Artistic Printers, LLC.
Concept 1: Technology
Environmental forces plays have a significant effect on the way an organization does business. In this particular discussion, the effects of technology in the printing industry are discussed. At its root though, technology is defined as "inventions or innovations from applied science or engineering research." Right now, the price of technology is decreasing and it is enabling even small companies to compete in the global environment.
I agree with the researcher when she said that "advances and changes in the way printing is done also changes the way we run our business." You cannot effectively compete in a highly technological market if you don't adapt to these changes as well. For example, in-house designs and in-house publications can be produced at lower costs compared to production in the press. The elimination of several processes in printing enables a company to be more streamlined and more effective.
On the other hand, it is also important to take note that the price of new technologies is cost prohibitive for smaller organizations. In this regard, I find it helpful that the researcher advised a way that a small business can still benefit from new technology and earn profit. She said that "This would include finding niche areas where we could produce fewer products at higher quantities and at more competitive costs. This would require seeking business-to-business sales where the quantities are high and the demand is consistent."
In the discussion about the environmental forces, I learned that when competition is tough and when you are a small player in the industry, it would be best to find a niche market where you can remain competitive and stay profitable. In the case of Artistic Printers, they decided to go for the business-to-business niche because of the long term assurance of demand.
Concept 2: Electronic Business Technology
For me, the discussion about the electronic business aspect for Artistic printers is very insightful. It provides detailed information about "single runs" which makes it possible for printing companies to use pre-existing templates at the least possible costs.
Electronic business technologies are changing the way companies around the world are doing business. For example, "with the increased use of internet and e-commerce, customers are able to quickly go online to a virtual printer and order customized pieces at a very low cost." This evens out the market for small-scale and large-scale companies so each one is forced to think of ways to reduce costs and provide better value to their customers.
The concept of single runs is very important in this case because it runs with "many other orders which allow the printer to reduce its internal cost of production and enables them to provide a quality piece at a very low price with a quick turnaround." In addition, e-commerce also allows people to access other forms of communication including newsletters, advertisements, business forms, and reports online. These communication tools used to be published on paper but it printed product now takes second place to electronic distribution. Small printing companies also gain access to worldwide markets because of electronic media.
One of the most significant things I learned from this discussion is that even small businesses can benefit from taking the company online. In fact, compared to traditional large-scale businesses, small establishments are in a position to take full advantage of e-commerce because they can be highly flexible in meeting the customer's specific requirements. In sum, this discussion enabled me to think on a global scale because electronic media has no physical limitations.
Concept 3: Macroeconomic Environment
Artistic Printers, LLC is operating in a macroeconomic environment experiencing downturn. I believe that the researcher was accurate in saying "the perception of inflation allied with the rising costs of groceries and other consumables are causing people and businesses to put off discretionary purchases". This is because in during economic downturn, people will instantly look into buying commodities; they will think twice before they purchase discretionary products such as print materials. They are more willing to make discretionary purchases during good economic times.
However, I do not completely agree with the statement that "our business has been open since 1968 and, with its loyal customer base, will survive the downward trend to remain a viable operation." Currently there are two major drivers of change including technology and globalization. No business can be sure that they will survive in the next few years because doing so means that they have become lax in innovating and providing better value to their customers.
There is a statement that I wish to comment on, "There are economic cycles of prosperity and lack, and history has proven that the tide will turn again towards prosperity." The economy will always experience ups and downs because of many different factors; and we have seen time and again that the economy will recover one way or another because a certain industry will drive it forward. But there is no assurance that a particular business will survive an economic downturn especially if it directly affects their industry.
Overall though, I believe that the discussion about Artistic Printers provide a lot of insights because it tackled the effects of macroeconomic downturn in a very detailed and accurate way. I have learned that the consumer's attitude is almost always consistent during downturn; that is, they will put off purchasing discretionary items until the economy improves. In this regard, I have learned that it is more important than ever to innovate and provide value-added benefits to the consumers during economic downturn.