Adapt or Bust
Pearson Edexcel iGCSE Business 4BS1 EXAM YEARS 2026-2029 Technological factors
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Technological factors in IGCSE Business: what you need to know
This free game is part of our Pearson Edexcel iGCSE Business (4BS1) course for exams in EXAM YEARS 2026-2029.
What are technological factors?
Technological factors are external influences, linked to technology, that affect how a business operates and the decisions it makes. In the Pearson Edexcel International GCSE Business specification they sit alongside social, environmental and political factors as the external factors affecting business decisions. A business can't control them, but it does have to decide how to respond.
In Adapt or Bust you run KICKS, a trainer shop, from 2000 to 2030, with your rival BOXCO right next door. Customers move from cash to cards, from the high street to online shopping, and from computers to smartphones. Hackers arrive, robots become affordable and energy bills soar. Before each new era you visit a Tech Expo and decide which technology is worth the money.
How technology helps a business
- Digital payments: card, contactless and phone payments are quicker than cash, so queues move faster and fewer customers give up.
- E-commerce: a web shop sells to customers all over the world, 24 hours a day. M-commerce lets them buy on their phones.
- Technology in promotion: targeted advertising online and viral advertising on social media reach lots of people at a relatively low cost.
- Data analytics: sales data helps a business predict demand and stock the right products.
- Automation and AI: robots work 24/7 with consistent quality, and chatbots answer customers instantly.
- Green technology: solar panels and electric vans cut running costs and appeal to eco-friendly customers.
The challenges of new technology
Every piece of technology in the game has a cost as well as a benefit. You'll see the same drawbacks that come up in exam questions:
- High upfront costs, plus running costs every year.
- Staff impact: training, worries about job security, and possible redundancies. When robots arrive, you choose whether to retrain your packing staff or make them redundant.
- Cyber attacks: once you store customer data, hackers target you. Data laws like GDPR mean big fines. British Airways was fined £20 million after a 2018 data breach.
- Global competition: online, rivals are only one click away.
- Hype: some technology looks exciting but never pays off, like the 3D TVs of 2010 or the NFT craze.
Adapt or bust: real case studies
Businesses that ignore technological change can fail, however big they are. Kodak invented the digital camera in 1975 but held back to protect its film sales, and filed for bankruptcy in 2012. Blockbuster video rental shops went bust in 2010 as customers switched to renting and streaming films online. Meanwhile ASOS grew into a global retailer by embracing e-commerce early, and Zoom grew from 10 million to 300 million daily meeting participants when the 2020 lockdowns made video calls essential.
In the game, a shop that never opens a web shop runs out of cash in the lockdown years, while one that buys every shiny gadget can't afford the technology it really needs.
Exam tips
- When a question asks whether a business should adopt a technology, weigh up the cost (upfront and running), the impact on staff and the competitive advantage it brings.
- Build chains of reasoning: card payments are quicker, so queues are shorter, so fewer customers leave, so revenue rises.
- Always use the business in the question. A web shop suits a trainer retailer, but drone delivery doesn't suit a city where drones can't fly yet.
- Finish evaluation questions with a judgement: adopt it or not, and what it depends on.
Frequently asked questions
What is a technological factor in business?
A technological factor is an external influence linked to technology, such as the internet, automation, new payment methods or cyber attacks, that affects how a business operates and the decisions it makes.
What are the benefits and drawbacks of e-commerce for a business?
E-commerce lets a business sell to customers anywhere in the world, 24 hours a day, without relying on people walking past a shop. The drawbacks include the cost of the website and delivery, cyber security risks and competition from online sellers everywhere.
Why did Kodak go bankrupt?
Kodak invented the digital camera in 1975 but held back on digital photography because it feared it would hurt its profitable film business. Rivals took over the digital market, and Kodak filed for bankruptcy in 2012.
What should a business consider before adopting new technology?
It should consider the upfront and running costs, the impact on staff (training, morale and possible job losses) and whether the technology will win customers, cut costs or give it a competitive advantage.
Is Adapt or Bust free?
Yes. The game is free to play in your browser with no sign-up. It covers technological factors from the Pearson Edexcel IGCSE Business (4BS1) specification.