4.11 - Technological Global Issues

Question 1

Technology

Answer 1

• Technology can be used to help a business collect data from its customers, produce items for the customers on production lines including robotics and provide programs to help with staff and financial information to prepare the documents for the Australian Taxation Office.

Question 2

Marketing

Answer 2

• This is about the collection of data about who buys the items, including age and location. The sales data can also identify the items that are popular. A business can create Apps that it can use to collect customer details and data. Also, loyalty programs are an opportunity for the business to collect data on customer sales and email them directly for sales, including special promotions.
• Advantages
• Can save marketing costs as you can better target customers online and reduce the need to use other types of advertising.
• By collecting sales data, a Business can stock more popular items to increase sales and reduce less popular items that can reduce the need to discount them or throw them out, which also protects the environment. (SRC)
• Disadvantages
• It is expensive to set up the electronic database and ongoing software updates.
• Also the system is subject to online hacking that can put the customers’ personal data at risk. If this was to happen it would have a negative impact on the reputation of the business.

Question 3

Automated Production Lines

Answer 3

• A business may choose to use an automated production line which can include robotics to undertake some of the tasks.
• Advantages
• It is faster and requires less labour so it is at a lower cost which means it can increase profits.
• As it is made by machines it allows for more consistent quality that can better meet customer expectations that can increase sales.
• Disadvantages
• The high cost to purchase the equipment and the need for regular maintenance and software updates for the production lines can reduce profits.
• If the machine fails then it can create a large number of faulty products till the problem is resolved.

Question 4

Administration

Answer 4

• A business will choose computer software packages that can be used to assist with staff wages and leave and financial needs like determining profits and help to produce amounts for GST and Income Tax for the ATO.
• Advantages
• Provides instant data on performance so a Business can access performance to objectives and take immediate action if needed.
• It can reduce the work needed for administration tasks which allow workers to use their time in other areas.
• Disadvantages
• It can be expensive to purchase software packages and they will have an ongoing cost to update.
• The business systems can be subject to hacking that can disrupt operations and create extra costs to fix.

Question 5

Remote Working

Answer 5

• This is when the staff connect to the staff computer system to work at home.
• Advantages
• It allows the business to maintain productivity by allowing staff to work from home the business can keep staff so redcue the costs to replace them.
• hey can attract good staff that want flexible work practices.
• Disadvantages
• The extra costs required to set staff up from home to work.
• Gives external access to computer system that puts them at a higher risk of being hacked.
• Staff may lose motivation as lack of social contact with fellow staff.

Question 6

Global Issues

Answer 6

A business can either purchase items or inputs (resources) from overseas for its business like a clothing business or it can choose to set up a factory overseas to provide items for its business. An example is Honda which has a car factory in Thailand to provide vehicles for the Australian and other markets.

• *Advantages:**
• Labour costs are cheaper which allows a business to increase its profits.
• A business can set up a factory near its markets that can reduce transport costs and reduce the time to supply that market.
• *Disadvantages**:
• Changes in exchange rates and local government policy can impact costs and profits.
• A business may need to spend time to establish that a supplier does not use child labour as that may cause a negative reaction from customers.
• A business may have protection concerns due to unreliable power and internet.