ch 6 nat. & tech. envt

Chapter 6NATURAL AND

TECHNOLOGICAL ENVIRONMENT

BUSINESS ENVIRONMENTBUSINESS ENVIRONMENT

Himalaya Publishing House

Business EnvironmentFrancis Cherunilam

Chapter 6Natural and Technological

Environment

The natural and technological environments present the impulsive potential for development while the other environments like the economic, social, and political and government factors represent the propulsive potential for development.




Environment

Impulsive and Propulsive Factors Affecting Business




Environment

Given the natural and technological environments, the propulsive factors determine the extent of exploitation of the development potential and the direction, pace and pattern of development.




Environment

InnovationInnovation

Innovation is a very important factor that provides competitive advantage and, consequently, determines success.




Environment

Calantone and Cooper have identified six major reasons for the new product failures.6 They are as follows.

1. The better mousetrap no one wanted

2. The me-too product meeting a competitive brick wall

3. Competitive one-upmanship

4. Environmental ignorance

5. Technological dog products

6. The price crunch




Environment

Rates of Product and Process Innovations




Environment

Technology S Curve




Environment

Innovative Drivers




Environment

ICT AND MARKETING

Advances in information and communications technology are revolutionalising the modus operandi of marketing and the business system. The business horizon is humming with buzzwords like internet, world wide web (www), cyberspace, information superhighways etc. which are changing the way of contacting customers; order receiving and processing; and networking and integrating business system. The revolutionary changes being ushered in by the internet are indeed exciting.




Environment

Transfer of TechnologyTransfer of Technology

Technology transfer is the process by which commercial technology is disseminated. This will take the form of a technology transfer transaction, which may or may not be a legally binding contract,27 but which will involve the communication, by the transferor, of the relevant knowledge to the recipient.




Environment

Levels of TTLevels of TT Operational Level: At the bottom level are the simplest ones, needed for

operating a given plant: these involve basic manufacturing skills, as well as some more demanding troubleshooting, quality control, maintenance and procurement skills.

Duplicative Level: At the intermediate level are duplicative skills, which include the investment capabilities needed to expand capacity and to purchase and integrate foreign technologies.

Adaptive Level: At this Technological Self-reliance level, imported technologies are adapted and improved, and design skills for more complex engineering learned.

Innovative Level: This level is characterised by innovative skills, based on formal R&D, that are needed to keep pace with technological frontiers or to generate new technologies.

ch 6 nat. & tech. envt

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