Business Report sample

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Lahore University of Management Sciences, Lahore *

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MISC

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Business

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Nov 24, 2024

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docx

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Introduction An organization in modern time is related and circles around corporate social responsibility, business ethics and innovation because all of these have impact on organization. This impact is considered to be evaluated in the study. In respect of development and growth of any business it is noted that drastic and most important factor is termed as innovation. strategical planning is developed by organizations and businesses and for getting successful outcome these companies take strategic decisions. In improvement of financial and economic growth, companies have ability of improving businesses. Organizational growth of the company is affected by innovation and it is a way of developing an environment of gaining competitive advantage. Diversify and behavior of the employees are promoted on other hand by social responsibility and business ethics. Engagement of customers with the company is increased based on CSR through practical presence and social media. A better engagement of employees is created and developed by it because business in such situation work in sustainable way. cost intensive methods and awareness of brand are developed and created by it. Organizational goals have been achieved by the company OCADO Group Plc based on adoption of proper innovative ideas and strategies. A profitable outcome and better technological advancement have been resulted by such measures. Different kinds of economical benefits have been gained by OCADO with focusing on business ethics and corporate social responsibilities. 1. Assess the impact of innovation on modern business To succeed, businesses must embrace innovation and change. Innovation enables businesses to flourish, organisations to remain relevant, and organisations to differentiate themselves. What is the innovation Why do you think its innovation What type of innovation is this What impact it has on business ? Ocado Smart Platform (OSP), OCADO GROUP PLC has been on a mission to reconstruct online grocery retail and enable some of the world's most forward- thinking retailers to do grocery online more sustainable and profitable Process innovation (OSP), which is the system they use to supply grocers worldwide. It is the world's most advanced unique end-to-end eCommerce, fulfilment, and logistics platform. As a result, OCADO transformed the online grocery space innovated in technology. They built almost all their technology, willing to move the online grocery sector to the next level and solve most of its problems. Today, the Ocado Smart Platform is the

world's most advanced end-to-end eCommerce, fulfilment, and logistics platform. `automation of warehouse the warehouses at Ocado are completely automated They have thousands of robots zooming around a grid system to pack groceries”. According to their innovation centre, thousands of robots can process 65,000 orders every week. They communicate on a 4G network to avoid bumping into each other.” Technology innovation Through this kind of technological innovation that Ocado has established it has not only helped it grow in terms of getting customers that they have been able to link them to the right providers, rather the company has made it very easy to make any process of delivering and buying goods to be very easy. Through the different monitoring tools that the company has, it has been able to make smaller companies grow by giving them the chance of accessing larger market shares and therefore giving them the ability to generate more revenues and also, the company has been able to ensure that customers from different parts of the country are able to access the exact good and services that they do need from the comfort of their homes and therefore reducing the struggle that was initially there that they would have when it comes to buying this goods and services from the providers. This innovation also has ensured that the

middle men in any business transaction are eliminated and therefore the price of goods and services is reduced significantly facilitating for more growth and more purchases by organizations and consumers respectively Reference – innovation impact on business - 4 2. Assess the general environment of the organization Political Brexit's impact on food prices: Since the UK voted to leave the European Union in 2016, there has been a pervasive climate of political and economic uncertainty. If there is no trade deal with the EU following Brexit, there could be a significant increase in food prices. Political uncertainty is causing a slowdown in investment spending globally, as a result of events such as Brexit, the war in Europe and the decision of large-scale companies to close business with and within Russia. Additionally, consumer inflation is increasing, and retailers have been deferring capital expenditure decisions due to uncertainty. Economic Ocado needs to consider economic factors such as pay level, cost of credit, competitive pressures, labour supply & demand, energy prices etc. These economic factors impact on the pricing strategies of the company significantly. Likewise, due to economic lockdown in 2020, many people lost their jobs and therefore, reduced their shopping activities. Socio-cultural Consumer attention on organics and healthy eating: As the importance of health and wellness continues to grow, consumers are increasingly focused on healthy eating and organic food items, even if it means paying a premium. According to industry estimates, the market for healthy food will exceed $1 trillion in value by 2017. Additionally, consumers who are allergic to specific food substances prefer gluten-free and non-GMO meals. Ocado can benefit from this trend by offering a diverse portfolio of healthy foods and organics, including plant-based protein goods such as non-dairy milk (soy, coconut, and hazelnut milk), which are growing in popularity and are seen as healthy alternatives by customers. Technological Big data analytics and artificial intelligence (AI) is a major way by which retailers can improve both operational efficiency as well as customer experience. In the retail industry, data is something that is generated in enormous volumes through sources like inventory data and website transaction logs. Ocado is using big data and artificial intelligence to generate customer behavior on its web-platform.

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The company is also leveraging robotics in its next-genwireless warehouse automation platform. The same has been implemented in two warehouse sites in Andover and East London. Ocado’s investments in the online channel and the development of Ocado Smart Platform has positioned itwell for this channel shift on a global level. This platform has also enabled the company to replicate its unique capabilities for its partners in other markets. For the partners, this is an effective way to faster, flexible, more cost efficient and lower-risk way of launching or improving their online grocery business. Environmental: One of the big societal problems that threatens food retailers is environmental issues; a crucial area to solve this is for businesses to behave in a socially conscious manner. Ocado corporate social responsibility encompasses all the elements that make up a corporate social responsibility. The organization goes beyond and above the regulatory governance's minimum responsibilities to stakeholders. The government plans to implement a new policy to minimize waste, reduce resource use, and reduce environmental harm. Legal Ocado must abide by the rules and regulations of the countries in which it operates, as any breach may result in punitive actions by relevant authorities. For example, it cannot pay any employee less than the minimum wage in the UK. Likewise, it cannot dismiss an employee unfairly. Should it happen, the employee concerned can take it to an employment tribunal. Opportunities Ocado can repeat its success in other European markets such as France, Germany, Spain, and the Netherlands by leveraging its experience and a strong online platform. Additionally, this will assist the corporation in diversifying its commercial operations and decreasing its reliance on the single UK market. Over the years, Ocado has invested in technology to build one of the greatest supermarket e- commerce solutions, enhancing its capabilities and competitive edge. As a result, Ocado is now allowed to form agreements with brick-and-mortar stores. Ocado has the opportunity to partner with other grocers globally and increase its footprint as its platform grows in popularity and strength. Licensing of an automated warehousing platform powered by robotics: Ocado, the world's largest online-only retailer, has built a next-generation wireless warehouse automation platform at its Andover facility in the United Kingdom. Constraints Ocado faces significant competition from other global e-commerce players that have entered the food grocery segment, such as AmazonFresh. AmazonFresh is a prime example of this, as the company entered the UK market in 2016. Additionally, with Amazon's acquisition of Whole Foods, the industry dynamics will shift, transforming Amazon into a powerful competitor. Across the grocery retail sector, intense price wars are eroding margins: With the consolidation of the UK's wholesale convenience market, existing players will face increased competition in 2018. Larger

players, such as Tesco-Booker, will attempt to utilise scale and maintain competitive pricing. This may force other players, such as Ocado, to reduce margins to maintain market share. Reference – Pestle analysis of food retail industry in UK – 6 3. For the chosen company Make two recommendations on how they can improve decision making in their company. Firstly, in order to get the most from the industry, Ocado should focus on expanding its production and sales globally. Exposure to a single market and a modest scale in comparison to the broader UK grocery market: Ocado's operations are currently concentrated in the UK, and in comparison, to the total market, the company is still a small player with only an online presence. Due to the company's reliance on a single market, operational risks increase in the event of changing market dynamics and increased competition. Secondly, to grow as a business Ocado needs to increase its cash and assets. Ocado's retail operations are heavily reliant on revolving credit lines and debt, which can put pressure on the company's liquidity profile. Additionally, as the company expands its operations, it requires capital to enhance its technology platform and repay some of its existing lease obligations. In June 2017, the firm issued £250 million Senior Secured Notes due 2024, which was well accepted by the market, and the proceeds will be used to diversify the company's funding sources. Reference – improving decision making in the company -2 What are the ethical implications of decision making in their company. Ocado aim to conduct business with the utmost integrity and honesty. “This has never been more important as we expand and grow our business across the globe. To ensure that these standards are embedded across the business and are part of our culture, we have a compliance framework in place, consisting of policies, processes, guidance and training focused on a number of core compliance topics. As the business grew in size and complexity, they recognised the critical nature of a strong conflict of the interest compliance process and responded by developing and launching a new global Conflicts of Interest Policy, accompanied by a reporting tool that enables actual, potential, or perceived conflicts of interest to be reported, recorded, and managed during and prior to employment. Additionally, supporting guidance was developed to aid managers in managing and responding to conflict situations. Their approach to this subject was strengthened further by the establishment of a Directors' Conflict of Interest and Related Party Policy. In 2020, Ocado introduced two new policies to support their ethics in decision making Anti-Bribery and Anti-Corruption Policy and Human Rights and Modern Slavery policy. The Anti-Bribery Policy outlines Ocado's position on giving and receiving gifts and hospitality, as well as providing guidelines on how to report and record such transactions. Additionally, the Policy is accompanied by guidance that serves to enhance the Policy's practical execution. Anti-bribery training is included in the induction process for new workers, and existing employees receive anti-bribery training biennially as part of Ocado's topic-

specific refresher programme and annually as part of our broader Code of Conduct annual training programme. The Code of Conduct and Human Rights Policy is intended to develop and perpetuate Ocado's culture of honesty and transparency and as well as to secure the respect and support of its workers. Additionally, they are committed to ensuring the fair treatment of workers in their supply networks. They have a zero-tolerance policy for slavery and human trafficking, as outlined in their Modern Slavery Statement, and are committed to integrating responsible sourcing methods throughout their supply chain. Reference – ethics and decision making - 4 Conclusion As discussed in this report, Ocado group plc is among the few companies that have greatly embraced technology in an unprecedented manner. The use of its innovative Ocado platform has led to increased productivity, opening new markets and opportunities, and reduction in production costs. However, there is a need for innovation to help make its work more efficient and effective. Ocado Group plc can adopt social commerce technology to ease their customers' operations. Social commerce allows customers to shop directly from their social media platforms without websites. For instance, the Ocado group can advertise their products through Facebook shops. This is essential as this shop can be accessed from Facebook and Instagram. Reference Ocado Group. 2021. Annual Report. [online] Available at: https://www.ocadogroup.- com/investors/annual-report [Accessed 14 March 2022].

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