Innovation in Barclays
Innovation in Barclays has been one of the most important factors which the company has been valuing for many years. According to Ciner (2018, p. 79), innovation is fundamental in this company because it plays a crucial role which enables it to remain in the industry. The impact of innovation in Barclays can be realized in different areas, like for instance, marketing, operations, logistics/supply chain management, as well as design/research and development. According to Lisa (2012, p. 155), innovation is defined as the act of introducing a new method, product, idea, or any other thing which enables a business to realize a positive impact. Some of the innovations which Barclays has introduced include new processes, services, and new technologies among others.
Impact on Sales and Customer Access
One of the significant impacts of innovation in this company is that it has enabled it to enhance its sales through coming up with platforms which enhances customer access to its services (Lisa 2012, p. 147). For example, the company introduced a mobile banking application which makes it possible for its customers to easily access their accounts any time and at any geographical location. This type of innovation has played a crucial role in enabling the company to realize increased sales and revenue because its consumers do not have to wait for particular hours or days in order to access services.
Improved Customer Service
The other impact of innovation in this institution is that it has enhanced its operation by reducing the time taken to serve customers. Initially, customers had to wait for long hours in queues in order to be served because of slow operations in this institution. Currently, customers do not have to wait for hours in order to be served because the company has been innovating systems which work faster. According to Malgorzata (2015, p. 49), introducing these machines has made the bank to be viewed as one of the best options for consumers because it has aided in reducing wastage of time and also getting exhausted due to long queuing hours.
Improved Reliability
Innovation in this company has also reduced the rate of incontinences realized in the past due to several factors which sometimes were making customers to remain unserved. For instance, the company was associated with frequent system failures which in most instances made its customers to attain services even after waiting for long hours (Ciner 2018, p. 80). This factor made some of the customers to view the bank as unreliable and therefore decided to seek services from alternative companies. However, through innovation of technologically developed systems, Barclays has been one of the reliable banking institutions because its systems rarely fail, and even when they do so, there are alternatives which customers can use to access their accounts.
Marketing Impact
Innovation has also impacted marketing in this institution. According to Malgorzata (2015, p. 48), Barclays was one of the banks that experienced huge marketing cost because of being a multinational company. However, with different innovations which have been experienced in this company, like for instance, the use of social media, the company has realized a significant decrease in its marketing costs. Unlike in the past where the company had to use some ways which were costly and enabled its marketing team to reach only a few people, the use of social media has been assisting Barclays to reach a huge audience with no or limited cost. The use of social media has also enabled this institution to overcome geographical barriers and reach consumers in different areas.
Advantages of Innovating a Wider Range of Services
Innovating a wider range of services has also made it possible for this company to market its products without challenges. According to Lisa (2012, p. 148), companies which keep introducing or advancing their services or products have advantages in marketing than those which do not expand their lines of production because consumers like having new experiences concerning goods or services.
Addressing Changing Customer Needs
Innovation has also had an impact on the manner in which this company responds to the changing needs of customers. As time goes on, consumers are changing the way they want to access their bank accounts and this has been making Barclays to find out some of the ways which they can use to enhance their experience (Ciner 2018, p. 82). With the constant innovation which the company has been focusing on, it has become possible for this company to introduce new things which have made the consumers to feel the company understands and addresses their needs and expectations. Some of these innovations include the introduction of talking ATMs, use of cards to pay for their services, introduction of mobile banking services, instant cheques, and video banking, among others.
Enhanced Customer Security
The importance of innovation in this company is that it has enabled it to enhance customer security. According to Lisa (2012, p. 145), Barclays was the first financial institution to pioneer finger-vein technology in the United Kingdom and has been striving to tackle fraud through concentrating on innovations in areas like voice biometrics. Considering the fact that banks are where customers expect their money to be safe, the introduction of these security measures has enabled customers to develop confidence concerning the existence of their money in this financial institution, and this has therefore enabled the company to realize huge market share and increased customer loyalty.
Impact on Service Design and Operational Costs
Innovation has also had an impact on the manner in which the company designs its services. For instance, some years back, it could take some time for customers to access their bank accounts. However, utilization of huge consumption of smartphones and the internet has made the make to design its services in a manner which can enable customers to access their bank accounts without barriers of time and day. Because of this experience, customers have developed the interest of consuming services from this institution because in the past there was a perception that keeping all the money in the bank was not right because it would be challenging to access the finances in times of high need, like for instance, when an emergency arises.
Innovation has also had a significant impact on Barclays' operational costs. According to Malgorzata (2015, p. 46), financial institutions realize huge operational costs because they must implement processes which assist customers to attain better experience. With innovation, this company has been able to automate most of its processes, and this has played a crucial role in reducing costs required for the workforce, purchasing equipment from time to time, traveling for business reasons and so forth.
Competitive Advantage
Innovation has also influenced Barclays' competitive power. According to Aleksandra (2014, p. 58), the game in the banking industry has been changing and for the players to win, they must innovate and use technology in their operations. For Barclays, innovation has played a crucial role in enabling it to attain a competitive advantage through introducing services which attract many consumers. This has enabled this financial institution to remain in operation even if it operates in one of the most competitive industries because customers have built loyalty due to the fact that the company seeks to make them realize satisfaction through giving them services which match their expectations.
Conclusion
From this discussion, it is clear that innovation has had a significant impact on Barclays. Some of the impacts which this financial institution has realized through introduction of new processes, services, new technologies include reducing of its marketing costs through the use of social media, introducing services which match customer expectations and reducing operational costs. Innovation has also had an impact on the manner in which this company designs its services, and also the options which it gives its customers to access their accounts.
The Importance of Corporate Social Responsibility in BP
In recent years, corporate social responsibility (CSR) has become one of the most crucial aspects of business practice which managers cannot afford to ignore. Among the companies which have realized the importance of this business practice is BP, which is a British company dealing with finding, refining oil, and selling the gas which result (Cheryl 2017, p. 39). For the various instances which have occurred in the history of this company, most of the people have been questioning its utilization of CSR in its operations because several instances have implied this company does not use this strategy in its operation. However, the company has introduced and fully implemented the use of this business practice and this has led to various impacts in its business.
Economic Benefits
One of the benefits of this model to BP is that it has made the company realize economic benefits. Initially, the sales volume and revenue per year had gone extremely down due to several factors, like for instance, when the oil spill occurred, people found this company as irresponsible and therefore decided to shift their loyalty to other companies (Cheryl 2017, p. 38). This had a significant impact on BP because it realized a significant decrease in market share which also affected its sales revenue. However, because the company has realized the importance of CSR in its operations, it has started realizing an increase in sales revenue and market share.
Compliance with Legal Requirements
The other importance of CSR in this company is that it has made it operate within the legal requirements. According to Luft (2012, p. 79), companies must operate based on the law requirements to avoid facing legal actions. The disadvantage of facing lawful actions is that it makes an organization incur costs in paying fines and also wastage of time in attending court hearings. For BP, it has currently implemented various strategies which have enabled the company to follow legal requirements, such as environmental conservation and reduction of fire accidents which had been occurring from time to time.
Business Interests and Stakeholder Wellbeing
CSR is also important for BP because it has enabled its management to engage in activities which can make the company attain its business interests while respecting the wellbeing of its stakeholders (Timothy 2012, p. 172). For instance, CSR has been making the company engage in healthy rivalry with its competitors, a factor which has enabled its management to implement strategies which enhance the growth of business in this company. It has also made the company consider health and safety measures as some of the ways of ensuring its stakeholders are safe and risky incidence like, for example, the 2010 oil spill does not occur again.
Building Customer Loyalty
The use of CSR has also enabled the public to view BP as a company which minds not only enhancing its profits but also serving the interest of the community. This kind of perception has assisted in enhancing the relationship between the company and the community, a factor which has led to a positive impact on the business by having loyal customers. The reason why the company has loyal customers due to the use of CSR is that according to Natalia (2017, p. 167), customers like being associated with businesses which serve the well-being of customers and even those who do not purchase from them. BP has attained this factor by being socially responsible in its operations, especially by being keen on environmental conservation.
Ethical Reputation
The use of CSR is crucial in BP's operations because it has made it appear ethical in its operations. According to Chandrakanta (2013, p. 68), the community has expectations which it wants a particular company to meet. Because BP is one of the organizations which deal with hazardous products, the community expects it to always do the right things not only for the safety of its staff members but also for the safety of the community. After the oil spill which killed many people and also affected the environment, most people developed a negative perception towards this company because it appeared unethical in its operations (Timothy 2012, p. 172). However, with the various reforms which the company has established, it has started considering the well-being of the people through doing the right things, and this has made the society start viewing it as ethical in its operations.
Long-Term Stakeholder Relationships
By implementing CSR in its operations, the company has been able to go beyond the narrow requirements of the law by doing what is right, like for instance, proper treatment of suppliers, employees, and other stakeholders. This factor has enabled the company to realize long-term relationships with its stakeholders, hence enabling it to minimize various costs (Chandrakanta 2013, p. 68). For instance, establishing a good relationship with employees has assisted the company to reduce the costs of hiring and training new employees because of increased turnover rates.
Positive Reputation and Philanthropy
Being one of the companies which promote projects related to renewable sources of energy, the company has gained fame not only in London but also other countries because as time goes on, people have become concerned with pollution and issues related to climatic change (Luft 2012, p. 79). Although the company has caused various disasters and has been involved in different contradictions which make it appear as one which does not have a lot of interest in CSR, minding pollution and climatic change has enabled it to start building a positive relationship with the community, a factor which has enabled its business operations to start thriving after experiencing problems for some time.
Enhanced Social Wellbeing
The use of CSR in its business operations has also enabled this company to be philanthropic. According to Timothy (2012, p. 172), philanthropic in CSR means a company's responsibility to give back to society. For BP, giving back to society has played a key role in enhancing its relationship with the people who live around where the company conducts its business. One of the charitable initiatives used by BP to give back to society includes BP foundation, which was initiated to make the society realize various opportunities. According to Cheryl (2017, p. 52), BP has also benefited from giving back to the community, as it has assisted this company to change the perception which people had after the oil spill.
Improved Reputation and Market Share
According to Luft (2012, p. 82), CSR has also made this company enhance its social wellbeing. For example, through focusing on enhancing the wellbeing of the society, the company has been able to develop a positive relationship with many communities. This factor has led to a positive impact on the company because being an organization that operates in different countries, it has been able to enhance its reputation. Additionally, being socially responsible has assisted the company to expand its market share because while implementing some of the activities associated with its CSR, this company also gets an opportunity to market itself, hence increasing the consumption of its brands.
Conclusion
Although BP has had various incidences that have made it appear as a company which does not value CSR in its operations, over the recent years, it has focused on using this business practice in its operations, and this has made CRS one of the most important practices for this company. Some of the reasons that make this business practice be important for BP include making the company operate within the law, a factor which has enabled it to avoid unnecessary costs due to fines. Implementing CSR has also enabled the company to change the perception which the society had, especially after the oil spill, and start viewing the company as ethical. Additionally, it has made this organization enhance its relationship with the community, expand its market share, operate within the law, and become philanthropic through giving back to the community.
References
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