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BUSINESS ENVIRONMENT

MODULE 5

OVERVIEW

Technological environment
Implication to business.
Technology and social change
Economic effects of technology
Plant level implications
New technologies

Appropriate technology
Management of technology.

Technological Environment

Technology-systematic application
of scientific or other organized
knowledge to practical tasks.
Helps to convert ideas to useful
products.

Implication to business

Managers must consider how


technology affects their decisions
how their decisions affect
technology.
Technology and social change

Economic effects of technology

Technology and plant level change

A. Technology and Society

Every area of social life and the life


of every individual has been in
some sense or other changed by the
development in technology.
Technology reaches people through
business
High expectations of consumers.
System complexity

Continued

Social change.
Technological phases and the social
system they create.

B. Economic effects of technology

Increased productivity
Need to spend on R&D
Jobs trend to become more intellectual.
Problem of techno structure
Increased regulation and stiff opposition
Insatiable demand for capital
Rise and decline of products and
organizations.
Business boundaries redefined

C. Plant level implications

Technology and organization


structure
Resistance to change
Total quality management
E-commerce and E-banking
Flexible Manufacturing System
(FMS)

New technologies
Advances in computer, information
and communication technology.
Internet
Websites, social networking, e-mail,
video conferencing, online chat rooms.
Mobile devices
Laptops, tablet computers, smart
phones.

Software
Designed to make specific tasks such
as budgeting, accounting &
communication.
Website design, translation, web
services
Electronic data interchange.

Appropriate technology

Appropriate technology has been used to cover a


wide range of both technologies and lifestyles
including sustainable living, alternative fuels, and
ethical technology transfers.

A technology is considered appropriate if it solves a


social problem without many adverse negative
effects.

Every new technology has consequences for society.


Some of those consequences can be foreseen and
some of the consequences are unforeseen.

A technology is appropriate when its intended


positive consequences outweigh its unintended
negative consequences

Management of technology

High risk, costly, and uncertain


activity.
Research & development
expenditure
New product will quickly duplicated
or closely imitiated.
Problems in importing technology.