Internal and External Factors Paper

Topics: Management, Strategic management, Organization Pages: 5 (770 words) Published: August 2, 2015

Internal and External Factors
Govan Henry
August 03, 2014
Patricia Hall

Internal and External Factors
The four functions of management include planning, organizing, leading and controlling. These four functions are the vital fundamentals of any successful management team, whether it be business, educational or personally. Planning is creating specific goals and making decisions on how best an individual, group, department, or overall organization will work to achieving those goals (Bateman & Snell, 2011). Organizing and building the proper organizational structure, which includes human, physical, informational, financial and other resources to reach the goals is a critical function. Leading is motivating and communicating with those individuals and groups to stimulate them to perform at a high level. Controlling is overseeing the organization to make sure the goals are being met to the standards of the company. There are internal and external factors that affect the functioning of management. With the competitive environment constantly evolving and changing, management teams must take in the consideration their competitors and consumers. Globalization, technology, innovation, diversity and ethics are the internal and external factors that require the four functions of management to ensure the success of a company. Companies may fly high for a while, but they cannot do well for every long without good management (Bateman & Snell, 2011). Globalization is the ability to trade and provide goods, services and capital worldwide. A good management team is required to run an organization as they embark on expanding their business globally, meeting the needs of their customers located anywhere in the world. Globalization directly affects the core competencies of management, which are planning, organizing, leading and controlling (Bateman & Snell, 2011). Globalization causes managers to implement plans to gain an advantage on the competition by focusing on the producing a product or service that meets the needs of customers throughout the world. Focusing on the cultural differences, transportation of the goods, communication, etc., gives the organization a greater chance of supplying a product that will be successful in other countries. The evolution of technology has had a great affect, both internally and externally, on the operations of companies and their management. The changes in technology have provided organizations the ability to communicate, transfer information (internally & externally), transports goods and services, and create new opportunities. Managers are now able to perform the four functions of management with employees and other managers from different locations throughout the world. For example, a strategic meeting amongst managers can be held without needing everyone in one specific location. The capabilities of the internet, as well as the innovations of laptops, provide the ability to conduct those meetings without any delays. This prevents important operational decisions from being made in a timely manner. The main goal of any business is to provide new, unique goods and services to its customers, also known as innovation. This helps to ensure they stay ahead of their competitors and build a successful company that is around for many years. A good management team is fully aware that this is the number goal, and is constantly using the four functions; planning, organizing, leading and controlling to achieve this goal. Finding the proper way to introduce the new goods and services is a challenge that seriously affects the four functions. Finding the most cost effective way to manufacture and transport these new products worldwide is overall responsibly of managers. Innovation comes from people and must be a strategic goal and managed properly (Bateman & Snell, 2011). Diversity and ethics affects the four functions of management...
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