Technological environment

A competitor technological capability can create market pressure. In exams connect competitor analysis with external environment.

New technology can reduce demand for old products quickly. In exams identify external technological impact on life cycle.

The direct answer is option A: using customer personal data without consent. An ethical concern arises when a technological action may violate people’s rights, fairness, safety, or trust. Personal data can include information that identifies or describes a customer. Using it without consent means collecting or applying it without properly informing the person or obtaining the required permission. This can harm privacy and may lead to misuse, unfair profiling, or loss of trust. Option A is correct because it directly combines technological data use with the ethical principles of privacy and consent. Option B, paying wages on time, is a responsible employment practice and does not create an ethical concern because of technological change. Option C, regularly cleaning a machine, is a normal safety and maintenance activity; by itself it is not a data-privacy issue. Option D, giving a customer a bill, is a normal and transparent business practice, assuming the bill is accurate and lawful. The example teaches that technology is not automatically ethical merely because it is efficient or profitable. Companies should explain data collection, obtain appropriate consent, protect information, and use it only for legitimate purposes. The exam cue is: unauthorised personal information is the clearest sign of a privacy and data-ethics issue.

New systems require new skills. In exams treat reskilling as the human resource response to technological change.

Physical stores can adopt a blended model with technology. In exams connect e-commerce with strategic adaptation.

Sensors improve quality by identifying defects quickly. In exams connect technology with quality control.

Technology changes so planning needs flexibility. In exams connect flexible planning with dynamic environment.

Online help systems reduce time barriers. In exams remember the time advantage of technology in customer service.

Buying a new machine is both a technological and capital decision. In exams connect capital investment with technology choice.

Expensive technology can become a barrier for new entrepreneurs. In exams connect entry barrier with industry structure.

The direct answer is B: a company also takes technical ideas from external partners and sources. Open innovation means that useful knowledge does not have to come only from employees inside the company. A business may learn from universities, suppliers, customers, research institutions, start-ups, or other companies, and it may work with them to create or improve products. Therefore, the reasoning is: outside knowledge is available; the company connects with suitable outside sources; it combines or uses that knowledge for innovation. Option A is wrong because accepting only internal ideas describes closed innovation, not open innovation. Option B is correct because it exactly describes the use of external technical ideas and collaboration. Option C is wrong because open innovation does not mean publishing every piece of company data; confidential information may remain protected. Option D is wrong because open innovation encourages research and development rather than stopping it. Memory cue: open innovation means opening the door to useful outside knowledge, not opening all data to everyone.

Digital tracking provides information about source and movement. In exams connect transparency with information flow.

The direct answer is option A: technology can add new features to a product. Technological environment means the effect of inventions, machines, software, research and production methods on business. Product differentiation means making a product noticeably different from competing products through features, design, quality, performance, convenience, safety or service. New technology may add better sensors, longer battery life, faster performance, improved safety or a useful digital function. Therefore it can create customer value and distinguish one product from another. Option A is correct. Option B is wrong because technology does not always make products identical; firms often use it to create differences. Option C is wrong because technology strongly affects product design and features. Option D is wrong because differentiation is not limited to colour; it can involve many important characteristics. Exam cue: if technology creates a new or improved feature, connect it with product differentiation and competitive advantage.

Technology can change behaviour and lifestyle. In exams understand interdependence among external environment elements.

Digital ticketing makes process and accountability uniform. In exams connect standardisation with process control.

Digital data is a technology issue and data rules are a legal issue. In exams identify examples of combined impact.

Technology can change pricing strategy by reducing cost. In exams connect pricing with cost and competition.

App based feedback gives immediate market signals. In exams treat real time information as a technological benefit.

Continuous technological changes increase the need for improvement. In exams connect continuous improvement with competitive technological pressure.

Partnerships can be made to gain technological capability. In exams understand technology partnership as a strategic response.

Strategic study focuses on value and industry change. In exams connect technological environment with long term strategy.

Technological change includes skills and processes along with equipment. In exams treat technology as a broad managerial change.

Digital transformation needs leadership and clear goals. In exams understand technology as strategy not just software.

Streaming technology changed revenue and service delivery methods. In exams connect business model change with technological environment.

Outcomes must be set first to measure the benefit of technology investment. In exams connect technology decisions with cost benefit evaluation.