Nama : Fauny Deavaty HS

NPM : CA417112559

Kelas : 17-DT

KUIS

Question :

1. How might cultural, political, or geoeconomic chal- lenges affect a global company’s use
of the Internet? Give several examples.
2. What challenges do you see for a company that wants to implement collaborative SCM
systems? How would you meet such challenges?
3. "Planning is a useless endeavor because developments in e-business and e-commerce and
in the political, economic, and societal environments are moving too quickly nowadays."
Do you agree or disagree with this statement? Why?
4. Are you interested in investing in, owning, managing, or working for a business that is
primarily engaged in e-commerce on the Internet? Explain

Answer :

1. Cultural challenges include language, religion, customs, business practices, and personal
interests. All these things need to be taken into account when a company decides to
create an international website or extranet.
Political challenges include laws and regulations governing data transfer or content
and reciprocal trade agreements. Many countries require international companies to
ensure a portion of profits is invested back into the hose country. Movie production
companies run into this issue in England all the time. England requires British actors to
be used in some capacity in order for an outside company to film there.
Geo-economic challenges include time zones, cost of living/labor, availability and
capability of internet, and of course distance. If a country doesn’t have the means or
ability to access the internet, then what’s the point of investing money in a specialized
internet environment for that country?
 Global IT management does not exist in a vacuum. Global IT management must focus on
developing global business IT strategies and managing global application portfolios, technologies,
platforms, databases, and systems development projects. Managers must also take into account the
cultural, political, and geographic differences that exist when doing business internationally.

 Political Challenge: - Political challenges facing global business and IT managers

include:
 Many countries have rules regulating or prohibiting transfer of data across their national
boundaries (transborder data flows), especially information such as personnel records.
 Restrict, tax, or prohibit imports of hardware and software.
 Local content laws that specify the portion of the value of a product that must be added in that
country if it is to be sold there.
 Reciprocal trade agreements that require a business to spend part of the revenue they earn in
the country in that nation=s economy.

 Geoeconomic Challenges: Geoeconomic challenges in global business and IT refer to

the effects of geography on the economic realities of international business activities.
These challenges include:
 Physical distances involved are still a major problem
 Worlds’ 24 time zones contribute to communications problems
 Lack of telecommunication capabilities in some countries
 Lack of specialized job skills in some countries, or enticing specialists from other
countries to live and work there
 Cost of living and labour costs in various countries.

 Cultural Challenges: - Cultural challenges facing global business and IT managers

include:
 Differences in languages, cultural interests, religions, customs, social attitudes, and
political philosophies.
 Differences in work styles and business relationships.
 Global Operations
 Global Resources
 Global Collaboration
2. Solution :
The Challenges of SCM are :
 Lack of Knowledge about Demand Planning
 Innaccurate/Overly Optimistic Demand Forecast
 Innacurate Production, Inventory and Other Bussiness Data
 Lack of Adequate Collaboration Among Marketing, Production, and Inventory
Management Development

Ways to meet such challenges :

 Improve Internal Supply Chain Prossees and Improve Relationship with suppliers and
customers
 Use supply chain software, intranets, and Extranets with Trading Partners
 Develop and Implement Collaborative SCM Applications

3. Planning is not a useless endeavor because it sets objectives, allocates resources, fixes
responsibilities; helps monitor/control, and gives overall direction.
I do not agree with this statement. Planning is useful because it gives direction to an
organization and strives to achieve its objectives. The developments in e-business and e-
commerce and in the political, economic, and societal environments are external
developments. They have an impact on the organization but planning takes into account
unexpected changes in the environment. In fact, planning ensures that even though
developments in e-business and e-commerce and in the political, economic, and societal
environments take place, the organization achieves its objectives.

4. What’s on the trend and what is likely to be in trend for long run always attracts people
to join because it is going to be fruitful to stay by its side. Emerging technologies and
concepts regarding internet business is flourishing and making its impact throughout the
world, so definitely I would like to get attached with this developing trend in some ways.
Technology keeps on getting improved and when there is development in the work I do
there is more chance of my knowledge and financial development. So, whether being an
investor, owner or a manager working for a business I would like to get associated with
business which is engaged in e-commerce on the internet.