Poppy-Grace McLean 447062 Unit 1- Exploring a Business Assignment 3
What is innovation?
Innovation is the creation and introduction of a product or service that is either a new or improved version of old
products or services.
What is enterprise?
Enterprise is when you identify opportunities to develop business activities.
P7- Explore how innovation and enterprise contribute to the success of a business.
Innovation
Sainsburys needs innovation because of the competitive environment they are in. Customers are also more demanding
and are more educated. For Sainsburys to continue to succeed they need more of a competitive advantage which they
could do by being innovative. Here are some advantages of Sainsburys using innovation.
The first advantage could be improving their products, services, and customer relationships. If Sainsburys make
improvements to their products and services, they will prevent the risk of losing any customers. This is because they will
seem more of an ambitious business compared to their competitors. This will drive more customers to them and keep
their existing customers. An example of how they could do this is ask customers to do surveys in exchange for an
incentive. Them doing this will show Sainsburys any product changes which will lead to them being more innovative.
Another advantage could be that innovation improves their market position. They could do this by monitoring the
supermarket industry dynamics, learning what competitors are doing, listening to any feedback customers and suppliers
give and watching what is happening in other businesses in other countries. Doing this will help them to stay on top of
market trends and opportunities.
Another advantage could be that including employees in innovation could lead to more innovative ideas. Employees are
a company's best source of ideas. Sainsburys doing this will lead to new ways of being innovative and give them more
innovation success.
A final advantage could be that it will reduce waste and costs this is more innovative because Sainsburys can focus on
long tern goals. Doing this will lead to higher profit margins, lower prices, increased competition, and better customer
service.
Enterprise
Sainsburys could use continuous improvement, making small improvements often, to help with enterprise. This will lead
to improving quality, being more efficient, reducing unnecessary tasks, and reducing over production. These all lead to
money saving and turning any losses into profits.
They could also use research and development. Using research and development will help the company develop and
help them succeed in the marketplace. If they use research and development, Sainsburys will introduce innovative
technology while still improving their current technologies. This will lead to longer-term success, and they will grow and
gain more.
, They could also use benchmarking. Using benchmarking means that Sainsburys will compare themselves to a business
that is known as “best in class” to find where Sainsburys need to improve. This will help them to improve their products
and services, which will also improve their customer relationships.
M5- Analyse how successful the use of innovation and enterprise has been for a given business.
In this picture we can see that Sainsburys has been using innovation since 1915. Their first example of using their own
innovation is in 1915 when they set up a staff training school. They also set up a good fellow trust set up for staff in need
in 1922. In 1934 they set up sickness insurance and pensions schemes for staff. All of these would have been a positive
for Sainsburys because they would have been more innovative than their competitors. This would have meant that more
people would want to work for them because of the benefits for staff.
In this picture we can see that in 1940 Sainsburys introduced ‘fair shares’ which was a scheme to make sure that non-
rationed goods in short supply were distributed fairly. In 1944, Sainsburys halved paper labels on cans to help save paper
and help save the war effort. Sainsburys doing both things shows that they care about society and their customers. This
leaves a good impression on customers and gives customers more reason to shop at Sainsburys. In 1950, Sainsburys
introduced self-service shopping in a branch in Croydon. And then in 1955, they opened the largest self-service food
store in Europe, selling fresh bread and produce for the first time. In 1961, Sainsburys installed an ‘EMIDEC1100’
What is innovation?
Innovation is the creation and introduction of a product or service that is either a new or improved version of old
products or services.
What is enterprise?
Enterprise is when you identify opportunities to develop business activities.
P7- Explore how innovation and enterprise contribute to the success of a business.
Innovation
Sainsburys needs innovation because of the competitive environment they are in. Customers are also more demanding
and are more educated. For Sainsburys to continue to succeed they need more of a competitive advantage which they
could do by being innovative. Here are some advantages of Sainsburys using innovation.
The first advantage could be improving their products, services, and customer relationships. If Sainsburys make
improvements to their products and services, they will prevent the risk of losing any customers. This is because they will
seem more of an ambitious business compared to their competitors. This will drive more customers to them and keep
their existing customers. An example of how they could do this is ask customers to do surveys in exchange for an
incentive. Them doing this will show Sainsburys any product changes which will lead to them being more innovative.
Another advantage could be that innovation improves their market position. They could do this by monitoring the
supermarket industry dynamics, learning what competitors are doing, listening to any feedback customers and suppliers
give and watching what is happening in other businesses in other countries. Doing this will help them to stay on top of
market trends and opportunities.
Another advantage could be that including employees in innovation could lead to more innovative ideas. Employees are
a company's best source of ideas. Sainsburys doing this will lead to new ways of being innovative and give them more
innovation success.
A final advantage could be that it will reduce waste and costs this is more innovative because Sainsburys can focus on
long tern goals. Doing this will lead to higher profit margins, lower prices, increased competition, and better customer
service.
Enterprise
Sainsburys could use continuous improvement, making small improvements often, to help with enterprise. This will lead
to improving quality, being more efficient, reducing unnecessary tasks, and reducing over production. These all lead to
money saving and turning any losses into profits.
They could also use research and development. Using research and development will help the company develop and
help them succeed in the marketplace. If they use research and development, Sainsburys will introduce innovative
technology while still improving their current technologies. This will lead to longer-term success, and they will grow and
gain more.
, They could also use benchmarking. Using benchmarking means that Sainsburys will compare themselves to a business
that is known as “best in class” to find where Sainsburys need to improve. This will help them to improve their products
and services, which will also improve their customer relationships.
M5- Analyse how successful the use of innovation and enterprise has been for a given business.
In this picture we can see that Sainsburys has been using innovation since 1915. Their first example of using their own
innovation is in 1915 when they set up a staff training school. They also set up a good fellow trust set up for staff in need
in 1922. In 1934 they set up sickness insurance and pensions schemes for staff. All of these would have been a positive
for Sainsburys because they would have been more innovative than their competitors. This would have meant that more
people would want to work for them because of the benefits for staff.
In this picture we can see that in 1940 Sainsburys introduced ‘fair shares’ which was a scheme to make sure that non-
rationed goods in short supply were distributed fairly. In 1944, Sainsburys halved paper labels on cans to help save paper
and help save the war effort. Sainsburys doing both things shows that they care about society and their customers. This
leaves a good impression on customers and gives customers more reason to shop at Sainsburys. In 1950, Sainsburys
introduced self-service shopping in a branch in Croydon. And then in 1955, they opened the largest self-service food
store in Europe, selling fresh bread and produce for the first time. In 1961, Sainsburys installed an ‘EMIDEC1100’
