Mgmt20132 Sustainable Business : Business Assessment Answers

Critically analyse information that provides insight into innovation and business development processes;

Develop and evaluate innovative solutions to improve the sustainability and viability of a business or organisation;

Critically evaluate one’s own personal capabilities and the resources available to implement innovation and business  development projects; and

Effectively communicate commercially, socially viable and ethical innovation systems and business proposals for businesses and organisations.

Answer:

Innovation and sustainable business development

The essay argues for the business model and how it should be constructed keeping in mind the various strategies and changes that are likely to occur. Pre preparation or such dynamism need to made by the managers through studies and predicting the market scenario well before with the help of efficient research. On making predictions training to the employees must be rendered so that they become eligible enough to face those challenges and react positively towards static and dynamic problems. The concept is well explained using the example of Cadbury and how it reacted to the recession situations by motivating the employees in a unique manner. This is the example of finding out opportunities and creating wonders out of it.

The business model is the structure of the company which assists in deciding how the working of business carries forwards and what rules regulations are required to be followed. The model helps in enhancing the value of the business and thereby attracting the customers. By adopting the business model expansion and improvisation in business takes place resulting in growth and development of the organization (Hill, 2017). Business model enhances the efficiency of employees as they have set plan to work on. An efficient model should be flexible to adapt the changes and positively revert towards the innovation and modification in the technical, political and social field. This would result in newness and follow the trend thereby increasing the loyalty of consumers which will enhance the brand image and set the trend in the market (Cloetta, n.d.).

The business model operates in different types and fields depending upon the nature of the business. Considering the e-business archetypes there are multiple measures that need to undertake while designing the model (Ovans, 2015). First of all, it should be made clear that models are part of the business plan and it is a narrow term. A business plan is an overall structure from start till expansion and handling risk, decision making and many more attributes. Business model as per e-business archetype design the delivery time, picking up of order, it’s dispatching and clearing out consumers’ grievance to solve out the problem and acquiring the consumer satisfaction thereby increasing the loyalty and promoting the business in a good sense. The business model also focuses on adapting the things of competitors by moulding it another way round if it feels better for the growth of the organisation. There are in all seven kinds of archetypes which are: product, subscription, service, brokerage, trade, marketplace and ecosystem.  Then there is activity task in a business model which depicts the concentration on the focal point of the firm which was constructed by the managers (Reeves, 2017). Through activity system the organisational management takes place and delegation process along with information flow will be pivoted. Activity task is bifurcated in 2 ways that design element and design theme. The design element is argued over content, structure and governance whereas design theme involves within novelty, lock-in, complementarities and efficiency (Zott & Amit, 2010). Lastly, there is a business model as cost-revenue architecture. The cost-revenue archetype states the discussion over budget in setting up certain activity, for instance, in order to adopt the new technology to improve the production cost of machinery will get compared with the revenue it is likely to generate and accordingly buy or make a decision will be implemented (Bm now, 2013).

In an organisation there occur timely changes which are either static or dynamic. In case of static problems, pre-preparation is made as such problems are likely to occur. Example, in online marketing failure of connection, break downs, unavailability of resources is common problem likely to arise and resolution of this should be prepared in advance. Another issue is the dynamic problem, these are the fluctuating situation that could occur at any moment of time and managers have to deal with these adverse situations smartly. Such situations test the decision making and risk management skill of the managers and directors (Boonstra & Bradshaw, 2013). Examples of such situations are changes in governmental norms of the country where orders need to be delivered, political changes, occurring of natural calamity during shipping. There exist varieties of a business model which could be implemented by matching it with the nature and situation of the problems. These numerous models are a low-cost business model, franchising, e-commerce, freemium, add-on business model, affiliate, the ad was driven, auction, catalogue and franchising model. Also, there are problems related to design and re-design, as discussed earlier designing is pre-set but re-designing falls under the dynamic notion and adaptability need to make to face the challenges and accept the situation by converting it into the opportunity or solving it till that extent that loss is not faced (Chand, 2016).

  The business context could be referred as the business environment. The business environment is dynamic in nature and high co-operation is required in it. Business context is divided into 2 portions micro environment and macro environment. Micro is an internal environment which deals with the issues and challenges faced by the organisation such as structure and culture of the organisation, enhancing the human resource, adopting retention strategies, acquiring new technology and many more falls in the internal environment of the business model (Maxted, 2008). It is argued that stronger the internal environment more adaptability will be there and therefore the much strength and discipline will be gained in fighting up the external issues successfully. The macro environment is the external environment of the organisation that involves multiple stakeholders like customers, shareholders, employees, competitors, brokers and supplier. Changes in the one of any attribute the external environment will get affected which will automatically influence the internal environment as well because both the aspects are interlinked with each other. Another aspect is that the changes are inevitable they have to be entertained to raise the organisation to the upper level. The changes need to be converted into the opportunity to deliver success and become a trendsetter in the market rendering tough competition the competitors.  Also, there are certain changes that are unfavourable but need to be accepted that measures should be taken so that at least the situation of loss can be prevented and maintain the equilibrium of business.

Considering the changes and its positive repercussions the example of Cadbury could be discussed. In the year 2009, Cadbury launched a scheme to appreciate and pay respect to the permanent employees and furnishing them with happiness package to enjoy the salary day.  It was the situation of the post-recession and financial crisis was still continuing to some extent. People were getting cut salaries and disturbance in the economy was faced. Cadbury through its salary campaign spread the happy moments to enjoy in such situations as well because it is the part of life and will pass on one or the other day, on that sake celebrations should not be curbed thus the promotional scheme for social obligation was launched by the company. The idea was that on almost every first the employees in various organisation gets the salary and this is the moment to merry and cherish the hard work they did the whole month. This campaign was taken so seriously that chocolates sell gone up and people feel relaxed on their salary day reducing their tensions and thanking the employers which indirectly resulted in increasing the bond between employer and employees. Other such innovations by Cadbury is introducing dairy milk silk, dairy milk bubbly with new texture, new taste and even more soft and smooth melting down in the mouth (Rathod, 2016).

As discussed the changes the effect of it on the business model should also be studied. The models must be flexible in nature which easily absorbs the changes to occur or has attacked the organisation. Different policies regarding the changes and pattern of changes should be made also the employees must be trained accordingly. At the time of recruitment, the quality of adaptability of the candidate should be checked. Specific training has to be conducted. The training session can be either held by the training manager or the external could also be invited to deliver the lecture regarding the reciprocation towards the upcoming dynamism (Venturi, 2014). This is as per the organisational view, now considering the management’s perspective the managers and head of the department have the duty to study the market trend and the changes that are likely to appear in the near future. After that, the relevant solutions and measures need to be inculcated to turn out the change into the fruitful profitable situation. Other than predictable changes there is unpredictable dynamism that exists too, for that sake manager should make the preparation and flexibility quota need to be maintained where certain rules and policies can be amended and turned out another way round (Scott, 2017).

Therefore it can be concluded from the above essay that business models are crucial for implementing the organisational strategies successfully. The main motive involves step by step inculcation of work and introducing new activities according to the policies and practices constructed. There are different sought of business models that efficiently affects the working of the organisation. These are the e-business archetype, activity system involving 2 types of design elements and lastly, cost-revenue analysis has to be focused. The essay explains about static and dynamic problems that need to be resolved using the designs and at times re-design attributes of solving the problem because as stated changes are inevitable and measures need to be taken to turn it out into opportunity as performed by Cadbury for relaxing the employees all over during the tenure of recession. It is essential for the managers and organisation as a whole to be prepared for the adverse condition that could strike anytime and imbalance the policies and practices of the organisation.

References

Bm now. (2013). Revenue model types: the quick guide. Viewed on 25^th August 2017. < https://www.bmnow.com/revenue-models-quick-guide/>.

Boonstra. J. & Bradshaw. P. (2013). Power dynamics in organisational change. Viewed on 25^th August 2017. <https://www.jaapboonstra.nl/wp-content/uploads/2013/01/Chapter-131.pdf>.

Chand. S. (2016). Business environment: nature and significance of business environment. Viewed on 17^th August 2017. <https://www.yourarticlelibrary.com/business/business-environment-nature-and-significances-of-business-environment/23367/>.

Cloetta. (n.d.). Business concept and business model. Viewed on 25^th August 2017. <https://www.cloetta.com/en/about-cloetta/business-concept-business-model/>.

Hill. B. (2017). The concept of a business model. Viewed on 25^th August 2017. <https://smallbusiness.chron.com/concept-business-model-3866.html>.

Maxted. S.J. (2008). The business context model; as good as it gets. Viewed on 25^th August 2017. < https://www.batimes.com/articles/the-business-context-model-as-good-as-it-gets.html>.

Ovans. A. (2015).What is business model? Viewed on 25^th August 2017. <https://hbr.org/2015/01/what-is-a-business-model>.

Rathod. D. (2016). Cadbury India: creativity and innovation. Viewed on 25^th august 2017. < https://www.linkedin.com/pulse/cadbury-india-creativity-innovation-dhruvkumar-rathod>.

Reeves. C. (2017). 10 business archetypes: how to choose a business model that makes sense. Viewed on 25^th August 2017. < https://fizzle.co/sparkline/10-business-archetypes-choose-business-model-makes-sense-money-fs091>.

Scott. G. (2017). What is the manager role and responsibility in implementing change within the department? Viewed on 25^th august 2017. <https://work.chron.com/manager-role-responsibility-implementing-change-within-department-26671.html>.

Venturi. A. (2014). Impact of technology on management and organizations. Viewed on 17^th August 2017.< https://www.linkedin.com/pulse/20141208111749-6038885-impact-of-technology-on-management-and-organizations>.

Zott. C. & Amit. R. (2010). ‘Business model design: an activity system perspective’. Long Range Planning. vol. 43. no. 2. 216-226.