Economic Environment 

Economic Environment

 

In 2018 I worked in a soft drinks company where they adopted the recent technology in the production to increase the production rates and the accuracy of the quality of the products. After the introduction of the technology in the company, a large number of people lost their jobs since the tech replaced the labour and was cheaper than the manual production that involved individuals directly. The technological factors are one of the external factors that are increasingly affecting the business organization. The business changes relate to the presence and the development of technology.

The technology increases the supply of the products. The increase in the supply enables the company to keep up with the demand for the soft drinks. The technology enables the company to increase the productivity and the communication between the suppliers and the consumers. The company can cut down the waste as well as keep up with the demands due to technological advancement. The technology also increased the accuracy in production due to the machinery that was more accurate than the human labour and the company was able to cut down the waste again. The company reduced its expenditure in terms of the losses incurred due to poor production.

It is important to consider the environment while thinking about the strategy change. The supply and demand within the business affect organizational ability. The demand and the supply stimulate each other impacting the prices of the goods and services in the budget. The customer’s interest in specific products exhausts the supply available and increases demand. The demand and supply of goods and services have a high influence in determining the prices of goods and services. The prices of the product are likely to fall if the supply keeps on growing and if the supply keeps on decreasing the prices are likely to keep on growing (Becker, 2017). However, with the market economy, the interest consumers, as well as the companies, produce limits product that matches the demand and the supply and it is used in determining the product development and production.