External influences - technological

Question 1

What are some technological external influences that impact businesses?

Answer 1

• ecommerce + mcommerce
• energy use and costs
• rates of technological obsolescence (increased innovation)
• new discoveries
• Government and industry focus on tech
• Government spending on research

Question 2

How are businesses impacted by ecommerce and mcommerce?

Answer 2

• changing distribution networks making certain jobs required and others obsolete
• lead to lead-time issues
• don’t need as many physical store
• therefore, lower labour costs
• If e commerce = increased likelihood that you have lots of stock which can reduce acid-test ratio and the profitability overall
• possibly 24/7
• global?

Question 3

What is ecommerce?

Answer 3

The selling and purchasing of goods via the internet

Question 4

What is mcommerce

Answer 4

The selling and purchasing of goods using a mobile phone

Question 5

How does energy use and costs impact businesses?

Answer 5

• can lead to the purchase of renewable sources
• renewable = future security and contingency plans
• forced to change by government regulation
• rising costs may force businesses to find alternative methods

Question 6

How does the rate of technological obsolescence impact businesses?

Answer 6

• forces businesses to invest into R+D and keep competitive to improve productivity
• Gain from technological economies of scale (greater output over time)
• increased output and efficiency improves communication

Question 7

How do new discoveries impact businesses?

Answer 7

• impacts how businesses decide to operate and deal with customers
• Greater R+D costs
• Expensive to keep replacing technology
• Greater demand for IT specialists and modern jobs
• possible first-mover advantages
• E.O.S

Question 8

How will government and industry focus on technology impact businesses?

Answer 8

• possibly subsidies for growth if integrating technology leading to the employment of people
• increased competition leads to innovation
• force businesses to do market research
• benefit from being in multiple markets –> various sources of innovation and ideas
• Government may provide financial help and infrastructure via SEZs

Question 9

How does the government spending on research impact businesses?

Answer 9

• develops the economy into the quaternary and quinary sector
• improved communication between the large private firms and the government
• Improved infrastructure can lead to better productivity and more supply routes that are global
• Improve the safety and well-being of workers by researching into the motivational theories