Impact of Technology on Business Operations - Carlton & United Breweries - Case Study Example

Name: Instructor: Course: Date: Impact of Technology on Business Operations Introduction With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of economies, the level of competition in the market has increased tremendously. This is because of the entry of multinational companies which have huge financial base that enables them to position their products strategically in the markets, segment the market and attract customer loyalty towards the products. This aspect has pushed some businesses out of the market because they have been unable to stage a stiff competition against these companies which have high experience from various markets (Loader & Biggs 78). As a result, in order for the businesses to remain competitive in the market, they must create a closer relationship with the customers. Carlton & United Breweries has been in the forefront in an attempt to remain competitive in the Australian market. This is through the use of the current technology which is available in the market. Business Inputs Materials The company has been using the latest technology in order to produce raw materials required to produce beer. In the past few decades, the level of competition in the Australian market has increased tremendously. As a result, the company has invested heavily on the farming technology in order to speed up time taken to grow the raw materials. Furthermore, the firm has been contracting the farmers to supply it with sorghum. As a result, the business has been using the latest technology to communicate with the farmers. This is in an attempt to ensure that there is no delay which can affect the overall production processes (Tan 102). This aspect has been significant in retaining the customer loyalty towards the company’s products. Labour Carlton & United Breweries has spread its operations in various parts of the country in order to increase labour efficiency. For instance, the suppliers of the products are located near the market. This is to enable the business understand their consumption behaviour. In order to coordinate all employees and encourage them to work as a team towards a common goal, the business has been using video conferencing (Lan 49). This technology is also used to communicate with the employees working in the company’s subsidiaries. Furthermore, the technology has enabled the employees to share ideas, thereby enabling them to become innovative. Through investing in the modern technology, the company has been able to reduce the number of employees required to perform different tasks in the firm. As a result, the cost of production has reduced tremendously (Laudon & Traver 123). Therefore, the firm has been able to increase its profit margin. The accumulated funds have been used as a barrier of entry for any interested investor in the brewing industry. Technology has also reduced the time taken to produce products. This has increased the overall production by the business. Processing Technology has enabled the business to automate the processing of products. Initially, the business had to employ technicians in order to ensure that the products being produced by the machines are of high quality (Marks & Lozano 88). However, the company has computerized the processing of products, an aspect that has reduced quality complains. In addition, it has reduced the time taken to produce products. This has played a significant role in increasing the overall revenue of the company. Inventory Inventory management has become an important aspect towards the success of any business in the market. Carlton & United Breweries has invested heavily on radio frequency identification system. This has played a crucial role in increasing accuracy and efficiency in the technology. Initially, the company was losing a lot of money through theft. Some employees were teaming up with cartels to sell some of the products without the authorization of the company’s top management. However, over the years, the company has installed this technology in all doors. RFID technology uses the fixed tag readers which are assigned throughout all the warehouses that are owned by the company (In Khosrow-Pour 34). This investment has enabled the company to move thousands of pieces of inventories through the door without any fear of theft because every piece is recorded. Quality Management The company has invested heavily on modern technology that aims at ensuring that all products meet the required quality standards. For instance, the company has a modern laboratory for testing the alcohol levels in the products. The technology used in this sector ensures that all products that pass through the processing system are safe for human consumption (Hugos & Hulitzky 34). This technology has increased the trust of the target market towards the company’s products. Furthermore, it has enabled the company to continue its dominance in the Australian market. Operation Processes (Transformation and Value Adding) Technology has been instrumental in ensuring that the company uses the minimum materials possible during the transformation of raw materials to finished products. This is through ensuring that the required ingredients are accurate. In addition, it ensured that there is no wastage (Sami 142). This has been significant in increasing the overall returns of the company. However, the technology has put the company at a risk in case the automated system fails. In such a case, the consumer can be affected while in extreme conditions, some can even lose their lives due to unbalanced ingredients (Devaraj & Kohli 82). This can have a long term effect on the overall reputation of the business in the market, an aspect that can even force the firm to close down or rebrand. The company has invested heavily on value addition. This is through ensuring that all products are branded effectively using the modern technology. This has been instrumental in enabling the customers to differentiate the products with those of the competitors (Kurihara 45). Furthermore, branding has made it easier for the company to market its products. This has been crucial in maintaining a close customer relationship. Marketing The technology has enabled the business to use various types of media to reach the target market. For instance, the company has maximized the use of technology in order to know the best media to use in order to reach a specific market segment. This has been significant in enabling the business to improve its competitive position in the market (Rivard & Aubert 67). Furthermore, it has made it possible for the business to venture in new markets, position their products in these markets, segment the market, and attract customer interests towards the company’s products. Internet has revolutionilized the marketing sector. Carlton & United Breweries has used this opportunity to tap on the increasing demand for the products. With majority of the customers composing the young people who have a disposable income, social media has become the latest advertising platform. The company has hijacked this opportunity to reduce the cost of marketing. Social media enables the company to communicate directly with the customer. The customers are able to raise their grievances concerning the products being offered in the market. Moreover, marketing research has become an important component towards a successful marketing campaign. Social media has provided a good platform for business to conduct research. This is through reviewing the response of the customers and requesting them to provide their feedback on the company products. This modern technology has become important in understanding the interests of the customers (Black & Lynch 54). In addition, it has made it possible for the company to notice any change in the consumption behaviour of the target customers. As a result, the company can make the necessary changes before the new trend can make the business to lose its position in the market. Finance Technology is playing a significant role in financial management of Carlton & United Breweries. Since the inception of the company, the volume of financial information continues to increase. However, through the use of the latest technology, the business has been able to use fewer employees in controlling financial operations in the business (Aswathappa 67). Majority of the financial records have been computerized, an aspect that has made it easy for the business to use historical data in planning and decision making. Therefore, through the current technology the firm is able to make precise decision. This aspect has contributed immensely in the improved financial performance of the business. Automation of financial processes has put the business at a risk in case of system failure or cyber attack. With the current competition levels, the competitors are using all the available means to compete in the market (Alberts & Dorofee 36). As a result, some companies can use the weaknesses in the financial sector to weaken the company’s performance in the market. Therefore, even if technology has eased the financial operation, more measures need to be put in place to protect the business. Human Resources Technology has enabled Carlton & United Breweries to manage human resource effectively. For instance, it has used the technology in order to identify the best performing employees in the organization (Kangas 102). This has made it possible to reward the employees without any form of biasness. This has motivated the employees, an aspect that is being replicated in the overall performance of the business. Use of technology in the payment salaries has scrapped off ghost workers who were receiving salaries. This was affecting the overall performance of the business. However, in the past one decade, the company has computerized its payment system. This has made it possible for the business to avoid any possible loses. References Alberts, C. J., & Dorofee, A. J. (2003). Managing information security risks: The OCTAVE approach. Boston: Addison-Wesley. Aswathappa, K. (2008). International business. New Delhi: Tata McGraw Hill Education. Black, S. E., & Lynch, L. M. (2001). How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity. 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