Internal and External Factors
Internal and External Factors
There are four functions of management; planning, organizing, leading and controlling.
Planning happens within these functions and helps to deliver strategic value to a business.
Organizing builds a dynamic business, and leading helps to mobilize employees. Controlling is a
part of learning and changing as a business grows and expands. All four of these functions are
necessary and are key factors to having effective management.
Internal and external factors influence the decision-making process, which therefore affects
management. ...view middle of the document...
Apple Inc. is a multinational corporation that designs and sells computer hardware
and software. They are best known for their Macintosh product line of computers, the iPhone, the
iPad, and the iPod (Yahoo Finance, 2012). The sector that this company services is big and the
competition is fierce, so Apple must stay competitive. The way that Apple does this is by tapping
into the Globalized Market. Apple has more than 364 retail stores in more than thirteen countries
and Apple manages more than 60,000 full-time employees worldwide, thus making them the
largest publicly traded corporation in the world by market capitalization (Yahoo Finance, 2012).
Apple keeps a competitive edge on the market, because management carefully plans,
organizes, leads and controls the organizational planning process using their informational
resources. Informational resources are data collections that are used to analyze the market in an
effective manner (The Free Dictionary, 2012). It is important that managers analyze the
competition, customer behavior, demographics, industry outlook, economics, and the political
interference during the different levels of the planning. Managers must also include the
informational resources to assist in the planning, organizing, leading, and controlling process.
They must figure out who the competition is, and analyze the needs and wants of the customer,
and whether or not the industry is local, national or global. They must analyze the population and
diversity change, and whether or not the economy is in a peak or a downturn. As managers do
this, they set plans and goals within their business, and they analyze these data collections and
thus plan accordingly. The information that managers need, can readily be accessed through the
informational resources or data collections because of globalization. Organizations can keep a
competitive advantage on the market, if they identify globalization as an external factor, and use
its affects in a positive manner. If the managers do not do this, then globalization can have a very
negative impact on the planning, organizing, leading, and controlling aspects of management.
Technology is an internal factor that affect all four functions of management, and thus all
four functions must be evaluated carefully. Internal factors are situations or events that happen
within a business and are usually controlled by the managers of that business (New World
Encyclopedias, 2008). Advances in technology provide for a healthier marketplace, an enhanced
means of manufacturing services and goods, improved distribution channels, and a superior
means for informational resources (Bateman & Snell, 2011). The internet is the most active
technological advancement. The internet provides for the rapid rate of communication, and the
rapid transportation of information to transpire. It helps to drive down costs, accelerate