Page 214 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 4 Operations management

In some industries, for example car manufacturing,
computer-integrated manufacturing has completely changed
the production process. The use of robots and other tech-

nologies has enabled some manufacturers to have production
lines or their entire factory controlled by computers.
Computer-controlled robots are able to complete simple or
complex task very quickly and more accurately than workers.
Technology has not only changed the way goods are
manufactured, but has also influenced the provision of

services. Many large electrical items, such as washing
machines, dishwashers and televisions, have built in
technologies that diagnose faults. Banking services such
as cash deposits, cash withdrawals and moving money

between different accounts are almost always done these
days with the aid of computers.
Computer-integrated manufacturing
Many retailers use electronic funds transfer at the point
of sale (EFTPOS) to enable customers to buy goods using debit or credit cards
instead of paying by cash or cheque. Larger retailers, especially supermarkets,
use an electronic point of sale (EPOS) system not only to calculate the amount
TOP TIP
purchased by consumers, but also to manage their inventory levels of each item.
Focus on how new technology
affects businesses in terms of Advantages and disadvantages of new technology

capital costs and opportunities
for cost savings as well as how You have learned how technology has changed not only the way goods are
stakeholders such as employees manufactured, but also the way services are provided to consumers. It is clear
212 and customers might be aff ected. that technology brings many advantages to both business and consumers.
However, technology does have some disadvantages for businesses and
also workers.
The main advantages and disadvantages to businesses, workers and consumers

are shown in Table 15.2.

Advantages Disadvantages
Business ■ Reduces the costs and time taken to design ■ Can be very expensive.
new products. ■ When technology is rapidly changing it will need

■ Increases productivity. to be changed often if the business is to remain
■ Reduces costs of production. competitive.
■ Improves quality and reduces waste. ■ May need to spend money training workers which
increases costs.
Consumers ■ Better quality products. ■ Products may become out-of-date more quickly.
■ Lower prices. ■ When the product develops a fault it can be
■ Products with more features are easier to expensive to repair.
develop and produce.

Workers ■ Technology completes simple and repetitive ■ Technology often reduces the need for workers,
tasks that workers find boring. resulting in redundancy.
■ The work is easier with the aid of technology. ■ Technology could make the work less interesting.
■ A business that uses the latest technology is ■ A smaller workforce reduces opportunities for
likely to be more successful so provides job promotion.
security. ■ The development and manufacture of new
technology products provide employment
opportunities.

Table 15.2 Advantages and disadvantages of new technology for businesses, consumers and workers