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Natural and Technological
Environment
Natural Environment
• Watrick and Wood – “the natural environment ultimately is the
source and support of everything used by the businesses – every raw
material , every raw material , every energy source , every life
sustaining factor, even the waste disposal site”
• Fundamental for the development of the business
• Geographical conditions – Change in marketing mix. Location of the
industry. Eg. Earthquake prone zone – affect building design
• Climatic and weather conditions – Eg. Cotton and textile industry ,
A/C, Heaters – demand pattern and demand creation varies. Eg.
Jeeps in Hilly regions
• It can call for modifications to the product packaging and storage
conditions
• Ecological Factors – Depletion of Natural resources, Environmental
pollution, Ecological balance – concern
• Govt initiatives – Increase in regulations and cost of production
Technological Environment
• Determinant of success of the firm – social and economic
development of nation
• Technology includes the tools – Both machines and ways of thinking –
available to solve problems and promote progress, among and
between societies
• Entrepreneurial expertise and professional know how are important
apart from knowledge to produce and distribute
• MNC – Competitive advantage to it
• World Economic Forum – Global Competitiveness – 8 Factors –
Technology
Innovation
• In the business context, innovation may be defined as Technical, industrial,
and commercial steps which lead to the marketing of new manufactured
products and to commercial use of new technical processes and
equipment.
• Provides competitive advantage
• Schumpeter – Innovation can be
- Intro of new product
- Use of new method of production
- Opening of new market
- New resource
- Reorientation of industry
Radical innovation
• • A basic technological innovation that establishes a new functionality. Eg:
steam engine
Incremental innovation
• A change in an existing technology system that does not alter functionality
but incrementally improves performance, features, safety or quality or
lowers cost.Eg: governor on a steam engine
Next-generation technology innovation
• A change in an existing technology system that does not alter functionality
but dramatically improves performance, features, safety or quality or
lowers cost and opens up new applications.Eg: substitution of jet
propulsion for propellers on airplanes.
All innovations need not be commercially
successful
• Better Mouse Trap that no one wanted
• Me too product meeting a competitive brick wall
• Competitive one – upmanship
• Environmental ignorance
• Technological dog products
• The price crunch
Product and Process Innovation
BE Technological Sridevi

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BE Technological Sridevi

  • 2.
  • 3. Natural Environment • Watrick and Wood – “the natural environment ultimately is the source and support of everything used by the businesses – every raw material , every raw material , every energy source , every life sustaining factor, even the waste disposal site” • Fundamental for the development of the business
  • 4.
  • 5. • Geographical conditions – Change in marketing mix. Location of the industry. Eg. Earthquake prone zone – affect building design • Climatic and weather conditions – Eg. Cotton and textile industry , A/C, Heaters – demand pattern and demand creation varies. Eg. Jeeps in Hilly regions • It can call for modifications to the product packaging and storage conditions • Ecological Factors – Depletion of Natural resources, Environmental pollution, Ecological balance – concern • Govt initiatives – Increase in regulations and cost of production
  • 6. Technological Environment • Determinant of success of the firm – social and economic development of nation • Technology includes the tools – Both machines and ways of thinking – available to solve problems and promote progress, among and between societies • Entrepreneurial expertise and professional know how are important apart from knowledge to produce and distribute • MNC – Competitive advantage to it
  • 7. • World Economic Forum – Global Competitiveness – 8 Factors – Technology
  • 8. Innovation • In the business context, innovation may be defined as Technical, industrial, and commercial steps which lead to the marketing of new manufactured products and to commercial use of new technical processes and equipment. • Provides competitive advantage • Schumpeter – Innovation can be - Intro of new product - Use of new method of production - Opening of new market - New resource - Reorientation of industry
  • 9. Radical innovation • • A basic technological innovation that establishes a new functionality. Eg: steam engine Incremental innovation • A change in an existing technology system that does not alter functionality but incrementally improves performance, features, safety or quality or lowers cost.Eg: governor on a steam engine Next-generation technology innovation • A change in an existing technology system that does not alter functionality but dramatically improves performance, features, safety or quality or lowers cost and opens up new applications.Eg: substitution of jet propulsion for propellers on airplanes.
  • 10. All innovations need not be commercially successful • Better Mouse Trap that no one wanted • Me too product meeting a competitive brick wall • Competitive one – upmanship • Environmental ignorance • Technological dog products • The price crunch
  • 11. Product and Process Innovation