Context

In a changing world, businesses must adapt their products, processes and services in a global economy in order to generate wealth. Using your knowledge of global businesses, answer the following questions.

Question: Describe two benefits of innovation for a business. (4 marks)

One:

Two:

Context

Innovation is often important to the continued success of any business. It can refer to a new process, idea or product.

Question: Explain how innovation can lead to the expansion of a global market presence. (3 marks)

Case study / context

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Prepare a short report or essay for the CEO addressing the following points:

Question: Explain to the CEO two benefits of innovation for Domino’s Pizza business. (6 marks)

Case study / context

Watch Out Clothing, located in Western Australia, is a very successful clothing business that commenced trading and enjoyed significant growth during the mining expansion. Its business vision is to produce innovative, high quality clothing and personal protective equipment. Its range of clothing includes high-vision safety shirts, jackets and work boots at reasonable prices. Innovations in its clothing range include breathable fibres, quick drying fabrics and flame-resistant technology.

The owners are considering expanding into the Asian market as a result of the downturn of the mining industry in Western Australia. Singapore’s construction industry has experienced a strong growth period and has similar occupational safety and health laws that require workers to wear personal protective clothing. Watch Out Clothing is aware of the long-standing business relationships between Singapore and Australia. To ensure the quality of the innovative products manufactured by Watch Out Clothing, operations would remain in Australia.

Referring to the source information and your own knowledge, prepare a report or an essay addressing the following:

Question: Describe two benefits of innovation for Watch Out Clothing. (4 marks)

Case study / context

Health and fitness is a multimillion dollar industry. More and more people are aware of the importance of healthy eating and daily exercise. People of all ages spend money on gym memberships, personal training and group fitness classes, books, clothing, sporting equipment and much more.

Jettaya is a triathlete with a degree in sports and rehabilitation science and wants to profit from this expanding industry. She has recently created an online fitness program, healthy eating diet plan and clothing line so she can tap into the industry.

Jettaya understands the importance of being innovative to differentiate her product and service in this heavily saturated market. She realises that technology is a powerful tool for creating a profile for herself and to market her products and services in Australia and overseas. Jettaya has also conducted market research and has decided to manufacture her clothing line in China due to the cheaper labour costs and materials and the fact that the free trade agreement between China and Australia brings many benefits.

Jettaya realises that she needs to create a strategic vision and be innovative and creative for her business to become a success. She has come to you to ask for some advice and tips about how to create a successful global business.

Question: Explain the role and benefits of innovation in improving products in relation to Jettaya’s business. (4 marks)

Case study / context

In some parts of the world, people have been spending more time at home, which has led to increased spending on interior design. Market trends in Australia and Europe have seen a rise in expenditure on home accessories and decor such as new furniture, artwork and plants.

Matilda has operated a successful homewares store in Perth selling rugs, cushions, wall hangings and furniture. She also operates an online store selling her products around Australia. She has seen a surge in online sales over 2020 and early 2021, leading her to consider expanding her business.

After reading a European ecommerce report in 2020 stating that ‘European shoppers are spending more time shopping online’, Matilda has decided to provide the European market access to her online store. The article also mentioned that ‘online marketplaces in Europe have attracted significant traffic and seen high visitor engagement that has translated into sales’.

She understands that her products, processes and services need to be innovative. She wants to ensure that her products are unique, luxurious and of the highest quality. Her processes in terms of her website, ordering and delivery need to be seamless and her customer service will need to be excellent in order to stand out from competitors. Matilda has decided that she also needs to investigate technology that is available to assist her to successfully sell her products to the European market. She is willing to invest money into her business operations in order to ensure that she has the best opportunity to be profitable in her expansion.

Matilda also needs to evaluate her competitive position in the international market to see whether she will be able to compete successfully. She has come to you (as a business advisor) to ask for advice.

Referring to the case study and your own knowledge, prepare a report or essay in which you answer the questions below.

Question: Describe three benefits of innovation for Matilda’s business. (6 marks)

Case study / context

Natasha has completed an online horticulture course and is keen to start up her own business helping people build and manage their own vegetable gardens. Natasha believes her business will be successful due to the recent growth in the number of people wanting fresh produce that they can grow at home. Friends have told her about Freelancer, the world’s largest freelancing, outsourcing and crowdsourcing marketplace. It connects freelancers and those who want to hire them.

During her research about the use of online platforms, Natasha has found information about the ‘gig economy’. The gig economy is the use of online platforms like Uber and Freelancer to instantaneously connect consumers with service providers to deliver goods and services. In 2019, 7.1% of Australians had worked, or tried to find work, in the gig economy, with Airtasker, Uber, Freelancer, Uber Eats and Deliveroo being the top five platforms with registered workers. The benefits for entrepreneurs in a gig economy include low barriers to entry, no requirement for qualifications or experience, flexible working hours and a low-risk opportunity to run a business. However, the online platforms hold all the power, often taking a high commission. The income is uncertain and the long-term sustainability of work is questionable.

Natasha previously worked in marketing, so she has a good understanding of how to promote her business. However, she has never managed her own business and is not confident with the financial and legal aspects of business operations. To differentiate her business from competitors, Natasha is planning to be innovative in the way she provides her service by having a weekly podcast and a YouTube channel. She is planning to provide her clients with information about the most up-to-date self-watering technology, the best plant covers to protect gardens from pests and the most effective composting technology. She eventually wants to offer a membership to her website that will include online tutorials for people to learn about organic food gardening. Natasha believes starting up her business on Freelancer is a great way to test the business idea without having to over-invest. In the process, she hopes to use social media content to develop her business idea and grow a customer base.

Referring to the case study and your own knowledge, answer the questions below.

Question: Describe two benefits of innovation for Natasha’s business. (4 marks)

Case study / context

Smart Agriculture Solutions (SAS) has made a name for itself in the Australian agriculture industry for quality products and services. North America and countries in Europe are showing increasing interest in SAS, indicating untapped market potential abroad.

This surge in international interest brings opportunities and challenges for SAS. Currency changes can directly impact profits, making it essential for SAS to have a clear understanding and plan in place. Another pressing concern is payment defaults, a potential threat that could strain the business’s finances. As such, SAS needs to consider ways to minimise financial risks when exporting its products.

SAS is keen to infuse innovation into its offerings, aiming to make its products and services appealing and relevant to international clients. SAS believes that by doing this, they can boost sales and expand their global reach.

As SAS contemplates its global expansion, the team behind it is aware of the various legal challenges they are likely to encounter in different countries. Each country has its own set of rules and regulations, from competition norms to patent rights and product safety standards. SAS is committed to understanding and adhering to these legal frameworks, ensuring compliance and protecting its reputation.

With a blend of financial expertise, innovative ideas and strategic planning, SAS is gearing up to make its mark on the global stage, but will need to navigate challenges and seize opportunities along the way to ensure its success.

Refer to the case study and your own knowledge to answer the questions below:

Question: Explain two benefits of innovation for SAS. (6 marks)

Case study / context

Fizzology, an Australian soft drink company, specialises in a variety of flavoured drinks and is seeking to adapt and change its product range to meet new market trends. The current consumer market is looking for healthier options and seeking businesses that are seen to be environmentally-conscious and sustainable in their manufacturing and packaging.

Fizzology wants to conduct research and development to innovate their current products and invent new product ranges. It is looking into creating a kombucha range, fizzy flavoured tea drinks and reduced sugar in their popular Fizzology flavoured soft drinks. They are hoping that by investing in innovation of their products, it will create an opportunity to revitalise their sales in Australia and also provide an opportunity for the business to expand their new product lines globally.

Some members of senior management are not entirely convinced the time and investment into innovation is a wise move. They have seen other drink companies already launch kombucha and sugar-free drinks and they believe there are already strong competitors in the market. Some middle managers are also resistant to the change, concerned about job losses, changes to work routines and pressure to learn new skills and information about the new products. To manage this resistance to change, Fizzology is turning to Kotter’s 8 Step change management model. The business wants to highlight to team members the importance of adapting to consumer tastes and trends and to demonstrate the long-term benefits of being an environmentally-conscious business.

Hoping to convince the Fizzology management team of this change in the business, some team members are working towards having a plan in place to complete the research, investment and innovation to launch their new products internationally in the summer of 2027. Fizzology is aware that even though there are big brand names worldwide in the soft drink market, there is massive revenue potential and the number of potential customers is huge.

Question: Describe two benefits of innovation for Fizzology if it was to improve its products. (4 marks)