Internal and External Factors of an Organization

Topics: Management, Google, Mobile phone Pages: 6 (1715 words) Published: September 27, 2010

Internal and External Factors that Affect the Four Functions of Management in an Organization

Albert Rodriguez, Connie Contreras and Patrice James

University of Phoenix


September 8, 2010

Internal and External Factors that Affect the Four Functions of Management in an Organization

Planning, organizing, leading, and controlling are all factors that contribute to the decision making process among managers. Managers strive to remain ethical through the diverse challenges and innovative technology that has increased globalization.

External factors have an immediate effect on an organizations planning. Marketing a product takes thorough planning. Managers organize ideas on where to market a product that provides benefits to other countries.

Leading globalization can be difficult because other countries may not want to use a product they are unfamiliar with. Therefore, a thorough explanation of why a product would be beneficial in another country is very important (Moon, 2010). The cell phone for instance has brought forth much controversy. Rates, service areas for Internet, communication, contractual agreements, and a wide range of other issues have been broad topics for subscribers of cell phones. To control globalization, cell phone providers must have management teams that extend enough information about products to other countries to determine if the product is marketable around the globe (Moon, 2010).

Information is organized through technology; via Internet so customers are better informed regarding price, and other vital information before purchasing.

Innovative technology has brought forth social networking sites. Companies such as Google have created blog forums where customers can share thoughts about a product hence, making others aware before purchasing. This controlled technology helps managers see where there is room for improvement of a product if any.

As management begins a project, innovation begins. Innovation is aimed at good ideas, both collaborative and individual, but profitable. As a plan is put into action, management can project, and compare cost versus profits.

Managers organize innovation by ensuring products make money while controlling innovation through instruction given to other members of a project (Moon, 2010).

External factors include customer’s diverse reactions. As previously mentioned, reactions can be good or bad; however both are controversial. Both reactions determine how well a company’s efforts are working in a product rather than going back to the drawing board to revise a plan that did not have a contingency from the start (Moon, 2010).

This paper will provide a synopsis of Google Incorporated, an Internet, computer Software Company that serves worldwide, considering internal and external factors such as globalization, technology, innovation, diversity, and ethics, and how those factors affect the four functions of management: planning, organizing, leading, and controlling.

Because of globalization, management can consider the entire world their market with an available customer base (Levin Institute, 2008). Globalization has caused management to expand across the globe, allowing production increase internally and externally. Hiring talented individuals changes lives externally with the development of innovative products.

Many factors can affect the four functions of management in different ways. Each function is conducive to the other when accomplishing goals that aid each other in maintaining a successful organization. When a function is affected an organization could lose time, money, and productivity. When any of the four functions are affected there should be a contingency plan in place aiding as a second option.

“Globalization is a process of interaction and integration among people, companies, and governments of different nations. A...
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