Page 300 - DMGT401Business Environment

Unit 14: Changes in Business Environment

14.3 Summary Notes

At least two major developments have occurred that have changed dramatically the
business environment – technology and globalisation.
Technology has been developed that has made information preparation and dissemination
inexpensive.
With technology developments, time, space, and other temporal constraints to information
have been reduced and, in many cases, eliminated.
Application of technology requires a set of specific capabilities. These capabilities are
different in nature from those involved in innovation or invention.

Technological Literacy can be described as the intellectual processes, abilities and
dispositions needed to understand the link between technology, individuals and society
in general.

Innovative companies are those that keep their collective eyes and ears open to change
and opportunity, and respond with ideas and actions that keep them growing and
profitable.
Science and technology have been an integral part of Indian civilization and culture over
the past several millennia. Few are aware that India is the fountainhead of important
foundational scientific developments and approaches.
Globalisation refers to the increasing integration of economies around the world,
particularly through trade and financial flows. The term sometimes also refers to the
movement of people (labour) and knowledge (technology) across international borders.
Corporations are today changing their strategies and are reorganizing their functions to
cope up with the changed scenario. Whether it is their production process or location,
Product strategy, Marketing, Finance, HR policies etc.
After the implementation of GATS (General Agreement on Trade and Tariffs) and the
clause of free movement of labour in most of the regional trade agreements, HR policies
have seen a significant change.

14.4 Keywords

ASEAN: Association of South East Asian Nations
Differentiation: Separating one product/brand form other

GATS: General Agreement on Trade and Tariffs
GEMS: General Electric's Medical System
Globalisation: Growing interdependence of countries
Job-Hopping: Frequent changes in jobs

Rationalized Production: Distributing tasks of production and distribution to various parts of
world to gain economies
Standardization: Provide similar kinds of products all across

Technological Literacy: Intellectual processes, abilities and dispositions needed to understand
the link between technology, individuals and society
Vertical Integration: Company's control of the different stages in a value chain of production

LOVELY PROFESSIONAL UNIVERSITY 293