Business enivronemnts - Essay Example

BUSINESS ENVIRONMENTS By Location Business Environments Question One of the critical decisions that an information technology company (IT) faces is the adoption of new technology. Notably, the 21st century has registered numerous technological advances. This has introduced a salient compulsion for IT companies to adopt the latest technologies so that they can able to compete effectively in the market. In one of the IT companies where I worked, the adoption of a new technology, which would replace the existing technology introduced organization pressures. Worth noting is the fact that IT companies cannot afford to rely on outdated technologies. They need to remain vigilant and be the first ones to adopt emerging technologies (Astuti, & Nasution 2014, p. 72). The company I worked for needed to remain a leader in the IT industry. One of the critical factors that determine market leaders in the industry is being able to implement new technologies as soon as they emerge. The company was in such a situation. A new technology had just been launched into the market. There were numerous uncertainties concerning the potential benefits that the new technology would bring to the organization. Moreover, the top executives needed to establish whether adopting the new technology was a strategic investment or an expense. The financial situation of the company was of critical consideration because the new technology was costly. The top executives also considered human factors (Becker, Newton, & Sawang 2013, p. 223). Notably, the employees of the organization had become highly comfortable with the existing technology. Therefore, the employees exhibited defensive routines in an effort to resist the superior technology. Interestingly, many of the managers were curious about the new technology and exhibited a measure of understanding of how it would function. However, the employees were highly reluctant. Having used the old technology for some time, they were afraid that the new technology would present new challenges in their jobs. Some managers remained uncertain on whether they were willing to adopt the new technology because of the uncertainties associated with new technologies (Damanpour & Wischnevsky 2006, p. 270). Notably, adopting new technology compels an organization to strategize on how to implement it effectively. It introduces new realms of operations. Some organizations have the fear that a new technology will result in slowed productivity prior to its full implementation. The extra cost associated with training the employees on how to utilize new technologies is also something that worries organizations. These factors placed the organization I worked for under immense pressure. The top executive team spends a lot of time determining whether the organizational structure and culture were compatible with the new technology (Hall, Keppell, & Bourne 2010, p. 161). Theorists have highlighted that an organizational feet for new technologies is a necessity before adopting new technologies. This was a critical factor that the organization considered because all the teams and departments needed to be receptive of the new technology. However, through a critical analysis of all the internal factors, the company made the relevant adjustments and adopted the new technology. This conforms to the double loop learning theory. Question 2 External factors have the capacity to determine whether an organization adopts new technologies. In the IT company I worked for, one of the external factors that placed the company under pressure was the rival adoption of the technology. Notably, there is an increased competition between information technology companies. Since many of the companies operating in the same industry had not adopted the new technology, the company had to carry out a critical analysis of its potential benefits. Theorists have highlighted that it is easier to adopt a new technology when other companies in the industry have already adopted and implemented the technology (Hall, Keppell, & Bourne, 2011, p. 6). The reason for this emanates from the fact that when the first company adopts the technology, other companies can learn how to implement it and can discern the potential benefits. In addition, prices are likely to be lower. Organizations that choose to go fast in the adoption of new technology undergo experiential learning (Wang 2010, p. 70). This was the case with the IT company, which sought to adopt a new technology that competitor had not received. However, the competitors were not the only external factors. The company considered the social factors of the new technology. Worth noting is the fact that the information and technology sector presents numerous social impacts (Heng & Jinchang 2012, p. 167). A proper consideration of the social factors sought to analyse whether the society was receptive of the new technology. The cost involved in the implementation of the new technology translated to higher prizes in the market. Therefore, the organization considered the amount of resources and capital available in the society. Information technology companies rely on the presence of skilled personnel in the society. Therefore, this additional social factor determined whether the company would adopt the new technology. Economic factors were of critical consideration as well. This is because information technology companies need to invest a remarkable amount of capital when adopting new technologies (Hoffman 2000, p. 36). This may not be possible during an economic crisis because it would it would limit the level of returns from the new technology. Moreover, the company considered political factors that would affect the adoption of the new technology. Notably, the new technology had been developed in a different country (Wang & Qualls 2007, p. 570). Therefore, suppliers of the new technology would require a proper development of business dealings between the two countries. This opens an opportunity for politicizing issues, which can affect the cost of technology transfer. In addition, the two governments involved have taxation systems, subsidies, as well as regulatory systems of the information and technology industry. This served to increase the external pressure for the company because it needed to comply with all the related agencies (Khanagha et al 2013, p. 69). Evidently, the company managed to overcome all the external pressures and developed an effective strategy of adopting the new technology. Question 3 Evidently, the current advances in technology and increasing innovations have the potential to affect business organizations. The effect of technology and innovation on organizations results from both internal and external factors. Usually, the adoption of new technologies and innovations in the market presents new realms to an organization (Martin & Andy 2007, p. 121). The technology may translate to increased returns for the company. Usually, new technologies transform the operational procedures used by many organizations and introduce new systems that promote efficiency. However, organizations need to analyse both the internal and external environments before adopting a new technology. The internal analysis helps organizations understand whether the new technology is compatible with the organizational culture. Each organization has a unique organizational culture defined by shared values and beliefs within the organization (New Technologies, New Trends, New Challenges 2005, p. 34). New technologies should seek to promote cultural values. When new technologies challenge organizational cultures, then the leaders have to make critical decisions. In most cases, leaders may choose to develop new policies that will match the new technology. However, some organizations are reluctant to adopt technologies that challenge their cultural values. The organizational structure is also a critical factor for consideration. The organizational structure determines whether the new technology will have a positive reception in all the departments and teams (Obeidat & Turgay 2013, p. 164). Some new technologies may compel organizations to adjust the organizational structure in an effort to create proper feet. As witnessed in the IT Company, organizations consider human factors prior to adopting new technologies. This is majorly the case because organizations comprise of employees who play a critical role in the operations of all the departments. In an IT company, a new technology means that all the employees will need proper training on how to use the new technology as well as a willingness to overcome the defensive routines that motivate employees to resist new technology (Qian, Fang, & Gonzalez 2012, p. 863). Therefore, organizations that need to adopt new technologies need to prepare the employees appropriately so that they are more receptive to the superior technology. Unless this happens, productivity may be slowed when the new technology is adopted. In addition, organizations need to carry out an analysis of the external factors that affect new technologies. Some of these external factors include political, economic, social, environmental and legal factors that exert influence on the way an organization operates. 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