Internal and External Factors Affecting the Four Functions of Management Dina Pastor, Anelys Thompson, Christine Brown
April 7, 2014
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 control the plan and determine if it was successful or not. The clinical model that DaVita provides to these other countries make this more affordable to the general population and is proven to be able to serve from the current 6% of kidney failure patients to 20-30% (Peerzada, 2012). This would be a significant success for DaVita to accomplish their plan of providing this service to areas that cannot provide this service. In reference to diversity, DaVita is a company that operates in eleven countries in addition to the United States. They deal with diversity on a daily basis. As individuals in the company start to plan their next goal, evaluating who uses their service is key. The ideas need to be innovative but also needed by the customer. The target audience is people with kidney failure, but from any nationality. This is key when deciding how customers will pay for the service as well as how to market to them. When management is organizing their plans they must consider where they will get the resources to accomplish this. Moving forward will be challenging when dealing with such a diverse group. Language barriers, culture, cultural norms and resource availability to name a few of the things that need to be considered. When DaVita moves forward with the idea, having effective diverse leaders will prove most valuable. Leaders must posess the ability to communicate with a variety of people. Placing people in various locations is key, and having employees trained in diversity, cultural norms and each countries policy’s. When doing business around the globe, leaders need the ability to motivate someone from China as well as India without violating their beliefs or values. Also leaders need to find a common ground with their staff as well as lead the staff to working as a team. Monitoring such a diverse group will be challenging but also rewarding. The goals set at the beginning of the project will need to be realistic as well as based on each countries health care...
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
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