Final answer:
The technological segment of environmental analysis covers the institutions and activities involved with innovating and applying new knowledge into outputs. It ranges from new products to new ways of organizing work and improving quality, aimed at increasing efficiency and competitive advantage for firms.
Step-by-step explanation:
The technological segment of environmental analysis typically includes institutions and activities involved with creating new knowledge and translating that knowledge into new outputs. In the context of a firm, technology encompasses the various methods a company can utilize to combine inputs to produce outputs at the lowest possible cost. This does not solely refer to new inventions, but rather the complete spectrum of innovations, including new ways of organizing work, enhancing quality, as well as new products like the smartphone or drought-resistant seeds. Firms often face decisions involving the choice of production technology, such as choosing between labor-intensive methods or investing in machinery that reduces the need for human labor. The choice of technology is often strategic as it can lead to cost reductions and improved competitiveness.