Question

​Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six​ years, sales have continuously declined and profits have almost completely disappeared. The owner of​ Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to​ Tina's Tunes?

Answer 1

Answer:

​Tina's Tunes is likely to fail because it is ignoring the technological environment.

Explanation:

Technological Environment Technological change can have impact on the decisions taken by business.

Technological change can involve:

– New process of production: new ways of doing things which rises productivity of factor inputs, as with use of robotics in car assembly techniques which has dramatically raised output per assembly line worker. For example around 80% of technological change has been process innovation.

– New products: For example, online banking and many new financial services are direct result of advances in micro processor based technologies.

A firm, which is unable to cope with the technological changes, may not survive.