THE DEMANDS OF

GLOBAL
E-COMMERCE

CHAPTER 2
 Learning Outcomes
a. Describe the changes taking place in the business
environment and how firms have addressed these
changes.
b. Discuss the skills and knowledge that a 21 st century
professional must possess.
c. Explain corporate governance, business ethics, and the
code of conduct.
d. Discuss social accounting and environmental accounting.
Changes Taking Place in the Business Environment
Global E-Commerce
• All countries have gone global and
e-commerce.
• The world has become smaller
thanks to high-power information
technology and international
trade.
• Thru e-commerce, information
transcends time and place in just
one click.
• Teleconference, investing,
marketing, selling of goods from
across countries.
Changes Taking Place in the Business Environment
High Technology
• GPS, Zoom,
Bluetooth, WIFI,
tablet and AI.

Trade Liberalization
• no more trade barriers.
Internalization
• market became global –
wider and more
diverse.
How do Business Firms Address These Challenges?
World-Class Product and Service
• The challenge is to change, reinvent, retool and relearn.
• Let the other side of the world feel your presence.
• The key is creativity and innovation.
How do Business Firms Address These Challenges?
Mergers and Partnerships
Example:
 Ayala Land and Metro Pacific (MRT3)
 BPI and Philamlife (investments with life insurance).
 Business outsourcing.
How do Business Firms Address These Challenges?
Sustainability
A firm to survive must address three factors.
1. Profit Skill – financial performance.
2. People Skill – social performance.
3. Planet Skill – environmental performance.

A good number of firms have

already included social and
environmental awareness as
part of their core values.
What Happened to Some Firms?

Companies have
to move on and
embrace the
new world of
high
information
technology.
 To be Globally Competitive, Do You Have
These Qualities?
 To meet the demands of an ever-changing environment you must
undergo a lifelong process of learning.
 Knowledge is not enough. You need to have creativity and
innovation!
 Effective Communication Skills  Creative and Innovative
 Integrity  Critical Minds
 Positive Attitude  Interpersonal Skills
 Competency  Intellectual Skills
 Flexible and Adaptable
 Good Governance
 The process of directing the affairs of the firm with a view
of upholding standards and protecting the interest of all
stakeholders.
 Requires that a Code of Professional Conduct be set up to
guide businessmen to behave in a professional manner
consistent with high ethical standards expected of them by
the public.
 When you lose credibility, people will lose confidence in you,
doubt your sincerity, and ultimately they will withdraw their
support from you and your firm.