The technologies used by business which you need to know about are:
- E-commerce – shopping on the Internet, with all the benefits that brings e.g. you can trade 24 hours a day across the world.
- Social media – this can be used by business to research their customers and to promote products.
- Digital communication – think about how easy it is to communicate these days with a variety of stakeholders, and the impact this can have on costs and time e.g. Skype, mobile phone, email, text
- Payment systems – technologies such as Apple Pay, Samsung Pay, BACS, Pay Pal, contactless debit card – all of these enable fast, efficient payments which help to keep costs down.
Technology also influences business activity:
- Service can be quicker and more convenient. For example, if I pay with my contactless debit card, it means I don’t have to queue as long. As a result, I’m more likely to return to the shop as I have had a positive experience there. Furthermore, it means the shop can serve more customers more quickly, thus increasing their revenue.
- Costs can be reduced as there might be no need for a physical store, all sales can be processed online.
- Elements of the marketing mix can be enhanced e.g. social media campaigns can be used to promote a product.
Read the scenario below and then answer the ‘analyse’ question which follows:
“Analyse the impact on Meringue of allowing customers to order their food online in advance “ (6 marks)
Remember, an ‘analyse’ question is like a ‘discuss’ question but with context. Don’t forget to use connectives to link your strands together.
You can check your answer with the mark scheme by clicking here.