Question

Though New Ideas Inc. has been in business profitably for 30 years, the company and its employees have seemingly been in a constant state of change. Paul Gill has been president of New Ideas for the last 15 years. During this time, he has had to change the strategic focus of the company three times. The employees have become vocal recently about the decrease in their bonus cheques and are waiting to share in the increased profits. It seems as though his competition is always introducing new products into the market, and the niches Gill thought New Ideas held leadership in are always changing. Recently the government has been active in passing new legislation to increase the control of the product packaging and product contents. The technology used to manufacture the products is constantly improving with the use of robotics to make the process more efficient.

The change to robotics in the manufacturing process to increase efficiency is the result of the competitors lowering their prices. Therefore it is a(n) ________ force for change.
A) external
B) internal
C) economic
D) technological

Answer 1

The adoption of robotics by New Ideas Inc. in response to competitors lowering prices is an external force for change driven by market competition and the need for technological advancement.

Step-by-step explanation:

The change to robotics in the manufacturing process of New Ideas Inc. is a response to the competitors lowering their prices, which is a consequence of the market competition. As such, the force for change driving the adoption of robotics is primarily external. Market competition often acts as an incentive for discovering new technology because it allows a firm to potentially earn higher profits by producing products more cheaply or with new characteristics that consumers desire. When competitors introduce new technological innovations, companies like New Ideas Inc. must adapt to maintain their market position. For instance, consider Technotron, the hypothetical company that employed a new scientific technology to increase the efficiency of its production process, thereby exerting pressure on other firms in the same industry to innovate or face financial decline. Such disruptive market changes are often necessary for progress, even if they lead to temporary disturbances in the market.