BUSINESS ENVIRONMENT

Department – MBAPresented by- Shumeet K. Grewal

Technological Environment

Technology can be defined as knowledge of methods to perform certain tasks efficiently and solve problems pertaining to products and services

Technology is one of the important determinants of success of a firm as well as the economic and social development of a nation.

Features of Technology

Change and then more change.

Time gap between idea and implementation

Widespread

Self- reinforcing

Complex.

Impact of TechnologySocial ImplicationsEconomic ImplicationsPlant Level Changes

Social Implications

Technology reaches people through Business

High Expectations of consumers

System Complexity

Social Changes

Economic ImplicationsIncreased Productivity

Need to spend on R & D

Jobs become Intellectual

Problems of Techno structure

Increased regulations and stiff competition

Demand for capital

Rise and decline of products and organizations

Boundaries redefined.

Plant Level Changes

Organization Structure.

Resistance to change

Fear of risk

TQM

E-Commerce & E- Business

Flexible manufacturing System.

Hurdles in Technological development Pollution-generates smoke, smell, noise, effluents

& dust. Industrial resources- technological development

depends upon the availability of minerals, energy, water supplies, highly skilled labor & high human knowledge.

Social Institutions- many societies adopting modern technology encounter problems in arriving at a consensus between their traditional social institutions & the new trend of technology development.

Shumeet Grewal

Transfer of TechnologyTraining or Employment of Technical Experts

Contracts for supply of Machinery and Equipment

Licensing Agreements

Turnkey Contracts

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Issues in Transfer of TechnologyCostAppropriatenessRelianceObsolence

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Technological Policy-Pt. J.L. Nehru adopted scientific policy resolution (SPR) by G.O.I on March 4, 1958. It recognized science & technology as the key to national prosperity.

AIMS & objectives of SPR are-To promote & sustain science & researchTo ensure adequate supply of highly trained & qualified

research personnel by recognizing their work as an important component of nation` s strength

To ensure the benefit of science & technology to all the people in country.

To develop scientific thinking by building large number of scientific institutions.

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Industrial Policy Resolution of 1948 & 1956

• Mix of indigenous & imported technology.

Govt. policy will be directed towards reducing technological dependence in key areas but advantage should be taken of technological development elsewhere. Hence Indian govt. has followed a dual policy-

-To borrow developed & costly technology.-To develop indigenous science &

technology for the betterment of society & nation.

Shumeet Grewal

Attain technology competence & self-reliance. Provide maximum gainful & satisfying employment to all

sections of societies with emphasis on the employment of women & weaker sections of society.

Use traditional skills & capabilities making them commercially competitive.

Ensure a correct mix between mass production technologies & production by masses.

Ensure maximum development with minimum capital outlay

Identify obsolescence of technology in use & arrange for modernization of both equipment & technologies.

New technological policy

Shumeet Grewal

New technological policy Development of technology which is internationally

competitive particularly those with export potential.

Improve production through greater efficiency & fuller utilization of existing capabilities & enhance the quality & reliability of performance & output.

Reduce demands of energy, particularly energy from non renewable sources

Ensure harmony with the environment, preserve ecological balance & improve the quality of habitat

Recycle waste material & make full utilization of by-products