Technological changes and locating a firm in global Economy

SUBMITTED BY –MANISH SHARMAPGDM SEM-I

SEC-B

DEFINITION

Technological change is the process of invention, innovation and diffusion in technologies and processes.

Technological changes in global economy

As the demand is rising day by day due to the rise in population.

Clearly population growth can generate economic growth with the simple replication of existing methods and large labor force.

For an economy operating with a given set of technologies growth in the delivery of goods and services to final users require more factor inputs.

New economic environment

In the new economic environment when considering the three factor of production (land, labor and capital).

Critical factor is now labor but it has not shifted simply to labor instead knowledge has displaced capital as the scarce production factor.

Pharmaceutical sector

There is a drastic change in pharmaceutical sector in last 25 years due to technological changes.

There are several branches of science which are very helpful for human welfare:

Biotechnology Microbiology Molecular biology Genetics Biochemistry

Cont….

These branches have big impact of technological change.

Ex. Recombinant DNA Technology Gene cloning Sperm bank Gene Library

TATA MOTORS

TATA MOTORS ESTABLISHED IN 1945 FIRST VEHICLE WAS MADE BY TATA

MOTORS WAS A TRUCK. IN 1992 TATA MOTORS ENTERED IN CAR

MARKET AND LAUNCHED TATA SIERRA IN 1994 TATA SUMO. IN 1998 THEY LAUNCHED TATA INDICA

AFTER ITS LAUNCHING IT BECAME VERY POPULAR CAR IN INDIA DUE TO ITS ENGINE QUALITY AND FUEL EFFICIENCY.

CONT…

IN 1998 THEY LAUNCHED SAFARI AFTER THAT THEY LAUNCHED THEIR

FIRST SPORTS UTILITY VEHICLE TATA XYLO IN 2008.

TATA MOTORS LAUNCHED TATA NANO WORLDS CHEAPEST AND SMALLEST CAR IN 2008.

Traditional production process become obsolete

Computer controlled machines are rendering traditional production process obsolete.

Micro electronics and the computer are revolution in every sector of economy.

Leaders of today’s most successful business are emphasizing importance of technology harnessing it and speedily integrating it across the organization. these become the ways to strengthen firm in marketplace.

In the end……

In the end technology is a new economic model which guides employees to work “smarter". this means utilizing technology to enhance productivity Productivity means more than sheer quantity of work means more creative problem solving and more human engagement in decision making.

Locating the firm in global economy

To locate a firm in the global economy first market survey is done.

After making survey strategies are made and after setting certain objective plans are implemented.

Wall mart is the biggest retail company in the world now coming to India with bharti an Indian company.