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A watch manufacturer sees falling demand for traditional watches because of smartwatches. What is the deepest effect of the technological environment?

Answer and explanation

Correct answer: Technological obsolescence of the product

The governing concept is the technological dimension of the business environment. Changes in technology can alter products, production methods, customer expectations, and competitive conditions. Smartwatches provide functions that reduce the usefulness or attractiveness of traditional watches, so the older product risks becoming technologically obsolete. Therefore option C is the deepest effect. A rise in interest rates belongs mainly to the economic environment, a change in social classes belongs to the social environment, and increased government ownership is related to the political or institutional environment. The situation is not merely a temporary fall in sales; it signals that innovation has changed the product category and requires adaptation or replacement.

Related tags

Business-EnvironmentTechnological-EnvironmentProduct-ObsolescenceTechnological EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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