Internal and External Factors Individual Paper

Internal and External Factors Individual Paper

MGT 230

July 13, 2015

Internal and External Factors Individual Paper

There are four management functions found in probably all businesses around the world, and one company that has become very successful with these functions is Walmart. These functions are planning, organizing, leading, and controlling. Planning establishes the definite goals the company would like to accomplish. The Walmart we all know and love to shop at came from “Sam Walton’s goals for great value and great customer service” (Walmart, n.d.). Organizing prepares the corporation on how to achieve these goals. Leading is done when the store manager of Walmart motivates and guide the employees to reach these goals set by Mr. Walton successfully. Controlling can be complete by the CEO reviewing the progress of all the stores and make any changes to complete the goal.

There are internal and external factors that affect the four functions of management. Walmart’s ability to recognize these factors allowed them to be proactive in their approach to the future. When most individuals think about Walmart, they think about the mega retail that everyone know today. It usually never crosses anyone mind that Walmart opened its first store in Roger, Arkansas in 1962.  Since opening in 1962, Walmart has grown into a global organization. Walmart is a worldwide leader in recognizing diversity, ethical needs, technological advances, innovative ideas, and the globalization of the corporation. As a result of this today, they span the globe 11,000 retail units under 65 banners in 28 countries and e-commerce websites in 11 countries. They employ 2.2 million associates around the world of which 1.3 million are in the U.S. alone. According to Bateman and Snell (2011, p. 4), "Companies that want to grow often need to tap international markets, where incomes are rising, and demand is increasing."

Diversity

Walmart has over 11,000 stores globally and employs over 2.2 million employees. With their production happening internationally, Walmart has positioned itself as a diverse place to work. Walmart has been able to produce an organization and products with the ability to survive no matter what type of economic situation and competition comes their way. Internal diversity is a step in the planning process that determines the diversity in products, resources, and organizational structure. Once diversity is well thought out, management can use the four functions to propel the organization to success.

Ethics

According to Dictionary.com, business ethics is "the study and examination of moral and social responsibility about business practices and decision-making in business" (Dictionary.com, 2015). Over the years, Walmart has been cursed with many critics that disapprove of their energy use for shipping, trucking, and distribution done on monumental scales.  Walmart, through their Statement of Ethics, has shown that they're dedication is to responsible behavior.  The three basic principles that drive Walmart leadership are the respect for the individual, service to their customers and striving for excellence.  With these beliefs in mind, everyone can have the vision to follow and can achieve all four functions of management effectively. Walmart's Statement of Ethics provides managers with a structure to their responsibilities. These responsibilities include setting standards, coordinating solutions to the ethical dilemma, supervising ethical issues by reporting them, and in the end, putting ethics first. Managers, associates, and customers all benefit from strong ethical standards. Anita Roddick quoted, “I want to work for a company that contributes to and is part of the community. I want something not just to invest in; I want something to believe in” (Roddick, 2001).  When managers have a strong ethics statement to believe in, they can plan, organize, lead, and control in agreement with the vision of the company.  Thus,  having this knowledge they can pass it on to lower level associates who deal with the public daily.