Deck 16: Using Computer Technology in Small Businesses

Question 1

Explain how the microcomputer (PC) has affected small business.

Answer 1

Technology is discovered to assist the people in the required areas. At many places technology has already proven its worth. Now, it has emerged as a powerful tool to make the business process smooth and fast. Many business owners are considering this as useful while other are finding the same as complex and time-taking.
The microcomputer (PC) has affected the small business in following ways:
• It has made it easier for the small businesses to process data related to areas including accounting and employees.
• Forecasting and operations are the two elements which can be analyzed using various tools of microcomputer which in turn shape up the direction of the business.
• It can be kept parallel with the manual system. The calculative and complex records can be kept in PC whereas simple records can be kept in manual registers.
It depends upon availability of software and hardware which system suits best to the business's needs and it depends upon the employees how they make the computer system work effectively. Although the introduction of these tools is beneficial for small businesses, many of the business owners are scared to use the same. They consider microcomputer as the complex approach. Hence, it can be concluded that it is showing a mixed impact on the small businesses.

Question 2

What effect(s) do you think the Internet have had on small business

Answer 2

Small businesses are known for their up gradation and innovation. Since they run on small scale, they have the potential to try creativity in their business development strategies. They prefer to use unique and differentiated tactics to attract more and more employees.
The internet has following impacts on small businesses:
• It has provided the alternative to communicate to the employees, customers and associates through formal e-mails no matter where they are located.
• Telecommuting has emerged as a powerful tool to provide the employees with the facilities of work from home. It has reduced office overhead expenses of providing office space to the employees.
• It has made it easier for the businesses to spread its product and services to a wider area without much advertising cost.
• Digital advertising is the easiest and the cheapest source of promoting the products and services.
• Internet research provides innovative and creative ideas to launch new products and services. Many times the sales strategies of competitors can be identified using the same.
All the above impacts seem positive in their approaches. They produce good outcomes only if they are adopted in an accurate manner. At one place internet has made many things easier for the small businesses but at other place it has made the business process complex for those who do not know how to use this facility in business's favor.

Question 3

What are some problems with computer technology for small firms

Answer 3

Technology has made the life of the people easier but from a small business owner's point of view this is not the case. They feel that involvement of technology at workplace has increased the amount of work. However, the entrepreneurs of young generation like the use of same but they can't teach each employee to be Tech friendly.
Some problems with computer technology for small firms are as follows:
• There are possibilities of inaccurate information and errors which can't be identified by the owners and the whole process go in vain.
• The owners and the employees are not skilled and trained to include technology in their work process.
• The equipment requires greater safety. It also produces an information threat to the information maintained in the system.
• Traditional owners are not in favor of installing technology as they feel the same as waste of time and waste of money.
• Technology needs up gradation from time to time; the owners do not seem to be interested in the process.
Computer technology has made the work process easier but for small firms this is not the case. A very few entrepreneurs can install computer technology in their businesses because only a small portion of the people are trained for the same. Most of the business owners are occupied with a lot of work and to enter all the details in the computer bother them very much. Hence, it can be concluded that it will take few more years till the computer technology can become an integral part of the businesses.

Question 4

Explain how e-commerce affects small businesses.

Question 5

How do you explain Valentine's success

Question 6

Why do you think their business has been such a success

Question 7

To what extent do you think his diversification plan will work Explain.

Question 8

Do you think that their Website would have been so successful without the buyout by Wizzard

Question 9

What suggestions would you make to him for adjusting to the changing economic environment

Question 10

If you were Weina and Jake, what would you do next with Switchpod

Question 11

What are some management decisions owners of small businesses must make

Question 12

What types of information do they need to make those decisions

Question 13

What are some sources of the needed information

Question 14

Explain how the use of computers by business has grown.