Good Essay About Management Fundamentals

Internal and external factors affecting business management Management in any given business or institution is an act aimed at coordinating the efforts of human resource to meet goal and objectives utilizing and maximizing available resources effectively and efficiently. Management encompasses organizing, planning, controlling, staffing and directing an organization towards accomplishment of goals and objectives set by a given institution.

Planning, leading, controlling and organizing are the four functions of management that a competent manager should complete to ensure that the business is healthy and competing for market space. Organizational success is only achievable through observation of the four functions of management. A manager should plan first then start executing organizational duties as per the plan. The manager should then do a detailed evaluation of the effectiveness of the plan.

Management is affected by several factors either negatively or positively. The factors may either be internal or external factors. Internal factors present themselves from within the organization and often under the control of the organization’s management. Some examples of internal factors are technological capacity, financial management, organizational culture and employee morale. External factors are factors that affect organizations but unlike internal factors, they factors are normally beyond the control of the organization’s management. Uncertain financial environments, weaknesses present in the global economy, unstable political environments and government policies are examples of external factors. Globalization is one major strategy which businesses have incorporated into their managerial planning in order to enable expansion and complete efficiently in the market space. For a company that is well established, planning should be efficient to enable it compete in the market place. Customer base and diverse environments that should be taken into account make it complicated to determine the proper direction. Managers have to adjust policies to incorporate factors like physical ability, ethnicity and gender. For example, it’s hard to manage people from Germany, India and Mexico all from one office. Hence planning work, organizing, leading and controlling it must have a different approach. A manager needs to adjust the method of managing diverse cultures. Wal-Mart stores managerial has engaged in multilateral and bilateral free trading agreements which focus on reduction of trade barriers. Wal-Mart engages in a competitive environment across the world.

High competition posed by departmental, specialty stores, drugs as well as warehouse clubs and supermarkets which are either regional, national or extensions of international business chains in competition. Globalization has made the company prosper in terms of revenue generation of more than 12% and business proceedings. It has created more selling space and many new retail units (Wal-Mart annual report, 2011). Technology is the fastest moving force affecting the four functions of management, and this leaves managers with no option but to adjust the way they do planning organizing, leading and controlling. Technology enables managers to communicate and access data faster. Mangers have to learn how to use it. Wal-Mart activities such as inventory, keeping track of quantities sold, prediction of future and record trends has been immensely improved by the company’s investment in technology systems. Without financial database systems, it’s difficult for companies such as Wal-Mart to control prices, manage production and have adequate cash flow. Financial reporting on loss-and-profit statement, updating of balance sheets, payable and receivable reports and debt tracking activities become hard to accomplish. Wal-Mart suppliers use information systems that help in planning and analyzing the business. Improved machinery boosts production rate, reduces production cost and makes rebranding easier. Logistics teams have transportation link internet-based systems which help in fleet tracking. Many people are shopping online, so necessary technology is required to keep up with the trend and stay ahead of competitors

Acceptance of Innovation by management in any business is compulsory so as to utilize four basic management functions. New ideas crop up every day that affect the management constantly. One example of an innovation is the use of text messaging and emails. Innovation ensures that the company maintains relevance in the market space by offering improved products that satisfy customer needs through lower prices to compete with the competitors. Employees are prepared psychologically by their leaders for changes that occur in terms of product delivery and also listen to feedbacks from the consumers. This allows Wal-Mart to maintain the confidence of consumers constantly. Management and its four functions ensure there is a variety of commodities that suit every consumer need, for example, in clothing and food products sector. Innovation assists in strengthening business position in the market. Wal-Mart has had a series of innovations in the way it offers its services and rebranding to suit the taste of customers in order to win more market.

Diversity is an essential factor which takes the multicultural nature of an organization and brings out the values used when making decisions. Economic status of communities and cultural beliefs are very different, so management has to evaluate all patterns of diversity in planning, organizing, leading and controlling. Diversity aims at offering a broad assortment of services and goods at affordable services. This also ensures the well being of a community economically. Wal-Mart works with diverse suppliers so as to promote significant growth to diverse businesses. It also works with leading business diversity organizations to reach and identify potential suppliers in order to promote social responsibility hence making the bond between the suppliers, customers and Wal-Mart fraternity strong.

Ethics constitutes of integrity and fairness in business activities. It includes upholding ethical behavior for stakeholders in all aspects. Ethics is a fundamental component that promotes employee and employer relationship and boost business profile in the market space. Wal-Mart through its global ethics office can promote culture and integrity. Without ethics and responsibility cases of fraud, indiscipline among staff and ignorant leaders crop up hence failure of the organization is inevitable.

Prosperity is brought by day to day evaluation and analysis of factors within the environment of operation. Therefore, basing on the four fundamental major functions, managers can draw conclusions on the best line of action.

References:

Soderquist, D. (2005). The Wal-Mart way: The inside story of the success of the world’s largest company. Nashville: T. Nelson.
Lussier, R. N. (2012). Management fundamentals: Concepts, applications, skill development. Mason, Ohio: South-Western.
Fox, W. M. N. (2009). The management process: An integrated functional approach. Charlotte, N.C: Information Age Publishing.
Bateman, T. S., & Zeithaml, C. P. (1993). Management: Function & strategy. Homewood, IL: Irwin.

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