in identification of various measures to ensure effective growth and development of company.
- Blahová, M., Haghirian, P. and Pálka, P., 2015. Major factors affecting contemporary Japanese business environment.International Journal of Productivity and Performance Management. 64(3). pp.416-433.
- Botha, A., Kourie, D. and Snyman, R., 2014.Coping with continuous change in the business environment: Knowledge management and knowledge management technology. Elsevier.
- Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive priorities: The role of performance frontiers.International Journal of Production Economics.151. pp.131-145.
- Cascio, W., 2018.Managing human resources. McGraw-Hill Education.
- Cull, R., and et.al., 2015. A new index of the business environment for microfinance.World Development.70. pp.357-388