Relationship between Business + the Technological Environment

Technological influence on the culture of a busine

Tradtional cultures = find it harder to accept new means of communication

Power culture = info will remain with few who have power in firm

Task culture = ideal for cooperation btwn departments

Entrepreneurial culture = tech development & risk taking closely linked 

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Technological influence on the process/system

New methods of production (capital intensive) can speed up production --> cheaper + more accurate 

Stock management - sophisticated system to deal with efficient management + delivery of stock 

Information - replacing internal systems to deliver info.

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Technological influence on marketing opportunities

New markets - use internet to attract customers worldwide

Data bases - develop methods to target new market segments (used for tracking loyalty cards)

Higher prices - charging premium for latest technological updtaes

New methods of marketing - social media

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General Impact


  1. New products - innovative R&D --> new products created 
  2. Cost - initially expensive to invest in tech, but ones that keep innovating --> economies of scale (production increase = lower costs)
  3. Improved efficiency & better customer service 
  4. New marketing opportunities - new ways to attract customers & develop brand loyalty


  1. Initial costs - training, ensure people accept change (could lead to redundancies) 
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Adopting Technological Changes Considerations

Attitude & culture of management - ready to lead innovation

Attitude/culture of workers (may affect job)

Gains to consumers (choice & efficiency)

Increased expense of replacing old machinery

Time, effort to transfer old systems to adapt to new change

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