Final answer:
The proliferation of information technology affects today's managers significantly by enabling small firms to expand globally, creating 'winner-take-all' markets, and facilitating the management of larger firms.
Step-by-step explanation:
The proliferation of information technology has a significant effect on today's managers. This effect can manifest in various ways, such as enabling small firms to expand their reach beyond local markets to a global audience, creating opportunities for businesses to operate with efficiency on a larger scale. At the same time, information technology can lead to the creation of 'winner-take-all' markets, where dominant players like Microsoft and Amazon command substantial market shares. Additionally, advancements in technology may facilitate easier management of multiple plants and operations, potentially encouraging the growth of larger firms.
The debate between the potential for technology to aid smaller firms or to bolster larger ones is ongoing. Nevertheless, the impact of information technology in the marketplace and managerial decisions is evident, as it can drive competition, enable globalization, and necessitate changes in strategies to remain competitive in an evolving digital landscape.