Impact Of Technology On A Business

Question 1

Information and Communications Technology (ICT)

Answer 1

is the term used to
describe the use of technology to send, receive, store, analyse, gather and
communicate information.

Question 2

Digital technology

Answer 2

is the terms used to describe the use of digital
resources like computers, tablets and smartphones to create, store, manage
and share information.

Question 3

Uses of Technology in a Businesses

Answer 3

1. To communicate with customers, other businesses and staff
2. To train staff
3. To design and produce products and services
4. To conduct market research
5. To promote and sell their products online
6. To prepare budgets and accounts

Question 4

Benefits of staff

Answer 4

Job vacancies and applications can be viewed and completed online.
● Email can be used to communicate with staff
● Training of staff can be completed online

Question 5

Benefits for research and marketing

Answer 5

● Field research can be gathered and analysed quickly
● Desk research is made easier and quicker
● Products / Services can be sold online around the worl

Question 6

For production

Answer 6

Suppliers can be researched and contacted online ensuring businesses get
the best price for materials
● Digital machines can be used to produce goods & services

Question 7

For finance

Answer 7

● Accounts and budgets can be prepared using spreadsheets
● Graphs and charts can be created to show financial information

Question 8

Administration

Answer 8

● Customer information can be easily stored on databases
● Decision making is much faster due to ease of communication
● Letters and reports can be easily written using word processing packages

Question 9

Cost may increase because

Answer 9

1. Businesses must pay a lot of money for new technologies like laptops, tablets
   and databases
2. Businesses are more at risk of being hacked and therefore must pay for
   expensive security packages
3. Businesses must pay for the design and maintenance of a website. The must
   also pay for the website address.
4. Businesses may have to pay large sums of money to repair their technology if
   it breaks.

Question 10

Costs may decrease because

Answer 10

1. New technologies can reduce the number of staff needed in a business
2. Emails can be sent out to customers and staff more quickly and cheaply than
   letters
3. Using Video Conferencing (e.g Skype) means that business do not have to
   pay for their staff to travel to a certain location - it can be done from their
   office

Question 11

Opportunities

Answer 11

1. Increased sales due to mass production
2. Allows a business to identify their target market
3. Improved customer service through social media and online forums

Question 12

Threats

Answer 12

1. Risk of technology failing
2. Increased risk of hacking
3. Increased chance of business reputation being questioned based on online
   comments from customers