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Technology. Impact on business. Jan 08 Essay Q. With reference to organisations, markets or industries that you know, to what extent do you think that the internet is a threat rather than an opportunity for business? (40 marks)
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Technology Impact on business
Jan 08 Essay Q • With reference to organisations, markets or industries that you know, to what extent do you think that the internet is a threat rather than an opportunity for business? (40 marks) • You need to consider the impact on Supply as well as Demand factors… You have 5 mins… What would your essay plan be?
Syllabus aims • The Relationship between Businesses and the Technological Environment • assessing the effects of technological change • evaluating the response of businesses to technological change. • The impact of technological change should be considered in terms of a range of issues including: • marketing opportunities, • the culture of the business • and the processes and systems used within the business
What technological changes have their been? • Intranet • Internet • Social Networking • CAD/CAM • Robotics • Handheld computers • Software packages e.g. DTP, spreadsheets, databases etc • EPOS • Loyalty cards • Mobile technology • ????
Which businesses have been threatened by technology? Books Music Film Travel agents Estate agents Newspapers Charities…. Bar codes! Threats of Technology
Latest technology… • Its always changing…
Viral marketing • http://www.blogstorm.co.uk/the-top-10-viral-marketing-campaigns-of-all-time/ • So many to choose from… it has to be…. • What are the benefits of viral marketing?
Cadbury’s – king of viral? What benefits have Cadbury’s gained from these marketing campaigns?
Technology USP… • Which companies generate revenue from continual updating technology? • Software • Mobiles • TVs • MP3
Culture of business How would technology effect… What is culture?
How culture might be demonstrated • How contracts are negotiated and agreed • The personality and style of the sales force • The responsiveness of communication • The methods used for communication • How staff call each other • How employees are recruited • The way that visitors and guests are looked after • How the working space is organised • The degree of delegation & individual responsibility Can you give examples of how technology will have changed these areas?
Look at the following slides How will these new apps affect culture?
Handy’s Four Classes of Culture Power Role What does each of these mean? Task Person
Power culture • Control radiates from the centre • Concentrates power among a few • Few rules and little bureaucracy • Swift decisions are possible
Role culture • People have clearly delegated authorities within a highly defined structure • Hierarchical bureaucracy • Power derives from a person's position • Little scope exists for expert power Power
Task culture • Teams are formed to solve particular problems • Power derives from expertise as long as a team requires expertise • No single power source • Matrix organisation • Team may develop own objectives (a risk) Functional Depts Project Teams
Person culture • People believe themselves to be superior to the business • Business full of people with similar training, background & expertise • Common in firms of professionals – e.g. accountants & lawyers • Power lies in each group of individuals
Processes and systems used within the business How has technology helped?
http://news.bbc.co.uk/1/hi/uk/8409337.stm • EPOS – tills! • http://www.youtube.com/watch?v=Vv5GQ6c_ls8 • Textile industry
Homework… Reminder of HWK Textbook p 315 Walmart Case study
Further reading • http://www.businessweek.com/technology/