External & Internal Factors

Topics: Management, Planning, Frito-Lay Pages: 9 (2053 words) Published: September 21, 2014

External/Internal Factors Paper
February 23, 2014

External/Internal Factors Paper
The Frito-Lay is a worldwide recognized organization that began from the union of two companies in 1961. Within this organization, management has had to deal with internal and external factors that affect the four fundamental functions of management: planning, organizing, leading and controlling. Globalization, technology, innovation, diversity and ethics have also had their impact on the four functions of management in the Frito-Lay organization. Managers for the Frito-Lay organization have found ways to use delegation to manage the different factors and functions and perform in an effective and efficient way. The planning function of an organization is important because it involves determining the goals for the success of the company. An internal factor that may affect the planning function of management at the Frito Lay organization is attention to competitors. When Frito-Lay plans to incorporate new ideas and demands, they look to the competitors for insight of how to approach these new ideas in a positive and well-thought out process. According to Leyla Norman, “a hurried entrance into a new market can cost the company money in the long run and not make full use of managers' planning abilities” (Norman, 2004). This means that if the Frito-Lay organization does not take the planning process into full advantage when rushing to compete with other companies, they could end up losing instead of gaining profits and customer preference. An external factor that could affect the planning function of management is the economy. While determining the goals of the organization, the economy plays large role. When the economy is not at a high point, planning within the Frito-Lay company may be “stopped, adjusted or taken in a new direction” (Norman, 2004). As the economy recovers planning may be resumed as needed. The organizing function of management involves “assembling and coordinating the human, financial, physical, informational and other resources needed to achieve goals” (Bateman & Snell, 2011). An internal factor that could affect the Frito-Lay company is a financial necessity. If funds are not available to pursue and achieve the plans of the organization, then it could affect the realization of the goals for the company. An external factor that could affect the organizing function within the Frito-Lay company may be any new technological advance. If the Frito-Lay company is not up-to-date with their technological capabilities, this could affect the implementation of the goals mapped out in the planning function. The leading function is described by Bateman and Snell as “stimulating people to be high performers” (Bateman & Snell, 2011). A factor that could internally affect Frito-Lay management in the leading function could be lack of employee performance. If employees do not have the motivation to achieve the goals of the organization, the whole company could suffer. An external factor that could potentially affect the organization and management of Frito-Lay is ethical issues. When there are ethical issues outside of an organization, it could affect the company in a negative way. This could be a major reason that Frito-Lay creates opportunities and depends on the “minority and women-owned entrepreneurs (M/WBEs)” (Frito-Lay, 2014). In the controlling function of management, performance is closely monitored and changes are implemented as necessary. When employees deviate from the established performance standards, an internal factor that could affect the management function is a conflict of interest. When there are conflicts of interests, such as family relationships, it could internally affect the performance monitoring. An external factor that could affect the controlling factor in the Frito-Lay company could be labor laws. Although Frito-Lay has standards of performance and expectations, they...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Internal External Factors G Essay
  • Internal & External Factors Essay
  • Internal and External Factors Paper
  • Internal and External Factors paper
  • Internal and External Factors Essay
  • Target’s Internal and External Factors Essay
  • Internal and External Factors: Disney Corporation Essay
  • External/Internal Factors Paper

Become a StudyMode Member

Sign Up - It's Free