Social And Technological Flashcards
(18 cards)
What is meant by ‘social change’ in business?
Social change refers to shifting patterns in society (e.g., demographics, urbanisation, attitudes, lifestyles) that influence how businesses operate and the markets they serve.
What impact does urbanisation have on strategic decisions?
Urbanisation creates geographically concentrated markets and can reduce the viability of rural operations, pushing firms toward digital or urban-focused strategies.
How does migration affect UK businesses?
Net immigration expands the workforce, increases labour market flexibility, and creates demand in new market segments, benefiting sectors like retail and food.
Why is social change both a threat and an opportunity?
Social change can shrink traditional markets (e.g., CD sales) but also generate demand for new products like convenience services or health foods.
How does the growth of online shopping relate to social change?
It reflects changing consumer behaviour toward convenience, forcing businesses to invest in digital platforms or risk becoming obsolete.
What is Corporate Social Responsibility (CSR)?
CSR is when a business exceeds legal requirements to act ethically toward stakeholders, society, and the environment.
What are Carroll’s Four Levels of CSR?
- Economic (be profitable), 2. Legal (obey the law), 3. Ethical (do what is right), 4. Philanthropic (be a good citizen).
How can CSR influence competitive advantage?
CSR can serve as a unique selling point (USP), improve reputation, and build customer loyalty, especially when competitors lack clear CSR policies.
What is the significance of demographic changes in strategy?
Shifts in age, gender, ethnicity, and population size alter market needs, prompting businesses to target new products/services accordingly.
What is the technological environment in business?
It refers to developments in how products are made and what products are made, driven by innovation and digital progress.
Why is the rate of technological change important for business?
Rapid change shortens product life cycles and increases pressure on firms to innovate and recoup investments quickly.
How can businesses benefit from CAD and CAM?
CAD (Computer-Aided Design) speeds up design processes; CAM (Computer-Aided Manufacture) automates production for efficiency and precision.
Why might firms choose not to invest in the latest technology?
Cost, uncertainty of future gains, and rapid obsolescence may deter investment despite competitive pressures.
How does technology affect strategic choices?
It enables cost leadership, niche marketing, innovation, and can force businesses to offshore or digitalise operations.
What are the main impacts of technology on different functional areas?
In marketing: better data analysis and digital promotion; In operations: automation; In HR: reskilling; In finance: real-time reporting.
What are the risks of ignoring technological change?
Obsolescence, loss of market share, poor customer service, and reduced profitability compared to tech-savvy competitors.
What is Moore’s Law and its relevance to business?
It states that computing power doubles roughly every two years, accelerating innovation and forcing faster adoption cycles.
What are the strategic implications of digital disruption?
Businesses may lose out (e.g., Kodak, Blockbuster) if they fail to embrace new tech; others can reshape markets (e.g., Apple, Google).
