Management: Theory, Practice, and Application
External and Internal Factors Affecting General Electric
We will use General Electric, also known as GE, to illustrate how internal and external factors affect the four functions of management. We will explain how globalization, technology, innovation, diversity, and ethics affect the four functions. We will also explain how delegation can be used to manage the different factors. General Electric has come a long way since its inception in 1876 by Thomas Edison, several of his early business offerings are still a part of General Electric to this day. General Electric has become one of the greatest innovative companies in business history. General Electric has grown to become an international company which has expanded its products and services around the world. External and Internal
Externally borrowing money to stock inventory can affect the four functions of management. Everybody needs a certain amount of money to operate. Other financial factors that affect your inventory management decisions include cost of warehouse operations and transportation costs. The cost of gas is an external factor while the choice to purchase your own trucks or use outside contractors can prove to be a more predictable internal factor. Your sales goals and customer service objectives are internal controls that you direct. For example, if you promise same-day delivery, your inventory management must have the product on hand to meet customer demands. Economic downturns, poor real estate markets or local competition are external controls over which you often have no recourse. Flexibility to deal with market ups and downs should be an integral part of your company goals to bend pricing rules, offer discounts or sit on your inventory when shifts in consumer buying habits occur. One of the most frustrating external factors for business owners is an unpredictable or unreliable supplier. Product suppliers who deliver poor-quality merchandise also can throw unexpected snags into your inventory supply chain. Understanding suppliers' lead-time requirements can help you maintain sufficient inventory. Finding and utilizing backup suppliers is an internal decision that also can cover inventory shortages. Joining a bulk-purchasing group places some of your inventory control in the hands of others, but may prove to be worthwhile. Globalization
When developing a global strategy, companies identify their international objectives and assemble a strategy that will enable them to realize their goals. During the planning stage managers propose, revise, and finally ratify plans for entering new markets and competing in them, then, managers must take steps to have it implemented. Not only when to begin global operations but also when to actually start operations and put into action the other components of the global strategy (Helms, p858-863). Strategy development involves analyzing the company and its environment (planning), establishing strategic goals (organizing), and developing plans to achieve goals (leading) as well as a control framework (controlling). Once this analysis is complete, managers must establish the significant goals a company seeks to achieve through a particular pursuit such as entering a new regional market. Then companies should develop plans that allow them to accomplish their goals, and these plans should concentrate on how to implement strategic plans. Finally, strategy formulation involves a control framework, which is a process management uses to help ensure that a company remains on the right course when implementing its strategic plans.
Advances in technology are important to the success of General Electric. Bateman and Snell (2009) states, “Technological advances create new products, advanced production techniques, and better ways of managing and communicating. In addition, as technology evolves, new industries,...