CAIE A-Level Business 6.1.4 Technological Change

Analyse two ways technological change might impact on CP's decision to develop nanopaints.

2

Note:

- Impacts can be positive or negative.

- If more than two impacts are referred to, reward the best two.

Indicative content

Responses may include:

AO1 Knowledge and understanding

Limited knowledge K will be demonstrated through knowledge of the concept of technological change or knowledge of possible impacts of technological change.

Developed knowledge K+K will be demonstrated through knowledge of the concept of technological change and knowledge of possible impacts of technological change.

Definition or explanation of technological change - in product design, production techniques or marketing, such as data collection, use of IT/AI.

Possible impacts include:

- New product designs lead to company being known as an innovator.

- New processes may lead to greater efficiency in all areas of production and operations, including methods of distribution.

- Innovative marketing methods may lead to more effective customer relationship marketing (CRM).

- R&D into innovation and introduction of new technology is expensive.

- Firms who do not innovate are in danger of being forced out of the market.

AO2 Application

Limited application, ${ }^{\triangle \mathrm{APP}}$ applies knowledge to CP once.

Developed application, ${ }^{\text {APP }}+{ }^{\text {APP }}$ applies knowledge to CP twice.

Max one ${ }^{\text {APP }}$ for application for the first impact of technological change and max one ${ }^{\text {APP }}$ for application for the second impact of technological change.

- $\quad \mathrm{CP}$ has a research and development centre.

- Recent history of new technology-based products - external paint, specialist paints, plastic/nanopaints.

- Production of new paints will be costly, due to innovative materials and processes.

- CP a leader in nanopaints and plastic paints.

- Competitors currently not producing these new paints but will do in future.

- Technology gives the new paints a USP.

- CP creates technological change by research - the nanopaint is a technological change.

2

AO3 Analysis

Limited analysis AN - candidate shows one link in the chain of analysis.

Developed analysis L2AN - candidate shows two or more links in the chain of analysis OR offers a two-sided analysis.

- Development of knowledge and application points explaining the potential influences of technological change on CP.

- Paint industry has a history of new technological based products so important to keep producing these, to maintain market position. AN

- Keeping up with technological change will lead to innovative products, which will lead to higher sales and be an important factor in market success AN. However, may lead to more competition if competitors develop innovative products first, decreasing sales and market share. L2 AN

- Research centre has produced new ideas so important to maintain confidence in research, in order to move the business forward and expand the paint range, leading to increased sales, AN market share and profit. L2 AN

- Universities engage in research so market requires change and new products to avoid a company being left behind, AN but cost of new production line technology may make it uneconomic to go ahead even if the paint technology is good. L2AN

- The USP is likely to bring first mover advantage and commercial success. AN

Accept all valid responses.