 Technological environment refers to new

technological innovation, new products, the

state of technology, the utilization of
technology for maximum inputs and
outputs, the obsolescence of technology
and the dynamic changes that frequently
occur in technologies which enable firms to
get a competitive advantage
Knowledge, tools, techniques, and actions
used to transform material , information,
and other inputs into finished goods and
services
Others say it relates to the mechanisms in
place that aid performance of tasks
Technological is the systematic
application of scientific or other organized
knowledge to practical tasks.
 What
forms of technology do you
know?
 There are two types of innovation that can
occur as a result of technological change:
product innovation and process innovation
 Product innovation is the development of new
products like the microprocessor, which have
far reaching effects on business.
 Process innovation on the other hand refers
to changes that take place in the production
process, like the introduction of assembly-
line production in the manufacturing of cars.
 Improved access to services (e.g. Banking,
electronic funds transfer and payments)
 Improved product quality (e.g. phones
 Increases production efficiencies
 Reduces Costs
 Improved distribution
 Improved measurement of performance
 May affect social environment
 May affect economic environment (e.g.
internet access helps local economies)
 Increases unemployment
 Costly - because of rapid changes
employees need to be trained and retrained
to keep up with these changes plus cost of
maintenance is high
 Shortens the product life cycle so some
products become obsolete
 May encourage laziness at workplaces as
people become over dependent on
technology
 Technological growth is at varying levels in
different countries
 Developing countries are most affected
because of the following factors:
 General apathy toward research – research is
necessary for the development of science and
technology.
 Lack of incentives for innovation – new ideas
in some societies are not recognized or
supported.
 Incompetent business –A major factor is the
protection from competition which they receive
from their national governments.
 Misplacement of manpower - some countries had
adequate pools of trained manpower that is
capable of engaging in scientific and
technological discoveries.
 Traditional beliefs – indigenous people’s beliefs
may limit technological growth.
 Dependence on foreign technology - developing
countries are too dependent on imported
technology.
 Conservatism – which refers to an inclination to
preserve the existing order of things has resulted
in resistance to change
 Generous contributions to formal education
by businesses and other institutions
 Mass education about the significance of
research, science and technology – through
radio and television programs, and
newspaper.
Accepting and utilizing the findings of relevant
researchers

Subsidizing or reducing the taxes on

technologically advanced equipment
 Natural environment refers to climatic
conditions and natural resources, which
determines the manufacturing scope and
the nature of the products that could be
marketed.
 Involves natural resources that are needed
as inputs or that are affected by production
activities.
 As alluded to earlier the resources are
scarce and therefore we need to monitor
usage of natural resources
 Provides the economy with both raw materials
(i.e. natural resources) which are transformed
into consumer products by the production
process and energy which fuels this
transformation.
 Resources include mineral deposits, coal, iron
ore, diamonds, water, soil, forests, fish and
game.
 The environment also provides services
directly to consumers e.g. the air we breathe
 As an asset the natural environment provides
resources / raw materials to facilitate the
production of finished products
 There are two types of resources namely;
 Finite Renewable Resources and
 Finite non- renewable resources
 Finite Renewable Resources - include solar
energy, cereal grains, fish, forests, etc.
 A flow of these resources can be maintained
perpetually
 Finite non-renewable resources - include oil,
coal, gas and various minerals.
 The potential reserves for non-renewable
resources can be exhausted.
 Because they are scarce and can deplete
thereby causing challenges for businesses,
natural resources have to be managed.
 That is the use of resources has to be done in a
manner that may not exhaust resources and
distort the environment
 Aspects take into account:
 Shortages of raw materials.
 Increased cost of energy- over dependency on oil
as a source of energy creating problems
 Increased pollution – the release into the
environment toxic products
 Government intervention in natural resource
management - governments in some lands
encouraging environmentally friendly business
practices.
 The effect of Ecological environment such as
climate changes may affect the product –
products may undergo a process of
adaptation to suit weather patterns and this
can be costly
 e.g. manufacturers of construction equipment
in Northern Europe have to modify
extensively to cope with the intense heat and
dust of Sahara Desert
 With the increasing concerns on pollution,
consumers are shunning businesses with
practices perceived not ‘green’ or
environmentally friendly
 Can also increase costs depending on the
availability of a particular resource – e.g. oil,
energy = Zambia’s Energy problems pose
challenges on most businesses
 As an asset, it provides resources without
which it would be difficult to do business
Any Questions?????