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Analyse the impact of new technology on business costs and on business opportunities - Leaving Cert Business - Question B - 2016
Question B
Analyse the impact of new technology on business costs and on business opportunities. Provide examples to support your answer.
Worked Solution & Example Answer:Analyse the impact of new technology on business costs and on business opportunities - Leaving Cert Business - Question B - 2016
Step 1
Impact on Finance
Answer
The introduction of new technology often involves significant financial outlays for initial purchase and ongoing maintenance. For instance, the implementation of an automated stock ordering system may incur costs in terms of software purchase, training staff, and continuous technical support. However, these investments can lead to long-term savings by reducing manual errors and improving efficiency.
Step 2
Impact on Production
Answer
New technologies can enhance production quality and efficiency. By adopting advanced machinery or software, SuperSave may produce goods of better quality while reducing costs through economies of scale. For example, using CAD technology for packaging design can streamline production and minimize material waste.
Step 3
Impact on Staff
Answer
Technology can significantly affect workforce dynamics. While there might be staff redundancies due to increased automation, training may also be necessary for employees to adapt to new systems. E-working opportunities can lead to a more flexible workforce, but it also requires a competent staff who can efficiently manage remote tasks.
Step 4
Impact on Communications
Answer
The adoption of new technology enhances communication within the organization. Quick access to data allows for better decision-making. For instance, utilizing online collaboration tools can help teams in different locations work together effectively, improving overall operational efficiency.
Step 5
Impact on Marketing
Answer
New technologies facilitate improved marketing strategies. For instance, leveraging social media platforms enables SuperSave to reach a broader audience through targeted advertising. E-commerce options can also open up new sales channels, allowing the supermarket to enhance its reputation among potential customers.
Step 6
Impact on Sales and Security
Answer
Technology plays a dual role in sales and security. On one hand, enhanced sales opportunities arise from reaching existing and potential customers through online channels. On the other hand, investment in technology increases vulnerability to security breaches. It is crucial for SuperSave to ensure robust cybersecurity measures are in place to protect customer data and maintain trust.