P1 Unit 4 Business Environment
Organisations and Environment
“Discuss how an organisation’s competitive advantage can be enhanced with the introduction of new technology”
It is important to remember the difference between inventions and technology. Inventing something is the basis of the idea but the technology in it is ‘the application of knowledge to production’ (Wetherley, P 2008). This is because ‘Technology itself cannot do anything. It is how this technology is used that is important’ (Wetherley, P 2008) and how people involved in business adopt new technology and exploit its benefits. This means that the actual technology can be complex or simple, the defining factor is not ‘In the precise nature of the technology itself but in how it is used and the conditions …show more content…
Due to the rapid developments of markets there was a significant improvement in productivity of businesses and as a result businesses began to analyse their production methods and altered these with the introduction of technology. The biggest change was the division of labour amongst the workforce, this is where production was broken down into a number of stages with workers only being responsible for a set task in their given production stage. Over time this also meant that those workers would specialise in their given task, becoming more skilled in their role and as a result increasing efficiency. (Wetherley, P …show more content…
(Mahtab, T 2012)
New Growth Theory- technology focusses on individuals or firms searching for increased profits by investing in human capital e.g. training staff and developing and adapting existing technologies. For this to work there needs to be openness to trade technology between others both domestically and internationally. Businesses need to continually evolve with innovation and efficiency and the way in which this theory focuses on this is by R&D.
When mentioning the impact of technology on business and competitive advantage it is impossible to do so without talking about the Value Chain. The value change consists of 5 stages ;
Inbound logistics include the receiving and warehousing of input materials.
Operations are the value-creating activities that transform the inputs into the final product.
Marketing & Sales are those activities associated with getting buyers to purchase the product e.g. advertising.
Service activities are those that maintain and enhance the product 's value including customer support, repair services,
“Discuss how an organisation’s competitive advantage can be enhanced with the introduction of new technology”
It is important to remember the difference between inventions and technology. Inventing something is the basis of the idea but the technology in it is ‘the application of knowledge to production’ (Wetherley, P 2008). This is because ‘Technology itself cannot do anything. It is how this technology is used that is important’ (Wetherley, P 2008) and how people involved in business adopt new technology and exploit its benefits. This means that the actual technology can be complex or simple, the defining factor is not ‘In the precise nature of the technology itself but in how it is used and the conditions …show more content…
Due to the rapid developments of markets there was a significant improvement in productivity of businesses and as a result businesses began to analyse their production methods and altered these with the introduction of technology. The biggest change was the division of labour amongst the workforce, this is where production was broken down into a number of stages with workers only being responsible for a set task in their given production stage. Over time this also meant that those workers would specialise in their given task, becoming more skilled in their role and as a result increasing efficiency. (Wetherley, P …show more content…
(Mahtab, T 2012)
New Growth Theory- technology focusses on individuals or firms searching for increased profits by investing in human capital e.g. training staff and developing and adapting existing technologies. For this to work there needs to be openness to trade technology between others both domestically and internationally. Businesses need to continually evolve with innovation and efficiency and the way in which this theory focuses on this is by R&D.
When mentioning the impact of technology on business and competitive advantage it is impossible to do so without talking about the Value Chain. The value change consists of 5 stages ;
Inbound logistics include the receiving and warehousing of input materials.
Operations are the value-creating activities that transform the inputs into the final product.
Marketing & Sales are those activities associated with getting buyers to purchase the product e.g. advertising.
Service activities are those that maintain and enhance the product 's value including customer support, repair services,