How does new technology change the way a business operates and competes?
The role of technology: how technology (e-commerce, digital communication, automation and social media) affects business operations, marketing and costs, and the benefits and drawbacks of adopting new technology.
A focused answer to the Eduqas GCSE Business C510 content on the role of technology, covering e-commerce, digital communication, automation and social media, how they affect operations, marketing and costs, and the benefits and drawbacks of new technology.
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What this topic is asking
Eduqas C510 wants you to explain the role of technology in business: how e-commerce, digital communication, automation and social media affect a business's operations, marketing and costs, and the benefits and drawbacks of adopting new technology. The exam often asks you to judge whether a particular technology investment is worthwhile.
E-commerce
E-commerce lets even a small business reach customers far beyond its local area, trade 24 hours a day, and keep lower-cost premises (a warehouse instead of a high-street shop). It changes operations (orders, payments and delivery must be handled online) and widens the potential market dramatically.
Digital communication
Email, instant messaging, video calls and cloud-based systems let businesses communicate faster, share files instantly, and support remote and flexible working. This can cut costs (less office space, less travel) and speed up decisions, though it relies on reliable systems and can blur the line between work and home.
Automation
Social media and digital marketing
Social media (and digital marketing more widely) lets a business promote itself cheaply, target specific audiences by age, location and interest, interact directly with customers, and respond to feedback fast. It can build a brand quickly, but it also exposes the business to public complaints and requires constant effort to manage.
The benefits and drawbacks of new technology
Whether to adopt a technology is a cost-benefit decision: the firm must weigh the upfront cost against the savings, the extra sales and the competitive advantage, for its own circumstances.
Try this
Q1. State two benefits of e-commerce for a small business. [2 marks]
- Cue. Wider customer reach, 24-hour trading, lower premises costs.
Q2. A machine costing saves a year. Calculate its payback period. [2 marks]
- Cue. years.
Exam-style practice questions
Practice questions written in the style of WJEC Eduqas exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Eduqas 20193 marksExplain one way e-commerce could benefit a small retailer. (Component 2)Show worked answer →
A 3-mark AO1 and AO2 question. E-commerce (selling online) lets a small retailer reach customers far beyond its local area, even nationally or globally, so it can increase its potential market and sales without the cost of opening more shops. It also lets it trade 24 hours a day and keep lower-cost premises. One mark for a valid benefit, up to two more for developing it (wider reach leading to more sales, or lower premises costs leading to higher profit). A common error is to state "more sales" without explaining the mechanism (a wider customer reach or longer trading hours).
Eduqas 20219 marksA manufacturer is considering investing heavily in automation to replace some manual production jobs. Evaluate whether this investment is worthwhile. (Component 2)Show worked answer →
A 9-mark Evaluate question needing both sides and a judgement applied to the manufacturer. For automation: it can raise productivity and output, cut labour costs over time, improve consistency and quality, and let the firm compete with lower-cost rivals. Against, or its drawbacks: the upfront cost of the machinery is high and may need borrowing, there is disruption and a learning curve during installation, redundancies harm staff morale and the firm's reputation in its community, and the technology can break down or become outdated. Judgement: automation suits the manufacturer if it produces in high volumes (so the labour saving is large), has the finance to invest, and faces price competition that makes lower unit costs essential; if volumes are low or cash is tight, the payback may be too slow. A balanced conclusion weighs the long-run cost saving and quality gain against the upfront cost and the human impact. Markers reward two-sided analysis applied to the manufacturer and a supported conclusion, not a list of pros and cons.
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Sources & how we know this
- WJEC Eduqas GCSE Business specification (C510) — WJEC Eduqas (2017)