Factors Affecting Essay Example for Free

Factors Affecting screenFew markets avoid change, which involves new products or new ways of making existing products. Some industries ar more likely to undergo substantial changes brought roughly by new technologies and new adaptations of existing technologies. The IT, calculating machine and mobile phone markets are experiencing more innovation than most. How do businesses benefit from introducing radical new products and what factors model the range and pace of innovation? Spending on investigate and development (RD) is growing globally and in most industrial sectors. The benefits to a country of encouraging RD spending include debut of high-tech jobscreation of high-added-value products that may then be manufactured in that country prestige a country beingness linked to scientific and technological breakthroughs Attraction of investment by multinational corporations.Several factors may work on the level of research and development (RD) and innovation by a business The nature of the industry. Rapidly changing technologies and consumer expectations in pharmaceutical products, defense, computer and software products and motor vehicles lead to the need for substantial investment in RD by leading firms. Other businesses, such as hotels and hairdressing, would need to spend much less as the place setting for innovation is more limited.The RD and innovation spending plans of enemys. In most markets, it is essential to innovate as much as or more than competitors if market share and technical leadership are to be maintained. However, a monopoly may limit RD spending if it believes that the risk of a more technically advanced competitor entering the market is limited. On the other hand, profits from a monopoly could be used to finance research into innovative products if the risk of competitor entry into the industry is high.Business expectations. If business managers are optimistic about the future state of the economy and the rate of economic g rowth and consumer demand,then they are more likely to agree to substantial budgets for RD and aim to introduce more innovative products.The risk profile or cultivation of the business. The attitude of the management to risk and whether shareholders are prepared to invest for the long term will catch a significant effect on the sums that businesses can inject into RD programmes. Short-termism is an accusation made towards many major(ip) UK financial institutions and the need to satisfy these investors could discourage managers from investing in RD. Government policy towards grants to businesses and universities for RD programmes and the range and scope of tax allowances for such expenditure will influence decisions by businesses.Finance is needed for effective RD. In many firms this may be limited and will restrict the number of new innovations that could be made. interviewhttp//classof1.com/homework-help/operations-management-homework-helpView as multi-pages