Technology is one of the most powerful forces within the external business environment that has changed significantly how business is conducted especially within the 21st Century. For instance, information technology (IT), well exploited, can have significant impact on all the five forces of competition.
Required:
Identify FOUR effects of technological change on organisation. (4 marks)
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- The type of products or services that are made and sold.
- The way in which products are made (eg process automation, new raw materials)
- The way in which goods and services are sold. The growth of direct selling via the internet has had a significant impact on the implementation of business strategy
- The way in which markets are identified. Database systems make it much easier to analyse the market place.
- The way in which firms are managed. IT encourages delayering of organisational hierarchies, homeworking, and better communication. Technology has also enabled greater integration between buyers and suppliers via the use of Extranets.
- The means and extent of communications with external clients. The financial sector is rapidly becoming electronic – call centres are now essential to stay in business, online banking is becoming increasingly common, and the internet, smart phones and tablets are featuring in business plans.
(Any 4 points)