Technological environment of business
The technological environment grows rapidly due to new innovations. The business activities, as well as the lifestyle of
individuals, have changed due to changes in the technological environmental factors. Advancement in computer technology,
advancement in communication technology due to the internet, advancement in production methods due to nanotechnology and digital technology, and the advancement in transportation technology have significantly changed the business environment.
The following are some examples of the changes that occurred in the business environment due to changes in technology.
Examples of Economic and technological environment of business :-
The fabric manufacturers used simple manual weaving machines in the
history. But today, they use modern machines, computer technology
etc. to manufacture quality fabric at a low cost within a short period of
Businesses now use telephones and e-mails instead of the snail mail used in
In early days, businessmen published their advertisements with their
postal mail address. However, today they provide their telephone numbers,
e-mail addresses and invite customers to visit their web site for more
Today, computers and information systems are used to record accounting
information instead of the manual accounting books used in the past.
Historical manual production processes are now automated by using
Some goods and services become outdated rapidly due to rapid changes in the
Economic and technological environment of business.
Economic environment consists of economic factors that affect businesses.The
government of a country is mainly responsible for setting economic policies.
A set of economic factors can be briefly explained as follows.
It is the interest rate given for bank deposits and charged
for bank loans.
It is the proportion of the income that individuals keep
without spending on consumption. Higher the savings of a
country the higher will be the amount of funds available
more about technological environment of business.
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