Cumulative Innovation and Market Value

Question: Discuss about the Cumulative Innovation and Market Value. Answer: Introduction Awareness has increased all over the world regarding the emphasis of the business organizations on the environment. Efficient business policies and strategies have been implemented by the modern day companies. In todays scenario environment-friendly products are required to a greater extent so that people can survive in a safe and clean environment. While producing, any product companies should keep in mind whether they are environment-friendly and are not causing any harm to the environment. Organizations which can make environment-friendly products are devoid of getting into unwanted legal matters (R., 2016). This may cause a barrier for the prosperity of the company. The company also might not accomplish a name as a company which is environment-friendly. The company has to make products which are profitable, does not cause any harm to the environment. Adopting specific plans and measures by the company can help the company to get devoid of unwanted legal issues which can cause a b ar towards the improvement and establishment of the organization. Henceforth, the company can prove itself as a company which is eco-friendly. Apart from this, the companies are applying greater and necessary efforts towards the sector of research and development so that, not only can the companies produce high-quality products, but also the products need to be environment-friendly. At the same time, the products made by the company should be money making too. The forthcoming case analysis is related to an Australian company named as Bio-sustainable Feed (BSF). This company produces the food items for the fish. The company utilizes a sustainable procedure for the production of the food products for the fishes. A sustainable means of the technique is undertaken by the company in producing the food products for the fish (Sarker et al., 2016). The company exerts much importance on the research and development sector. This helps the company to generate more improvised products which are also eco-friendly and highly sustainable apart from moneymaking. In this way, the company can prove itself of being eco-friendly. The social ap proval of the company will also enhance if the company proves itself to be an environment-friendly organization. Scientific roles played by the company BSF Ltd towards the society Much importance is given by the Company Bio-Sustainable Feeds on their CSR activities. It can be clearly specified from the case study. Immense emphasis has been laid on the research and development sector of the organization to improvise the sustainability and the smooth commencement of the company. Continuous work goes on in the research and development sector of the company for the improvisation of the products. Products which have a low impact on the environment are being tried to be produced. The company is trying to produce materials in which the use of natural resources is very minimal (Chung, 2016). From the research analysis, it was found that the company is always in a try of using the left over residues of the sugarcane and wooden chips. Apart from using these natural resource materials, the other materials which are of use to this company are methane gas which is collected from the wastes, garbage, sewage and the food processing companies. So it can be seen that the compa ny is using the waste products to a greater extent whereas reducing the use of the valuable natural resources. Apart from this, the company is also avoiding the materials which are mainly required by the magnificent fishes because it is the acceptance of the poor people of the society. The company is trying to make use of the products which are mainly formed. The organization not only reduces the use of natural resources, but also it reduces the amount of waste materials of the society. Apart from that it also helps in keeping the environment clean. All the above-mentioned mechanisms help the company to establish itself as not only the friend of the society but also as a friend of the surroundings. The research analysis depicts that the company tries to make their products from the residues of the wood chip and sugarcane. Dumps, sewage, and food processing firms produce methane gas. Methane gas is also used as a residue for the formation of the products by the environment-friendly company. Therefore it can be clearly depicted that the use of natural resources is being reduced to a greater extent by the company (B. Rust, 2011). The food products meant for the luxury fishes have been given up by the environment-friendly organization. The luxury food items meant for the luxury fish are not affordable by the poorer section of the society. Producing such expensive products is a means of ignoring the lower section of the people of the society. These expensive products are beyond the reach of the poor people of the society. The company keeps much attention towards such matters. So, not only the company is reducing the use of natural resources, making use of the waste products of the society, and keeping the atmosphere and surroundings clean but also the company is gaining an approval in the social acceptance from the society. There has been an invariable increase in the social acceptance of the company. To reduce the impact on the environment, the company has implemented various practices that are environment-friendly and taking into concern specific business activities regarding the environment-friendly nature of the perfect promotion for the company. Through its promotion, the company is establishing itself a company which is environment-friendly and thereby increasing its acceptance in the society. The productivity of the company is getting increased in this way. The company is utilizing a cost effective way in the production of products (Yang, 2015). These products are much improvised. Through proper improvisation and promotion of the products the profitability of the company is also getting increased. The business measures used by the company are to promote the various eco-friendly practices that are being implemented by the company, which are not only reducing the wastage of the society but are proving to become a boon for the society. The company has made its name in the list of companies as an eco-friendly and environment aware organization. The various strategies followed by the company have helped the company in gaining name and fame in the society. Therefore these measures which have been taken have not only improvised the quality of the productivity but have also improved the profit making the scenario of the company in an efficient and valuable way. Inconvenience created during the early research analysis in the BSF Ltd The research conducted by the BSF Ltd, in the beginning, was mainly based on the fish culture feed. The plant based food products were mainly the base for the research conducted. Coincidently they failed to gain success in the research. So, the company again commenced searching an alternative for the proposed research. The fish breed which survived on the plant based products were supposed to solve the issue of the fish-based feed, by converting the productivity from 10kg of low fish value to 1kg high fish value. Instead, the conversion rate was found to be 30kg of feed based on plant corresponding to 1kg of high fish value (Sarker, Rahman and Alam, 2015). In the research conducted by the company 1/3rd of the fish were found to be dead, and the number of mature fishes was found to be less but the growth time was found to be doubled. The mechanism of changing excellent food corps into magnificent fish feed is simply a diversion of low fish value into effective production. The high-cla ss people were only the ones to be benefitted, but the poorer section of the society simply suffered from malnutrition. The fish fed or aqua fed production contained high nutritional values like omega three fatty acids. This element produces fish of excellent quality which was only for the rich people of the society (Rosen, 2005). On the other hand, the poorer section of the society would be totally deprived of the luxurious elements. The company is on its way to in search of alternatives so that their progress might not get hampered. And they might not face any objections from the wide range of the society. The society comprises of both the higher and lower section of people. The company cannot establish totally unless and until all the sections of the society are equally involved in the consumption the manufactured products. The company is always in a dearth to find alternatives for the materials which are not only bio-sustainable but also which are cost effective and are affordab le for the weaker sections of the society. The mechanism of changing excellent food corps into magnificent fish is simply a diversion of low fish value into production. This process just benefitted the high-class people, but the poorer section of the society simply suffered from malnutrition. Minimum chargeable products should replace the expensive components (Weygandt, 2009). The more the availability of the products in a sustainable manner, the more would be the improvement of the company in the present day scenario. Thus the company is on its way to find alternatives so that they might not face any objections from the wide range of the society comprising of both the higher and lower section of the society. Explanation on the differences between research and research development The research is a technique that is operated in a scientific method. Thus creating the unfairness prejudices and the subjectivity should be strictly avoided. For the implementation of the research process should be based on the various types of techniques, and demonstrable equipment and the principles. And when those techniques are implemented properly on the subject then it is provided accurate results. So the scientific research must be conducted very systematically. The events and the techniques of the research to be made are very vital. If any wrong technique can be follow up that it can prove the research to be devastation (Reymend and Pagare, 2016). Therefore the controlling procedures included consist of two types which are the logical procedure and sequential procedure. These two processes like logical procedure and sequential procedure are well known by the academic. A person who is conducting the research presents the practical examples. In the course of conducting the rese arch, the quantity of control and rigidity are clearly shown. In this way, one's discipline is clearly shown. Research and development have taken the various implementation of the analysis. This implementation is used for the development of the organization. And then shows the changes which are undertaken to make the suitable and appropriate balance in the system of the organization. As well as that balance provides the accurate path for development of the product lines. And thus the corporation experience is only focused on the case study for the growth and development of the project (Qiu et al., 2012). The research and development can be done in the form of the innovation process. And the research and development that is based on the development of the research environment which are shows in this case with thus the principles of the research are taking to view with referring to the provided case. Assumptions and calculations for the fair market value patent One of the most important parts to stay in the long run competition in the market is a good innovation of any product of a company. As for that, the long run competition is a very helpful and only way to protect the innovation or new ideas and also provide a bar to those innovation ideas from the other organization. And those new ideas don't have to use them as well as those ideas safe from the other companies. After that, the business document also provides a way for a business purpose to keep their new ideas (Neuhusler and Frietsch, 2012). And those innovative ideas protected from the new companies or organizations. Patents are the most useful documents for the companies. These useful documents are very much significant to the evaluation of the patent, and it is also very crucial for any organizations. It is an unsustainable asset that is given in the balance sheet. The analysis is made for the food production by using bacteria. This analysis is use to generate foods for fish from sugar cane. Methane gas is very effective and exclusive. After that, the methane gas is recaptured which is a new idea of BSF Ltd. $160 million AUD is the estimated cost for the research and $200 million AUD is another cost for the development. And this develops cost to bring it into the market. $500 million AUD is invested in the commonwealth scientific and industrial research organization. This investment amount made the BSF Ltd. Company for research uses up a total of about $500 million AUD. And $200 million is utilized in the improvement of the company (Milburn, 2008). An amount of $700 million AUD will help in creating a patent by the developing countries. This is an innovative idea. It is utilized for the best selling of the product. 8% pa is the discount rate of the project. This discount rate is the benefit for the research project. $700 AUD is the market value patent of BFS Ltd Company. The goodwill of the company and its value in the market will increase only through the innovative ideas of the company. Unique ideas would be protected by the legal rights. The innovative ideas are provided by the patent. The growth or development of a company is strongly determined by the market value. The growth also helps in the determination and evolution of a company. R D Transactions from the full set up journal entry from 2013 to 2016 Particulars Debit ($) Credit ($) Grant 500 Commonwealth Scientific and Industrial Research Organization 500 Alternative aquaculture feeds 100 Cash 100 Research 500 cash 500 Development cost 200 cash 200 Patent 700 Cash 700 The main aim of the financial report is to show the performance of the company during a period of time. The determination of strength and weakness shows the ability of the company to cope with difficult situations and achieving the target objectives. The staff members play a significant role in the success of an organization. The process of accounting helps to determine the financial transactions of the business as well as keeping the systematic record of all the information. The objective of journal entry is to keep the record of the financial transactions, showing the financial in a chronological order, use as the legal evidence of the financial transactions and preparation of the ledger book. The accounting department keeps the track of the financial transactions of BSF ltd. The transactions are summarized, recorded and presented in the financial report. In the case study, the company BSF ltd produce fish feed from waste materials (Kew and Watson, 2012). The research was innovativ e and unique that attracts stakeholders and customers towards the company. For the development of the company and continuing the research process, Industrial Research Organization and Common Wealth Scientific granted an amount of $500 million to the company. BSF Ltd allocated the received amount in the research and development process of fish feed. On the alternative aquaculture feed the company spends $100 million in a year. The amount of $ 500 million was also spent by the company for continuing the process and $200 million in the manufacturing of the alternative aquaculture feed. The research and development department requires huge investment as the department is responsible for the development of the product. The total amount of investment required by the research and development department is $700 for continuing the research process. The journal entries of the financial transactions shows the expenses incurred and cash received during the year 2013 to 2016. The case study is depicts the commonwealth scientific and industrial research organization and BSF Ltd. A total sum of $500 million is received by the BSF Ltd Company. The BSF Ltd Company spends a total of $100 million AUD in a year. This amount is used for the other aquaculture. The sum of $500 million is required for research and approximately the sum of $200 million is also spent by the organization to increase the other aquaculture feed (Mandal et al., 2010). So for the study and the growth of the project, a total sum of $700 million is required. This total amount is invested by the organization. From 2013 to 2016 year, the cash received is shown by the journal data and the organization incurred the cost that was fixed. From CISRO the grant was accepted and properly utilized by the organization. The grant was utilized for the study purpose and growth of the other aquaculture feed. In the scheme, the Investment will support to develop the value and the brand name in the market. Th e Official documents are valuable by promotion in two years. To properly explain the patent is very important in the book (Belenzon, 2011). The official documents are critical for the invention of something new. The investment in the aquaculture feed will help the organization to increase in the market for the reason of fresh and innovative thought. The research and development section plays the vital role in the success of an organization and henceforth the journal study will help in the collection of information regarding the operating cost, and the cash is spend by the organization. From CISRO the grant amount has been received and has shown and investment in the study and growth and thereby the main constituent of accounting is to collect, to store and to fix the charge of the transaction (Christie, Rawnsley and Eckard, 2011). The charge of the transaction is fulfilled by an organization in a fixed period. The company also received grant from CSIRO and the management appropriately allocated the received amount in the research and development process. The main of the company is to increase its brand value and achieving competitive advantage in the market with the help of producing fish feed from the waste materials. The company faced many difficulties with its first research process. The research of growing luxury fish by the company affected the brand value and decreasing the market demand. The research benefits rich people and the poor one was at risk of malnutrition. However, an appropriate accounting process is important to record all the transactions and allocating the resources in an efficient manner. The demand in the market changes with the change of in the taste, preferences, income and lifestyle. The financial report of a company shows the income, expense, assets, profit and liabilities in the income year. The increase in selling of the fish feeds will help to examine the patent value. Patent gives right to the organizations that others cannot make, use or sell the innovation of that company (HILTON and O'BRIEN, 2009). The patent value of the company has been determined and examined on the basis of the sale of the fish feed. The aquaculture feed is an innovative idea developed by the company and it will help to achieve market targets. The main objective of preparing the journal entries is to show the cash received and spend by the company during a period of time. The accounts department is responsible for recording, storing and analyzing the financial transactions of the company during a period time. Special Management in BSF Ltd Company The management department plays a significant role in managing and controlling the research process. The value of patent are determined on the basis of sale of the fish feed. The control strategies are very much important for the controlling and managing the process of research. The expenditures are to be controlled and utilized as per the process. It will help the company to develop and managing their internal operations. In the research analysis, the BSF Ltd management in the depicted patent provides the value. The control strategies depict the correct routine of the sustainable bio-feeds to the fishes are prepared by the creation of manager of the gallery. The strategies that have been implemented by the company while conducting the research process are as follows: The waste materials are to be used in the production of the fish feed The investment amount should appropriately allocated in the research process The main focus is to prepare high quality food and should be analyzed through several different processes (Holton, 2012). The materials should be utilized appropriately with the use of bacteria to manufacture the fish feed from sugar cane residue, recaptured methane gas and wood chips The sustainable bio products must be used to prepare the food for the fishes. For the good quality production of fish, for the making of the best food product necessary step should be taken into good thought by depicting the policy (Droms and Wright, 2010). The upper part of the stem is used to make food. The improvement of the other farming feeds is necessary to the development of the fish. To refer the agriculture fees for the cost of management provides a significant path. The cost of the material a signifying and seems to meet the expectation. The management standard describes the improvement of the historical feed process. A huge amount of cost is required in the production of the product and the system of feeding the fish also seems to be useless. The problems that are depicted can be easily estimated by the help of the management standard and thus creating sequential development in the system (Horngren, 2013). The development of the aquaculture feed will help to archive competitive advantage in the market as well as use of the bio sustainable materials. The process includes recycling of the waste materials which is consider as an eco friendly process of production. The accounts department is responsible for managing all the financial resources and appropriately allocating the r esources for continuing the process. The control strategies show the historical fish feed system was ineffective and the company suffered huge loss due to the fall of the market demand. The research process are controlled and monitored by the research and development department that focuses on the main objective of the company. The staff members are provided with adequate training and skill technique in order to understand the process and executing the process appropriately. The control measures helps to determine serious issues associated with the development of the company. However, the innovative process will help the company achieve the market demand. The strategies that are also focused by the company are analyzing the steps of the research process, managing internal operations, investment strategies and market opportunities (Karapanagiotidis, 2014). The implementation of technology and taking appropriate steps help the management department to continue the research process. 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