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Globalization and IT Business Report (Assessment)



In the contemporary world, information technology role on everyday activities has significantly increased. The modern businesses are characterized by high level of information technology, which has improved the level of efficiency to a greater extent. Information technology has facilitated interaction among different people from all over the world. This has facilitated business activities through such interactions.


In every business, information plays a pivotal role in making critical decisions about an organisation. It also facilitates various business activities hence improving the level of efficiency. In the contemporary world, information has enabled many organizations to meet their customers or clients all over the world through the social networks.

Social networking applications is part of technological advancement whose popularity has rapidly increased in the recent years with the rise of globalization where there is an urge of interconnectivity among individuals and organizations irrespective of the distances involved.

The social networking applications are mainly used for communication and dissemination of information that could be of essence for continuity of the organizations. Although the application of technology in different activities and practices in organizations is associated with a lot of benefits, there are also security threats that go hand in hand with it. These have threatened the effectiveness of information technology application.

Through the advancement of the information technology, many businesses have managed to overcome the barriers related with physical limitations. As a result, this has led to increased efficiency in business operations. For instance, many organizations have been incurring high costs through paperwork.

For example, customers were forced to travel up to the warehouses in order to make orders. Organizations were also forced to hire more people to record these orders. Furthermore, customers sometimes may be forced to travel for long distances so as to make orders. All these costs have been eliminated through the development in information technology. Customers can now make orders online.

This process solves both time and financial resources. According to Jorge (2002), information communication technologies are a contributing factor towards growth and development of an organization through facilitating information dissemination, allowing for access to technology and knowledge and providing a variety of communication capabilities among other benefits.

In the contemporary business world, social networking applications have significantly increased (Boyd & Ellison 2007). This has been fuelled by the increased interconnections in the society. Many companies have embraced this technology in their day to day operations. Most of the multinational companies are using social network in marketing (Anonymous 2009).

There are however many challenges that are associated with the use of information communication technology (ICT) especially due to the requirements that are needed to facilitate the effective establishment and implementation of the strategies. For instance, high cost of access and limitation of infrastructure, lack of knowledge or awareness of the ICT policy which may compromise an organization’s activities when not adhered to.

Information technology has also significantly contributed in the international business through the supply management. According to Shore (2000), the internationalization of the supply chain management has significantly led to the improvement of competitive advantage of many organizations. Information technology has significantly led to the improvement in effectiveness in the supply chain.

Through the development of information technology, many business transactions have been simplified. For instance, customers can now be able to order for goods online rather than visiting the stores physically to make orders. Through globalization, many organizations have extended their services to various parts of the word.

Business operations in such areas may be too complicated because of the geographical differences. In such a case, coordination of activities may not be effective using the traditional ways. However, information technology has simplified the coordination of activities in certain organizations all over the world.

This also enables an organization in making critical decisions. For instance, information technology will enable an organisation to integrate its planning control and coordination of activities between its headquarters and its different intermediaries. In this case, multinationals are forced to apply common information technology systems in order to coordinate effectively with its subsidiaries in other countries.

Information technology has also significantly contributed to research. Through the development of information technology, it becomes easier for an organisation to conduct important research which can be useful, for instance, in understanding the nature of the market. The results revealed through such research are very important because it helps an organisation in making appropriate decisions.

This helps in development of competitive advantage in an organisation. Through social networking, an organisation can be able to effectively market its products. One of the ways through which a company can do this is through social marketing. Through social marketing, an organisation is able to create and connect with many people to its brands despite their locations all over the world.

This method enables an organisation to reach more customers at a higher rate than in the case of the traditional methods. In other words, when an organisation applies the advanced information technologies in advertisement, they manage to lower their operational costs below their competitors’. Therefore, these organizations gains competitive advantage over their competitors.

Another way through which information technology has promoted business through globalization is through e-commerce. Through e-commerce, many organizations have managed to promote their performance in the global market. One of the method through which many organizations are applying in their marketing strategies is SMS interactive.

SMS Interactive is one of the most recently developed online advertisement method which can significantly help us in creating the company’s brand all over the world. The SMS interactive method helps in increasing the level of sales in an organisation. According to Face Media Digital (2011), this method assists a business to engage directly with its potential customers through their mobile phones and getting the feedback instantly.

This method will be very useful because it is more cost effective than the traditional methods of advertisement. Therefore, this will save a substantial sum of money for the organisation. In this method, it will be easier to take queries from consumers. In the process, the company will be able to increase the level of sales.

The SMS Interactive combines various marketing communications tools which significantly help in development of an organization’s brand in a most efficient way. Through this method, a company is able to read its responders’ mobile numbers that it can use in exchange of information about the product.

This will also helps in cultivating loyalty from potential customers. This method will also help us in concentrating on the traffic that is targeted in the market. Again, this will also help us in conserving financial and time resources by only investing in potential customers. In order for any business to able to sell its new product, it must be able to advertise and promote it (Business Resource Software, not dated).

Therefore, this method will significantly help an organisation in promoting its activities in the global market. Through SMS interactive method, an organisation is able to communicate with its customers wherever they are around the world.

As already noted, the process of globalization has significantly led to improvement of the international trade. In order to have free trade and economic growth, it is necessary to have free flow of information (Oz 1994). In the current business world, internet has connected various commercial organizations which are located all over the world. Such a network has significantly contributed to the welfare of businesses.

In other words, information has facilitated the international flow of data. However, there are still some cultural, political and technical barriers that obstruct free flow of such data. This hinders the international trade to a greater extent. According to Sunarno (2001), globalization promotes the profitability of business activities which is facilitated by information technology.

In the current business world, the level of business competition has significantly increased. As a result, many organizations are extending their services to other parts of the world. For these organizations to perform effectively in these areas, they need to understand the cultural-political differences which exist among the people around the world.

Therefore, it is also important to understand these differences among different people and its implication on the differences in information technology. Businesses needs to understand which forms of information technology works best in specific places in order to achieve the best from their strategies.


In conclusion, this discussion has clearly shown that information technology has significantly affected the way businesses operate in the global environment. From the above discussion, it’s clear that information technology has enabled many organizations to improve on their operations.

Through social networks, an organisation is able to market its products cheaply and also to a greater number of people unlike in the traditional methods that requires a lot of resources in order to sell the company’s products. It is also cheaper to make other forms of transactions through the information technology.

However, some of businesses may not afford some forms of information technology due lack of adequate funds. Therefore, the business that applies information technology in its operations helps in developing its competitive advantage.

Reference List

Anonymous. 2009. Coca Cola embraces Social Network Marketing. Web.

Boyd, D. & Ellison, and N.2007.’Social Network Sites: Definition, History, and Scholarship’. Journal of Computer-Mediated Communication. Volume 13, Issue 1 DOI: 10.1111/j.1083-6101.2007.00393.x

Business Resource Software, Inc. n.d. Marketing Plan. Web.

Face Media Digital. 2011. SMS Interactive. Web.

Jorge, N.S. 2002. . Web.

Oz, E. 1993. Barriers to International Data Transfer. Journal of Global Information Management. Vol 2 No. 2. Pp22-25.

Shore, B. 2000. Size and Culture as Determinants of IT Strategy in International Supply Chain Management. 2000 IRMA International Conference. ITP4478. pp 148-151.

Sunarno, S. 2001. Globalization and Information Technology. Asian Review of Public Administration, Vol, XIII, No. 2. pp 63-76.

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