This report assesses the effects of technological change on KMI Pharmaceuticals and its overall technology strategy as a source of competitive advantage. It also discusses the impact of business ethics and corporate social responsibility on modern business organisations and the factors that influence decision-making processes.
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Business environment final report AS2
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 TASK 1............................................................................................................................................3 Assess the effects of technological change on the company and its overall technology strategy as a source of competitive advantage...........................................................................................3 TASK 2............................................................................................................................................5 Assess the impact of business ethics and corporate social responsibility (CSR) on modern business organisations.................................................................................................................5 TASK 3............................................................................................................................................7 Assess what influences the businesses when making decisions and the impact this has on the company.......................................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Each and every organisation has to interplay with its environment for successfully sustaining its business activities and triumph of all firms totally depend on its environment within which it operates. Business environment is a compound term made up of two words, that is, business and environment and is defined as an environment in which external as well as internal forces directly impacts functioning of business. It is important to understand the business environment because it helps in keeping aware of the strategies and actions of the competitors (Arnold, Beauchampand Bowie, 2019). Withinthe present report, KMI Pharmaceuticals company is taken into consideration. This report highlights the effects of technological change on the company along with overall strategy of technology to gain competitive advantage. In this portfolio, the impact of business ethics and corporate social responsibility on modern business organisation will also be discussed. The factors that affects the decision making process and its influence on company is also going to be discussed in this report. MAIN BODY TASK 1 Assess the effects of technological change on the company and its overall technology strategy as a source of competitive advantage Technological change is defined as the process of an increment in products or processes efficiency which turns into increment of output without increasing the number of inputs. There are several effects of technological change on an organisation and some of the effects are described below in context to KMI Pharmaceuticals: Helps in gaining competitive advantage:In context to KMI Pharmaceuticals, changes in technology impact the functioning of business in positive way as advancements in technology facilitates the business in gaining competitive benefits over the rivalries in the market such as Williams companies, Frontline, Golar LNG and many more. Securing sensitive information:The owners of the respective company also use technology for creating safe working environments so that they can maintain sensitive business or information of consumer (Ballardini, Ituarte and Pei, 2018). Various types of technologies within the business and software are user-friendly and also permits the owners of respective business with only minor backgrounds in IT sector to introduce most of their equipments and their features.
Improved communication process:Technology within the respective organisation such as emails, websites, applications, etc. helps in improving the process of communication with the consumers of the business. Using different kinds of IT communication methods facilitates KMI Pharmaceuticals for saturating the economic market along with their messages. Technology like socialintranetsoftwarealsoassistsinimprovingthecommunicationprocesswithinthe respective organisation (Beynon-Davies, 2019). As it provides a central portal to its human resources for accessing and updating the contracts and internal documents to other department of the company in an instant manner. Increasedemployeeproductivity:KMIPharmaceuticalsenhancetheproductivityofits workforce through using technology. Business software as well as computer programs generally perm,its human resources of the respective company in processing ore information or data than manual methods. Fundamental business technology has a great impact on the performance of employees of the organisation. As managers of the company easily generate measurable goals for their manpower to achieve organisational targets by placing the information of employees performance appraisal in an online mode. Enhance customer-base:Technology within KMI Pharmaceuticals has a major impact on the organisation in reaching out to new markets of the economy. Technology of retail website has positively impacted the operations of respective business as it is the most common way to sell the products and services in various distinct markets of the economy. In this way, it helps in capturing more of the target-base and also facilitates in increasing the level of profits within the company. Technology strategy is the development of an overall plan of the business that involves principles, tacticsand objectivesto use the technology for attainingorganisationalgoals (Chawinga and Chipeta, 2017). There are several types of technology strategy and some of them are described as under: Analytics and reporting:This technology strategy helps in discovering the meaningful data in formation and presenting it to support the process of decision making within the organisation. Business activity monitoring:In this type of technology strategy, the organisation can takes benefits of the processes of business for better understanding the position and
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condition of the business. It also helps in identifying the trends and opportunities along with the threats associated with it. Information security:Executing information security within the organisation helps in securingthetechnologyaswellasthoseassetsfromwheretheinformationis accumulated (Fuller, Jacobides and Reeves, 2019). They are protected by detecting, preventing and accountable to both external as well as internal threats. Decision automation:Decisions within the organisation can be automates by using the techniques like artificial intelligence or decision trees. By tackling the daily routine business operations, the process of automation eliminates the high-level resources for performing at higher level and engage themselves with strategic functions. It also helps in removing the number of human resources so that the cost of company also get reduced. The technology strategy used by KMI Pharmaceuticals is Decision automation as the company is using Artificial Intelligence in its business processes. This type of technology strategy helps the respective business in gaining competitive advantage over the rivalries in the market through using automated algorithms for performing the tasks that are traditionally dependent on human intelligence. TASK 2 Assess the impact of business ethics and corporate social responsibility (CSR) on modern business organisations Business ethics is considered as a code of conduct that businesses are expected to adhere whileperformingbusinessfunctions.Organisationsdevelopbusinessethicsforfostering integrity among the human resources and building trustful relationships with stakeholders of the business. There are several types of business ethics within the workplace such as integrity, respect,lawfulness, transparency,equality,trustworthiness, accountabilityand manymore (Holbeche, 2018). These business ethics impact the modern business organisation in both positive as well as negative ways. Business ethics within modern business organisation extends the law by tracing the acceptable behaviours beyond the control of political system. Human resources within organisation make better business decisions in a short period of time with the helpofbusinessethics.Inthisway,itpositivelyimpactstheperformanceofbusiness organisation and also facilitates in enhancing the level of productivity as well as overall morale
of the workforce. When manpower within the organisation performs their task with honesty and integrity, it provides benefits to the business as a whole and favourably impacts the organisation. However, business ethics also impacts the modern business organisation in negative ways. The leading limitation of business ethics is that it can reduce the abilities and capabilities of a business for maximising the level of profitability (Ngai and et.al, 2018). It becomes very time consuming to implement the practices of business ethics and creates another negative impact on business organisation. Overall, an organisation is positively impacted by business ethics as it contributes to an internal business environment of successful teamwork and maintains social capital which is the part of an organisation’s brand image within the market-place. Corporate social responsibility (CSR) is a concept of management in which organisations assimilate environmental as well as social aspects within the business operations and also involves the relationship with stakeholders of the business. The main purpose of CSR is to provide returns to the community, taking participation in charitable causes and giving favourable social values. There are different kinds of corporate social responsibilities in context to business andsomeofthemareethicalresponsibility,economicresponsibility,environmental responsibility and philanthropic responsibility. Corporate social responsibilities both favourably and adversely impact the business organisation. Being a socially responsible enterprise can strengthen the brand value of the company and encourage human resources of organisation in leveraging the corporate resources at their disposal to do better. It also facilitates in enhancing the morale of manpower that results in higher productivity within employees and organisation as a whole. Another positive impact that CSR puts on business organisation is that it helps firm in gainingcompetitiveadvantagesoverthecompetitorsinmarket-place.Itenhancesthis competitive benefit in such a way that they favourably impact the decisions of stakeholders of business organisation (Schaltegger and Wagner, 2017). However, corporate social responsibility has some negative impacts also on modern business organisations. The cost of CSR falls imbalanced on small business organisations. There are different issues that are concerned with CSR and bring negative impact on business and some of them are unfavourable working conditions, ineffective working environment, issues related to gender and equality, problems associated with rights of human resources and many more. Imposing the corporate social responsibilities can results in imposing improper standards that will compel establishing of
values within business. This would result in failure of business operations and job losses and also impacts the modern business organisations in a negative way. TASK 3 Assess what influences the businesses when making decisions and the impact this has on the company Decision -making is the process of making the effective as well as right course of action among the alternatives available for attaining a desired result. The process of decision-making is the essence of the management (Shakeel and et.al, 2020). There are several factors that influence the process of decision-making and some of them are discussed below in context to KMI Pharmaceuticals: Cognitive constraints:The function of cognitive ability expresses the age differences in the quality of decision and strategy which is used. This factor limit the skills and abilities of problem-solvingandhampersthesuccessofKMIPharmaceuticals.Italsodamagesthe reliability within the business and also enhance anxiety and depression within an individual. Because of that a personnel cannot take the right and effective decisions within the respective organisation. Return on investment:This is the major factor that affects the decision making process as it directly affects the profitability of the organisation. It can be evaluated in number of ways but its calculation of ROI is simplest, it is the amount that provide benefits or losses to an organisation by undertaking an action. Calculation of returns for each project would let KMI Pharmaceuticals to know which alternative is providing best investment (Shams and et.al, 2021). This factor brings positive impact on the company when there is right selection of the alternatives of investments. Prejudice:Biasness and prejudice may cause an individual to make ineffective decisions. Biases distort as well as disrupt objective contemplation of a problem by developing influences into the process of decision making which are different from the decision itself(Taarup-Esbensen, 2019). This factor brings negative impact on KMI Pharmaceuticals and also hampers the brand image of the company in an adverse manner. Externalenvironment:Thisfactoraffectstheprocessofdecision-makingwithinKMI Pharmaceuticals in such a way that it influences the jobs as well as employments of human
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resources. There are different external environmental factors that impacts the business decisions and some of them are political, social, technological, economic, legal, etc. The environmental uncertaintyand nature of relationships of stakeholders also impact the decision making (Tseng, Yi and Yeh,2019). Some of the factors of external environment bring positive impact on the company while some factors have negative impact on business. Availability and reliability of data:Data analysis process within the organisation helps business in selecting new opportunities of business with a higher chance of success and positively impacts the decisions making process of the business. It also helps in giving insights into decision-based that offers unique insight into large as well as complex scenarios of internal business (Wood and Logsdon, 2017). This type of factor brings positive impact on KMI Pharmaceuticals as the company gains the advantages by obtaining the accurate and precise data of its business. CONCLUSION Fromaboveexplanation,itisconcludedthatbusinessenvironmentfacilitatesin recognising the opportunities of business and also helps in using organisational resources up to the maximum level. Within this existing report, effects on technological change are discussed in respect to KMI Pharmaceuticals and along with it different technological strategies are also discussed that helps the business in gaining competitive advantages over the rivalries in the market. Furthermore, impact of business ethics and corporate social responsibility also explained within this present portfolio that influences the operations of modern business organisations. The factors that are affecting the decision making process of the business have also been taken into consideration to know their influence on business operations and organisation as a whole.
REFERENCES Books and Journals: Arnold, D. G., Beauchamp, T. L. and Bowie, N. E., 2019.Ethical theory and business. Cambridge University Press. Ballardini, R. M., Ituarte, I. F. and Pei, E., 2018. Printing spare parts through additive manufacturing:legalanddigitalbusinesschallenges.JournalofManufacturing Technology Management. Beynon-Davies, P., 2019.Business information systems. Red Globe Press. Chawinga, W. D. and Chipeta, G. T., 2017. A synergy of knowledge management and competitiveintelligence:A key for competitiveadvantage in smalland medium business enterprises.Business Information Review,34(1), pp.25-36. Fuller, J., Jacobides, M. G. and Reeves, M., 2019. The myths and realities of business ecosystems.MIT Sloan Management Review,60(3), pp.1-9. Holbeche, L., 2018.The agile organization: How to build an engaged, innovative and resilient business. Kogan Page Publishers. Ngai and et.al, 2018. Business sustainability and corporate social responsibility: case studies of three gas operators in China.International journal of production research,56(1-2), pp.660-676. Schaltegger,S.andWagner,M.,2017.Managingandmeasuringthebusinesscasefor sustainability: Capturing the relationship between sustainability performance, business competitivenessandeconomicperformance.InManagingthebusinesscasefor sustainability(pp. 1-27). Routledge. Shakeel and et.al, 2020. Anatomy of sustainable business model innovation.Journal of Cleaner Production,261, p.121201. Shams and et.al, 2021. Strategic agility in international business: A conceptual framework for “agile” multinationals.Journal of International Management,27(1), p.100737. Taarup-Esbensen,J.,2019.Managingriskthroughdependency:HowdominingMNEs strategise to legitimise business continuity?.The Extractive Industries and Society,6(2), pp.489-497. Tseng, H., Yi, X. and Yeh, H. T., 2019. Learning-related soft skills among online business students in higher education: Grade level and managerial role differences in self- regulation, motivation, and social skill.Computers in Human Behavior,95, pp.179-186. Wood, D. J. and Logsdon, J. M., 2017. Theorising business citizenship. InPerspectives on corporate citizenship(pp. 83-103). Routledge.