Business studies mock paper
In relation to new technologies this can change the impact of the competitiveness of a country greatly as one country old have new technologies and are then able to produce products to a higher standard than another country therefore allowing the country with the better technology to have an advantage in their products and their market size. Technological change has a significant impact on U. K manufacturing and this is clear throughout the item. New technologies have allowed business such as JELL to become more advanced in not only how they produce their cars but how they are set up on the inside.
This has allowed JELL to maintain a steady outflow of products as they have adapted to their new technologies and have Incorporated them into the everyday production line. As the Item says the automation of the production line has allowed the engineers to have better control over the changes made to the car as they can now do It virtually which means the costs has been reduced significantly as If they can do it virtually there is no need for them to spend money on the parts and the manual labor to complete this prototype car. New technologies will allow the companies who have invested in them to become more competitive if used appropriately.
For new technologies to be of any benefit to the company a lot of consideration has to take place involving the cost effectiveness of these new products. If the business spends more time on making sure that this new venture is right for their company this may allow some advantages over others. Many businesses that are operating at high profit levels may see the new technologies as a good Investment but this may be not the most appropriate thing to do with the money they have. Some businesses Like this may see new technologies as a good thing but aren’t equipped to handle these.
This may be down to their workforce or the type of product they produce. This can be linked to the aspect of international competitiveness as they businesses may have been financially stable in certain parts of the world and have been operating at a high profit level but this could change if they wish to expand quickly and with the use of new technologies. These new technologies have many advantages to them if carried out correctly however if the business rushes into getting them as they want to be the first to have them and wish to be seen as the company to compete with the this could go wrong.
As new technology is never cheap there has to be a plan set in place to budget for these new technologies and to see If they will benefit the company In the long term. Because they are a long term financial investments a lot of consideration into the fact that It will be long term and that It will be a long time until these have made back the money Invested In them has to be Included In the decision making process.
However there is a down side in that the cost of implanting these new technologies into the will have to be taken into consideration the amount of time that will be needed to hang the factories so that they are able to use the technology and also the training involved with this. Not only will the factory have to change, the skills that the employees have will also have to change so that they can work the new machinery and make sure it is being used to the highest standard possible.
For JELL all of their UK manufacturing sites are located closely together which means that they can save on transport costs from one site to another, which is another way the can be cost effective, There are many pros and cons in the decision making process regarding cost effectiveness for new technologies but it seems to be that if the company is willing to invest in these new technologies they can increase their competitiveness significantly if they are able to fund these and are able to have the right people and right training to be able to work with the new technologies.
There are many options which a business has to think about before choosing new technologies such as if their business is equipped enough to handle these new technologies. Many companies already have competitive strategies in place that have been working for hem but with new technologies this can change their whole business plan and will affect how the day to day running of the business is carried out.
With new technologies there are many factors which have to be considered before carrying out such big changes such as if the employees are equipped enough to change to what the new technologies need in terms of how to operate them and if they will have the skills needed to be able to effectively use the new machines to the highest level. This may lead to redundancies if the employees Jobs are now taken over by the new cosmologies and they are not needed as the company has no longer any need for their manual skills if the new technologies can do this instead.
This is what is happening in Rolls Royce in the I-J, they are having 2,800 redundancies estimated at El million and they are also restructuring their business to cope with these redundancies. This shows how with new technologies businesses have to become more competitive and cost effective as many other companies will also be trying to achieve the best results and have a competitive edge over the other businesses but if hey do not adapt their company to the new changes then this will not work for them.
As Rolls Royce are changing their structure from having their highly trained employees to highly innovative technology they will have to be cost effective and plan effectively how they can gain back the money they have spent on the new technology after taking away the costs they will be saving through the redundancy of the 2,800 jobs. However not all technology will increase competitiveness as technology may not be a source of competitive advantage if competitors exploit it to. Rapid technological changes can change all competitors in a market.
There are many disadvantages to changing technologically to increase competitiveness as technology is always changing, when the company purchases the new technology there will always be new technology being innovated and this will become available soon afterwards meaning that a company who has invested in technology in say 2010, the technology could be significantly out of date by 201 5 as technology advances so quickly the money they spent on the technology in 2010 could be outdated and holding the business back room continuing at a competitive advantage from the rest of the businesses.
As the of technology, businesses are having to become even more innovative than before as they have to ensure that when one product has reached the end of its cycle that they have completed the design stage so that they can start manufacturing a new product so that they can maintain a competitive advantage. In the I-J there are many companies who have become increasingly competitive with their products and exporting internationally due to increases in new technologies. Technological change s both a source of competitive advantage (through R and innovation) as well as a threat.
This can be good for certain companies as they have been able to focus their time on the research and design of the new product so that they can have a competitive advantage over the other companies if they have focused their time on a certain aspect of the technological change if it suits there company best. This is clear in JELL as they have been one of the first car companies to invest in AD design technology and this will allow them to have a certain aspect about their cars and reduction line that not many other companies will have therefore allowing them to have a competitive advantage not only in the I-J but internationally.
However there is threats involved in this, many businesses could also have this same idea and invest heavily in this certain technology and therefore it will not be particular to them taking away from the niche market that they would have. New technologies have their advantages for cost reductions if used effectively. As new technology is never cheap there has to be a plan set in place to budget for these ewe technologies and to see if they will benefit the company in the long term.
As they are a long term financial investments a lot of consideration into the fact that it will be long term and that it will be a long time until these have made back the money invested in them has to be included in the decision making process. However there is a down side in that the cost of implanting these new technologies into the factories to be taken into consideration the amount of time that will be needed to change the factories so that they are able to use the technology and also the training involved tit this.
Not only will the factory have to change, the skills that the employees have will also have to change so that they can work the new machinery and make sure it is being used to the highest standard possible. There are many pros and cons in the decision making process regarding cost effectiveness for new technologies but it seems to be that if the company is willing to invest in these new technologies they can increase their competitiveness significantly if they are able to fund these and are able to have the right people and right training to be able to work with the new technologies.