Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
    1. External environment
    2. Introduction - PEST/STEP analysis
    3. The legal and political environment - introduction
    4. The legal environment
    5. Political stability and instability
    6. The social and cultural environment - introduction
    7. Social responsibility
    8. Demographic trends
    9. The technological environment - introduction
    10. The Internet and the World Wide Web (www).
    11. E-commerce
    12. Technological change
    13. The ecological environment
    14. The economic environment - introduction
    15. Economic growth
    16. The Business Cycle
    17. Inflation
    18. Exchange rates
    19. Unemployment
    20. Interest rates
    21. Government fiscal policy
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

The technological environment - introduction

Technological change presents significant opportunities and threats for businesses.

Technology developments affect business operations in a number of positive ways:

• Increasing access to, and storage and manipulation of, data.
• Increasing speed and volume of communication.
• Reduced language and cultural barriers.
• Reduced costs of production.
• Reduced administration costs, waste and increased efficiencies.
• Increased outsourcing of key functions cutting operating costs.
• Higher quality products at competitive prices through improved innovation and development.
• Better working conditions, flexible working practices and greater opportunity for personal development.
• Increasing access to global markets and greater mobility in business transactions.

However, there are some potential negatives associated with technology development

• The real costs of remaining ahead of competitors.
• Fewer barriers to entry to markets, allowing smaller companies to compete using relatively low cost web marketing tools.
• Empowering customers to seek lower prices and better deals.
• The increasing support costs such as licensing of software, maintenance of equipment and the training of staff.
• Reduced job security.
• The pace of constant change undermining existing organisational structures and threatening social relationships.
• The increased risk of interconnected systems failing and resulting chaos. Not all systems are secure and it is increasingly difficult to protect systems from hacking.