How Have the Major Elements of the Mega-Environment and Task Environment Impacted Xerox?

Question # 1: How have the major elements of the mega-environment and task environment impacted Xerox?

Answer: Following shown below are the major elements of first the mega environment and second the task environment with their impacts on Xerox.

1. Elements of Mega Environment:

a. Technological Elements

The Xerox started its business with a photocopier business and to an innovative graphic processing company in 1947. Yet the Xerox Palo Alto Research played a major role in developing the basic technology used in PC’s. It moved to color copiers and documents processing sector from photocopier business. At the time when Paul Allaier become the CEO of the company, DocuTech machine was introduced that could produce documents electronically from PC’s. Then, after four years new software by the name of DocuSP was introduced that can tie its digital printers to a wide array of personal computers, scanners and data storage devices anywhere in the world.

b. Economic Elements

In the time of Peter McColough, Xerox retained market share of about 40%. Then, when David T Kearns becomes the new CEO, deflation occurred in the company and lowered the costs. Due to the company giving up the market share its net income declined to 50%. After that David’s main focus was at cost cutting and dedication to customer services. This resulted in Xerox, receiving the Malcolm Bald ridge national quality award in the year 1989. The market share of the company in the copier begun to increase and as the United State’s economy was lethargic and based on capitalist approach, Xerox faced many economic problems.

c. Legal Political Elements

Xerox faced legal political elements like patent laws, trade controls and deregulation of financial service industry.