TECHNICAL UNIVERSITY OF MOMBASA

BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY

Group 8
PRINCIPLES OF MANAGEMENT ASSIGNMENT

MEMBERS :
1. RONO GIDEON BSIT/326J/2019
2. EDWIN TERER BSIT/325J/2019
3. KIPKOECH CALEB BSIT/313J/2019
4. BRIAN NYANDORO BSIT/346J/2019
5. KELVIN ROTICH BSIT/314J/2019
6. THOMAS MUIRURI BSIT/283J/2019
7. MERCY JEPTEPKENY BSIT/322J/2019
8. BRIAN KIPNGENO BSIT/327J/2019
9. STEPHEN KIMANZI BSIT/284J/2019
10. KEVIN NJAU BSIT/274J/2019
Globalization and E-business
Globalization and e-business are closely intertwined concepts that have significantly shaped the
modern business landscape. Globalization refers to the increasing interconnectedness and
integration of economies, societies, and cultures on a global scale. E-business, on the other hand,
refers to the use of electronic technologies, particularly the internet, to conduct business
activities.
Globalization
Globalization refers to the increasing interconnectedness and integration of economies, societies,
and cultures across the world. It is a multifaceted phenomenon that encompasses economic,
political, technological, and cultural dimensions. Globalization has been driven by advancements
in transportation, communication, and information technologies, which have made it easier and
faster to connect people, goods, and ideas across borders.

One of the key features of globalization is the expansion of international trade and investment.
Trade liberalization, removal of trade barriers, and the emergence of multinational corporations
have facilitated the flow of goods, services, and capital across borders. This has led to increased
economic interdependence among nations and the creation of global supply chains.

Globalization has brought several benefits to economies worldwide. It has opened up new
markets and opportunities for businesses to expand their reach beyond domestic boundaries. It
has also allowed countries to specialize in the production of goods and services in which they
have a comparative advantage, leading to increased efficiency and productivity.

Furthermore, globalization has played a significant role in poverty reduction and economic
development. By integrating into the global economy, developing countries have been able to
attract foreign direct investment, access new technologies, and participate in global value chains.
This has contributed to economic growth, job creation, and improved living standards in many
parts of the world.

Moreover, globalization has facilitated the exchange of ideas, knowledge, and culture. It has
enabled people to access information and communicate with individuals from different
backgrounds and perspectives. This cross-cultural interaction has fostered innovation, creativity,
and the dissemination of ideas, leading to cultural diversity and the enrichment of societies.

However, globalization has also faced criticism and raised concerns. One major concern is the
uneven distribution of benefits and the exacerbation of inequalities. While globalization has
brought prosperity to many, it has also left behind marginalized communities, widening the gap
between the rich and the poor. The concentration of wealth and power in the hands of a few
multinational corporations has raised concerns about economic exploitation and social injustice.
Additionally, globalization has led to environmental challenges. The increased movement of
goods and people has resulted in higher carbon emissions, resource depletion, and environmental
degradation. There is a growing recognition of the need for sustainable practices and policies to
mitigate the negative environmental impact of globalization.

Moreover, globalization has sparked debates about cultural homogenization and the loss of local
traditions and identities. The dominance of Western culture and the spread of global media and
consumerism have led to the erosion of indigenous cultures and languages in some regions.

E-business
E-business, also known as electronic business, refers to the use of electronic technologies,
particularly the internet, to conduct business activities. It encompasses a wide range of processes
and applications that enable organizations to operate and interact with customers, suppliers, and
partners electronically.

E-business involves various activities, including online marketing, e-commerce, supply chain
management, customer relationship management, and electronic data interchange. It leverages
digital platforms and technologies to streamline business operations, enhance efficiency, and
create new opportunities for growth.

One of the key aspects of e-business is e-commerce, which involves buying and selling products
or services online. E-commerce platforms enable businesses to reach customers beyond
geographical boundaries, providing them with a global market reach. Customers can browse and
purchase products or services conveniently from their computers or mobile devices, and
businesses can accept payments securely through online payment gateways.

E-business also facilitates online marketing and advertising. Through digital marketing strategies
such as search engine optimization (SEO), social media marketing, email marketing, and content
marketing, businesses can reach a wider audience and target specific customer segments more
effectively. Online marketing allows for real-time tracking and analysis of marketing campaigns,
enabling businesses to make data-driven decisions and optimize their marketing efforts.

Supply chain management is another critical component of e-business. With digital technologies,
businesses can streamline the procurement, production, and distribution processes. Online
platforms and systems enable efficient inventory management, order processing, and logistics
coordination. This can lead to cost savings, improved inventory turnover, and faster order
fulfillment, ultimately enhancing customer satisfaction.

Customer relationship management (CRM) is also greatly facilitated by e-business.

Organizations can use customer data and analytics to gain insights into customer preferences,
behavior, and needs. This information can be utilized to personalize marketing messages,
improve customer service, and build stronger relationships with customers. E-business enables
businesses to manage customer interactions through various channels, including websites, social
media, email, and live chat.

Additionally, e-business enables electronic data interchange (EDI), which involves the electronic
exchange of business documents between organizations. EDI allows for seamless communication
and collaboration between trading partners, automating processes such as purchase orders,
invoices, and shipping notifications. This can lead to faster transaction processing, reduced
paperwork, and increased accuracy.

However, e-business also presents challenges and considerations. Security and privacy of
customer data, as well as protection against cyber threats, are major concerns in e-business.
Businesses must implement robust security measures, including encryption, secure payment
gateways, and data protection protocols, to ensure the integrity and confidentiality of customer
information.

Furthermore, e-business requires organizations to stay updated with rapidly evolving

technologies and market trends. Continuous innovation and adaptation are crucial to remain
competitive in the digital landscape. Organizations need to invest in technology infrastructure,
train their employees, and cultivate a culture of digital literacy and agility.

The rise of e-business has been a direct result of globalization. Advancements in information and
communication technologies (ICTs) have made it easier for businesses to connect and operate on
a global scale. E-business allows companies to conduct various activities such as online
marketing, e-commerce, supply chain management, and customer relationship management in a
more efficient and cost-effective manner.

Globalization has facilitated the expansion of e-business by breaking down barriers to trade and
communication. It has opened up new markets and created opportunities for businesses to reach
customers in different parts of the world. E-business has played a crucial role in this process by
providing the necessary infrastructure and tools to enable cross-border transactions and
collaborations.

One of the key advantages of e-business in a globalized world is the ability to reach a larger
customer base. With e-commerce platforms and online marketplaces, businesses can sell their
products and services to customers around the globe without the need for a physical presence in
every market. This has allowed small and medium-sized enterprises (SMEs) to compete with
larger corporations on a more level playing field.
Furthermore, e-business has enabled businesses to streamline their operations and reduce costs.
Through online platforms, companies can automate various processes, such as order fulfillment,
inventory management, and customer support, leading to increased efficiency and productivity.
Additionally, e-business has facilitated outsourcing and offshoring, allowing businesses to take
advantage of cost-effective labor and resources in different parts of the world.

However, globalization and e-business have also presented challenges and concerns. One major
issue is the digital divide, where certain regions or groups of people lack access to the necessary
technology and internet infrastructure to participate fully in e-business activities. This can
exacerbate existing inequalities and limit the benefits of globalization for marginalized
communities.

Another challenge is the increased competition and market saturation brought about by
globalization and e-business. With businesses from all over the world vying for the same
customers, it has become more important for companies to differentiate themselves and provide
unique value propositions. This requires constant innovation and adaptation to changing market
dynamics.

Moreover, the interconnected nature of e-business and globalization has raised concerns about
data privacy, security, and intellectual property rights. As businesses exchange information and
conduct transactions online, there is a need for robust cybersecurity measures to protect sensitive
data from cyber threats. Additionally, issues related to copyright infringement, piracy, and
unauthorized use of intellectual property have become more prevalent in the digital age.

In conclusion, globalization and e-business have transformed the way businesses operate and
interact in the modern world. E-business has been a key enabler of globalization, allowing
companies to expand their reach, increase efficiency, and tap into new markets. However, the
challenges associated with globalization and e-business, such as the digital divide, increased
competition, and security concerns, need to be addressed to ensure that the benefits are shared
equitably and sustainably.