The general environment — Technological conditions
Technology is a broad concept based on finding better ways to do things and it is advancing at an unprecedented rate. Never before have managers been able to interact with stakeholders as often, as intimately, and as extensively as they can today. Technology does not just change the expectations and behaviours of customers and clients; technological change can have huge effects on how suppliers work.
Today, manufacturers, suppliers and distributors are likely to be in constant electronic exchange with organisations, ensuring stock levels are automatically monitored and maintained, and tracking goods in transit down to the nearest kilometre. Increasingly, the customer can see how many goods are in stock or how long they will have to wait to have an item delivered.
Technology, while enabling many advances, can also pose a threat to managers. Kodak, long-established as a leading photography brand, suffered massive downsizing and its business was severely threatened by the advent of digital cameras in the 1990s. The mass market for photographic film disappeared in a few short years, changing the Kodak organisation dramatically.