External InfluencesExternal InfluencesTechnology and Changing Social Attitudes

External InfluencesExternal Influences

New Technology:◦New business opportunities◦Creation of substitutes◦Opening up of new markets◦Technical progress in foreign countries◦Productivity◦Ways of working◦Communication◦Cost of investment versus return

External InfluencesExternal Influences

New business opportunities:◦Within the same industry?

(Core business)◦Totally new markets/opportunities◦Amount of investment needed◦Market research – do consumers need the

product?

External InfluencesExternal Influences

e.g. Canon – core business, optical technologies: ◦cameras, photocopiers, scanners, projectors,

calculators, binoculars, digital cameras, printers, projectors

New markets – Discmans? DVD players? Flat Screen TVs? Plasma TVs?

Risk versus gain

External InfluencesExternal Influences

Threats:◦Cheaper alternatives from abroad – CFC

technology, bio-technology, computer and micro-processor technology (especially China?)

◦Rivals producing substitutes – PS2, X-Box and Game Cube

How to react?

External InfluencesExternal Influences

Working practices:◦Technology and productivity –

impact on workers, morale, motivation?◦Implications for ‘old’ plants (e.g. Longbridge

versus Sunderland?◦Flexible working – working from home,

hot desking, mobile computing (wireless networks) video-conferencing

External InfluencesExternal Influences

Communication:◦Faster?◦More efficient? – if so why have some firms

banned the use of e-mail at work for any purpose?

◦Impact on motivation, morale and worker attitudes

◦To what extent does the message get through?

External InfluencesExternal Influences

Changing Social Attitudes:◦ Social ‘class’ – changing socio–economic groupings◦ Links with behaviour and demand (e.g. growing number

of pensioners; those who smoke or drink certain types of alcohol)

◦ Changing tastes – concern for ‘green’ production, attitudes to fur, wine versus beer, vegetarians (long term or short term?)

◦ Changing lifestyles – convenience and fast foods, use of freezers, use of cars, amount of leisure time and how it is used, etc.

External InfluencesExternal Influences

Changing income structures◦Distribution of income◦Regional distribution of income◦Impact of government taxation

on disposable incomes◦Relative income elasticity of demand for

different goods and services