Internal and External Factors - How They Affect the 4 Functions of Managment - Essay Example

Internal and External Factors - How They Affect the 4 Functions of Management Introduction There are different internal and external factors which affect the main four functions of management i.e. planning, organizing, leading and controlling. These factors influence the decision making process of the management as well as the work delegation process in different levels of the organization. To ensure the success and sustainable competitive advantage for the organization, the management must consider the four functions as an important tool for driving the business.

The consideration of the different factors within the organization and in the external environment of the organization plays a major role in shaping up the management processes of the business. Discussion The management process of Wal-Mart and the different factors affecting the four crucial phases of management in the company are considered here. Globalization: The advent of globalization has brought about major changes in the management strategies in most organizations across the world. Wal-Mart has grown into a multinational retail giant over the last twenty years.

In the light of globalization, the company took up new strategies and embarked on a global expansion process. The different external issues like the locational factors, the government, consumers and the other stakeholders have started acting as major drivers of a business. As such, Wal-Mart carefully adapted to the evolving global scenario and started implementing new strategies to cater to the changing demands of the market (Bruening, 2004). The organization focused extensively on training the managers to make them skilled to plan, direct and control the different activities of the organization in different countries.

Globalization created the development of new markets as well as new opportunities. Wal-Mart took clearly defined steps to grab the opportunities provided by globalization by tapping in the emerging markets. Wal-Mart started making detailed study of the potential markets and trained and guided the managers to perform the management functions accordingly to suit the requirements of the new markets. Technology: Technology has been the most significant driver of change in the different organizations across the world.

Wal-Mart was an early identifier of the need to implement innovative technologies in order to ensure more effective functioning of the business. Wal-Mart started implementing new technologies systems by upgrading its information technology systems with products designed by IBM. The company renovated the technological functions and systems within the business to and ensured that the managers are properly educated and trained to handle the new systems. The robust information technology systems in the company helped the managers to perform their activities more efficiently.

Since then, Wal-Mart has always remained a step ahead of its competitors on the foray of the use of innovative technology. Innovation: Wal-Mart is renowned as one of the most innovative companies in the world. The company constantly innovates in its products and processes to ensure that it stays at the top in the retail industry. Wal-Mart employs careful planning on the part of the management to ensure that the right products are sold at the right time. The management also makes much effort to respond to the changes in the demands of the customers by instilling innovative techniques in the business.

The management effectively guides and leads the employees to adapt to the changing requirements and innovative practices in the business. The processes of planning, leading, organizing and controlling are stimulated through the engagement of the employees to actually implement the practices in the organization (Bateman and Snell, 2009). The managers act as efficient leaders and make the employees prepared for the new processes and innovations as well as takes inputs from the employees as well as the customers.

Diversity: Wal-Mart has always been known to give major importance to diversity in their workforce. The diversity of the employees is seen as an organizational strength by the management and careful consideration is given to maintain the richness of the diverse work culture. The approaches of the managers are ensured to be stringently unbiased and equal opportunities are provided to the employees, irrespective of their backgrounds. The multi-cultural aspect of the organization influences the managers to adopt an unbiased approach towards the employees and encourage diversity through the different managerial activities.

Ethics: Wal-Mart has given major importance to maintain strong ethical practices in the business. The managers support and encourage the employees and maintain an open door policy in which the employees can directly talk to the managers in case they face any work related issues. The company abandons all unethical practices like labour exploitation and sweatshop practices and encourages human rights and other ethical practices. Conclusion The use of the different external and internal factors to suitably design the four functions of management is critical in deciding the success of the organization.

Wal-Mart has become the largest retailer in the world due to its efficient managerial practices. The factors like innovation, globalisation and technology have enabled the company to successfully expand its business across the world. On the other hand, the maintenance of diversity and ethics within the company has made Wal-Mart one of the largest employers and the largest retailer in the world. References Bateman, H. & Snell, K. M. (2009). Management: Leading and Collaborating in a Competitive World, 8th Edition.

New York: McGraw-Hill. Bruening, T. (2004). Wal-Mart Legal Department Diversity. Retrieved from: http://www.abanet.org/minorities/publications/g9/v10n4/mars.html.