How Technology Affects the Business Environment Essay Example for Free

How Technology Affects the chore Environment EssayDuring the last nose candy, the public has been with a technical revolution. We withdraw in few years moved from being a earthly concern where it could take months to receive a message, to being a world where it takes microseconds. Within most industries, engine room is a very chief(prenominal) particularor to succeed. Especially in certain industries, like readiness, transport and fiscal services, technological innovations have been vital to make those industries develop into what they are today. Companies are always struggling to acquire come apart technology, so that they in a more efficient way can produce their products or defend out their services. It is therefore important for companies to keep an eye on new technological innovations. The technological elements of the extraneous environment are a part of the LoNGPEST analysis, which is being use to scan a firms environment, so it in a best possible way can adop t to it. In this essay, I will sweat to explain how technology has been a vital designer for the globalization, and how it has do the world more efficient. thither is no doubt that the discipline of information and communications technology is maven of the causes for globalization. The table below shows the reduction in communicating and travelling prices.According to the table, the price of a 3 minutes phone call have been reduced by 98,6%. The reduction in air transport costs per mile is 74%. There is no doubt that such reductions encourage companies to expand geographicly. In addition, the rapid growth of the net has made it possible to share information with the rest of the world in microseconds. Eric Samuels states that one of the industries that has grown because of information technology is the financial service industry. He states that delivery of services has break more efficient because of the application of technology. What he is saying, is that the financial servi ces provided are being done more effective and at a inflict cost than before. By using the internet, companies can reach out to the whole world without spending a pound. In addition to claim that the financial service industry has grown due to the information technology, Dr. Nicolas Pologeorgis as well states that the industry, since 1998, has gone through a rapid geographic expansion.This especially applies to wealthy nations, like countries from Europe and USA. He claims that customers previously served by local financial institutions are now targeted at a global level. Dr. Pologeorgis believes that one of the reasons for this, besides deregulation and more trading between countries, is the information technology. function like ATMs and websites is being used to develop a more efficient relationship between long distance customers and suppliers. A athletic field about globalization of the banking industry, states that improvements in technology have facilitated greater geograp hic reach by allowing institutions to escape larger information flows from more locations and to evaluate and manage risks at lower cost without being geographically close to the customer.One character of a company from this industry that expanded geographically in the 90s is Goldman Sachs (GS). I 1990, Robert Ruding and Stephen Friedman decided to focus on GS global operations. During the 1990s, GS went through a rapid geographical expansion. Today, GS has offices located in all major financial centres around the world. I have made a comparison between the growth in the financial service sector and the use of internet worldwide. It was in the 90s that the internet use exploded. In 1995, 16 million people were connected to the internet (0,4 of world population). The table below shows that the use of internet exploded about the same time that the financial service industry, according to Pologeorgis, really started expanding geographically.However, it is not only the improvements in communication and information technology that has contributed to a more efficient and globalized world. Another industry that has been affected by improvements in technology the last century is the anele and gas industry. An term made by naturalgas states that new innovations have reshaped the industry into a technological leader9. A report made by the U.S. Department of energy in 1999 shows that if technology had stagnated in 1985, the States would have needed twice as many wells to produce the same add together of cover and gas. However, because of technological improvement, we only need half as many wells to produce the same make sense in 1999. In 1999, the America used 22 000 less wells to produce the same amount as they did in 1985.A statistical review of world energy made by BP illustrates how often oil and natural gas that has been produced in each country and worldwide from 1965-2010. Worldwide, the total development of oil has increase from 31,806,000 barrels daily i n 1965, to 82,095,000 barrels daily in 2010. The development of oil has increased from 96,9 billion box-shaped feet daily in 1970, to 309 billion cubic feet daily in 2010. The main reason to the increase in production is off course the growing demand, but according to naturalgas it would have been impossible without the improvement in our technology. Consumption of oil increased from 30,783,000 daily in 1965 to 87,382,000 barrels daily in 2010 and consumption of gas increased from 63 billion cubic feet daily in 1965 to 306,6 billion cubic feet daily in 2010.Another industry that has developed because of new technology is the atomic industry. Numbers interpreted from NEI shows that 13,5 of the worlds electricity production IN 2010, was provided by nuclear power. Furthermore, NEI states that in total, 15 countries relied on nuclear energy to supply at least one-quarter of their total electricity. According to NEI, one example of a country that is dependent of nuclear energy is Fran ce. 74,1 percent of the energy produced in France was generated through nuclear energy. The statistical review published by BP, shows that the consumption of electricity generated from nuclear power has increased tremendously since 1965.In 1965 the global consumption of terra hours has increased from 25,7 in 1965 to 2767,2 terra hours in 2010. FINN UT OM DAILY In this essay, I have tried to show how technology has been a vital part of both the globalization and the development of a more efficient world. I have found that information and communication technology has been important for globalization. Lower costs of travelling and communicating overseas encourage people to expand geographically. In addition, the fact that use of internet has developed into a common thing, especially in developed countries, makes customers able to do services that they could not do before. My essay also shows how the oil and gas industry have become more efficient, and how the nuclear industry has grow n due to technological improvements.Reference listDepartment for Business Enterprise Regulatory Reform (2008) Globalisation and the changing UK economy, page 3 online. gettable from http//www.bis.gov.uk/files/file44332.pdf accessed at 22.11.2011. British Petroleum (2011) Historical data online. Available fromhttp//www.bp.com/sectionbodycopy.do?categoryId=7500contentId=7068481 (then click on historical data) Accessed at 23.11.2011.U.S. Department of energy (1999) Environmental benefits of advance oil and exploration and production technology online. Available from http//www.fe.doe.gov/programs/oilgas/publications/environ_benefits/4envben.pdf Accessed at 22.11.2011.U.S. Department of life forcehttp//www.fe.doe.gov/programs/oilgas/publications/environ_benefits/3innov.pdfFunding Universe, The Goldman Sachs group INC online. Available from http//www.fundinguniverse.com/company-histories/The-Goldman-Sachs-Group-Inc-Company-History.html Accessed at 22.11.2011.Goldman Sachs (2011), who w e are at a glance online. Available from http//www2.goldmansachs.com/who-we-are/at-a-glance/index.html Accessed at 22.11.2011.Internet World Stats (2008), internet growth statistics online. Available fromhttp//www.internetworldstats.com/emarketing.htm Accessed at 21.11.2011.Internet World Stats (March 31, 2011), internet physical exertion statistics online. Available from http//www.internetworldstats.com/stats.htm Accessed at 21.11.2011.Dr. Nicolas Pologeorgis (2009), The Globalization of Financial Services online. Available from http//www.investopedia.com/articles/financial-theory/09/risk-free-rate-return.aspixzz1eNeBhksO Accessed at 20.11.2011.Eric Samuels (2011), Marketing of Financial Services online. Available from http//www.measurethat.com/?cat=5 Accessed at 20.11.2011. NaturalGas (2010), Natural Gas and Technology online. Available from http//www.naturalgas.org/environment/technology.asp Accessed at 22.11.2011.Nuclear Energy Institute (2011), world statistics, nuclear energ y around the world online. Available from http//www.nei.org/resourcesandstats/nuclear_statistics/worldstatistics/ Accessed at 22.11.2011.Wall Street Journal (2010), A Brief History of Goldman Sachs online. Available from http//online.wsj.com/article/SB10001424052748704671904575193780425970078.html Accessed at 21.11.2011Allen N. Berger, Qinglei Dai, Steven Ongen, David C. Smith (2002) To What Extent Will the Banking Industry be Globalized?A Study of Bank Nationality and nominate in 20 European Nations, page 3 online Available from http//siteresources.worldbank.org/INTFR/Resources/banking_industry_globalization.pdf Accessed at 22.11.2011.