External and internal factors - Essay Example

The four key functions of management are: planning; organizing; leading; and controlling which are used by managerial leadership to accomplish goals and objectives of the business. Various external and internal environmental factors significantly affect these four functions of management in varying ways. The management therefore, needs to identify, evaluate and implement appropriate strategy to seek opportunities in these factors to enhance its performance. The paper would describe the ways the following factors impact Home Depot.

Globalization Globalization has brought about massive changes in the social fabric of societies across the world making them multicultural and highly diverse in their race, color, religion and nationality. Sirgy et al. (2004: 253) have described globalization as the diffusion of goods, services, capital, technology and people across national borders. Home Depot integrates the postulates of globalization within its management functions. Its strategic planning incorporates the requirements of multicultural societies and develops its products ad services that meet the requirements of pluralistic societies.

It ensures diversity in workforce and uses cross cultural understanding for improved performance. With high standard of uniform code of ethics and performance standard, it promotes mutual respect and empowered decision making for achieving shared goals. Technology All four management functions of Home Depot exploit advancing technology to gain competitive advantage. It has achieved operational efficiency and excellence in customer service through initiatives like FIRST Phone which is hand held multi functional device.

It serves as phone, product locator, walkie-talkie, inventory management etc. RDC or rapid deployment center is exemplary example of integrating technology with supply chain management (Web, Home Depot). The smooth operation of its supply chain management is a result of its technology based culture which coordinates forecasting and replenishment of products. Its website promotes its ecommerce activities and ensures its connectivity with the customers. Innovation Innovation has been intrinsic part Home Depot.

Its innovative approach in planning, organizing and directing has been the hallmark of its success. It anticipates and incorporates the environmental changes to meet the transforming preferences of the people through development of new products and services like RDCs, environment friendly home appliances and promoting sustainable development business practices. It is one of the main sources of competitive advantage that significantly influences its economic performance and increases its market credibility.

Diversity Diversity within the workforce is major element of success of Home Depot that enables it to understand the cross cultural values. It takes into consideration the diverse ideologies and value system of pluralistic society within its management functions. It is a critical issue that encourages cross cultural understanding for resolving workplace conflicts amicably and work as strong team for improved productivity. By incorporating it within the management functions, Home Depot ensures shared goals and collective decisions vis-à-vis creativity, new product development etc.

It meets the challenges of changing dynamics of society across the geographical boundary through new product development and exploiting the cultural competencies of its diverse workforce. Ethics Ethics and socially responsible behavior is perhaps one of the most important aspects of Home Depot. They are intrinsic part of managerial functions within which the workforce strives to achieve the goals and objectives of the company. The accountability in their actions and commitment to social causes are important ingredients of its continued success.

(words: 534) Reference Home Depot. Annual Report 2010. Retrieved from http://www.homedepotar.com/TheHomeDepotInc2010AnnualReport.pdf Sirgy, M. J., Lee, D.J., C. Miller & J. E. Littlefield. (2004). The impact of globalization on a country’s quality of life: toward an integrated model. Social Indicators Research, 68, 251-298.