Chapter 2

Technological
Environment
Topics:
 Level of environment
 Task
 Industry
 Macroenvironment
 The technological cycle
 5 A’s
 Technological Impact
 Social implications
 Economic implications
 Plant level changes
Levels of Environment
3 Level
1. Task Environment
2. Industry/competitive Environment
3. General or Macroenvironment
Levels of Environment
1. Task
 Refers to the set of customers, suppliers,
competitors, and other environmental
agencies directly related to the firm
 Is more or less specific to a firm, and not
necessarily shared by competitors
Levels of Environment
2. Industry/Competitive
 Comprised of a firm and its competitors
functioning in the same industry
 Environmental factors directly affect all
competitors in the same industry
 New entrants, substitute products,
suppliers of raw materials or components,
customers, and rivalry among competitors
influence what happens in an industry.
Levels of Environment
3. General/Macro
 Affect almost all industries and include
four segments: social, economic, political,
and technological
 Segments of the macroenvironment are
not mutually exclusive, and therefore,
often influence one another.
 Segments may different from one nation
to another
Levels of Environment
Technological Environment
 Creation of new knowledge through basic
research
 Application of knowledge intended to
solve practical problems
1. Applied research development
2. Engineering
3. Commercialization
Technology Development:
Activities & Institutions
The Technological Cycle
1. Awareness phase
2. Acquisition phase
3. Adaptation phase
4. Advancement phase
5. Abandonment phase
The Technological Cycle
The Technological Cycle
The Technological Cycle
The Technological Cycle
The Technological Cycle
The Technological Cycle
The Technological Impact
1. Social implications
2. Economics implications
3. Plant level changes
A) Social Implications
 The most striking influence of
technology is found on
society
 Every area of social life and
the life of every individual, in
some sense or the other,
changed by the
developments in technology
Social Implications
Social Implications
Social Implications
A3 Social Change
 Change in a technological process: an
invention may displace thousand of
workers
 Social differences tend to be ironed out:
technology flows to less developed
countries
 The way we cook, communicate, work ant
etc affected by technology
 Technology has revolutionalised the
education system
Social Implications
B) Economics Implications
Economics Implications
Economics Implications
Economics Implications
Economics Implications
Economics Implications
Economics Implications
C) Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
Plant Level Changes
The End
 Prepare a mind map for Chapter 2.
 Submit in the next class.