Company A Has Proposed Investing A Significant Amount In Upgrading Technologies Throughout The Company. Select The Reasons Why This Is Vital For The Company's Survival. (Check All That Apply)

Before answering this multiple choice question, firstly, let’s know about the term "Technology".

What is Technology?

It is simply the use of knowledge, skills, abilities and equipment to produce quality products or service or to enhance the working performance and easily and quickly complete the job tasks with accuracy. For example, use of machinery to make wheat makes the work easier and faster, the use of computer to do office work makes easier and accurate as compare to manual work.

Advantages of Technology

1. New Competitive Niches In The Markets

So, the correct options of this multiple choice question are A, B and C, as due to the vast usage and advancement of technology, there is a need to adopt new and updated technology to compete in the market. It also creates new challenges due to the creation of new product, service, idea, knowledge, market niches, etc. For example, developing a new mobile device creates a new niche in the market where every competitor try to compete with each other by lowering the prices and improving the quality to attract more customers and increase sales and productivity.

 2. Better Management And Communication

Due to latest and updated technology, new ways of managing work tasks and communication mediums are created which improves the working performance of organization. For example, due to computerized accounting system, the accounting works are easily manageable. Just need to enter the accounting data and the rest of the accounting tasks are automatically performed by the accounting software (such as QuickBooks, Peachtree, etc.).

For communication channels, video conferences, telemarketing, electronic mails, mobile phone calls, etc., are used to effectively communicate with workers, employees, management and customers.

3. Improvements In Production Methodology

There is also increase in production as well as changes its method due to advancement in technology. For example, new technological equipment makes it possible to do a work easily within few minutes with one or two workers which can take hours to complete with more workers to do the job. As a result, the productivity level increases which helps in generating more revenue for the business.

4. Decrease In Production Costs

Due to the usage of advanced tools such as automation, cloud computing, etc., the management reduces the cost of productions and operations over a period of time as only fewer workers and employees are required to complete the tasks. The tasks are also completed quickly which improves the working performance and avoids wastage of resources which, ultimately, lowers the cost of production and operations.

5. Quick Service And Customer Satisfaction

The customers can get response from customer care representative, get instant reply, queries resolved quickly, etc., which increases the customer satisfaction. The customers can easily purchase products or services from online store of the company and can make payments online. They will also access products details and contact the support teams online easily.

6. Collaboration

People working inside and outside the organization can collaborate with each other through video calls, voice messages, project management tool to work together and share ideas, knowledge, experiences to perform various tasks efficiently and effectively to achieve organizational objectives & goals.

Disadvantages of Technology

1. Decrease In Manual Work, Skill, And Learning Process

Too much dependent on technology decreases a person's ability to do a manual work which also decreases his learning process. For example, a computerized software is used to record journal entries, prepare financial statements, etc., if a person only needs to enter the accounting data to do accounting work. Due to this way of accounting work, he will forget the accounting treatment of different accounts, journal entries, the preparation of financial statements over time, as he is not doing that accounting work manually.

Artificial Intelligence (AI) still needs human being to work well and to complete the tasks accurately.

2. Increase In Unemployment

There is increase in unemployment as a machine can do lots of work than large number of workers, so to reduce cost of operations, there is a need to remove a number of workers from jobs, which increases unemployment rate of workers.

The option D of this mcq is wrong choice here.