The purpose is product innovation to have competitive advantage over the competitors. The company need to incorporate creativity and innovation for

POINT 1

The purpose is product innovation to have competitive advantage over the competitors. The company need to incorporate creativity and innovation for a new product launch. The product must be unique from competitors to attract larger potential customers. This help yield maximum revenue or least cost to the company.

The company can produce quality product with added-value at a reasonable price to have edge over their rivals. This shows that when making decisions it is important for the managers to have innovative traits. When the products of the company are unique it will attract more customers to buy their products which will increase and shift the aggregate demand curve to the right from Ad1 to Ad2 and it will directly lead the company to achieve its annual profits targets.

POINT 2 [organisation should choose the right employees by employing the right employees as it will make the organisation grow. Organisation should have good business plans]

Next the company should have good business strategies and hire employees that are hardworking and willing to increase their innovative and entrepreneurial skills. Employee whom are determined in ameliorating and sharpen these skills can expand their creativity and innovative level, surpassing others.

There are many instances of entrepreneurs failing to bankruptcy due to lack of innovation. For instance, Corrozzeria Touring had to stop his automobile coachbuilder company business in 1996 due to rise of demand of a substitute product which is a new automobile construction (van den Brink, n.d). Creativity of their competitors with solid business strategies and advertising boosted their sales, forcing Corrozeria Touring to close down their business due to unattractiveness of the product from customer perspective. The company had to closed down their business because their competitors are more creative, had better strategic business plans and innovative in selling and advertising their products. This shows that the companies need to have a team with their own unique qualities and need to have some preparations and experiences to become a successful innovative entrepreneur. As the saying goes hard work is the architect of destiny.

POINT 3

Next the company should disclose environmental, social and economic impacts of an organizations activities also known as sustainability reporting. There are number of organizations that produce sustainability reports, including the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Carbon Disclosure Project (CDP). Even though sustainability reporting is not mandatory to disclose many companies are voluntary choosing to produce sustainability reports in order to increase transparency and communication around their sustainability efforts.

When the organizations decided to produce sustainability report it proves that the companys commitment to creating long-term value and it is important for demonstrating corporate social responsibility (CSR). One of the benefits of having a solid and clear-cut sustainability reporting is that it will increase stakeholder trust because it will boost the organizations reputation with investors, the public and stakeholders and at the same time improving community relations and increase brand loyalty. Since the demand for companies to disclose its environment impacts is increasing each year sustainability disclosure is key for attracting and retaining competitive in the long-term. Investors too are increasingly correlating better financial performance with better ESG (environmental, social and governance factors) performance. It shows that sustainable companies deliver significant positive financial performance.

Based on EY Global Institutional Investor Survey of over 200 institutional investors showed they are increasingly using companies non-financial disclosures to inform their investment decisions. Besides, a study by IsuueLab shows that companies with strong CSR reputations does not experience declines in their share price compared to their industry peers during financial crises. Companies can also create values through sustainability by reducing operating costs through improved natural resource management such as energy use and waste which will improve the returns on capital. This will directly lead to higher operational efficiencies.