The Effects That Internal and External Forces - Essay Example

? Internal and External Factors Task Introduction Management functions are activities that are carried out by managers to ensurethat they bring together all the required resources for smooth running of the business and achievement of the set objectives. These functions are broadly categorized as forecasting, arranging, directing and scheming. Planning is the determination of courses of future actions and considerations of how best they can be done. Organizing is about arranging factors of operations and structures, in a manner that will bring about achievement of the goals that were set at the planning phase. Conversely, directing and controlling are about effective administration, inspiration, general evaluation and comparison of the outcomes with the intended ones. Thereby taking up the necessary corrective measures and installing the best of practices to achieve higher performances. This paper is an analysis of the effects that internal and external forces, as mentioned below, have on the above managerial functions. Globalization Globalization is an external factor. It is about businesses and organizations expanding their operations further than nationwide into worldwide markets. This means that the business will be producing and or offering goods and services in other foreign countries. Once an organization has acquired this status, its management style changes. For instance, the Siemens Company has to exercise an expansive planning whereby by it makes available all the logistics and the necessary capital to ensure it succeeds in all these markets. In its managerial functions, it has also to understand and consider all the legal and business cultures of the host countries. This may force the firm to deviate from its usual ways of operations. Globalization brings about increased rivalry since the global market is an arena for all businesses. The Siemens Company has therefore to carry out an expansive research to know exactly what its competitors are offering. It will furthermore strive to get the best technical and more qualified staff. On the other hand, its marketing activities will have to target the worldwide market. The implication of these is an increase in cost of operations. Technology Technology changes exceptionally fast and products that were fashionable at most a year ago have been rendered obsolete. The Company on its side has extremely minimum control over such revolutions. This is an external aspect that is mainly motivated by a fluctuating market and at the same time, these needs cannot be satisfied. This aspect has ever kept the Siemens Company on toes in matters of research and development. Apart from spending large amounts of capital on this issue, the Company always has to review its plans, procedures and methods in accordance with the recommendations from the research and development department. Technology more often has dictated that the Company evaluates and changes its management structure to realign itself to the new goals and objectives (Reddy, Appannaiah, & Sathyaprasad, 2010). Just like globalization, technology would require the firm to acquire the most appropriate state of art plants and machineries. It will as well be obligatory to employ the most competent and skilled human resources to carry out these technological requirements. Technological progresses have changed the way businesses get in touch with their customers. Today companies involve directly with clients. This effect requires a revolutionized approach in management. It calls for the introduction of data base management systems in all spheres of operations. The overall effects of technology will be passed on to the Company’s expenditure and as such may lead to cutting costs in other areas. For example, part of the work force may be laid off. Innovation Innovation is the ability of the firm to come up creatively with original ideas about new products, procedures and methods. Moreover, these ideas can be on how to improve on existing goods, action of events and techniques. It is therefore an internal factor which the Company by large has power over. Like technology, innovation comes with changes in various ways at different levels. It may be because of research, brainstorming or a very fresh need that has been identified in the market. Where innovation demands production of a new brand, it will call for initial planning, setting goals and strategies. It will in addition require that there are enough resources in terms of plant, machineries and human capital. There will be development and set up of the necessary procedures and systems (Reddy, Appannaiah, & Sathyaprasad, 2010). “Span of control” is more expected to augment. Conversely, where innovation has brought about improvements on the existing system, it may not demand a great deal but overall the general outlay of the Company will have to transform in order to accommodate the adjustments. The final effect of this is that the managerial aspects will be altered. In most cases, this takes place positively in favor of the firm. Diversity Diversity is whereby the Company, after substantial and successful growth in one area of operation, decides to venture into other forms of business enterprises in addition to what it is currently undertaking. This may be motivated by numerous business opportunities in the market, for instance fresh demand, window opportunity and a new market niche altogether. Likewise, to globalization, this will signify that the Company is engaging into a new-fangled business undertaking. It will therefore be required to meet all the prerequisites essential to the start up of such dealings. The Company will be required to develop fresh business plans, create goals and objectives for these newly founded businesses. New structures and procedures will be inevitable and this would call for additional resources. These may be borrowed from the mother company but subsequently each venture will have to be semi-autonomous in day-to-day running of its affairs. The implication is that there will be an overall expansion of the company with an enlarged span of control on top management. The company will have to increase the number of its work force to ensure smooth operations at all levels. Advantage of this is evident when the company is able to achieve a break-even in its general operations. This depicts that the company would swathe for losses made from a number of ventures with profits gained from others (Williams, 2009). Ethics In business undertaking, ethics is about the general organization behavior as depicted by a given firm. It entails how the various enterprises treat both their internal and external customers. Ethics is contained in the company’s policies and code of conducts. It is further exaggerated in the picture that is displayed by the organization’s employees through their reactions and conducts towards external publics. A number of times the government through its various agencies gives guidelines on the general conduct of the firms (Williams, 2009). In the first scenario ethics is considered an internal factor whereas where the government initiates and administers it on firms it becomes an external aspect. As an internal factor, the organization is in charge and takes decisions on its own actions on how best it can treat its customers. This gives direction and affects planning, organization and how operations are undertaken. Finally, as an external factor, the government dictates every detail on how organizations should be run in light with various legislations and by-laws. This gives rise to certain organization behavior expressed in the entire managerial functions of the company. Conclusion The company has limited or no control over the external factors, therefore it has to manipulate the aspects within its charge in order to adjust and adapt to the market current situations to enable it compete favorably. Alternatively, the company has full control over internal factors and it has just to maneuver them to have competitive advantage over other companies. References Reddy, P., Appannaiah, H. R., and Sathyaprasad, B. G. (2010). Business management Mumbai India: Himalaya Pub. House. Print. Williams, C. (2009). Principles of management. Mason, OH: Southwestern Cengage Learning. Print. Read More