Technology and business
Technology is the application of scientific knowledge and digital tools to business processes, and it is a constantly changing external influence that a business cannot control but must respond to.
Before you start
No specific prerequisites - this is a good place to start.
Method
- Identify which function of the business the technology affects: production/operations, marketing, finance, or human resources.
- Identify the specific benefit the technology brings to that function, for example CAD reducing product design time or automation reducing the labour cost per unit.
- Identify at least one drawback or cost of adopting the technology, such as the initial cost of new equipment, staff training time, or the risk of a cyberattack on customer data.
- For explain questions, link one benefit (or drawback) to a specific consequence for the business's costs or its customers, rather than just naming the technology.
- For evaluate or discuss questions on whether a business should invest in new technology, weigh the cost of investment and any risks against the expected benefits, and reach a judgement based on details given in the case, such as the size of the business or how much competitors have already invested.
- Remember that technology change is constant and ongoing: businesses that fail to keep up risk losing customers to more up-to-date competitors, which is itself a form of competitive pressure (see the competitive environment).
- Where the exam gives a specific technology, e.g. self-service checkouts or 3D printing, apply the general benefits and drawbacks to that specific example rather than writing a generic answer.
Worked example
Marsden Furniture is a small workshop that has always cut wood by hand. The owner is considering buying a computer-numerical-control (CNC) cutting machine, which uses CAD software to cut pieces automatically. Explain one way this technology could benefit Marsden Furniture.
- Identify the function affected: production, specifically how the furniture is cut and shaped.
- Identify the specific benefit of CAD/CNC technology: pieces are cut to an exact digital design, repeatedly, with far less variation than cutting by hand.
- Link this to a business outcome: fewer pieces are wasted through cutting mistakes, and the machine can cut far more pieces per hour than a worker with hand tools.
- Turn this into a cost or quality consequence: this lowers the cost per item produced, since less material and labour time is wasted, and improves the consistency of quality across every piece.
- Write the explained answer: the CNC machine benefits Marsden Furniture because it cuts pieces to an exact CAD design at high speed, reducing wasted material and labour time per unit and improving the consistency of quality compared with cutting by hand.
Practice questions
Try each question, then tap to reveal the answer.
Q1State one function of a business that can be affected by new technology.Show answer
Answer: Any one of: production/operations, marketing, finance, human resources, for example automation in production.
Q2Define computer-aided manufacture (CAM).Show answer
Answer: The use of computer software and machinery to control and carry out the manufacturing or production process.
Q3State one cost to a business of introducing new technology.Show answer
Answer: For example, the purchase price of new equipment, or the cost of training staff to use it.
Q4Give one example of technology used in human resources.Show answer
Answer: For example, online recruitment platforms or applicant-tracking software, or video-call interviewing.
Q5Explain why automation can reduce a business's unit costs.Show answer
Answer: Because a machine can often produce more output per hour than a worker and does not need to be paid a wage, spreading fixed costs over more units and cutting the labour cost per item.
Q6State one risk to a business of storing customer data online.Show answer
Answer: The risk of a cyberattack or data breach, which could lead to financial loss and reputational damage.
Q7Explain one reason a small business might be slower than a large business to adopt new technology.Show answer
Answer: Because new technology often has a high upfront cost, and a small business typically has less capital or profit available to invest than a large business.
Exam-style questions
Written in the style of a GCSE Business exam paper, with a full mark scheme.
Explain two ways that automation could affect employees at a manufacturing business.
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Riverside Bakery currently makes all its bread by hand, employing 12 bakers. The owner is considering investing 60,000 pounds in an automated bread-making line, which would allow the bakery to produce far more loaves per day but would mean only 4 bakers are needed to operate and oversee it. Evaluate whether Riverside Bakery should invest in the automated bread-making line.
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See real GCSE Business past-paper questions, with official mark schemes →
Free printable worksheet
Want more practice on paper? Download the technology and business worksheet pack - 7 pages of exam-style questions with a full mark scheme. One email opens every download in this browser for 14 days - no account, no card. Print it for personal and classroom use.
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