Evaluate the effect of the technological change on the business Essay

Evaluate the effect of the technological change on the business environment of ''TOYOTA IN THE EU'' - Essay Example Notably, technological environment is interlinked with other attributes of an economic environment, such as regulatory policies, GDP growth rate and demand of national as well as international market. These components have been recognised to be changing in the European economic environment. For instance, technological environment of the European Union (EU) has been noticed to favour nanotechnology and communication technology rather than other technological innovations. Consequently, this shall have a great impact on the performance of businesses which are entirely based on the technological environment, e.g. Toyota. With this concern, objectives of the paper shall be to assess various changes occurring in technological environment of the EU economy and its impact on the performance and/or organisational operations of Toyota in EU. The discussion of the paper will be thereby focussed on identifying opportunities and challenges which are likely to be witnessed by the company due to th e technological change in its business environment. Subsequently, the paper shall also intend to recommend few significant measures for the company. 2.0. Changes in Technological Environment of EU In modern day perspective, economic environment and its components possess a crucial role in influencing the growth of an economy. Few major components of economical environment of an economy are its political, economical, social and technological environment. Most economies, along with the EU have become largely depended on its technological growth which defines environmental aspect as one of the most crucial phenomenon of 21st century. Evidences reveal that technological environment of the EU is changing rapidly with a strong influence on social and economical environment at large. For instance, the member countries which are part of the European Union, such as Denmark, Germany and Poland are recognised to be largely depended on coal industry. Consequently, these economies release higher amount of greenhouse gases and generate larger amount of heat than other economies in the union. On the contrary, technological trends of the union are recognised to be focussed on NBIC technology, i.e. biotechnology, nanotechnology, information and communication technology and cognitive science. This forced the countries to set up end-of-pipe technologies, which in turn shall reduce hazardous impact of technological development on natural environment of the union (Eurostat, 2010). Another major trend of the technological environment of the European Union was the enforcement of tax on NOx in Sweden and similar taxation policies on technological practices which are harmful for environment in other countries. Remarkably, almost 7% of technology based firms of Sweden initiated to imply the available ‘abatement technologies’ in 1992 and one year later, number of firms using these technologies increased to 62%. Thus, the taxation policies also had a great influence on busin ess sector of the economy (OECD, 2010). With a growing concern of eco-friendly technology, regulatory framework of the union is also promoting eco-technology and innovations. Due to this fact, most technology based companies are tending to incorporate renewable technologies in their organisational operations. Governing bodies of the union also enforced