CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to Study

The term E-business signifies a business management method using information and communication technology (ICT) communication, mainly Internet applications (Brzozowska and Bubel, 2015). E-business refers, among other things, to sending documents, exchanging data between a producer, distributor and trade partner, winning new customers, conquering markets, and holding teleconferences. E-business comprises; E-commerce, E-enterprise, E-economy, E-society, E-government, E-banking and E-learning (Hassan et al., 2022). Currently, the term E-business may be used in several contexts (Brzozowska and Bubel, 2015). First: E-business may constitute an element of an enterprise management strategy consisting of the use of solutions designed to increase an enterprise’s competitiveness. In such a case, companies may conduct part of their activity online or use technology to improve internal or external information exchange. Second: E-business is a model of an enterprise that operates mainly on the Internet, limiting to a minimum its “physical” presence on the market or traditional customer service. Broadband network is regarded as the basic infrastructure of the modern knowledge-based economy; therefore, it should be at the centre of attention of all countries that want to compete in the global market (Brzozowska and Bubel, 2015).

Network technologies enabled by E-business standards have the potential to transform and integrate the functional elements of many industries. The Internet facilitates the abolition of the trade-off between the richness and reach of information, which means that communication can occur at almost zero cost, without constraints on the richness of information (Aral and Van Alstyne, 2011). The richness of information includes characteristics such as bandwidth, customization, and interactivity. Reach is defined as the connectivity and is the number of agents involved in exchanging information (Kumar and Sinha, 2021). Before the development of the Internet, reaching large numbers of people with rich information was a costly and time-consuming process and prone to errors due to manual information replication. Harsono (2014) depicts that managing information flows in the supply chain is one of the most crucial activities in SCM as the flow of materials and money is usually initiated by information movements. Wagner and Sweeney (2011), reinforce this by outlining that coordination in a supply chain occurs through the communication of orders, stock levels and demand feedback. Poor management of information essentially leads to the so-called bullwhip effect that requires the holding of excessive levels of inventory. High demand visibility plays a strategic role in reducing inventory levels (Harsono, 2014). Efficient and effective network-based communication structures in a supply chain have the potential to offset these effects. SCI and E-business are interrelated insofar as integrated E-business functions facilitate undistorted and accurate information sharing. In this way, optimal alignment of business functions represents the means to an effective overall SCI strategy. The next section describes the impact of E-business on the integration of supply chain configurations in more detail.

A supply chain (SC) is a bidirectional flow of information, products and money between the initial suppliers and final customers through different organizations (Nurmilaakso, 2008). It can be both internal and external. In an internal context, the elements of a SC are represented by various intra-organizational functions (such as sales and marketing, procurement, production planning, warehouse and transport management), whereas the external supply chain further encompasses movements of material, information and funds between companies and their suppliers, customers and various business partners.

Ngai et al., (2012), define supply chain management (SCM) as a set of approaches utilized to effectively integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed in the right quantities, to the right locations, and at the right time to minimize system-wide costs while satisfying service level requirements. Lambert et al. (1998) expand the SCM definition to include the concept of value creation by depicting SCM as the integration of business processes from end users through original suppliers that provide products, services, and information and hence add value for customers and other stakeholders. In brief, SCM is about breaking down the barriers both within and between organizations and ultimately linking them in an integrated way to allow value-add to customers starting from product design to delivery through the planning, implementation and monitoring of the various flows. Supply chains are increasingly competing with other supply chains and as such the goal of effective SCM is superior business performance. The constituent parts of a supply chain are linked together via the flow of information and therefore the proper implementation and integration of various functions via information and communication technology (ICT) is vital for a successful SCM strategy. Supply chain integration (SCI) is an important part of SCM. It aims to facilitate the flow between all organizations in a supply chain and thus positively affects operational performance (Ralston et al., 2015). In short, a key tenet of SCM relates to the need to move from fragmented supply chain architectures to configurations that are characterized by integration.

1.2 Statement of the Problem

The 21st century has witnessed a dramatic transformation in the financial sector as advances in IT have created new ways of handling financial transactions through various E-business platforms (Alangeh, 2014). The commerce world and Cameroon’s business sector are being digitized, such that any type of business (commercial) data is transferred across the Internet (Alangeh, 2014).

As a result, different types of businesses from consumer-based retail sites, through auction or music sites, to business exchanges of goods and services are traded between individuals and companies electronically. It is currently one of the most important aspects of the Internet to emerge, as online business is convenient on 24-hour availability, with no barriers of time or distance and generally efficient customer service. E-business could operate in all four of the major market segments in Cameroon: business-to-business (supplier management, distribution management, and channel management), business-to-consumer (Online shopping), consumer-to-consumer (Auctions sales) and consumer-to-business (requesting information through web platforms).

Despite a rising number of players and new entrants in the market, online shopping in Cameroon has not yet been embraced as much as it has been in South Africa and Nigeria (Kuteyi and Winkler, 2022). According to 2013 World Bank data, only 6.4% of its 22 million population are internet users (World Bank Group, 2013). Yet despite the limitations E-business faces, the industry does hold strong potential.

This is due to Cameroon’s less developed formal retail sector (with Nielsen estimating that 98% of shopping happens informally) and consumers increasingly looking for unique and ‘trendy’ deals (McNeill, 2011). As such this research seeks to examine the impact of E-business on supply chain management in Cameroon. the case of Blue Pearl Hotel in Bamenda III Subdivision.

1.3 Research Questions

1.3.1General Research Question

What is the impact of E-business on supply chain management at Blue Pearl Hotel?

1.3.2 Specific Research Question

Three specific research questions were used in the study as follows.

1. What are the advantages of using electronic business facilities in supply chain management at Blue Pearl Hotel?
2. What are the challenges facing E-business users in supply chain management at Blue Pearl Hotel?
3. What is the impact of E-business on the lives of users in supply chain management at Blue Pearl Hotel?

1.4 Objectives of the Study

1.4.1 General Objective

The general objective of this study was to examine the impact of E-business on supply chain management at Blue Pearl Hotel.

1.4.2 Specific Objectives

Three specific objectives were used in the study as follows.

• To determine the advantages of using electronic business facilities in supply chain management at Blue Pearl Hotel.
• To examine the challenges facing E-business users in supply chain management at Blue Pearl Hotel.
• To find out the impact of e-business on users’ lives in supply chain management at Blue Pearl Hotel.