External Factors Globalization

In: Business and Management

Submitted By Kimmy2
Words 328
Pages 2
The main objective of every firm is to gain profit. Globalization has provided scope for the companies to expand their business in other countries. But it is not as easy as it looks. Before entering into the new market, the manager should have proper knowledge of that market, so that, they can prepare them self, before they enter into new market. The company can go for joint venture, when they start operations globally. The main advantage of joint venture is that, it gives company, easy entry into the global market and the risk is also shared between the partners.
The internal factors that will affect the global organization, when they do business in global organization are
 Remuneration
 Maintain quality expectations
 Ability to cope with external environment
 Budget
The external factors include
 Currency rates
 Political factors
 Culture
 Economic environment
 Legal environment
 Technology
When an international organization goes for recruitment, it need to make sure that, they recruit the right person. The person should have knowledge of culture of the company. For e.g., US companies, which are working in developing countries like china and India, needs, a person, who do have good knowledge of English. He should be ready to work in night shifts etc. The person should also need to have proper qualifications. Many times, it has been seen that, people has only bookish knowledge and no practical knowledge. Stability is also very important. Many people keep on changing jobs, which affect the performance of company.
To form cross border team, company need to make sure that, only those people are included in the team, who are responsible and can handle the pressure. The team member should have team sprit; they should not concentrate only on personnel goals. The people, which are included in the team, need to have proper knowledge and expertise of…...

Similar Documents

Internal and External Factors Team a

...Team A: Internal and External Factors Student MGT/230 October 1, 2010 Instructor Team A: Internal and External Factors The conditions and climate of the business world are constantly changing. With those changes, great executives have to keep their focus and be ready to adapt to them at a moments notice. At Wal-Mart, top executives have learned to utilize the four traditional functions of management: planning, organizing, leading, and controlling. Through understanding the four functions, they have been able to overcome the internal and external factors that have threatened Wal-Mart’s place in their industry. However, Wal-Mart has experienced situations where internal and external factors have affected and, in some cases, enhanced their ability to use those functions. Now we will take a look at these five factors: Globalization, Technology, Innovation, Diversity, and Ethics and analyze their affects on the four functions of management. For Wal-Mart, globalization has affected the four functions of management. When the organization decided to go global in 1991, Wal-Mart experienced a huge shift in its ideas of planning. With the options of going into Europe, Asia, and other countries in the western hemisphere, Wal-Mart decided to first move into the South American markets. Ultimately, Wal- Mart chose to expand its organization globally in Mexico where it could gain knowledge and experience, and......

Words: 1347 - Pages: 6

Apple- Internal and External Factors

...Apple- Internal and External Factors Julietta Parker, Takesha Lee, Doan Clark, Dewey Privett, Brian Green October 08, 2012 MGT/230 Management Theory and Practice James De Clue Apple- Internal and External Factors Apple Inc. is an electronically based Fortune 500 company founded in 1976 by Steven Wozniak and Steven Jobs (Sanford, 2011). It is a corporation that designs, manufactures, and sells iPod, iPhone, iPad, and Mac. Over the years Apple has made drastic strides. A little bit more of an introduction into why Apple and factors covered would have better prepared the reader. Globalization Globalization definitely has evolved into an essential factor for big business organizations to exceed above the competitors. In the 1970’s the creation of an electronic device known to us now as a computer, would have come out of a garage to being a media mogul company that is worth millions. Globalization had a huge impact to Apple’s income. Financial statements display that Apple’s worldwide sales take the lead in technology sales and are ongoing to increase. This shows they have exceptional global management an example of that is, Apple had been attempting to market their products in Korea with the merchandise for many years. Only now are they able to have a product in their market that is acceptable to the MPEG-1 Layer 3 advances. So availability of technology is a factor for consideration for the plan as it allows or limits growth in a region? This allowed them to......

Words: 2258 - Pages: 10

Internal and External Factors

...Internal and External Factors MGT/230 Internal and External Factors Introduction To be successful organizations rely on the four functions of management: plan, organize, lead, and control. However, implementing these functions is not easy when other factors come into play. External and internal factors such as, globalization, technology, innovation, diversity and ethics all affect the four functions of management. If an organization wants to be successful they must adapt to these different factors. One company that has been able to do so is Starbucks Corporation. The adaptation and utilization of these many different internal and external factors has helped to make the company very successful. Globalization Globalization is the integration and exchange of worldwide cultures and resources. “Corporations operate worldwide, transcending national borders” (Bateman, & Snell, (2011), pp. 4). Advancement technology has led to advances of transportation and telecommunication, and these advances have led to connections and interactions between people that may not have encountered each other. Globalization has also led to an increase of available resources to companies around the world. When it come to the four functions of management and how globalization affects them, an organization must plan a companies goals and mission according to whether or not they want to globalize, export or import, then they must organize their company and departments to help implement...

Words: 2004 - Pages: 9

External Factors

...Systematically analyse the impacts of external factors on organisational decision making Decision making is a broad term that applies to the process of making a choice between options as to course of action (Smith et al., 2005). There are many factors that are involved in decision making of any organisation especially in health and social care organisation. Following are the external factors that are affecting the decision making of health and social care organisation. (Blog NHS Website, 2005). 1. Legislation: There are many set of rules and regulations defined by the government and health and social care sector is bound to obey these rules and regulations Such as “The Mental Capacity Act 2005”, The Access to Medical Reports Act 1988, Blood Safety and Quality Legislation, The Census (Confidentiality) Act 1991, The Children Act 2004, The Civil Contingencies Act 2004, The Civil Evidence Act 1995, Commission Directive 2003/63/EC (brought into UK law by inclusion in the Medicines for Human Use (Fees and Miscellaneous Amendments) Regulations 2003), The Computer Misuse Act 1990, The Congenital Disabilities (Civil Liability) Act 1976, The Consumer Protection Act (CPA) 1987, The Control of Substances Hazardous to Health (COSHH), Regulations 2002, The Copyright, Designs and Patents Act 1990, The Crime and Disorder Act 1998, The Criminal Appeal Act 1995, The Data Protection Act (DPA) 1998, The Data Protection (Processing of Sensitive Personal Data) Order 2000, The Disclosure......

Words: 848 - Pages: 4

Internal and External Factors Paperinternal and External Factors Paper

...Internal and External Factors Paper Luis Molina MGT/230 November 13, 2013 University of Phoenix Internal and External Factors Paper There are several internal and external factors affecting the functions of logistics planning. These you must have all the factors in mind, as they can have a huge impact on the productivity of organizations. The common four functions of management involve organizing, planning, controlling, and leading; the evaluation process of the internal and external factors that the organization will face that can be a risk for the management of the company. As a company you have to determine a set of problems and limitations, list of the factors that affect the implementation of the management plan. Developing the environmental assessment helps the understanding of the internal and external processes that will influence the success rate of organizations. The main purpose for environmental assessment is for the company or organization to be able to identify and analyze the major trends, forces and phenomena that have a potential impact on the implementation of strategies. Indeed environmental assessment helps to prepare the organization to acclimate to environmental changes and take advantage of opportunities and minimize the adverse effects of hazards. Once the environmental assessment is completed, is analyzed to prioritize the problems, limitations and assumptions that could influence the planning function of management. The assessment of......

Words: 1225 - Pages: 5

Internal and External Factors

...Internal and External Factors Learning Team Arib, Chuck, Caleb, Jeff MGT /230 July 14, 2013 NEO WILLAMS External and internal factors affecting any organization come in many forms and may cause major impacts to the organization in different areas. Assessing external and internal factors that organizations may face can be vital to the four functions of management. These four functions planning, organizing, leading and control are a continuous process that managers will need to adapt to ever changing environments. In this paper, the team will discuss the internal and external effects British Petroleum experiences caused by globalization, technology, innovation, diversity and ethics and how they affect the four functions of management. British Petroleum is truly a global organization with operations in Europe, Asia Pacific, the Americas, Middle East and Africa. Many internal factors since starting in 1908 have led to the company’s globalization including how the organization changes its practices to compete on a worldwide scale. British Petroleum production, product diversity, development, customer service and marketing strategies are just a few examples. Since British Petroleum inception and first drilling operation in Persia, many external factors have affected the company’s growth. Planning for such expansion does not happen overnight, but the organizational goals have remained the same. Finding the right people, gaining capital, management needed to become......

Words: 291 - Pages: 2

External/Internal Factors

...External/Internal Factors University of Phoenix Management: Theory, Practice and Application MGT/330 Oren Gilbert May 29, 2011 Abstract In this paper we will analyze the functions of management at St. Jude Children’s Research Hospital. Looking at the four management functions (planning, organizing, leading, and controlling) and how the functions are affected by internal and external factors. An explanation of how globalization, technology, innovation, diversity, and ethics affect the four management functions will are discussed. Lastly how managers at St. Jude Children’s Research Hospital use delegation to manage each function (planning, organizing, leading, and controlling). As well as how each factor (globalization, technology, innovation, diversity, and ethics) is affected managerial delegation. External/Internal Factors This paper is based on the St Jude’s Children Research Hospital. St. Jude’s Children Research Hospital was started in 1962 by founder Danny Thomas. Thomas’s goals were to change the lives of all the children that would walk through the hospital doors. He created a hospital that specialized in research and treatment of catastrophic diseases and illnesses. It was not until 2005 that St Jude’s added on a massive expansion that heightened the hospitals efforts to find cures, treatments, vaccines, and rehabilitation for children. This paper will include an explanation of how internal and external factors affect the four functions of......

Words: 2152 - Pages: 9

Internal and External Factors

...Internal and External Factors Trina C. Humphrey May 22, 2015. Management Theory and Practice XMGT/230 Craig Fowler In management there are four functions that managers must follow in order for the workforce too be able to produce products or services. The four functions are planning, organizing, leading and controlling. In the planning function management makes decisions about the goals and functions of an individual, a department, or a work unit. Organizing function coordinates human, financial, physical, information and other needed resources to obtain a common goal. Leading is motivating people to do the best job they can do. Leading helps to inspire the team to work towards organizational goals. Internal and external factors such as decision- making affects management are greatly influenced by the four management functions. The external and internal factors can be influenced by all four functions of the organization are required to make sure that they are properly addressing all functions in order to achieve its goals and meet targets for the success of the business. Competition is consist changing managers must take into account people and business around the world. Globalization, technology, innovation, diversity, and ethics require strategic planning in every aspect of management. Globalization is growth on a worldwide level. It is the process of integration and international influence. An example of this was when Airgas,......

Words: 940 - Pages: 4

Internal & External Factors

...Internal & External Factors Paper Osvaldo Lopez MGT/230 06/17/2015 Tricia Stewart Internal & External Factors All successful organizations are affected by internal and external factors. These internal and external factors have an impact on the organizations four functions of management. The organizations that better adapt to these factors are the organizations that are the most successful, the more profitable and the companies that have will be around for a long time. AT&T is a company that has been around since the 1800’s and has been able to adapt to these internal and external factors that in a lot of cases affect the four functions of management, which are planning, organizing, leading and controlling. One of the four functions of management is the planning stage, which is setting up short term and long-term goals. Historically as the book states this is the time were executives set up business plans for other in the company to follow. Internal factors that can affect this stage can be budget restrictions. AT&T can also be affected by laws and regulation, which can persuade the planning stage to go in a different direction. The planning stage is an integral part in a company given that is giving us the future outlook of the company. The next function of management is organizing. This is the stage where all of the company’s goals are separated and assemble in a way for each department or individual can do their part to achieve their......

Words: 1176 - Pages: 5

External Factors

...Question: Businesses are influenced by a number of external factors. Grade the current external factors as positive or negative for Canadian businesses and explain why they are positive or negative. What can the government do to address possible business concerns they may have with the external factors. •Economic conditions •Emerging technologies •Political –legal considerations •Social issues •Global environment •Ethical issues and social responsibility Answer: My focus will be on the Canadian business environment. As most of the world is aware by now, the oil prices have been going down. This probably fits under global environment. In terms of Canadian businesses, depending which industry you are in, it is either a good or bad thing. It’s positively affecting businesses which the use of gas is a big expense to them, like airlines, trucking industries, and shipping companies to name a few. It is also a positive for us, the consumers, as we are paying considerably less for gas. We have extra money available to us, so we have more to spend. This could go as far as to be related to the economic conditions affecting businesses unrelated to oil in a positive way, as the Canadian consumers are willing to spend a bit more. In terms of negative impact, the main target is obviously the oil industry and the businesses in that field. Businesses have been going down, and a lot of people have lost their jobs. In turn, provinces like Saskatchewan and particularly, Alberta,......

Words: 398 - Pages: 2

Internal and External Factors

...Internal and External Factors MGT/230 Internal and External Factors The four functions of management are planning, organizing, leading and controlling. First, planning helps a company accomplish strategic goals. Second, organizing makes a company or business more productive. Third, leading includes communicating and encouraging employees and getting to know them on an interpersonal level. Fourth, controlling is used to change an organization and help it grow. All four functions are essential to management and can be influenced by internal and external factors. Internal factors consist of culture, employee relation, rules and other things within the business. External factors consist of competitors, customers, and laws outside the company. Globalization, technology, innovation, diversity and ethics are crucial in every part of management. In this paper, I will explain how the four functions and internal and external factors affect Apple. I will also give a concrete example of how the four functions are influenced by globalization, technology, innovation, diversity, and ethics. Globalization is an external factor because it consists of things outside of the business walls. Globalization connects businesses around the world (Dictionary.com). Globalization allows businesses of any kind or size here in the United States to connect with the foreign business. Globalization changes the way managers plan. They now must consider a global market to get the best and cheapest......

Words: 1287 - Pages: 6

An Analysis Report on Barriers to Globalization and External Factors Affecting Kenya Airways

...An Analysis Report on Barriers to Globalization and External Factors Affecting Kenya Airways Professor: Student Name: Date of submission: Executive Summary Stiff competition, technological changes and the political and legal environment are the main factors determining the success of a company operating in the airline industry. Kenya Airways is subject to these factors and must find the best solution to help mitigate the adverse effects of these factors. It will help improve efficiency, effectiveness and the competitiveness of the company. Liberalization of many economies accompanied by globalization has turned the face of doing business across the globe. It has led to the essence of competition among organization for prosperity and survival. Technological aspects have also improved communication across the globe leading to integrated systems connecting companies and businesses. The report is an overview of the external environmental factors affecting Kenya Airways that is in the service sector in the Airline industry. The service sector requires up to date technology and is easily affected by the external environmental factors. These factors relate to the political stability, legal environment, social, cultural well-being, and the state of technology. Table of Contents Executive Summary…………………………………………………………….2 1.0 Introduction………………………………………………………………….4 2.0 Task 1 ………………………………………………………………………….5 2.1 Macro Environment analysis for Kenya......

Words: 4774 - Pages: 20

External and Internal Factors

...External/Internal Factors MGT/330 March 26, 2012 Jack Adamchik Abstract In this paper we will analyze the functions of management at Facebook. Examining the four management functions (planning, organizing, leading, and controlling) and in what way the functions are shaped by internal and external factors. How do technology, innovation, globalization, ethics, and diversity impact each of the functions of management? Finally an explanation of how delegation is used by individuals in the managerial position in the function of management. These are the questions that are going to be answered in this paper. External/Internal Factors Every business follows the four functions of management. These four functions in conjunction with internal and external factors can cause a business to be successful or cause a business to be a failure. There are a variety of internal and external factors that a business considers in its daily operations. These factors are extremely useful when considering the future projections of a business. Facebook is an organization that uses the SWOT analysis once the internal and external factors are determined. This type of analysis will help executives formulate strategy for the organization and aid in future projections of the organization. Internal and external factors shape the four functions of management in the SWOT Analysis in Facebook. This plan is a strategic planning implemented so that an evaluation can be made of the......

Words: 1623 - Pages: 7

External Factors

...e-services currently being offered to the public on various state Board of Education websites. From the simplest calendar of events and directories to lost child notifications, what you can do with this type of media is endless. I currently have 3 children in 3 different schools (Elementary, Middle and High), the advantages of going on-line to check academic progress at a moment’s notice or find a missing assignment, far outweigh the risk associated with its effectiveness. There are many factors that may impact the effectiveness of e-services offered by state Boards of Education. Security and individual privacy are on the forefront of concerns. How secure are these sites and who has access to the data listed? Federal law requires the masking or hiding of data for groups with 10 or fewer students to protect confidentiality of individual students. But with a limping economy and the many budgetary cuts taking place is the proper funding available to ensure these sites are secure? One of the biggest factors that may impact the effectiveness of e-services offered by state Boards of Education is the lack of money or financing to properly build and maintain these web sites. A lack of funding or sudden elimination of a funding source may affect the ability of state boards to provide adequate security. Additionally, the lack of funding may affect the ability of states boards to offer across the board e-services to all school districts, let alone the support required to maintain......

Words: 495 - Pages: 2

External/Internal Factors-Target

...External/Internal Factors-Target Learning Team A MGT/330 June 11, 2012 William Roman External/Internal Factors-Target 2 External/Internal Factors-Target At Target, a well-known corporation that offers a variety of high-quality products to a broad range of consumers, there is much going on behind the scenes. Target’s mission statement, “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less. ® brand promise,” reflects the internal and external factors that affect the four functions of management, the impact of other factors on these functions, and delegation through management (Target Brands, Inc, 2012). Target is an organization that believes in embracing diversity, giving back to the community, and incorporating its positive morals, values, and ethics into its business, and these principles apply to the four functions of management within the organization- planning, organizing, leading, and controlling (Bateman & Snell, 2009, Chapter 4). Target uses these functions to determine which goals are accomplished and how the available resources strive to achieve these goals (Bateman & Snell, 2009, Chapter 4). The main internal and external factors that influence these functions of management at Target are human resources, marketing, operations, stakeholders, technologies, and......

Words: 1574 - Pages: 7