Photo AI
‘Improved productivity, competitiveness and effectiveness for a business can only come from advances in technology.’ Evaluate this statement - VCE - SSCE Business Management - Question 6 - 2017 - Paper 1
Question 6
‘Improved productivity, competitiveness and effectiveness for a business can only come from advances in technology.’ Evaluate this statement. --- One of the objec... show full transcript
Worked Solution & Example Answer:‘Improved productivity, competitiveness and effectiveness for a business can only come from advances in technology.’ Evaluate this statement - VCE - SSCE Business Management - Question 6 - 2017 - Paper 1
Step 1
Evaluate this statement.
Answer
The statement suggests that technological advancements are the primary means to enhance productivity, competitiveness, and effectiveness within a business. While it is true that technology can significantly impact these areas, it is not the only factor.
1. Technology's Role: Technological advancements, such as automation and data analytics, can improve efficiency, reduce waste, and enable better decision-making. For instance, technology can streamline production processes, resulting in higher output and lower operational costs. Additionally, technologies like customer relationship management (CRM) systems can enhance customer service and retention.
2. Other Influencing Factors: However, productivity and competitiveness can also be influenced by other elements:
- Management Practices: Effective management practices, such as quality management systems, can lead to better resource allocation and waste reduction.
- Employee Engagement: Motivated employees can enhance productivity through increased effort and innovation. Performance-related pay can incentivize higher productivity levels.
- Corporate Culture: A positive corporate culture encouraging innovation and adaptability can foster competitiveness.
In conclusion, while technological advances play a crucial role in improving business operations, they work best in conjunction with effective management practices and a motivated workforce. Therefore, the statement oversimplifies the complexities of enhancing productivity and competitiveness.
Step 2
Explain one driving force and one restraining force that could have an impact on the success of this objective.
Answer
Driving Force: Globalization facilitates access to larger markets, which can lead to increased sales and brand awareness for Shandra’s Dairy Ltd. As international barriers diminish, the company can leverage economies of scale and broaden its consumer base, enhancing its competitiveness in the global market.
Restraining Force: However, Shandra’s Dairy Ltd may face intense competition from established global brands that have stronger market presence. This competition can hinder the company's ability to secure market share and achieve its objectives. Additionally, regulatory challenges in different countries, such as compliance with local food safety standards, can pose significant obstacles to successfully becoming a global brand.