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Has Globalization Enabled the Incredible Growth in IT - Coursework Example

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The paper "Has Globalization Enabled the Incredible Growth in IT " is an outstanding example of coursework on business. Information Technology (IT) has enabled a dramatic increase in globalization. Globalization refers to the increased interdependence of world economies due to the growing integration of international trade, people, and ideas in a single global marketplace…
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Name: Tutor: Title: Globalization and Business IT Course: Date: Question Three: Has Globalization enabled the incredible growth in IT over the last 30 years or has IT enabled the dramatic increase in Globalization? Information Technology (IT) has enabled the dramatic increase in globalization. Globalization refers to the increased interdependence of world economies due to the growing integration of international trade, people and ideas in a single global marketplace. Therefore, the two main features of globalization are that it is not an end process but a continuous one that keep on growing and gaining space. Globalization is also a process that makes world economies heavily rely upon each other. Advancements in the Internet have increased e-commerce, creating firms that increasingly compete in the global markets. Due to the 24-hour accessibility of the Internet, consumers across the world are able to shop products online from most reliable sellers who offers what best suits them. Generally, the Internet provides such firms with affordable and global reach marketing opportunities, and thus enabling small businesses operating at local level to serve customers who are not in their geographical locations. However, it is notable that despite this global reach enabled by the Internet that makes it a potential force of globalization, there is imbalance in the spread and use of the Internet across the globe (Maziar 2011). Technological change is also a major driver of globalization particularly the recent dramatic developments in communication and information processing as well as transmission technologies. Technological change has played an integral role in lowering the various barriers of trade which has facilitated the globalization of markets. A part from the explosive occurrence of the Internet and the World Wide Web, other technological changes in communication and information processing and transmissions have made the globalization of markets a reality. For example, changes in telecommunications technologies and microprocessors are creating more global audiences. Therefore, the worldwide communication network is a major driver of international businesses, for instance, Dell Company relies on the Internet to operate and control its globally dispersed type of production system (Fair Trade Certified 2010, pp.14-16). Today, a number of people are able to process and share information that is in digital form. This global advance has to a great extent reshaped economies as well as the social infrastructures of various countries across the globe. IT is considered a major driving force as far as globalization process is concerned. For example, advancements in computer hardware and software and in telecommunications have facilitated the widespread developments in the accessibility of valuable information and economic potentials. Through IT communication networks, new products, ideas and resources are shared among nations and individuals regardless of their geographical distances. Therefore, IT is a major contributing factor for global integration because of its capability to offer appropriate communication channels to exchange information (Global Envision 2006). Friedman (2006, p.50) argues that although the improvements in communication technologies were initially seen as important in the establishment of a globalized world, he does not ignore other factors such as supply-chaining, integration and standardization, in-sourcing and outsourcing, off-shoring, informing and Steroids as flat world platforms or key forces that flatten the world to mere dependence on the advancements in technology. Friedman added that the most fundamental concern is to understand why such technologies were highly demanded and how to utilize them in the global world. However, Friedman noted that the development of personal computers (PC) enabled the digitization of information, an enormously significant development n communication technology. The process of digitizing information has enabled the creation and manipulation of information, and thus individuals and contemporary organizations have become more productive in the areas of e-commerce and general online communication. The emergence of Apple and Windows-enabled as well as IBM built PCs, helped people to get access to the power of computers not only in the institutions of learning or computers labs but also connected to the digitizing power in their respective homes. The general idea here is that using advanced communication technologies, for example, connecting a modem to a computer so as to deliver the digitized information to different people across the globe, has enabled a good number of people to reach and share information with others who are not close to them or in their immediate setting (Friedman 2006). Increased use of the Internet and the Web have changed the manner in which online businesses are being conducted, for instance, new ways are created for e-retailers and customers to effectively conduct online transactions. It should be noted that the Interned and the Web have led to many transformations in commerce industry in terms of how businesses manage the flow of their production inputs as well as global market products, online job opportunities are created and advertised. Similarly, the news industry has undergone dramatic transformation due to increased use of various Internet-enabled news gathering and reporting outlets. In particular, different Internet-based communication systems such as emails, chat rooms and websites have connected people from diverse corners of the world, enabling them to exchange valuable information and work collaboratively. IT is also transforming the education sector by promoting e-learning websites through the use of communication and demos or presentational software as sources of educational information (Global Envision 2006). Research shows that people across the world use their cell phones, PCs and laptops to text others and surf the Internet. This implies that IT is everywhere and changing the manner in which individuals in different parts of the world live their lives. Furthermore, developments in Internet-based technologies, for instance, the social networking sites such as face book, LinkedIn, twitter and the rest of other Web2.0 applications have become influential in people’s social lives. This is because such sites determine how individuals share or make use of the available information for their personal, economic or commercial and political motives. As a result of these developments, different sectors of different economies have become more efficient in their performance because of IT innovative projects that create new products and promote ideas overseas and across cultures. Therefore, it cannot be doubted that IT-based products are being used in various aspects of individual or organizational performance in today’s industrial societies. It has been observed that for the past 30 years, desktop personal computers could be strictly used by a few people who were competent enough to use IT applications (Walsham 2001). In today world, however, the increased use of the Internet and the Web has influenced more transformations in the area of commerce. Thus, enhancing the manner in which traditional and e-commerce retailers and their customers carry out their transactions in terms of supply chain management, product marketing as well as recruiting competent people. It is important to note that IT is at the forefront of today’s world in which new jobs are created, innovative projects implemented and networking sites help people to connect globally(Suny Levin Institute 2013). New applications of ICT such as transmission technologies that provide communication links to the global markets or enhance consumer-producer responses have facilitated the integration of markets across the world. Such effects are being reflected in the processes involved in design and production of goods and services of competing industries. This means that producers who are knowledgeable about computer-enabled design respond effectively to the market signals in a more flexible and speedy way. The increased competition and pressure resulting from globalization and market integration have made large-scale manufacturers to improve in their inputs, monitor the global market and competitors for sustainable strategic purposes (Kosakowski, 1998). Due to technological changes in the ICT sector, the marketing systems for various commodities and globally traded and standardized goods have been revolutionized through integration of market-determined prices of economies across the globe. It is necessary to note that timely and detailed information related to the performance of global markets or point-of-sale as well as connections to clients and distributors are some of the major contributions of IT in enhancing the process of globalization. Today, it cannot be doubted that some consumers are able to reach tailor-made products and services, establishing market niches (World Information Technology & Services Alliance 2008). The advances in ICT and increased spread of knowledge have resulted in a new era known as knowledge and information that determines the economic and social as well as cultural and political development of different regions across the world. This implies that technological innovation continue to be a major contributing factor to globalization by offering the needed infrastructure for global connections. In this globalized world, it has been practically examined that individuals or organizations that have access to technology, information, resources and global markets enjoy the benefits of globalization. However, those who are poor or inaccessible to such valuable resources experience the negative impacts of globalization. It is relevant to point out that less developed countries or individuals without resources to access and embrace technological changes, information and global markets will continue to be marginalized because they cannot transform their economies (Ogunsola 2005). Question Four: Compare and contrast two specific business examples of social media campaigns for building and sustaining community. One of the significant aspects of Social media is to create community online environment and enable sustainable Customer Relationship Management (CRM). Social media has promoted relationships between companies and its suppliers and regulators, customers and employees, and thus making business transaction or production process shorter than before. This means that companies use social media to enhance their supply chain. Companies that are succeeding through sustainable competitive advantage use social media sites as platforms to increase employee morale and enhance their internal communications. For example, companies are using social media sites to attract and acquire the most competent people to fill their job vacancies. Over and above, modern companies rely on social media to develop stronger and sustainable, brands, customer loyalty and increase their market share (Ernest & Young 2012). Today, social media platforms have become popular due to dramatic increase in number of social media users and organizations that rely on them for online advertising. Online communities are divided into three major types; the member-initiated type of online communities that is more concerned with mutual interests and communications among users who involve in online sharing of information and contents. Organization-sponsored online communities create business-oriented environments for business activities, building brands as well as enabling interactions between organizations and their customers. Salesforce.com is one of the examples of the organization-sponsored online communities. The last category of online communities is third-party created community, for instance, eBay that promotes interactive communication and transactions between the buyers and sellers because of its capability to create a safe environment for various business transactions (Lehtimaki et al 2009). Contemporary businesses are increasingly building social media programs that can enable them to get closer to their customers. This means that the potentials of social media can be realized only if companies design experiences that can offer tangible value to the customers’ needs at the appropriate time. Companies are not only required to embrace the shifts in the online communities with new strategies of social Customer Relationship Management (CRM), but also create collaborative experiences and foster dialogue that is highly valued by their customers. It is crucial for companies to be well-informed about the dynamics associated with consumer growth as well as the activities done on social sites. This would enable them to monitor the consumer attitudes and what exactly motivates them to use a company’s products or services. The benefits of the social community projects and influences can be realized if someone likes a particular company on Facebook or sends a message concerning the performance of the company VIA Twitter (Baird & Parasnis 2011, p.11). Consumers worldwide and in all generations have developed much interest in using social media platforms such as Facebok, Twitter and LinkedIn, though most of them interact on these sites occasionally. This implies that even though social media has become more advantageous for many quite a number of people and organizations, only a few consumers engage with social media platforms on regular basis where they only recommend on posts and providing their own views about contexts that satisfies them. It is important for contemporary organizations to understand the perception versus reality affecting exactly what their consumers may want (Baym 2007) The two specific business examples of social media campaigns for building and sustaining community Social media platforms have created new systems of integration. It is important to note that over the years before the invention of social media, brands such Apple and Starbucks succeeded in global market because of their integration with other developed consumer subcultures like pop culture and strong ideals for Apple. This created an offline world in which sustaining brand cultures was seen difficult without access to direct medium of communication to consumers. However, today social media platforms has created a new era of integration because of their unique features to keep brands that make companies to achieve sustainable competitive advantage. For example, social media offers platforms through which individuals interact with each other, enabling brands to improve and sustain their cultures for their products (Dubois 2013). Today, it can be noted that brand cultures are no longer built by brand managers but through consumers and their perceptions on such brands. A good example is Coca-Cola’s Facebook link that was created as result of individual consumers’ views rather than the brand itself. Therefore, in developing successful social strategies for their marketing campaigns, managers should have a clear view of their social base or engine whilst designing their campaigns. The most fundamental idea is that brands are connected with consumers through use of social media as a way of building strong cultures over their products and services (Dubois 2013). Secondly, one of the key services of social media is asset creation and development. Digital assets are taking different forms, and thus it becomes crucial for contemporary organizations of individuals to be aware of which assets are appropriate to them and how develop them. This involves assessing and developing the various digital assets needed for social lives such as Facebook campaigns, Twitter Profiles as well as YouTube series. In today’s world of social media, appropriate design and creation of digital assets saves future costs for contemporary organizations. Pandemic Labs provides the services of building, managing and tracking organizations’ social assets. Thus, companies that use the services of Pandemic Labs benefit financially because they can streamline and unify their processes and strategies (Pandemic Labs 2013). Community management, advertising and promotion are also significant business examples of social media campaigns for building and sustaining community. Basically, social media marketing involves creating and sustaining different communities of consumers. For example, Pandemic Labs do this by managing various communities on different social media platforms such Facebook, LinkedIn, Twitter and YouTube for brands across the globe. As a result, Pandemic Labs no longer consider their role as promoters of community management but rather as community cultivation. It is crucial for contemporary organizations to leverage on their data and personal touch as a way of ensuring that their communities develop and enable them to achieve the intended business results. On the other hand, social media platforms are dominated by people and brands that continuously compete for views from consumers. Therefore, hyper-targeting the most needed consumers as well as ensuring quality engagement with them are crucial to successful social advertising (Pandemic Labs 2013). Social media platforms are also being used as marketing tools. Constantinides et al (2008 pp.231-32) examine that increased use of social media platforms has potentially made them useful transformational tools for social marketing promotions. Similarly, Thackeray et al (2008) argue in support that Web 2.0 types of social media provide contemporary organizations with the necessary platforms to directly engage their consumers in production process. These benefits are achieved through creation and dissemination of information in form of collaborative writing, syndication, social networking or content sharing. As a result, buzz marketing is promoted that encourages social media users to share marketing messages about a specific product across the world. This increases the rate at which experiences and ideas about products or services are shared among consumers or with other audiences (Thackeray et al 2008). What are the lessons learnt from these examples and how could they be improved? The major lesson to be learnt from the new era of integration, asset creation and development as well as community management, advertising and promotion business examples of social media is that brand cultures are no longer built by brand managers but through consumers and their perceptions on such brands. Therefore, in order to develop successful social strategies for their marketing campaigns, managers should be able to understand their social base or engine before designing their social marketing campaigns. It is also important to note that brands are connected with consumers by use of social media as a way of building strong cultures over their products and services. Social media marketing is important in creating and sustaining different communities of consumers. It can also be noted that contemporary organizations must leverage on their data and personal touch so as to ensure that their communities develop and encourage them to achieve their intended business results. Contemporary organizations need to know that social media platforms are enabling succeeding organizations and brands to continuously compete for views from consumers. Therefore, hyper-targeting is one of the significant approaches to communicating with the most needed consumers by ensuring quality engagement with for successful social advertising. It is also necessary to point out that the benefits of social media can be realized only if companies design experiences that significantly meet the customers’ needs and at the appropriate time. This means that companies are not only expected to embrace the market shifts in the online communities with new strategies of social CRM), but also maintain their collaborative experiences and involve in dialogue that leaves their customers satisfied. However, it is crucial for companies to understand the dynamics associated with consumer growth as well as the activities accomplished on social sites. In so doing, they will be able to monitor their consumers’ attitudes and what exactly motivates them to use the company’s products or services. Question Five: In today's current business environment can any company conduct an ethical global supply chain? Discuss It is important to note that in the same way various economies and financial markets have become global and interconnected, supply chains have become more exposed to different shocks and disruptions. The fundamental question is that how are the managers of supply chains coping with this global ethical concern? In today’s inter-connected world or business environment, a number of global companies are making every effort to ensure that that their extended supply chains act in a more socially and responsible manner. Supply chain responsibility has become an issue of great concern particularly for companies involved in outsourced production, for instance, the textile and manufacturing companies. It is necessary to point out that a responsible business strategy helps companies to engage more constructive dialogue or directly solve ethical issues with their suppliers. Therefore, it is crucial for companies to emphasize on the need for their suppliers to maintain the principles upheld by such companies, practicing responsible supply chain throughout their supply chain. Majority of the corporate buyers are demanding for detailed social and environmental information from their suppliers about the products and services they get from them. For example, certain companies are asking for specific certifications regarding the conformity standards for their suppliers’ social responsibility (International Chamber of Commerce 2010). Professionals in supply management are required to behave responsibly and ethically as well as active encourage ethical conducts across their supply chains. On the other hand, organizations are highly encouraged to manage their supply chains responsibly by creating, publishing and enforcing ethic policies. According to the Institute for Supply Management, the ethical standards for achieving or managing a responsible supply chain include avoiding conflict of interest between the people and the business activities of their organizations, discouraging reciprocal agreements, obeying the relevant law or regulations and Trade Agreements, encouraging the stakeholders of the company to exercise professional competence in particular, conducting businesses that only competence and fosters supply managements skills. However, companies must ensure that confidential or proprietary information that concerns them is well protected. It is also important for companies to foster a positive supplier-customer relationship and avoid issues of negative influence their supply management decisions (Institute for Supply Management 2012). How Nokia Company conducts a Responsible Supply Chain Management Nokia being a major global company, interacts with different suppliers from time to time which gives the company great responsibility to maintain high standards of corporate responsibility and supply chain management. Nokia works hard to ensure that their suppliers enhance a safe work environment, exercise ethical labor practices, involve in environmentally-responsible aspects of manufacturing processes to ensure that their operations do not impact their environments negatively. The company has developed its own Supplier Code of Conduct that shows standards of business conducts expected of their suppliers. Therefore, each of their suppliers is required to comply with the principles of the code of conduct despite the geographical locations (Nokia Company 2013). Nokia Company has adopted different assessments methods that it uses to measure their supplier’s compliance against their principles of Code of Conduct. However, in so doing, the company ensures that their suppliers also increase their performance level. One major assessment method that Nokia uses to measure the environmental as well as social performance of their supply chains is the on-site assessment of the supplier sites. This is done on regular basis to assess the supplier compliance with the company’s supplier requirements. In addition, Nokia Company reviews its entire supplier’s policies and procedures by conducting thorough environmental and ethical assessments. The company inspects its manufacturing facilities by interviewing the senior management, facility workers and health facilities (Nokia Company 2013). Nokia Company also believes that by addressing their supply chain issues based on industry perspective will enhance their supply chain performance. The company shares its knowledge and experiences with stakeholders from other businesses, specifically those in the Information and Communication Technology (ICT) sector. Since 2007, Nokia has been an active member of an organization known as Global e-Sustainability Initiative (GeSI) that works in collaboration with another global organization-the Electronic Industry Citizenship Coalition (EICC). These two organizations work together to foster good conduct and encourage ethical practices that help in measuring and enhancing corporate responsibility performance within the ICT sector supply chain. Through their extensive research carried out to investigate the common challenges facing the supply of metals, Nokia has worked collaboratively with the two industry associations to identify and monitor the sources of metals that are recycled in the electronic products as well as examine the capability of the metal industry in influencing conditions. Similarly, Nokia Company is supporting the implementation of the Organizations for Economic Cooperation and Development (OECD) Due Diligence Guidance aimed at promoting responsible supply chains of the minerals mined from conflict-and-risk affected regions (Nokia Company 2013). The environmental policy of Nokia Company is to manufacture phones basically in their own factories by observing the highest ethical standards to create safe environment and supportive labor conditions. The company also acknowledges that being closer to suppliers and partners create more environmental benefits. Through Nokia Natural Resources Policy, the company plans to monitor and ensure that materials used to develop products are provided by responsible sources. For example, through their program of reducing the environmental impact of their supply chain, Nokia believes that adopting a holistic approach to promoting safe environment helps to manage their supply chains responsibly. Therefore, the company has worked collaboratively with its suppliers to develop environmental policies that help to monitor and control the consumption of energy, manage air emissions and wastes or other hazardous substances that are generated as a result of their operations. In order to enhance social conditions within their supply chain, Nokia ensures that all their suppliers to engage in only ethical labor practices so as to maintain the highest standards of good health and safety precautions. The company requires their suppliers to have their own policies, involve in risk assessments, carry out management reviews, and thus creating conducive labor conditions (Nokia Company 2013). Other companies that conduct an ethical global supply chain include IBM and Sodexo. IBM Corporation conducts and promotes an ethical global supply chain. The company is shaped and defined by its values that determine its entire relationships between people in the company and their shareholders, clients as well as the communities and the company’s network of suppliers. In developing its supply chain relationships, IBM is aware that its strong purchasing power is a competent factor that must be managed in a more responsible manner. The company spends over $3 billion every year with its diverse suppliers as compared to other technologies. Therefore, takes the corporate responsibility not only to hold itself but also its suppliers to higher standards of ethical behaviors. It is quite clear that promoting a responsible supply chain management requires a company to exercise strong commitment to working collaboratively with its suppliers so as to promote ethical practices and build viable global markets. IBM ensures that its channel of communication remains open with their suppliers to enable the company set expectations (IBM 2009). Since March 2013, IBM Company has been relying on the Electronic Industry Citizenship Coalition (EICC) Code of Conduct as its main supply base. The Code of Conduct controls the IBM Supplier Conduct requirements and acts as the basis for setting the expected social responsibility standards from the suppliers in conducting business with IBM. It can be noted that IBM Company is keen to promoting responsible supply chain management. This is achieved by ensuring that their suppliers adhere to the company’s expected ethical standards for its sources of supply that IBM uses to produce goods and deliver its services. Failure to comply with the requirements of the EICC Code, IBM will be required to take the necessary action against the suppliers and this may include taking measures such as terminating the business as per the contract terms. IBM has developed its conflict minerals standard because they are aware of the adverse impacts of mining in conflict areas. The company does not accept in their supply those products containing minerals that either directly or indirectly benefits the armed groups such as Democratic Republic of Congo. This implies that IBM expects its suppliers to take into account the requirements of the EICC code of conduct so as to acquire only safe minerals from responsible suppliers or sources (IBM 2011). Sodexo Company through its supply chain code of conduct promotes ethical global supply chain by providing quality of life services. The company takes their suppliers as an integral part of their business which makes them to share their principles with the suppliers. Therefore, the company expects their suppliers to comply with their code of conduct that also include the fundamental human rights required at places of work as well as involve in business ethics or socially and environmentally accepted practices. For example, Sodexo ensures that all their new suppliers sign their Sodexo supply chain code of conduct. For those suppliers who fail to adhere to the requirements of the code, automatically makes the company to review their trading relationship with the suppliers or simply terminate the trading contract (Sodexo 2013). Bibliography Baird, H.C & Parasnis, G., 2011, From social media to Social Customer Relationship Management: Getting closer to customers, IBM Institute for Business Value. Baym, N.K., 2007, “The new shape of online community,” Journal of Swedish Independent music fandom, V.12, No.8, 61-74. Constantinides, E. & Fountain, S.J., 2007, “Web 2.0: Conceptual Foundations and Marketing Issues”, Journal of Direct, Data and Digital Marketing Practice,” Vol. 9, No. 3, pp. 231-244. Dubois, D., 2013, ‘What do Voltaire and Social Media Have in Common? A new era of interaction, Keeping brands alive and developing a social glue,’ retrieved October 1, 2013 from, Ernest & Young, 2012, The Internet Economy: The rise of consumer social media, Boston Consulting Group, Boston. Global Envision, 2006, ‘Information Technology and Globalization,’ retrieved October 2, 2013 from, Fair Trade Certified, 2010, ‘Recognizing the main drivers of globalization,’ retrieved October 2, 2013 from, . Fiedman, L.T., 2006, The World is Flat, Farrar, Straus and Giroux, Ch.2pp.50-100, New York. IBM, 2009, ‘The Smarter Supply Chain of the Future: Global supply chain,’ retrieved October 2, 2013 from, < https://www-304.ibm.com/easyaccess/cpe/.../CSCO_study_Fev2009.pdf‎ > IBM, 2011, ‘Supply chain social responsibility,’ retrieved October 2, 2013 from, International Chamber of Commerce, 2010, ‘Relations with suppliers: Business in society: making a positive and responsible contribution,’ retrieved October 2, 2013 from, Institute for Supply Management (ISM), 2012, ‘Ethics and Business Conduct,’ retrieved October 2, 2013 from, Kosakowski, J., 1998, The Benefits of Information Technology, ERIC Clearinghouse, Syracyse. Lehtimäki, T., Salo, J., Hiltula, H. & Lankine, M., 2009, “Harnessing Web 2.0 for Business to Business Marketing- Literature Review and an Empirical Perspective from Finland”, Faculty of Economics and Business Administration, University of Oulu Working Papers, No.29. Maziar, H., 2011, Factors that have contributed to globalization in recent years, Queen Elizabeth's School, Barnet. Nokia, 2013, ‘Responsible Supply Chain,’ retrieved October 2, 2013 from, Nokia, 2013, ‘Smarter manufacturing: Minimizing the environmental impact of our supply chain,’ retrieved October 2, 2013 from, < http://www.nokia.com/global/about-nokia/people-and-planet/supply-chain/supply-chain/> Ogunsola, L.A., 2005, ‘ICT technologies and the effects of globalization in the twenty-first century "Digital Slavery" for Developing Countries,’ Journal of Academic and Special Librarianship,V.6, No.4,1-2. Pandemic Labs, 2013, ‘Social Media Services,’ retrieved October 2, 2013 from, Suny Levin Institute, 2013, ‘Technology and globalization,’ retrieved October 2, 2013 from, Sodexo, 2013, ‘Supply chain code of conduct: Quality of Life Services,’ retrieved October 2, 2013 from, Thackeray, R., Neiger, B.L., Hanson, C.L. & Mckenzie, J.F., 2008, “Enhancing Promotional Strategies within Social Marketing Programs: Using of Web 2.0 Social Media”, Health Promotion Practice, Vol.9. Walsham, G., 2001, Making a World of Difference: IT in a Global Context, John Wiley and Sons, New York. World Information Technology and Services Alliance/International Data Corporation, 2008, The Digital Planet: The Global Information Economy. Read More
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