TECHNOLOGICAL CHANGE

PRIMARY: Specialist machniery, combine harvesters

SECONDARY: CAM, CAD, stock control processes, robotics, packaging

TERTIARY: Communications, ATMs, barcodes and internet shopping 

1) Improved efficiency and reduced waste

2) Wealth creation by higher living standards

3) ·         Improved working environment. Impact on HR as employees work in safer conditions and there are a greater number of jobs that are less physically demanding and more interesting

1)  Industrial relations between employers and employees. Due to machine automation, there is a danger of resistance by workers and trade unions decreasing morale

2) Cost- Keeping up to date can lead to very high replacement costs that occur on a regular basis

3) Personnel issues- New skills are required to work technology and this has implications for recruitment, retention and training and their associated costs

New technology allows for new products to be produced. Price skimming can be introduced because customers will pay premium prices for unique products in the short term. These high profits can be retained if a patent is brought. Firms might use the patented period to develop their next unique product.

·         Improve efficiency so increase profit margins in the short term. In the long term, if prices fall and if demand is price elastic, profits will rise due to greater sales volume. Labour costs can be reduced.

1) Possible cutbacks in production whilst old technology is being replaced

2) Workforce reaction is important as co-operation is needed

3)  The adoption of any new technology will be influenced by compatibility with new technology and whether the changeover can be managed effectively

4) Finance- huge costs in ST, rewards in LT