BA 205 – BUSINESS ENVIRONMENTAL ANALYSIS:

Reporters: Locsin, Remollo, Yeneza

“Good afternoon one and all. We are tasked to report on one of the factors under Macro
Environment in Business Analysis which is the technological environment.”

VIEW SLIDE SHOW…

“TECHNOLOGICAL ENVIRONMENT”

“Let us first have a quick review on Business Environment and its stem.” (While clicking
ONCE to next slide)

“The business environment refers to all those factors that can influence the functioning of an
organization. This outcome can be positive or negative.” Examples of the factors include
financing, policies and laws, of course technology and many more…”

Click ONCE for next slide…

“It is very essential for the organizations to analyze the environmental influences which will,
therefore, assist them in evaluating the market conditions.”

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“Now there are two kinds of environment in Business. The Internal Environment and the external
environment.” (Showing the diagram) Move to discussion…

Discussion:

“The internal environment consists of all those factors that associated very closely to the
business activities and are, by and large, controlled by the actions of top management. It has to
be noted that although these internal environment factors are very much in control of the
company but still a lot of attention has to be devoted for their appropriate management since they
can have an impact on the profitability of the company.”

“On the other hand, the business environment has also external environment that is further
divided into the Micro and Macro Environment.

1. The Micro environment

- are the factors close to the company that have a direct impact on the
organizations strategy.

2. The Macro environment

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 - are factors that will affect the decisions of the managers of any
organization.
- This means general environment of business. Macro factors are
uncontrollable in comparison to the micro forces of environment. The
growth and survival of business depend upon its adaptability to macro
environment factor
- To help analyze these factors managers can categorize them using the
PESTLE model.
- Click TWICE for next transition…

Political
Technological

Econimical Ecological

Social Legal

“This are the main factors that consists the Macro-Environment. P stands for Political, E for
Economical, S for Social T for Technological L for Legal and E for Ecological.”

“Now we will focus our discussion on one factor… (Click TWICE for next transition…)
------- The technological environment…”

Note: Click picture after technological factor word on slide

number 4 for the video, (a dropbox will appear just click OK
to play video, then DOUBLE CLICK to view wider screen)
After the video ends, close and Click ONCE (DON’T HIT
THE PICTURE) for next slide)

Definition:

“Technological environment include the methods, techniques and approaches adopted for
production of goods and services and its distribution. The varying technological environments of
different countries affect the designing of products.”

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Discussion:

“In the modern competitive age, the pace of technological changes is very fast. Hence, in
order to survive and grow in the market, a business has to adopt the technological changes from
time to time. It may be noted that scientific research for improvement and innovation in products
and services is a regular activity in most of the big industrial organizations. Now a day in fact, no
firm can afford to persist with the outdated technologies.”

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“We have summarized KEY POINTS to better understand the technological environment
in Business.”

1. The pace of change in technology is becoming more rapid, and often changes that impact
your market comes from unexpected sources.

For example, could the film industry ten years ago have predicted that people would stream
their new releases rather than go to the cinema or buy a DVD? – This is an example of
innovation via media.

Explanation:

Through the technological aspect of the macro environment, the organization will be able
to brainstorm even the most bizarre suggestions because today seems impossible may happen
and be a commonplace in the next few years.

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2. Technological advances have also allowed organizations much greater freedom of choice
when deciding how best to manage their operations. The rapid growth in networking
capabilities for example, both in terms of being more reliable and having extensive coverage
internationally, has allowed organizations to streamline their workflow and eliminate
operational bottlenecks.

In this technological innovation, organizations that fail to keep up with technological

advances leave opportunities for a smaller producer or new entrant to enter their market and
erode their leadership status.

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 For example: This is what happen to mobile phone producers like BlackBerry and Nokia,
who were slow to embrace smartphone technologies. The result was that they both lost
significant market share to Apple (Iphones) and Samsung.

Explanation:

This example clearly illustrates how consumer’s preferences and usage change following
a technological advance and how this feeds through to market share. Many organizations
want to protect their advantage as long as possible, so the use of patents and licensing has
become the key strategy for many firms in protecting their intellectual property.

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3. New technologies create new products and new processes. MP3 players, computer games,
online gambling and high definition TVs are all new markets created by technological
advances. Online shopping, bar coding and computer aided design are all improvements to
the way we do business as a result of better technology.

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I. The following are the technological influences to business today:

a. COST REDUCTION – Technology enables business to reduce costs. Cost

Reduction is done by replacing manual tasks with automation.
For example, when computer was introduced, it replaced a whole lot of men and
women who were typing and maintaining accounts using receipts and vouchers
manually. Such replacement of course, ensured enormous savings and cost reduction.
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b. IMPROVED PRODUCT QUALITY – Technology provides the business chances

to enhance quality through the elimination of human error, and making available
more consistent procedures for production.
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For example, a factory that produces a large scales of product such as bottling
company (coca cola) or a food distributor company (jack n jill). The firm must see to
it that the production of bottles or food packing and its labels are done uniformly;
hence, machines to perfect the consistency of its production are invented. As time
goes by the company continues to innovate new faces of their products to catch up the
needs of the time, such that coca cola bottle designs have emerged from the past up to
the present.

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c. INCREASED PRODUCTIVITY – Technology enables business to make

substantial increases in productivity which can be defined as the capacity of business
to produce output with the given level of resource.
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For example, a paper factory (Advance Paper Corp) can produce thousands of
intermediate pads in different sizes in a daily basis through the use of machines.
Machines can work faster for longer hours without break-time. Machines never go on
sick leave nor go to bathrooms in between and so on… (Although we don’t negate the
fact that machines have wear and tear theory, but as far as the present time is
concerned that problem has been addressed by another innovation through and
through.)
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d. SHORTER TURNAROUND PERIOD and INFORMED DECISION MAKING

– Technology can help business to accelerate processes. The more rapid transmission
of information coupled with the mechanization of many tasks means the decision can
be made faster and goods can be produced more rapidly than previously.
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For example, companies can widen their scope in terms of distribution through
the use of technology, for instance, media (Advertisements of products).
Through this, informed decision making is made possible without taking time across
the globe where company is circulated.
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e. INNOVATIONS – Innovative technology combined with worldwide information

and communication revolution has been the catalyst for productivity growth in the
banking industry.
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For example, innovations of the systems approach of banks like online and mobile
banking resulted in very convenient transactions anywhere and anytime.
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II. In contrast, despite how far technology has taken humans and no matter how
convenient it may make things, there are some disadvantages accompanying this level
of access.

a. Dependency - The more advanced society becomes technologically, the more people
begin to depend on computers and other forms of technology for everyday existence.
This means that when a machine breaks or a computer crashes, humans become
almost disabled until the problem is resolved. This kind of dependency on
technology puts people at a distinct disadvantage, because they become less self-
reliant.

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b. Less value in human workers - Human workers retain less value, which is a
disadvantage of technological advances. Because machines automate processes and
do the work of 10 people with one computer, companies find they don't need to
employ as many people to get the job done. As machines and computers become
even more advanced and efficient, this will continue to be a growing disadvantage of
technology and an issue that has a global impact.

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“To specify the essential USE of Technological Environment in Business Analysis, let us watch
this video…”
Note: Click Upper left icon for video (a dropbox will appear just
click OK to play video, then DOUBLE CLICK to view wider
screen) After the video ends, close and Click ONCE (DON’T
HIT THE PICTURE) for next transition)
“Allow me to elaborate this. In order to assess the Business utilizing PESTLE specifically the
technological environment, First…

 Strategist should know what type of technology is used by company.

“I would like to consider APPLE INCORPORATED as my example as we go on in this matter..”
o Apple Incorporated for example, the company is producing gadgets through the
use of technology to make communication possible anytime, anywhere. This is
exactly the TYPE of technology the company is into.
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 Strategist should know which type of technologies is used in the companies, business,
products and its services.
o The technological environment for Apple's market has grown substantially over
past years. Most specifically, phones and computers have become a hot
commodity.
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 The company should know the critical issues in technology and know the operating skills
in technology related products and services.
o Apple is on top of the market for innovating products of which is the common
critical issue for the commodity this company is into. Gadgets come and go, they
are hit and become junk through the needs of the time and people, and there are

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 many competitors in the market that sells the same commodity, however, the
increase in technology and the excellent performance of their products has been
always the edge that is encouraging competitors to improve, which then keeps
Apple improving.
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“Now let us watch this short clip…”

Note: Click Upper left icon for video (a dropbox will appear just click
OK to play video, then DOUBLE CLICK to view wider screen)
After the video ends, close and Click ONCE (DON’T HIT THE
PICTURE) for next transition)

“Clearly the short video is sending us a message that adaptation to technology in this new age is
the new “thing”…”
 The company should know the availability of technology to organization. And also its
procedure to get external technology for its operations.
o Apple Company uses the modern person to depict their product as well as create
new ingenuity and design. They seem to have all bases covered and will always
be a leader in technology. It is just so timely that today, people do not just want or
like the gadgets, apparently, they need it for living. And it is a sure thing that
people will not settle for less and go for the best.
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 The company should know the cost of technology, alternative technology, competitors,
design structure of the technology, and production implementation services of the
company.
o Apple always takes advantage because of its innovative and high technologies
products. The large amount has invested in research and development field by
Apple, that’s the reason Apple comes in top of the new innovative products. And
it is an undeniable fact that people will own it despite its being the most expensive
gadgets, if it is far better worth the price or value then people will have no doubt
to avail. This is true, how many of us here are iphone users?
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 The company should know the company’s business applications that are relating to
technology.
o Apple uses technology to sell technology. They are branded as the leader in
technology. In business industry, the company is very much well known and is
now widely the people’s choice.
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 The company should be aware that technology helps the business for formulation of
strategy, implementation of strategy and control of the company performance

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 o The efficiency of a company's advertising, marketing, and promotional
programs—For example, television, web, and social media advertising are
constantly evolving. The ability of a company to effectively promote their
products through these channels impacts sales.
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“Hence, our group arrived into five conclusions to sum it all…” First,

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 In most of the areas, technology has replaced human beings and the work is done in a
lesser time with more accuracy.
- It is true and through this, more work output can be produced for the same
cost, or less, than if the work was performed by men and women.
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 Technology has also positively affected the economic status of several countries. It is
generally observed that the countries employing a high level technology is a well
advanced nation. It has increased productivity and has contributed enormously in
producing more quantity with quality.
- The US remains at the forefront of technology adoption and innovation,
supported by its relatively flexible, large economy, entrepreneurial spirit
and well-developed innovation clusters, led by San Francisco and Silicon
Valley. The US dominates the list of top quoted IT companies. Technology
allied with higher investment should deliver faster growth in coming
years. And true enough, America is still the most-wanted in big time
investments among the developed country.
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 The increased utilization of e-commerce has transformed the world in a small market.
Today people from different countries can trade with each other by a click of the mouse.
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 Technology has played a vital role in developing the transportation system. The jet
aircrafts and super freights have enabled transportation without any obstacle.
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 Lastly, Technology has both a disadvantage and advantage in a business thus the pros has
the ability to overpower its cons if individuals would learn to utilize and maximize
technology in the most appropriate way.
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“To end, please watch this…

Note: Click the black slide for ending clip then to exit click BA 205 label below

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All: Thank you!

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REFERENCES:

Aguilar, F.J. (1967) ‘Scanning the Business Environment’, The Macmillan Company: New York

Albright, K.S. (2004) ‘Environmental Scanning: Radar for Success’, Information Management
Journal, 38 (3), 38-45

Fernando, A.C. (2011) ‘Business Environment’, Pearson Education: India

Kew, J., Stredwick, J. (2005) ‘Business Environment: Managing in a Strategic Context’, CIPD
Publishing: England