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flattening
of
 organisation hierarchies
and 
widening 
spans of control
. 

 
Some 
effects of technological advances on organisations
and
accountants
include: 
– 
Routine processing (bigger volumes, greater speed, greater accuracy) 
– 
Digital information and record keeping 
– 
New skills required and new ways of working 
– 
Reliance on IT 
– 
New methods of communication and of providing customer service 
– 
Interoperability (encourages collaboration across organisation boundaries) and open systems 
– 
The view of information as a valuable resource 
– 
The view of information as a commodity which can be bought, sold or exchanged ('information 
market') 

 
There is increasing concern about businesses' relationship with the natural environment. Businesses may 
suffer 
significant costs
and a 
loss of reputation
if problems arise. 

 
A method of environmental analysis which looks at an organisation's internal 
strengths
and 
weaknesses
as well as external 
opportunities
and 
threats
is known as 
SWOT 
analysis 

 
The 
value chain 
describes those activities of the organisation that add value to purchased inputs. 
Primary activities are involved in the production of goods and services. Support activities provide 
necessary assistance. 
Linkages 
are the relationships between activities. Managing the value chain, 
which includes relationships with outside suppliers, can be a source of strategic advantage. 

 
The 
competitive environment 
is structured by five forces: