envionment affecting ion

8/6/2019 Envionment Affecting ion

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Presented by:Deepika Kumawat


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External Environmental factorsy Economic conditions

y Demographics

y Technologicaly Sociocultural

y Global factors

y Political conditions

y Legal factors


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Tech l gical Envir nmenty It is systematic knowledge for a manufacturer of a

product, for the application of a process or for the

rendering of a service and does not extend transactioninvolving mere sale or lease of goods.

y It may affect the demand for a firm's products andservices, production processes and raw material.

y Technological changes may create new opportunities forthe firm, or threaten the survival of a product, firm, orindustry.


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Demandy Technology can change the lifestyle and buying patterns of consumers.

y Recent developments in the field of microcomputers have dramaticallyexpanded the potential customer base and created innumerable opportunitiesfor businesses to engage in business via Internet. Similarly, new developments

in technology led to a reduction in prices for computers and expanded thepotential market. Lower prices allow computers to be marketed to the generalpublic rather than to business, scientific, and professional usersthe initialmarket.

y

Technology may also cause certain products to be removed from the market.Asbestos-related illnesses have severely limited asbestos as a resource used inheat-sensitive products such as hair dryers.

y Further, a number of chemicals that have been commonly used by farmers to

control insects or plants are prohibited from use or require licensure as aconsequence of those chemicals appearing in the food chain.


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PRODUCTION PROCESSESy The introduction of products based on new technology often requires new

production techniques. New production technology may alter productionprocesses.

y Robotics represents one of the most visible challenges to existing productionmethods. Robots may be used in positions considered hazardous for people orthat require repetitive, detailed activities.

y In some industries, use of robots during the early 2000s increased productionand efficiency but resulted in significant numbers of job losses. However,

technological innovation can also result in increased job growth.

y For example, Ford Motor Company's $375-million technology update to itsNorfolk assembly plant to build its 2004 F-150 resulted in the ability to buildmore models on its assembly line and consequently created about 270 new jobs,an 11 percent increase.


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EVALUATING TECHNOLOGICAL

CHANGES

y Products with relatively complex or new technologyare often introduced while the technology is beingrefined, making it hard for firms to assess their marketpotential.

y When ballpoint pens were first introduced, theyleaked, skipped, and left large blotches of ink on the

writing surface. Fountain pen manufacturers believedthat the new technology was not a threat to existingproducts and did not attempt to produce ball-pointpens until substantial market share had been lost.


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Another technology, the electric razor, has yet tototally replace the blade for shaving purposes.

Perhaps the difference is that the manufacturers ofblades have innovated by adding new features toretain customers.

Manufacturers of fountain pens did not attempt toinnovate until the ballpoint pen was well established.


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It is quite difficult to predict the impact of a new technologyon an existing product. Still, the need to monitor theenvironment for new technological developments is obvious.

Attention must also be given to developments in industriesthat are not direct competitors, since new technologydeveloped in one industry may impact companies andorganizations in others.


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envionment affecting ion

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