Internal and External Factors affect the four functions of management
Internal and External Factors Affecting the Four Functions of Management
Dina Pastor, Anelys Thompson, Christine Brown
MGT230
April 7, 2014
Dick Amabile
Internal and External Factors Affecting the Four Functions of Management
In relation to the four functions of management, there are several internal and external factors that affect an organization’s success. Using DaVita, Inc. as an example, we can look at each internal factor that would affect the function of management and the external factors. Internal factors would include ethics, innovation and diversity while external factors would include globalization and technology.
When we look at why DaVita would consider globalization, we would need to consider the external factors that created this need. In general, when a company looks outside of the country for support it is watching what the competitors are doing. DaVita has found an area where they can run their clinics much more economical. The cost for labor is less which is their highest cost of operation. They also need to consider they have tapped most of the resources available in the United States for growth. They need new areas to continue to grow and dialysis is a global disease. They saw an opportunity with providing high quality dialysis in the less fortunate areas in the world that do not provide that currently (Travis, 2012). DaVita sat down and began the plan of expanding for this purpose. After they specified the goal and thought of the appropriate actions to get there, the next step was to organize. They needed to find a way for everyone to work together to make this a successful transition. The executives began the campaign to lead the group to their vision by helping everyone see what they saw. Only if everyone was on the same page, would this be successful. The support of the public is necessary in order to get through any scrutiny this may cause. After they were able to implement their idea, it was time to
Dina Pastor, Anelys Thompson, Christine Brown
MGT230
April 7, 2014
Dick Amabile
Internal and External Factors Affecting the Four Functions of Management
In relation to the four functions of management, there are several internal and external factors that affect an organization’s success. Using DaVita, Inc. as an example, we can look at each internal factor that would affect the function of management and the external factors. Internal factors would include ethics, innovation and diversity while external factors would include globalization and technology.
When we look at why DaVita would consider globalization, we would need to consider the external factors that created this need. In general, when a company looks outside of the country for support it is watching what the competitors are doing. DaVita has found an area where they can run their clinics much more economical. The cost for labor is less which is their highest cost of operation. They also need to consider they have tapped most of the resources available in the United States for growth. They need new areas to continue to grow and dialysis is a global disease. They saw an opportunity with providing high quality dialysis in the less fortunate areas in the world that do not provide that currently (Travis, 2012). DaVita sat down and began the plan of expanding for this purpose. After they specified the goal and thought of the appropriate actions to get there, the next step was to organize. They needed to find a way for everyone to work together to make this a successful transition. The executives began the campaign to lead the group to their vision by helping everyone see what they saw. Only if everyone was on the same page, would this be successful. The support of the public is necessary in order to get through any scrutiny this may cause. After they were able to implement their idea, it was time to
References: Bateman, T. S., & Snell, S. A. (2011). Management: Leading and Collaborating in a Competitive World (9th ed.). Phoenix, AZ: Author. DaVita, Inc. (2014). www.Davita.com. Retrieved from http://www.davita.com Peerzada, A. (2012, January 12). US-based DaVita picks up stake in NephroLife Care for India entry. Retrieved from http://articles.economictimes.indiatimes.com/2012-01-12/news/30620033_1_davita-dialysis-renal-failure Travis, T. (2012, October 2). Time To Follow Berkshire Into DaVita. Retrieved from http://seekingalpha.com/articla/901091-time-to-follow-berkshire-into-davita