E-business is the use of information and communication technology (ICT) in dealing with all business activities. E-business is expanding from local to regional and global heights which incorporate some relationships and collaborations. The varied and new business activities and IT systems which play a key role in business operations need to address the different needs of consumers, suppliers, employees, production activities as well as payments and invoices. Organization, coordination and focus are important in business processes so as to produce quality products and valuable services. The flow of materials, information and knowhow are the key activities among participants in business (2012, 15).
Changes in the external environment influence the decision that a company makes in its strategic management but internal environment needs control. The government influences and plays a role in most businesses in regulation and measures to ensure participation of the private sector. External factors affecting e-businesses include high costs of capital, inflation, escalating interest rates, multiple tax systems and policy summersault. Others such as infrastructure and volatile exchange rates pose serious problems to e-businesses. Most e-businesses believe on their strengths and potential opportunities in their environments but most are beleaguered in case of weaknesses. This halts their growth and development into mature and mega e-business companies (2012, 15).
The interaction of the external and internal environmental factors between countries and communities is quite intertwined. This is because of the difference in physical and natural factors such as geographical location between businesses. Social-cultural and technological factors vary from country to another and from community to another and this makes developing a common platform a complex process Economic, political, legal and competitive environmental factors wind up the unpredictable external factors which makes pose a challenge to e-business. Internal environment factors are relatively easier to control and manage. There are variations in e-business processes depending on countries and communities since each carries different consumers, suppliers and ICT effects are experienced differently by all involved (2012, 15).