Internal and External Factors

Topics: Nike, Inc., Management, Bill Bowerman Pages: 5 (1545 words) Published: September 18, 2011
Affecting the Functions of Management

Both internal and external factors can affect the four functions of management differently. Some of the obvious internal factors would be such things as the company’s own strengths and weaknesses, which could include values, goals, skills, and even the attitudes of manager and the workers in the organization. Other factors can include the different tasks that the organization chooses as well as their resources and even the technology can be an internal factors. The external factors that can affect the functions of management can be very different these factors can include relevant forces outside the organization’s boundaries. Many of these external factors can be unpredictable and uncontrollable, which can have even bigger affects on the functions of management. Some of these uncontrollable factors can be such things as recession, government interference and even competitor’s actions. “The government can affect business opportunities through tax laws, economic policies, and international trade rulings”(Bateman & Snell, 2009). “An example of restraint on business action is the U.S. government’s standards regarding bribery” (Bateman & Snell, 2009) [The citation for a direct quote needs the page number]. These factors will be broken down into more detail later in this writing and examples for each will help to understand how these factors affect the functions of management.

Established by founders of Nike, Phil Knight and Bill Bowerman have established and maintain an internal ethics standard across the global community (Nike, 2011). Nike, wanting more profit became a global company and outsourced to suppliers in third world countries. Nike manager’s promote Ethics Training for employees on a yearly basis and has established a global toll-free alert line for employees to report suspected code of ethics violations in the global community (Nike, 2011). Experiencing more profits because of low labor wages in third world countries was also a problem with Nike. Zboch (2011), reported Nike as allowing “children to slave away in hazardous conditions for below-subsistence wages” (Nike Global Business and Challenges, para. 2). In this case it became aware to Nike managers of the difficulties of global business and dealing with external factors such as child labor laws of other countries (Zboch, 2011). A change to the ethics of global business has helped Nike. The Ethisphere (2011) website has named Nike as one of the 2010 Worlds Most Ethical Companies. The award, based on a methodologies committees’ in depth analysis, information gathered by selected companies, and further refinement awarded Nike to be among the top 100 - 2010 Worlds Most Ethical Companies (Ethisphere, 2011). The Ethisphere (2011) website selections were awarded because of the ethics and compliance programs (30%), reputation, leadership, and innovation (30%), governance (15%), corporate citizenship and responsibility (25%).

Nike, founded in 1964 by Bill Bowerman and Phil Knight. The company was originally Blue Ribbon Sports. Carolyn Davidson was hired on as a designer in 1971 to create the “swoosh” emblem seen on the popular items provided by Nike Incorporated today. One of the innovations that helped launch Nike to become what it is today. Nike Incorporated, named after the Greek goddess of victory and the “swoosh” represents the spirit of the winged goddess (Nike, 2010). The founders of Nike Incorporated pressed to become the leaders in sportswear and apparel. The company currently has factories in several major companies and provides endorsements to many athletes to promote their line. Nike has separate departments for each sport including providing swimwear for swimmers. The company has expanded from more than just gym shoes. They now provide the necessary shoes for athletes in basketball, baseball, golf, tennis, football, and provide the sportswear. Nike...

References: Management: Leading and Collaborating in a Competitive World, by Bateman and Snell (8th edition, 2009)
Nike. (2011). Nike responsibility governance. Retrieved from
Ethisphere. (2011). 2010 Worlds most ethical compamies. Retrieved from
Zboch, H. A. (2011). Hubpages. HubPages Inc. and respective owners. Retrieved from
Nike (2010). Nike Retrieved from
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