technological environment and its impact on business pdf

Technological Environment And Its Impact On Business Pdf

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Dimensions of business environment mean all the factors, forces and institutions which have direct or indirect influence over the business transactions. Image Courtesy : images General Environment is the most important dimension of business environment as businessman cannot influence or change the components of general environment rather he has to change his plans and policies according to the changes taking place in general environment. Economic Environment consists of Gross Domestic Product, Income level at national level and per capita level, Profit earning rate, Productivity and Employment rate, Industrial, monetary and fiscal policy of the government etc. Image Courtesy : 1.

Technological Influence on Society

If a business wants to be successful in the marketplace , it is necessary for them to fully understand what factors exert impact on the development of their company. Once they know about both positive and negative effects within and outside the company, they can produce suitable strategies to handle any predicted situation. Therefore, examining internal and external factors is considered the most important task for an enterprise before launch any strategic marketing plan.

To get a proper understanding of the business environment, we should step by step analyze individual elements of this term. Secondly, because we know that a business firm is a social entity which is formed by a hierarchical structure where all necessary items of its own are activated together to reach the collective goal. Therefore, it is absolutely that every factor inside or outside a business organization has a profound influence on business activities.

Because business environment inserts its impacts on business success, scale, vision, and development strategy, having fully understanding about this issue should be prioritized by leaders.

Once they know about both positive and negative effects within and outside the company, they can produce suitable strategies to handle any predicted and unpredicted situation. First, you need to understand that there is a variation of internal and external factors depending on the size, type, and business status.

However, you can find those key factors by analyzing the business environment using the following categories:. The internal factors refer to anything within the company and under the control of the company no matter whether they are tangible or intangible. These factors after being figured out are grouped into the strengths and weaknesses of the company.

If one element brings positive effects to the company, it is considered as strength. On the other hand, if a factor prevents the development of the company, it is a weakness. Within the company, there are numerous criteria need to be taken into consideration. On the contrary to internal factors, external elements are affecting factors outside and under no control of the company. Considering the outside environment allows businessmen to take suitable adjustments to their marketing plan to make it more adaptable to the external environment.

There are numerous criteria considered as external elements. Among them, some of the most outstanding and important factors need to listed the are current economic situation, laws, surrounding infrastructure, and customer demands. To understand more about micro and macro factors which affect your business, read our guest blog here.

There are many factors affecting business have been studied, among them, we provide you a deep insight of the most decisive factors, which are at the center of every business today. The internal factors refer to anything within the company and under the control of the company no matter they are tangible or intangible.

These factors after being figured out are grouped into strengths and weaknesses of the company. If one element brings positive effects to company, it is considered as strength. In general, the employees can be either a strength or weakness of the company depending on the level of practical skills, attitudes toward work, performance and so on. For example, if a business has skilled and motivated workers, they are sure to be the biggest asset of this enterprise.

Conversely, employees without carefully trained and have negative attitudes to their task will be an enormous challenge for the company to address. In short, the CEO should have a strategic and effective human management not only for the sake of company benefits but also for the positive development of their employees.

From a general view, financial capital is the funds necessary to grow and sustain a business. CEO takes financial capital to invest in not only tangible goods such as factories, machines, tools and other productive equipment to produce an output but also intangible resources such as marketing, employee training, etc. No company can survive without having capital resources. Once a company has enough budget, they can easily launch their projects, expand its scale and even achieve impressive result.

It can be said that without the big investment and stable financial resource, Coca Cola success would not be guaranteed. There are also several ways for an enterprise to maintain stable budgets by some resources such as investment opportunities, funding, and annual income. Here are some suggestions for you to achieve this efficiency :.

To have a suitable organizational structure requires the owners have to consider carefully set up a system to work smoothly within the company. Whether it is a centralized or decentralized system, the most important thing is how effective the structure is when applied for the company. The heads of departments need to make sure that the information flow is widely conveyed to all customers. Suitable rules and regulations are being applied to ensure the benefits of employees, and the business as well.

When you already have well-trained and motivated workers, an effective operational and organizational system, make sure that the infrastructure of the company are good enough for all your functions. With the modern and high quality facilities, stable power, internet and wifi connection, and so on your company is likely to perform better.

In other words, the better your infrastructure, the more opportunities for your company to perform successfully. In the competitive marketplace and industrial revolution we are living now, no company can survive without upgrade new ideas and technology served overall success.

Fundamentally, innovation refers to the introduction of something new into your business with the ideas come from inside the business such as from employees, developers, managers or from the outside world like suppliers, customers, etc. Successful innovation can bring about productivity, cost reduction, higher competitiveness, brand value, turnover increase. In contrast, companies which fail to apply innovation will surely face the risks of losing market share to competitors, underlying profit loss and losing key staff.

Innovation is rewarding for your business only when you step by step start to holistically approach to innovation, plan and encourage innovation and spread investment for innovation in your business. Among them some most outstanding and important factors need to listed are current economic situation, laws, surrounding infrastructure, and customer demands. Economy is one of the most determining factors to the success of the company even though it is an external element. Within the economy, some contributing factors such as the fluctuation of interest rate, economic crisis, and so on directly and strongly affects the consumption of buyers, and consequently, the profits of businesses.

No external factors affect business more than an economic condition, which is the present state of the economy. Positive economy condition can be favorable for business development and adverse ones may generate negative consequences such as narrow down business scale, capital shortage or even bankrupt.

The rules and regulations from local government play an integral role in the development of the company. There are some countries which their laws prevents the development of some certain industries. That can be a threat to the company. On the other hand, some industries receive positive and continuous support from local government via their rules and regulations.

Besides, if the laws allow organization outside the countries invest in local industries, they will indirectly create an enormous source of financial support for local business. Artificial intelligence , smart internet searches, and other high tech functions- all kind of technology has been at the forefront of many business for ages. For instance, American Airlines started using a computerized flight booking system and Bank of America took on an automated check-processing system.

No matter what the size of your enterprise is, both tangible and intangible benefits of technology are well-known. In particular, the culture, efficiency and relationships of a business are obviously affected by technology infrastructure.

Furthermore, it also exerts impacts on the security of confidential information and trade advantages. Today it is so decisive to entrepreneurs that technology can be their best friend or worst friend depending on how it is used in the competitive digital business market. One of the most fundamental factors we learn in economics is that satisfying customer demand is a must for every business survival.

It is obvious that your product is served for the needs of customers then under any circumstance, your business can develop without following this mission. We all know that what people want, what people need, and what they demand are usually different from each other. Customers need something to communicate with their family member outside their countries, they want to a smartphone which can perform multi-function; however, they cannot afford that smartphone with a limited budget.

Therefore, their demand is just a typical phone which can perform basic functions. If your company is not able to figure out what are your customer demands, you will face difficulty in how to make your products consumed by customers. Learn how to build loyal customers for your business. Having a complete understanding of these factors can help business man build up an effective strategy in producing and marketing process.

Here are noticable changes in customer demand:. Competition exists in any field of our life, even in business. When it comes to competition, entrepreneurs may thrive to be successful or be hurt to lose its position in the marketplace. For the good side, competition brings about innovation, better customer service, complacency, core market understanding and understanding of your own business- your strength and your weakness.

For the downside, if you are not prepared to change in competitive market, your company may be negatively influenced due to scaring investors, market expectations increase, competitive price and customer disloyalty. In conclusion, there is a bunch of contributing factors the success of the company which comes from both outside and inside a business. Either outside or inside factors are of utmost importance for the development of the company.

If a business hopes to perform smoothly and successfully, they need to take all these elements into consideration before making any decision. Vanessa Follow Updated: March 01, Internal Environment Factors Definition Types External Environment Factors Definition Types Method of study Internal impacts Human resources Capital resources Operational efficiency Organizational structure Infrastructure Innovation External impacts Economic situation Laws Technological factors Customer demands Competition Conclusion Understanding of Business Environment To get a proper understanding of the business environment, we should step by step analyze individual elements of this term.

In other words, internal and external environment create a business environment. Internal and External Factors - What are They? However, you can find those key factors by analyzing the business environment using the following categories: Internal Environment Factors Definition The internal factors refer to anything within the company and under the control of the company no matter whether they are tangible or intangible. External Environmental Factors Definition On the contrary to internal factors, external elements are affecting factors outside and under no control of the company.

Capital resources From a general view, financial capital is the funds necessary to grow and sustain a business. Here are some suggestions for you to achieve this efficiency : Study the business situation Pay attention to product cost Map process failure and discover failure Use technology for better operation productivity Organizational structure To have a suitable organizational structure requires the owners have to consider carefully set up a system to work smoothly within the company.

Infrastructure When you already have well-trained and motivated workers, an effective operational and organizational system, make sure that the infrastructure of the company are good enough for all your functions. Innovation In the competitive marketplace and industrial revolution we are living now, no company can survive without upgrade new ideas and technology served overall success.

External factors On the contrary to internal factors, external elements are affecting factors outside and under no control of the company. Economic situation Economy is one of the most determining factors to the success of the company even though it is an external element.

There are 7 factors that have direct impacts on business firm. Technological factors Artificial intelligence , smart internet searches, and other high tech functions- all kind of technology has been at the forefront of many business for ages. Customer demands One of the most fundamental factors we learn in economics is that satisfying customer demand is a must for every business survival.

Competition Competition exists in any field of our life, even in business. Conclusion In conclusion, there is a bunch of contributing factors the success of the company which comes from both outside and inside a business. Abandoned cart email.

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A planet‑size plan.

Organizational environment denotes internal and external environmental factors influencing organizational activates and decision making. Every organization, whether business or non-business, has its environment. The organizational environment is always dynamic and ever-changing. Changes today are so frequent and every change brings so many challenges that managers and leaders of the organization need to be vigilant about the environmental changes. The environment of an organization consists of its surroundings — anything that affects its operations, favorably or unfavorably.

The Impact of Technological Change on Business Activity

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker. In PESTLE analysis, technological factors are variables which relate to the existence, availability, and development of technology. This could include things from computational power to engine efficiency.

Technologies can help make our world fairer, more peaceful, and more just. Digital advances can support and accelerate achievement of each of the 17 Sustainable Development Goals — from ending extreme poverty to reducing maternal and infant mortality, promoting sustainable farming and decent work, and achieving universal literacy. But technologies can also threaten privacy, erode security and fuel inequality. They have implications for human rights and human agency. Like generations before, we — governments, businesses and individuals — have a choice to make in how we harness and manage new technologies.

If a business wants to be successful in the marketplace , it is necessary for them to fully understand what factors exert impact on the development of their company. Once they know about both positive and negative effects within and outside the company, they can produce suitable strategies to handle any predicted situation. Therefore, examining internal and external factors is considered the most important task for an enterprise before launch any strategic marketing plan. To get a proper understanding of the business environment, we should step by step analyze individual elements of this term. Secondly, because we know that a business firm is a social entity which is formed by a hierarchical structure where all necessary items of its own are activated together to reach the collective goal.

The goal of this study is to provide guidance to managers who must make decisions regarding the adoption of technological innovations.

Business Environment is not concerned with a single factor. It comprises of several factors and each factor influences the business firm in its own way. Some factors influence the performance of the firm directly while the influence of some other factors is only indirect. These factors provide opportunities, threats and challenges to the firm.

Technological factors refers to the ways new practices and equipment can affect businesses. These include:. ICT can make processes and communication within a business quicker and more efficient. Firms also need to keep their software and hardware up to date.

Durable, energy-efficient devices started a design revolution. To make the biggest impact on our carbon footprint, we focus our efforts on the most carbon-intensive components — and then we reduce their footprint. By redesigning, reengineering, and rethinking the materials and energy that Apple products use, we can further decrease the carbon emissions generated from making them.

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5 Comments

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