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BM627 Managing Innovation in Business - Farmfood

University: Bucks New University

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 9 / Words 2294
  • Paper Type: Assignment
  • Course Code: BM627
  • Downloads: 763
Question :

This assessment will cover the following questions:

  • Explain different approaches in accordance with the range of business data, sources of information, and suitable methodologies to identify critical drivers of innovation in Farm foods.
  • Elaborate on how the company and its leaders can successfully plan and implement innovation.
  • Create an organisational development audit to introduce new products and services in Farm foods.
Answer :
Organization Selected : Farmfood


Innovation is the important tool or activity of business organisation which helps to introduce new product and services in market for the purpose of expanding business and getting higher profits. Without innovation it become difficult for organisation to sustain in competitive market and get profits. Innovation is taken by management by using this skills and knowledge which helps to increase the productivity. The main purpose of preparing report is to understand about innovation and importance in business increases production level. Therefore, Farmfood has been selected to know about this which has introduced innovation in their business and making profits. The structure of this report categorised in parts such as about organisation and its innovation history, existing innovation performance and capabilities. Moreover, this cover information about industry in 2016 which help to increase the profitability.

The Organisation & Industry Overview

About business organisation and its history

Farmfoods is a private British frozen food supper market in Cumbernauld, Scotland. This organisation was founded in 1955 in order to providing frozen food products and services. This organisation has expanded their business by bringing innovation throughout the United Kingdom and it has over three hundred stores (Alexander and Joe, 2019). This basis of this organisation on Aberdeen which is meat manufacturing business.In beginning of 1970s, experimental freezer was set up in Aberdeen, that helped to become a successful business. The entire business of Farmfoods has changed its manufacturing and distributing process where it brought innovation to distribute products via online across the border. In 1988, such company had expended to thirty one stores and become competitor of others. This organisation provides better quality of foods which attracts customers and encourage them to buy them. The main aim of Farmfoods is to producing foods and other crops which is basic facility in food production. This organisation gained entry into England in around 1990, by acquisition of eighteen stores from Wallis Frozen Foods. It has been evaluated that it has over 300 specialist freezer centres across the UK. The organisation is continuing to focus on providing frozen food in upcoming period where it developed range of goods by including dried goods, cleaning products, caned goods, fresh fruit, veg and drink, chilled items, confectionery which attracts people and buy the products (Brand and Blok, 2019). This organisation is listed on stock exchange which helps to capture the market image and share. It has created innovation until 2019 which helps to growth the business effectively. This believes in constant innovation which helps to introduce product and services in effectively manner. This make customers delighted and satisfied by completing task and providing better quality of products and services. The innovation is making good food and get ready chefs always working on creating delicious recipes for enjoy, innovation in meal size such as Hearty meal, Main Meal and Mini Meals which helps to compete with others. Innovation in this organisation helps to increase the production and profitability. Moreover, new technology such as fast delivery, online distribution, customer support service, online feedback, payment etc. are used by organisation.

The organisations existing innovation performance and capabilities.

Farmfoods Limited is a British frozen food supermarket chain in the market of Scotland, UK. Respective organisation is one of frozen food specialist that expanded throughout the whole UK to 320 stores for selling the frozen, chilled and ambient products (Lenssen and Smith, 2019). By using the three distribution centres in Cumberland, Warrington and Birmingham they can be able to serve the each third of their stores. The major capabilities and value addition applied by them that they engaged the specialist consultants of the supply chain consulting group to review the operations and capacity constraints to distribute the products and services in proper manner. It deals in the retail industry that deals in the frozen food and grocery by operating in the 330 and more than locations in the whole world. The major strength of respective organisation that they focus on adding value in their products by acquire the other firms. While they enter into England in around 1990 they acquire the 18 stores from the Wallis Frozen foods. By using the specialised kind of freezer centres across the UK marketplace. Their stores typically located in city and town centres that facilitate people to reach at large no. of consumer base in positive manner (Loon and Chik, 2019). The another areas that shows their strength which is expansion in their current product line as they developed the range of grocery items that includes the cleaning products, dried goods, canned goods, confectionery, chilled items, fresh fruits and drinks. The major valued added attribute that is they use mix of branded and own brand goods so that all kinds of consumers can access towards the organisational products and services.

For an organisation to access their own capabilities it is very much important to use the model. In context of Farmfoods their VRIO analysis are as follows:











Food quality





Market expansion





Work culture





Value: Valuable is one of the most important attribute for Farmfood that helps to organisation in gaining competitive advantage. The major factors that valuable for them are as follows:

Employees: Employees are very much important for respective organisation as they contribute in their working that are rare in nature. Their product meaty crisps is very much popular within the people (Ottosson, 2019). So to retain employees in organisation provide the various kinds of benefits comprehensive training in leadership and management, six weeks annual leave and many more.

Work culture: They build positive work culture by distributing the roles and responsibilities in which every one can give their positive contribution.

Market expansion: They focus on expansion of market and products as they started their business from the butcher shop and now they operating more than 330 stores so they have strong market expansion strategy.

Food quality: By setting standards in order to maintain the quality of products, as they have specialised team of people that can choose from site the meat would like to purchase and then they sell the same product to ultimate consumer.

Rare: Respective are the resources that are rare in nature that is give competitive advantage to the organisation that are:

Food quality:  Food quality is very much rare as they provide the option to consumer that they can select food and its ingredients.

Market expansion: They enlarge business opportunities in the whole world as they operated in more than the 330 markets (Radziwon and Bogers, 2019).

Work culture: They take care of each and every kind of necessities of their workforce such as provide fair remuneration, free life insurance and various activities in which people can work collaborative.

Inimitable: Respective sources that are very important for organisation that not easily copied by organisation such as market expansion and work culture.

Market expansion: Their market expansion strategies and tactics that helps to organisation to remain competitive in marketplace.

Work culture: Work culture is factor that helps to keep employee's always motivated and productive in order to gain potential outcomes.

Organised: In respective factor organisational products and services are organised in proper manner so that desirable goals and objectives should be attained. In context of Farmfood work culture is important factor that needed to be organised to gain desirable outcomes (Skvortsova, Latyshev and Truntsevsky, 2019).

So from the above discussion it has been summarised that respective organisation is very much competitive in marketplace as they have rare products that are mostly liked by consumers.

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The Industry in 2016

With passing of each year, food industry is drastically reshaping itself in context with food production and consumption along with food retailing. It tends to bring more changes in upcoming future years (Erdogan, Rondi and De Massis, 2019). Growth in food industry is increasing because of technology and innovation and individuals are also bringing change in their food habits which is also a major reason for introducing change in the industry. In future days,technology will bring drastic shift in traditional methods of food industry in their production and manufacturing. Porters five forces can be implement to Farmfoods for understanding competitiveness of business environment and for finding out strategy for potential profitability in order to meet with target goals and objectives. It is a sort of tool for identifying effectiveness of organisation and its profitability. Porters five forces are discussed here.

  • Competition in the industry: It is first of the five force which refers to ability as well as number of competitors in the market. Large number of competitors along with the products and services they provide will eventually lessens the power of an orgnaisation. However, less competitors will bring more power to the company and they can set their prices higher.
  • Threat of new entry: New markets generally attracts new organisations, which in turn results in low profitability. Strong barriers of industry such as economics of sale, patents, government policies or many more can be helpful for existing company as it will reduce the chances of new entrances to enter in new market.
  • Power of suppliers: It is one of a important force of Porters model as it address how supplier splay a major role in increasing costs. Fewer suppliers of the industry will made the company to be dependent on suppliers to provide them goods. Suppliers will have more power and they can demand with company as per their wish and requirement, However, large number of suppliers will lead to profit for the organisation as they can keep their input costs lower.
  • Power of customers: It refers to the ability of service users to drive cost lower or higher as per their demands (Kupeshova, Lazanyuk and Kareke, 2019). It is majorly influence by how many service users are linked with a company and how significant are the customers. A smaller customer base means that each and every customer has a right to lower the prices and to make deals accordingly. Customers can negotiate with the company and it will somehow leads to reduce profitability.
  • Threat of Substitutes: This force of porters five force model focus on substitutes. Goods and services that could be a substitute for the products of the organisation could be a threat. Thus, organisations that produce unique products that are no close to the substitutes poses more power to increase their prices. Availability of close substitutes will create an option for the customers to overlook the company product and it can lead to weakened the power of company.

Thus, Porters five forces model will enable Farmfoods to develop a business strategy for better utilization of their resources in order to bring innovation and creativity in their products. It will bring profitability in their organisation and help them to meet with target gaols and objectives.


From the above report it has been concluded that innovation is very much important for an organisation as it helps to remain competitive and sustainable within the business environment in positive manner. Innovation in the products and services helps to offer high quality as well as competitive edge for the potential consumers to remain competitive in marketplace. To bring innovation it is very much essential to evaluate the background of the consumers, market demand and competitors strategy in order to apply innovative work and activities within the organisation. By using the VRIO model an organisation can be able to gain the competitive strength that build distinctive effect in comparison to their competitors in effective manner. With the help of Porter's five force model organisation can evaluate the competitors strategies to bring innovation in organisation. If you are Looking for Assignment Help services in the UK contact Instant Assignment Help, We offer all types of Assignment help services for UK students.We have the best writer who can solve all your educational problems at a reasonable price.

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