MBA 1st Natural and Technological Environment Short Question Answer Model Paper :- In this Post you will find MBA 1 year related to important questions related to the answer such as the Introduction Micro Business Answer and many other important questions. Short Questions are answer in English Section B
SHORT ANSWER QUESTIONS
0.1. What is innovation? Describe technological innovation of organisation in a competitive environment.
Ans. Innovation: The process of translating an ides or invention into a good or service that creates value or for which customers will pay is innovation. To be called be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, amd includes all processes by which new ideas are generated and converted into useful products. In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers.
Technological Innovation of Organisation in a Competitive Environment: Technological change cannot occur naturally or automatically because any change is neither easy nor natural in Organisations. Decisions about technology and innovation are very strategic and need to be approached systematically
Two generic strategies a company can use to position itself in the market are low cost leadership and differentiation strategy. With low cost leadership strategy, a firm can maintain competitive advantage because its products have a lower cost than its competitors. With a differentiation strategy, a firm can gain advantage from having a unique product or service for which customers are willing to pay a premium price. Technological innovations can support either of these strategies by providing (a) Cost advantage through low cost product designs and creating low cost processes or methods to perform the needed operations or (b) Differentiation by unique products or services which increase buyer value and thus command premium prices.
Q.2. Write a note on technology dynamics.
Ans. Technology Dynamics: Technology dynamics is broad and relatively new scientific field that has been developed in the framework of the postwar science and technology studies field. It studies the process of technological change. Under the field of technology dynamics, the process of technological change is explained by taking into account influences from ‘Internal factors’ as well as from External factors’ Internal factors relate technological change to unsolved technical problems and the established modes of solving technological problems and external factors relate it to various changing characteristics of the social environment, in which a particular technology is embedded
Modern technology dynamics studies generally advocate that technologies are not self-evident or market demanded, but are the upshot of a particular path of technology development and are shaped by social, economic and political factors. In this sense, technology dynamics aims at overcoming distinct Internal’ and ‘External points of views by presenting co-evolutionary approach regarding technology development.
In general, technology dynamics studies, besides giving a “Thick description of technology development, uses constructivist viewpoints emphasising that technology is the outcome of particular social context. Accordingly, technology dynamics emphasises the significance and possibility of regaining social control of Technology technology, and also provides mechanisms needed to adapt to and steer the development of certain technologies. In that respect, it uses insights from retrospective studies to formulate hypotheses of a prospective nature on technology development of emerging technologies, besides formulating prescriptive policy recommendations.
An important feature of relevant theories of technological change therein is they underline the quasi-evolutionary character of technological change i.e. change based on technological variation and social selection in which technological knowledge, systems and institutions with each other Processes of Path dependence’ are crucial in explaining technological change,
MBA 1st Natural and Technological Environment Short Question Answer Sample Model Paper
Q.3. Define globalisation.
Or What are the parameters of globalisation?
Or What is globalisation? Write any three advantages of globalisation,
Ans. Globalisation: Globalisation means treating the whole place as one market. It is an important element in the overall economic reforms by the government. Its main purpose or mission is the integration of Indian economy with the world economy. It means the uninterrupted or trade. capital and technology across the international frontiers.
Parameters of Globalisation
It has four parameters:
1. Reduction of trade business so as to permit free flow of goods and services across national borders.
2. Creation of an environment in which free flow of capital can take place.
3. Creation of an environment permitting free flow of technology among nations.
4. Creation of an environment in which free movement of labour can take place in different! countries of the world.
Therefore, we can understand that there is need for transfer of goods and services, capital, technology and labour so that an optimum balance can be maintained in order to enhance the global trade and increase opportunities of employment all over the world.
Measures Taken by the Government
Various measures for globalisation are given below:
1. Reduction of Import Duties: There has been a considerable reduction in import duties during 1991-2006
Custom duties of capital goods have been reduced, tariffs on imports of raw materials have been reduced. Besides the government has abolished quantitative restrictions on imports and exports.
2. Encouragement of Foreign Investment: The steps taken by government in this direction are:
(a) Approval would be granted for direct investment upto 100% foreign equity in high priority areas.
(b) The government gave clearance to a new list of industries, whereby joint ventures upto 74% equity would be cleared automatically. The main objective of this move is to facilitate direct foreign investment in India.
(C) The majority of foreign equity holding upto 51% equity would be allowed for trading companies, which are primarily engaged in export activities.
3. Encouragement to Foreign Technology Agreement: The Industrial Policy, 1991 undertook the following steps:
(a) Automatic permission for foreign technology agreements in high priority industries upto
lump sum payment of 1 crore, 5% royalty for domestic sale and 8% for exports.
(b) Automatic permission would be given if no free foreign exchange is required for any paymen
(C) No permission will be necessary for hiring of foreign technician and foreign tests indigenously developed technologies.
Advantages of Globalisation
Some advantages of globalisation are as under:
1. It helps in earning more profits through export business than through domestic business which may occur due to high cost of production
2. When the population of the host country is large, it provides more demand and growth opportunities to the entrant firm.
3. It helps the firms in overcoming domestic barriers which means less demand in parent countries but high demand in other countries, eg. expo
4. The government provides merits, incentive royalties, tax rebates to the export oriented firms.
Q.4. What are the essential conditions for successful globalisation?
Ans. There are however, some essential conditions to be satisfied on the part of the domestic economy as well as the firm for successful globalisation of the business:
1. Business Freedom: There should not be unnecessary globalisation restrictions which come in the way of globalisation. The is why the economic liberalisation is regarded as a first step forward in facilitating globalisation.
2. Facilities: The extent to which an enterprise can develop globally from home country-base, depends on the facilities available like the infrastructural facilities.
3. Government Support: Government support may take the form of policy and procedural depends don the facilities available like the infrastructural facilities, research and development support, financial market reforms and so on.
4. Resource: Resource is one of the important factors which often decides the ability of a firm to globalise, Resourceful companies may find it easier to thrust ahead in the global market.
5. Competitiveness: The competitive advantage of the company is a very important determinant of success in global business.
6. Orientation: A global orientation on the part of business firm and suitable globalisation strategies are essential for globalisation.