3.2.1 Technology

Question 1

Define the term:

Technology

Answer 1

The application of knowledge, skills and techniques to improve business performance.

Question 2

What are the advantages of ICT?

Answer 2

● Has allowed businesses to reduce costs
● Has allowed businesses to improve quality, efficiency and competitiveness.

Question 3

What are the disadvantages of iCT?

Answer 3

● Costs in purchasing technology + training staff to use it.
● May result in reductancies (firing).

Question 4

Define the term:

E-commerce.

[include example]

Answer 4

The act of buying or selling a product using devices connected to an electrical network.

e.g. The internet

Question 5

What is required for e-commerce to take place?

Answer 5

● A seller who has products that are displayed electronically
● A buyer with the equipment required to view the sellers products, and a way of paying for them.
● A network that enables information + payment to be exchanged by the buyer + seller.

Question 6

What are the advantages of e-commerce?

Answer 6

● Attracts customers across the globe.
● Can sell 24/7.
● Easily receive payment immediately.
● Reduced overhead costs compared to physical store.

Question 7

What are the disadvantages of e-commerce?

Answer 7

● More competitors from across the globe ∴ harder to get noticed.
● Employees may need new skills e.g. website maintenance.
● Procedures required for the delivery + the process of returning products
● A need to maintain + update technologies, including security software ∴ may be expensive.

Question 8

Define the term:

Social media

Answer 8

A variety of web platforms that enable users to share ideas, content, information and messages.

Question 9

what are the advantages of social media?

Answer 9

• cost: cheap
• communication: easier for buyer to discuss ways of payment w/ seller.
• marketing advertising: easier to advertise to larger market.
• larger target market: easier to attract customers across the globe.
• increased sales: easy for customers to access through advertising.

Question 10

what are the disadvantages of social media?

Answer 10

• public relations (PR): many competitors ∴ harder to be noticed through advertising if business idea = common
• communication: inappropriate/inaccurate responses can be shared quickly + easily ∴ creates bad publicity.

Question 11

what are some digital communication tools?

Answer 11

• email
• instant messaging
• websites
• web conferencing
• social media
• cloud services
• mobile/smartphones
• mobile applications

Question 12

how will businesses use digital communications to communicate with their stakeholders?

Answer 12

• customers: dispatched order will be communicated via email or text message.
• suppliers: amount of products produced + it’s cost via telephone website.
• employees: next payments, redundancy notices via email or text message.

Question 13

what can be communicated between stakeholders?

Answer 13

• customers: orders, invoices, bills, customer services, advertising, social media (facebook, twitter etc.)
• suppliers: ordering, payments, product information.
• employees: payslips, job info, holidays, recording hours worked, emails, messaging, meetings/conference calls.
• shareholders: annual reports, dividend info + payments.
• all stakeholders: sharing + recording info via email.

Question 14

what are the advantages of using e-commerce + m-commerce?

Answer 14

• allowed businesses to access wider markets.
• reduced costs through auto ordering using online applications.
• can experience increased sales.
• become more well known.

Question 15

what are the disadvantages of using e-commerce + m-commerce?

Answer 15

• increased costs due to investments in computerised systems + staff training.