External/Internal Factors

Topics: The Coca-Cola Company, Management, Coca-Cola Pages: 8 (2729 words) Published: December 4, 2010
External/Internal Factors
When analyzing a company it is important to understand what the internal and external factors of the company are and how those factors are affecting the four functions of management. The four functions of management are planning, organizing, leading, and controlling. Internal factors affect what happens within the company and external factors are the outside environment that affects the company. Through strategic planning the company can build on its strengths and monitor how the company’s actions affect internal and external factors. The external factors of the companies organization is on how well the company knows its customers and what to deliver to satisfy the customers. The internal factors of the company affects organization in determining how to schedule employees effectively, training employees correctly, and knowing what the company’s resources are. Effective leadership in the company affects internal factors through motivating employees to work well. The external factors that affect leadership are with how the customers are served by the employees through the leadership of the managers. If the employees are motivated to do good work then the customers will notice the good work effort. The company controls the internal factors and how it affects management through keeping up with the resources of the store and ensures that the resources are used responsibly and correctly. Also, the managers make sure that employees are performing well and changes are made when needed. Other factors that would affect the four functions of management are globalization, technology, innovation, diversity, and ethics. As long as management plan, organize, lead, and control effectively, the company should be able to with stand any factors that may affect it. Globalization creates significant challenges for large organizations. These organizations must plan carefully for the possible roadblocks when doing business across culture. One of the methods used in the planning process is deciding how to organize across these global regions. In the selected organization, Coca-Cola’s upper level management has organized around six regions that cover the numerous foreign countries they serve (The Coca-Cola Company, 2010). Each region is led by a President that is responsible for the performance of said region. Reporting of sales activity is then measured by growth of the individual region. The company sells a similar product across the various regions but differentiation is needed to meet the local tastes. Using a multi-national approach Coca-Cola will change packaging and product formulas to meet the needs of geographies. This local responsiveness allows Coca-Cola to change product mixes using its local bottling partners without affecting the products that are popular in other regions. Even as Coke organizes around a multi-national footprint a strong corporate leadership team is planning and controlling the cost of raw materials used in the production of the product. Coca-Cola has organized their four function of management to deal with the external and internal factors that affect the way each region does business. One factor to consider is the way its sales channels are organized. In the United State large chains such as Wal-Mart purchases the product in bulk from company owned bottlers. In contrast citizen of India buy their product from small locally owned food store. These differences in distribution networks require the company to change the way product are delivered to the consumers. In describing their system of operation the annual report states “We are a global business that operates on a local scale in every community where we do business.” (Business Profile, para. 2). The key managerial functions of planning, organizing, leading and controlling are all crucial to the success of any manager. The best way for any manager to ensure that they are using these functions to their...
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