Comprehensive Management Information System Report: Business Insights

This report delves into various aspects of Management Information Systems (MIS), starting with an examination of e-commerce, including the use of customization and personalization, and their business value. It then explores the impact of the internet on competitive rivalry, followed by a discussion on the importance of data mining tools, the information they generate, and their applications. The report defines Geographic Information Systems (GIS) and highlights their business applications. It also covers authentication technologies, organizational policies, and an analysis of different Information Systems (IS) levels within business firms, along with the benefits of a socio-technical design approach. Part B of the report focuses on developing international information systems architectures, challenges in global business systems, the benefits of the Internet for global systems, and global internet user statistics. It applies Porter's Five Forces to the Internet, examines cultural and business factors driving globalization, and explores the benefits of globalization systems and challenges in international networks.

Management
Information System

Table of Contents
PART A...........................................................................................................................................1
Question 1........................................................................................................................................1
Mention Use of customisation and personalisation in e-commerce. Mention business value of
these techniques......................................................................................................................1
How internet make competitive rivalry among businesses more intense ..............................2
Question 2........................................................................................................................................3
Importance of data mining tools and discuss about what kind of information they generate. In
what circumstances a company can use data mining.............................................................3
Describe the term “data base” and mention three reasons why DBMS are good than flat files. 3
Question 3........................................................................................................................................4
Define the term GIS? Mention three ways by which GIS can be used by businesses
organisations...........................................................................................................................4
Mention two benefits of using enterprise system...................................................................5
Question 4........................................................................................................................................6
Name Authentication technologies that benefits in preventing hackers from getting access to
organisational systems............................................................................................................6
Discuss why organisations require to implement policies to protect themselves..................7
Question 5........................................................................................................................................8
Analyse the illustration and tell which IS does it represent and why. At which level this IS is
used in business firms.............................................................................................................8
Mention benefits of socio-technical design approach to information system......................10
PART B..........................................................................................................................................11
a. What steps should you take to develop an international information systems architecture? 11
b. What are the four specific types of business challenges to global business systems? Which
one do you think will be easiest to solve? Why?..................................................................12

c. How does the Internet benefit the development of a global information system? Should all
global systems be based on the Internet?.............................................................................13
d. Explore the Web for latest World Internet Users Population Stats for 2019 comparing at
least four regions in terms of Internet users distribution % and penetration rate (%
population)............................................................................................................................14
e. Apply Porter's Five Forces analytical framework to the internet with justification.........15
Porter’s Five Forces model:..................................................................................................15
f. Four general cultural factors and four specific business factors driving global business
including two elements most problematic at current moment and why?.............................17
g. General benefits can the retailer expect from a globalisation system..............................18
h. Describe four of the challenges involved with international networks...........................19
References .....................................................................................................................................22

PART A
Question 1
Mention Use of customisation and personalisation in e-commerce. Mention business value of
these techniques
Personalisation in E-commerce is referred to the practice of developing personal
connection, experience and interaction on e-commerce applications or sites with the help of
product recommendations and media content. E-commerce personalisation is used to remove
obstacles so that customer experience can be improved and people can purchase services or
product without any complexities. Customisation in E-commerce is defined as adjustment of a
service or product in accordance with the opinion and perception of customer. Customisation is
used to increase the satisfaction of users by offering them the chance to personalise their services
and products as per their requirements. This benefits the business organisations in sustaining a
positive image in marketplace (Abiteboul, André and Kaplan, 2015).
Business value of personalisation and customisation
Personalisation is very essential for business organisations as it forms an important part
of customer's experience. With the help of personalisation, a company is able to retain their
customers for maximum time period as each customer is targeted on individual basis. Business
value of customisation is that it assists an organisation in effectively targeting potential and
existing customers in accordance to their needs, opinion, choices and preferences. This will
allow the customers to have repeat visits due to which business firms can earn high revenues and
competitive advantage within marketplace. Both personalisation and customisation multiplies the
value of business. In earlier time, when these techniques or concepts were not popular, people
prefer to avoid purchasing if they do not get product of their choice. But now, this concept has
changed. With the help of these techniques, individuals can themselves design the products and
pattern they need to satisfy themselves (Shobaki and Naser, 2016). Main benefits of
personalisation and customisation to a business are enhanced sales and profits due to improved
conversions. According to the study carried out by Infosys, 86% of customers and approx 96%
of retailers thinks that personalisation and customisation influences their purchasing decisions in
a considerable manner. Also, these aspects benefits a business firm to gain high loyalty from
customers due to their increased satisfactions with the products and services offered by a
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company. This shows that both personalisation and customisation has positive business value
and benefits e-commerce firm in sustaining strong place within marketplace and minds of
customers.
How internet make competitive rivalry among businesses more intense
Intensity in competitive rivalry is defined as an extent up to which a business firm in a
business sector exerts pressure on another firm and limits profits of each other. Earlier, business
firms were competitive and tries to surpass the profits of rivals within a specific region. But due
to the advancement of internet, different business sectors and regions have integrated due to
which competition among business firms for survival has became more severe. Due to internet,
people are able to do digital shopping where that get substitute of every product. This is the
reason, customer is not dependent on the products of a single brand. This has create insecurity in
the minds of business organisation about their position and market shares. To avoid such
situation, every organisation is beaming digital and provide offers via online sites so that their
customer base can be maintained (Allen, Karanasios and Norman, 2014). For example, in
today's time entry and exit barriers are declining due to less cost of digital business models. This
is the reason without any infrastructure and physical assets also, a company can successfully
operate in market.
One instance in this respect is Club Factory or Amazon which are UK based online
shopping sites. These business do not have retail outlets but still it is successfully operating in
global manner and giving tough competition to big retail brands. Other than this, with the use of
internet, business firms can get customer data and identify their buying habits due to which they
can formulate effective marketing strategies to allure them. With the help of online shopping
sites and digital media, a company can snatch away the customers of other companies by
offering good discounts and benefits. Internet is the main reason due to which customers are
becoming more particular about their choice and shift their preference towards those companies
which are offering good value in less amount (Almarashdeh, 2016). To avoid this situation,
other company also retaliate and tries to provide best services in genuine prices. This creates a
rift between business firms and their main objective became to overcome the revenues of
opposite firm rather than comparing their overall performance with previous results. In this way,
competitive rivalry increases in businesses due to the increased use of internet.
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Question 2
Importance of data mining tools and discuss about what kind of information they generate. In
what circumstances a company can use data mining
Data mining is referred to the set of different methodologies that are used to analyse data
from different perspectives and dimensions along with searching of hidden patterns, grouping
and classification of data in a systematic manner. Important tools of data mining are oracle,
python, spark etc. These tools are very useful for a business organisation as it benefits the
manager of a company to analyse a data and convert it in some meaningful information. This
helps the firms in taking strategically right decisions against rivals so that high revenues and
profits can be earned in a considerable manner. Other than this, with the help of data mining, a
company a take smart decisions related to marketing and advertisement due to to which
maximum attention from customers can be take without any compromise.
There are different circumstances in which a business firm can use data mining tools like
rapid miner, python, oracle data mining, IBM SPSS modeler and various others. For an instance,
data mining can be utilised for fraud detection as traditional methods are complex as well as time
consuming. Through this, patterns can be analysed easily through which relevant information can
be attained(Anderson and et. al.,2015). When there is compromise with integrity and
confidentiality, data mining can be utilised for anomaly detection. Furthermore, there are
different circumstances in which this is being used like customer segmentation, financial
banking, corporate surveillance, research analysis, criminal investigation and many others.
Describe the term “data base” and mention three reasons why DBMS are good than flat files.
A database is a cluster of information of several data and compiling it together. In simple
terms its called as procedure which involves searching, collecting, analysing and filtering all
information. This definition generally defines whole process in gist. Their is a large amount of
data which is taken from web sites of different logins and databases. These are collected and
collaborated together in form of patterns, data relationship and co-relation to each other. In
business industry big multinational companies and government bodies all are in drastic collection
of information which will get them lot of purpose for doing business, plus research development.
Their are several information portals which do not provide exact information quotient,
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this makes it more difficult to put together correct information in co-relation (Bhatt and et. al.,
2014).
The term DBMS is used for correct collection of data and it is a way better process than
flat files. this can be distinctive by three following reasons.
 Data Consistency and Integrity: This is a very important advantage any DBMS provides
as main cause of it is data redundancy which in basic terms known as duplication of data
which is very common in file system. In DBMS, root cause of it is data redundancy, data
normalization is one to cool down to fixing issue like data redundancy. This procedure
takes care of this thing specifically so multiplication or repetition of same information is
totally avoided and space of storing files is also saved in this procedure.
 Data Security: Main aim of securing data is to have it secure through unauthorised
access, for example employee of an company should not be able to access payslip of his
seniors in organisation. DBMS provides a easier access to supply correct information to
particular person, no other person shall be able to get information out of that person.
Every person who has access to information should have separate login system which
will help them in giving data which is required for them to know. This saves them form
data theft and protects term of privacy of data.
 Easy recovery: In this process if information is lost in server and has to be collected back
one can seek information from having data back up, one of primary feature of DBMS.
Question 3
Define the term GIS? Mention three ways by which GIS can be used by businesses organisations
It is known as Geographic information system, its is a system created for capturing,
storing, manipulating, managing, analysing which will present all the information about
geographical data's. The main element in this system is geography, this state that some ratio of
data is actually spatial(Brocke and Rosemann, 2014).This data is related to most locations on
earth, which are either discover or yet to be discovered. This data is presented with attribute data,
which is any additional information related to spatial features. The correct balance of both these
information makes an successful operation of GIS, it makes it enable the specialise feature of
special analysis and makes it an problem solving technique or tool for it.
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It is not just a software there are several individuals & methods which can mix tools of
geospatial software then to activate this analysis one has to manage several large sets of data and
in the end display information in geographical form.
Their are three main ways in which this technologies are used in the day tot day lifestyle,
some of them are mentioned below:
 Mapping: this technology is provided by the GIS mapping which is actually an virtual
representation of data. For example gesture by google known ad “google maps” is best
example to understand this concept. People use it for daily navigation purposes, in their
smart phone and cars. This technology has developed since several years and now its
being used by several cities, their municipalities and especially by private industry.
 Telecom & network service: Any organisation can transform their incorporate
geographic area into an complex design of networks, maintenance & planning,
optimization of activities. It is important to define the networking procedure and this
technology helps in designing and creating healthy & safe networking for companies
(Demian and Walters, 2014).
 Accident analysis & hot spot analysis: this feature has invented itself in many section
which involves to locate any accidental citation on GPS immediately. This helps in many
situation where a person is incapable of locating the exact place of accident or without
much information can reach on time (Fenz and et. al., 2014).
Mention two benefits of using enterprise system
The technological standard one should use is very difficult to decide since they have to
provide and regulate at several stages of incorporation and deciding to do investment in such is
quite difficult. So the correct investment to do so shall be over ERP software investment.
Enterprise software can work in benefit for any size and type of organisation. The enterprise
resource software is a customizable application that is used in allowing businesses for integral
research and manage most of their important information. Their are several companies globally
which use this procedure and give a correct representation of resource planning. These are
actually considered as one of assets of an organisation. It makes working procedures very
smooth plus protect information on several grounds. Their are several advantages of this
technology two of them are mentioned below:
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 Focus IT costs: If one will compare between both ERP actually said to be more costlier
investment, but its one time solution for plenty things as well. Its reduces costing from IT
then instead for paying moderately for resources on different systems which needs to
have a big dedicated staffing system, proper infrastructure, licenses & support teams. All
these costs will be calculated into one investment of ERP but its only one time. If one
shall reduce the costing of IT and these investments and install ERP, a lot of IT costs can
be saved in overall usage (García-Holgado and et. al., 2015).Also, there are many feature
which are used in core functioning areas, such as customer resource management, human
resource management and importantly supply chain management system. In simple terms
it acts as an glue which binds all systems together with all essential data required to do
so.
 Total visibility: its one of the most important feature of ERP as one of the most biggest
selling points for software industry. It gives access to all important processes. In any
business by which making data from every department which is easily accessible. Its very
important to keep all information which is related to information in a very centralized
location which will allow for any increased collaboration and better completion of every
tasks.
Question 4
Name Authentication technologies that benefits in preventing hackers from getting access to
organisational systems
The procedure of authentication is weather determining someone or something is in fact
who or what they declare themselves to be. This technology provides access control over
systems by keeping constant watch to see if any user's credentials match the exact credentials in
the managed database of information. This is an authorised users portal or protection of data
authentication server(Hammer, 2015).Users are given their unique special id and its password to
access information in their account. Generally people are familiar with the password security as
it feels more secure than any other options. In this only general pieces of information is given to
users.
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Many authentication technologies are present for correct implementation under
preventing their data from hackers & securing information of organisation. Some of them are
mentioned below:
Two factor authentication: this type of protection adds an extra layer of information to
core and can provide several or multiple costing of information which will allow it for the
individual to give 2-3 verification factor then only it will enable it for getting information. In
general these include first an SMS password verification then login password and one more step
which utilizes correct id and password fort entering main server (Han and et. al.,2014).
Multi factor authentication: here the user has to provide authentication for more than
one factor and also had to establish strong grounds to prove that they have to guide and provide
correct authentication for gaining their personal details of banks, employee statements or any
other legal organisation.
One time password: This feature enable every time a person seeks authentication in
banks or buying some product online. Transferring money from one to another account. Here an
OTP(one time password) is generated which when put in server access to the information.
Biometrics: this technology identifies people who access information on basis of either
physical attributes like thumb print scan or face identification methods. The best example for this
is new smartphone which have the feature in which the phones are unlocked by scanning face of
the user. This lets only the main user of the phone enter the information only.
Discuss why organisations require to implement policies to protect themselves
Their are several organisations which require to have many citations and working
capabilities for correct working in organisation. The information every organisation has needs to
be clarified and provided correct data to authorised individual is very important. In this era of
hacking and phishing one needs to control plus protect their server in case there is an urgent need
for fact that there are several information on portal which will help in seeking correct
information and if its gone into wrong hand (Kailash and et. al., 2015). person or organisation
can miss-use it in many ways.
Their is a term called record management policy in which there are strict regulation in
which it is clearly stated that one has to guide and render plenty provisions. Their are several
specific organisation which have to provide a record management policy in which it shall be
described as per the regulations. Some of them are mentioned below:
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Compliance with law: these most policies are actually the litigated provisions which
have to be mentioned in books. Several are mentioned in contract agreement policies which have
to be mandatory uplifted for circumstantial provisions and should be done in context of fact that
there are multiple reasons one should have to be done properly. Their are several reasons where
one has to guide and provide several provision is passed by legal government bodies. The
company is always running under risk of winding up or huge fine if they do not follow obligated
rules and provisions.
Data hygiene: Its is very economically unfeasible if one does not maintain proper
protection of files and information of company. Even several electronic records have to acquire
space in data storage section which can occupy a lot space in hard drives. Their are finite
capacities which have to be kept clean and properly in which they have to be defined that there
are several resources and software which help in cleaning such process(Lemmey and et. Al.,
2015).
Inconsistency: any place where there are several employees goes through issue of data
multiplication and inconsistency in maintain correct records. To avoid such issues one has to
guide and provide a treatment for similar types of records, a correctly allied record or enforced
records which are management policy in which they are maintained and is widely enforced.
Question 5
Analyse the illustration and tell which IS does it represent and why. At which level this IS is
used in business firms
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IS Type Justification Organisational Level
EMPLOYEES
RAW DATA
OUTPUT
Here mostly information about all employees related to their details of
home, address, contacts, emergency contacts are mentioned and shall be
used as per the guides of illustrations. This also includes several past
records of employee such as last working organisation plus their
education qualification. All such details are essential for organisation to
maintain and accordingly the post and designation is assigned to such
individuals. Employees track record and in case of any special medical
aid which they might need in the working zone is also taken a look at.
Since, keeping verified documents and maintain such will present correct
analysis of any employee in case of any emergency.
This includes the number of hours an employee works and give correct
definition of their payroll as per their post and management working
skills. This has all the information of statistical data about the employee
as the working hours will depend upon type of business and extension
incentives are provided to employees in case of working over shift in
their daily hour shift timings. In case of such they are paid extra or are
given incentive or perks like taking leaves or coming in late working
hours due to over-shift work done for organisation.
It includes all the payslips and their management reports. A proper record
is kept of all member's which defines all their leaves and sick leaves or
incentives provided plus reduction in salary due to extra working hours.
Here the report represents have the qualitative work limit and it makes a
good qualification of all such employees.
Middle level management
Middle level management
Top level management
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Illustration 1: Payroll payment process

Mention benefits of socio-technical design approach to information system.
Its is widely accepted as fact that one has to provide several social technical aspects
which have to be guided correctly in today's world. The approach helps users get clear view and
understanding of procedure and deliver better values to all the stakeholders. Despite this being
one of the most easy approach it is not practised worldwide that much. This method directly hits
the approach of considering human, social and organisational factors also technical factors are
interfered for the correct creation of organisational systems. Its directly connected to social and
technical factors of functional usage of computer bases systems worldwide(Lim, 2016).
It has given wide rage of opportunities and scope to work out in correct effects and methods,
such as it has many benefits to organisations which directly effect working skills.
Here, it can be seen that there is a whole need of pragmatic approach which will help in
providing correct implementation and so that the information system is correctly worked up with.
their are no as such situation which have to be analysed the technical perspectives and explain
such analysis for further usage. Their are benefits which are directly connected to this concept
and some of these examples is mentioned file:
 The researches which work in their field are prominently working in the general
workplace the interest each have in designing of any work with original stimulus for
giving such socio-technical approach.
 The researches involve in information system, on a huge scale, the have taken up several
companies and the enterprise created has to focus on specific aspects which are computer
generated.
 Also another plus point in this categorisation is that manager who occupy several higher
post in any management position have to control and give focus to their respective teams.
This means a lot less money shall be used for occupying professional educated managers
who are paid according to their skills.
 This system is directly benefiting both parties involved in management. The one who
creates profits ad the one who gain them.
 These socio technical designs systems has created and produced several new methods
which have developed techniques of working in new techniques , cultures and other
elements required to follow up in this method.
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PART B
a. What steps should you take to develop an international information systems architecture?
Information system can be described as a collection of multiple pieces of equipment
consisting data dissemination (Link and et. al., 2017).It includes various parts such as computer
system connections & information, data system users, software, hardware and system's housing.
Meanwhile, there are different kinds of information system including decision support system,
executive data systems, management information systems and operations support systems. In
addition to this, management of international information systems requires to establish relevant
objectives and identify challenges posed by global information systems. However, the basic
information systems required by organisations to coordinate worldwide trade and other activities
is known as international information system architecture. Moreover, it is essential to take
number of steps in order to develop an international information systems architecture which are
as follows:
Identify business drivers: This can be described as a force in the atmosphere to which
business must respond and that influence direction of business. It includes specific factor or idea
which facilitate to proceed business globally in order to enhance growth as well as profitability.
Moreover, it requires favourable market atmosphere to survive globally with help of using
appropriate information system.
Factors affecting global business: The elements which are favourable in context of
specific business to expand it at global level consist culture, innovation, market situation and
government regulations (Liu and et. al., 2014). It is necessary to identify correct information
systems which is suitable to structure an organisation to conduct operations globally in proper
way. However, it requires to consider global environment, technological platform, management
& business procedures etc.
Develop corporate strategy: This can be explained as create an effective strategy for
global MIS consist to collect desired facts and develop mission & vision statement of business. It
includes to determine strategic objectives and establish tactical plans to apply internation MIS
and performance management while expanding business globally.
Plan to structure organisation: This involves to focus on certain factor such as standards,
reliability, speed and personnel along business other business strategies to structure organisation
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globally. It includes modify structure by decentralisation and coordinated with help of
implementing effective MIS to enhance business at international level.
Design of business procedures: Operational activities and other procedures should be
designed according to global business objectives by using international MIS. It includes to select
appropriate technological platform in terms of MIS for proceeding business in global context for
attaining better growth and success(Meyr,Wagner and Rohde 2015).
Select technology platform: This can be described as to analyse that requirement of
sharing data, conduct operational processes and other aspects for business at internal level. It is
necessary to focus on innovative and advanced MIS to develop international information system
architecture.
b. What are the four specific types of business challenges to global business systems? Which one
do you think will be easiest to solve? Why?
The idea of expanding business at global level requires to identify factors that create
challenges for an organisation while proceeding operations internationally. It is necessary for
management authorities of every company to use an effective technique for evaluating various
risk factors that may responsible for creating issues while enhancing business globally. However,
it certain issues including problem related to internet networks that will utilise in regards to
communicate essential information to run business operations in global context properly.
However, it is important to determine risk factors associated with internet networks while
establish the same globally to proceed business. Hence, some of business challenges to global
business systems are explained further:
Poor quality of interactional service: This can be described as an issue created in
production of improper services that are delivered to customers globally. It is due to challenge of
internal MIS because connectivity of internet varies worldwide which is required to be improved
for sharing desired data accurately (Nzoka and Ananda, 2014). However, it will provide support
to improve information sharing while conducting business internationally through improvising
relevant MIS for completion of desired strategic goals.
Security: The security can be considered as major challenge at the time of expanding
business globally by establishing international management information system. However,
various networks are not completely safe and management authorities should not trust the
security aspects of public internet (Robinson and et. al., 2014). It usually happens when the
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companies prefer to use private networks to communicate desired data. Moreover, it is necessary
for an organisation to evaluate network services to make sure about security of their data that can
be shared globally to conduct operations appropriately.
Cost and tariffs: The costing plays an important role while enhancing business in global
context because funds are required to modify organisational structure and increase desired
resources including raw material, manpower etc. It is a challenge for a company to apply a large
amount of funds but there is a risk of factor initially that global business will established
appropriately or not. However, it consist the adoption of international MIS that also requires
extra cost to purchase tariffs of internet networks of sharing data globally then security become
again a major issue for an organisation.
Regulatory constraints: This can be described as different legislations of foreign
government that is potential challenge because regulations must be followed to run business
globally. It includes the fact that few of nations employ comprehensive blocking and monitoring
techniques along with slowing down traffic that is problematic for proceeding business properly.
Considering above challenges, it has been analysed that problem of extra costing & tariffs
can be solved easily because it cane done done through additional and strategic efforts of
managing funds. It is easy to solve because funds management is in hands of management in
which no external government bodies ate linked to interfere.
c. How does the Internet benefit the development of a global information system? Should all
global systems be based on the Internet?
The internet benefit development of a global information system as it is helpful to
connect the organisation management on same server through they can communicate regularly at
different foreign branches of a company (Stark, 2015).It is favourable for establishing an
effective as well as efficient connectivity with the help of internet that facilitate to strengthen the
global information systems of an organisation. Meanwhile, it will provide support to proceed
daily basis conversation easily which is an important aspects to run business globally for
achieving better outcomes. Moreover, it is beneficial in several ways that are given below:
Superior management: This can be described as a benefit of managing various resources
by ensuring the appropriate availability in foreign branches for proceeding daily operations in
appropriate manner. It includes to monitor the employees and regular production in company
which is suitable to ensure about smooth running operations. However, internet provides another
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benefit of providing instructions to foreign managers and executives in terms of modified
policies and regulations to manage operational activities more effectively. Moreover, internet
networking is profitable through that management of operations and other relevant resources can
be provided to staff along with ensuring that given sources are utilised properly.
Cooperation among employees: The another benefits can be achieved by an organisation
with the help of internet because it facilitate accurate and immediate sharing of information
between superior management and employees for smoothly running business globally(Thakur
and et. al., 2014). It is favourable because effective conversation can be carrying out through
efficient internet connection which fulfil the desire of sharing data among different foreign
branches to conduct daily operations properly. However, effective cooperation and coordination
can established among staff working at global level which is favourable to complete set strategic
objectives of business for attaining growth and success.
Improve capability of organisation: The effective connection of internet is responsible for
facilitating proper superior management which enhance entire ability of an organisation. It is
helpful to conduct operations efficiently in global context which provide support to boost up
regular productivity of company(Theorin and et. al., 2017).Meanwhile, it is also suitable to
convey innovative strategies for improving quality and quantity of product or services which
facilitate to gain satisfaction of clients internationally.
Considering above benefits, it has been analysed that all the global systems are internet
based because business requires effective conversation that can only possible through global
information systems to run business properly. It is necessary to use information system to
coordinate with employees working in foreign branches and ensure smooth conduct of operations
regularly.
d. Explore the Web for latest World Internet Users Population Stats for 2019 comparing at least
four regions in terms of Internet users distribution % and penetration rate (% population).
The internet usage in today's world, is on a lot excess use most of dealing is today
environment depend upon fact that one has to do and provide all links from modelling aspects
one place where one has to mark and guide several aspects which have to be given in following
moderations and have to clarify several comparisons between all regions. One of most huge
regions of middle east, africa, asia, europe. All these regions are biggest places where one has
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to guide and provided best supporting business internet environment, they have to give several
accusations where one has to guide as per the guidelines one have to create.
This shows that its going to be above peak of 3.1 billion till year of 2021 (Wilz Sr,
Walczyk and Meagher) .The social networking ratio in worldwide, it is constantly increasing on
a worldwide scale and there is a constant rapid change in these statistics, as for January 2019 it
has increased up to 45%. The following four regions and then a proper comparison between all
four shall be provided:
Illustration 2: Internet World States
(Source: Internet World States, 2019)
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Illustration 3: Millions of user, 2019
Source: (Millions of user, 2019)
Illustration 4: Penetration rate
(Source: Penetration rate, 2019)
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Middle east: Middle east is a very rich country if compared in monetary terms or cultural
factors. it has almost 3.3% of population of world. The number of internet user's as per updated
statistics of 30 June 2019 is 175,502,589 and penetration rate is increased unto 67.9%. As
compared on statistical updates on the grounds of growth from 2000-2019 they have increased in
total ratio of 5,243% (Internet World States, 2019).
Africa: this Region covers almost 17.1% of population of whole world and has
drastically developed over years. This country is always considered to be lowest in development
and is always considered to be clearly in context of internet users. Internet users in Africa is
522,809,480. The penetration ratio of this country on world scale is up to 39.6%. this country is
slow in its progress but as compared from scale ratio of 2000-2019 it has developed on scale of
11,481%. this statistics is highest among all other regions (Internet World States, 2019).
Asia: this region covers most of the biggest population and globalised locality counties
such as china & India. It cover almost 55 % of world's population and their markets fluctuate
whole market in world. Its penetration rate as per whole world is 54.2% and is mostly a
developed country is making business & setting up new industries. Growth rate is 1,913 % which
is lower as compare to Africa (Internet World States, 2019).
Europe: its they most established region which have best working strategies and
technologies in world. The population ratio they cover is up to 10.7% which is not that much but
their market is a lot influential in industry. Penetration scale of this region is upto 87.7% in
world and has almost 16 % of of internet world usage.
e. Apply Porter's Five Forces analytical framework to the internet with justification.
Porter’s Five Forces model:
Michael Porter introduced Five Forces Analysis model which is an effective strategic
management tool for understanding impact of external factors on business organization. This
analysis helps to know what are the various factors that affects functioning of business at global
environment. This model is basically an analysis technique which renders help in understanding
how several organisations or industries set up and work profitability in different conditions &
elements. Its generally done to identify industries structure plus all strategies it is using in
corporate sector. It reflects undeniable forces which have a very important role in structuring
industry in firms. The factors of this model are listed below:
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Competitive rivalry or competition: In this case of global business system, it is seen that
businesses have to develop strong strong force of competitive rivalry. There are various internet
providers across the world. Thus, it is must for internet providers to provide new innovative
system(Xu and et. al., 2014). In present context, the competitive rivalry stays really very high for
business organisations.
Bargaining power of buyers: It has moderate force. Customers or web users determine
sales of the company. There are various external factors which maintain its moderate force of
bargaining power of customers on company like Low switching costs, Moderate substitute
availability, Low volume of purchases. Here, the force stays moderate because business firms in
present time are continuously bringing modifications in regards to Information Technology
among operations. This has helped them in fulfilling the requirements in specified time frame.
Bargaining power of suppliers: The usage of web depends on reliability of suppliers.
This helps in shaping global business environment. This influences presence and availability of
network, WAN, LAN, etc. that firm required. Usage of web is continuously rising, which
mainly raise this force as well for business firms that are dealing at international or domestic
level.
Threat of substitutes or substitution: The internet providers are having moderate force due
to Low switching costs, Moderate substitute availability of this type of business. Because, of low
switching cost, number of new business holders have became less supportive to customers. On
the other hand, it can also be said that this force majorly changes regularly due to inflation gap.
Threat of new entrants or new entry: New entrants gives vast impact on industry
environment as well as it influence productivity and performance of web companies. This factor
helps in identifying strength of external factors that creates weak force of threat to new entry.
Here, there is a high risk to every single business organisation that are dealing at international
level and the reason is, new entry do enters the market in a regular manner. This impacts
negatively upon overall productivity and profitability as well. Including this, it can be said that
due to internet, it has became easy for firms to target their customers from all over the world.
f. Four general cultural factors and four specific business factors driving global business
including two elements most problematic at current moment and why?
The cultural and business factors are required to be analysed because they can develop
problem for an organisation while expanding globally. It includes to evaluate various cultural
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factors and establish management strategies to overcome with these issues to proceed business at
international level properly. However, it is necessary to identify those components that mat
create problems to business to conduct operations and deliver products in global context. In
addition to this, determining these factors are favourable for a company to remain prepared for
upcoming relevant issues in regards to overcome with them easily in future. Hence, few of
cultural elements are given below:
Global communication and transportation technologies: This consist the the use of
different language in different countries of the world that is due to differentiated culture. It also
includes the dissimilar trend of transportation technology which create problem in conducting
operations globally.
Development of global culture: The development of new global trends may create
problems because it cab develop global culture that may or may not in favour of business
running globally.
Emergency global social norms: This consist several global issues that may create
anytime due which an emergency can take place because of social regulations that also impact
negatively on global operations of a company. It may consist any kind of contingency situations
like economic weakness which will not favourable for international businesses.
Political stability: The change in government is responsible for creating drastic change
on political stability which develop problem of business concerns in order to disrupt international
operations. It includes government rules and regulations related to access of conducting business
along with taxation legislations.
Global knowledge base: this innovation renders correct populative things and provide
several in consultants description of data of worldwide internet usage in several big regions of
world.
Specific business factors are as follows:
Global markets: The innovative and unique market trends at global level are responsible
for encouraging organisations to enhance their businesses globally for increasing growth. It
includes changed mid set and choices of people due to which they adopt foreign clothing or
technological trends that can be used to expand business globally.
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Basically, a retailer is said to be the individual who looks forward to gain ample number
of benefits from globalisation system. Along with this, in present context, there are a range of
benefits given underneath:
Global production operations : It has been found that, a retailer would gain access to
international level and through this retailer could gain higher benefits and may generate heavy
revenue as well.
Global Coordination : This can also be considered as one of the benefit of globalising
system, where considering a range of communication systems (social media and different
channels) would help retailer in coordinating with others at international level. Through this,
retailer would gain access to customers among different regions (countries) as well.
Global Workforce : Diversification is said to be something that will enhance number of
staff members for the retailer.
g. General benefits can the retailer expect from a globalisation system
Globalization has been main source for all individuals such as customers to
manufacturers and especial in western economy. Their are several new inventions which have
changed basic lifestyle of every person. Now things are more available in market than it was 10
years back. Several countries have developed and evolved due to this and has provided a great
scope for people to expand their business since they are not much restrictions in this time period.
The free trade concept has almost ended in this era which is somewhat a disadvantage to some
countries but as an over all concept has connected people at different scales. Their is a powerful
source which has driven the world to convert commodity & mind set of doing business. The
force which boosts this procedure is known as globalisation. The market is in great need of
provided every customer for things they seek to buy, either online or over their normal retailer
shops. One can see results in new commercial reality, this has emerged several aspects of global
marketing even for standardised products or services. In different course spam of time large
organisations had to provide different systems which shall create the correct information which
is compared to all such organisations.
Any multinational place shall place many benefits which are direct gains to retailers some of
them are mentioned below:
 Opportunity about local & international market: its a very huge opportunity for any
retailer which is successful in their area or some cities but any business needs expansion.
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It is designed for betterment of knowledge that shall create or bring several benefits to
them. These are accumulated through economic growth of company and several
distinctive justifications. The global e markets are expanding and this gives scope to
many customers which have had been in business industry for long run. It also generates
opportunities for new retailers with creative ideas for expansion.
 Globalisation offering: this unit of cluster of data information give several recommended
places which have to be distinct in nature. Their are plenty scopes and opportunities in
this sector. A retailer working on standardized price can earn more than its whole cost of
production, manufacture or purchase of things. Also when any place has the benefit of
culture and background support it does not face much issues in full filling all
requirements of
 Flexibility approach: It is very stretchable in nature to guide and provide the gestures of
setting up business in global market. One has to understand the basic concept that there
are generalised terms for making things possible in many factors. The legit things which
will work in such approach will be to guide and give many issues as per factor
circumstances.
h. Describe four of the challenges involved with international networks.
From several years people have to guide and give information related to interwork issue
and guide them as per the circumstances. Global health network is connected to each individual
organisations as well. since if any such uncertain problem is created in the networking shall be
given by the major health conditions and presentable limited sizing in course of utilisation factor.
These global health initiates are generally administered by government and have to be competent
as per guidelines created by government. Their are several new networking tie ups which are
being launched in world, where different features and these portray way in which world global
organisation is represented in world. These forms of several organisational dominated in fact for
hierarchical forms of many organisation.
The beginning two challenges which are faced in organisation position in which people
have to pertain and attain several activities in matter of fact have to be given in form of
organisations and give correct collaborated information to protect data and give essential
information for correct principles in work. If generally definition of internal framing matters are
positioning in extreme conditions their has to be many conditions which have had to be
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unconditionally with effective usage and covering while one can address other people while
giving solutions for others.
Some of the biggest challenges one has to provide solution related networks which are
mentioned below:
 Internal company structure: if an organisation has to face competitive globally one has to
define that place up challenges, one of fundamental rules have to be represented as one of
main points of discussion. In case company has to follow up work and plans with the
central headquarters of place in which they have to provide and guide the circumstantial
situationist and take them as per guidance and ruling in the organisation. Internal
company structure which has to be defined in business.
 Foreign laws & regulations: in case as per company has to give several definitions and
organisation have to expand in the foreign counties they have to follow up all the
regulations and make them as per the business stages. One has to guide the rules and
regulations as per the guiding problems and one has to give several citations and
provisions as per the guide.
 currency rates: the currency rates of all the countries have to be given in the organisation
and one has to be provided in the given in the organisation . The worldwide famous
currency needs to be the universal currency. Their are many civilisation has to be given
the provided of the world globalisation. The globalisation standards have to be followed
in the organisation.
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Internet World States. 2019. [Online]. Available through :
<https://www.internetworldstats.com/stats.htm>
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