Internal_and_External_Factors_of_Management

During this study we will examine the effects that internal and external factors affect the functions of management. Organizations plan, organize, lead, and control outcomes to produce the best products for consumers. Corporations also have to consider conditions that are not in direct control such as; external factors, environment, culture, ethics, and remaining diverse. This study will take a closer look at those details as they affect a profitable company such as; Wal-Mart. We will start to see how Wal-Mart operates on the global market. According to Jessop (2002), “The revenge of the real economy can be seen in the current liquidity, credit, and financial crisis, and their role in forcibly reimposing the unity of the circuits of capital by deflating the associated bubbles”. Those words are even more prevalent today’s economy. As the current financial crisis that America faces today, we look to government to provide solutions. Companies have seen the advantages of marketing their resources globally. Ozimek (2010), states; “whether or not corporations should care about social issues is often debated, but when you see the positive impacts that Wal-Mart is having in China, it certainly suggest that those pushing for socially conscious corporations may be correct”. Critics of Wal-Mart cannot deny the positive impact that the giant has had on China and the world globalization models. Technologically, Wal-Mart has made great advances. Recently, the corporation announced that it is expanded its renewable energy efforts. They are planning to add solar generating systems to some stores in California and Arizona. “By leveraging our global scales to become a more efficient company, we are able to lower our expenses and help develop markets for new technologies” (Wal-Mart Corp, 2010). These renewable energy efforts are an excellent example of how the corporation includes the four functions of management in their day to day business. In my opinion, Wal-Mart planned and organized this project so that they can cut costs in order to see an increase in profits. Renewable energy is a lot cheaper than traditional energy costs. Leadership skills obviously come into place on a project like this also. It takes a strong team with a strong leader to accomplish a huge task. Keeping control of this project says whether or not this idea will succeed. A breakdown can easily occur if a good manager is not in control of his team. Wal-Mart has proved that they know how to implement the four functions of management in their business. Implementing new technology to lower costs and raise profits is just one reason why this corporation remains profitable in this economy.”Wal-Mart is also the largest retailer in the world. From a global perspective, Wal-Mart’s sales are larger than the next three retailers combined: Carrefour (France), Home Depot (United States), and Metro (Germany) “(Basker, 2007). The definition of innovation means that a company can adapt to consumer demands as well as adjust to market competition. Wal-Mart has become very successful in adapting to its consumer demands and the competition. As a low cost everyday retailer, Wal-Mart has improved sales through a plan that relies on productivity, operating efficiently, multi-channeling, and partnering with their suppliers. Because of this plan, Wal-Mart has set itself apart from its competitors by being able to introduce new products and services from their suppliers during the economic downturn. Wal-Mart has been able to adapt through partnerships with its suppliers that share their standards and commitment to sustainability. Those partnerships have allowed Wal-Mart to see its profit margin increase during the current recession by adjusting the way they deliver products to each of their 9,000 retail stores in 15 countries and the United States. Wal-Mart is competing innovatively through the purchase of Kosmix. Kosmix, a California based company which will ensure that the company’s multi-channel goal will be reached, develops business technologies both social and mobile to incorporate e-commerce into real-time for Wal-Mart’s social network customers. Another innovative project that Wal-Mart has undertaken is a goal to build an auditing system around social and environmental standards that will allow retailers, including global, to have the same advantages. Diversity is very important to the success of any organization. Including different groups of people usually brings different ideas that would benefit the organization. Wal-Mart is one of the organizations that take pride in diversity. In 2003, the organization created an Office of Diversity. The organization gained the ability to reach a broader audience, and synergies to further their efforts toward diversity excellence. Wal-Mart shows its diversity by having different races and gender in the organization. “With an associate base of more than 257,000 African Americans, 41,000 Asians, 5,900 PacifiIslanders,171,000 Hispanics, 16,000 American Indian and Alaska Natives 869,000 women, and more than 431,000 mature associates who are 50 and older, we work hard to make sure the message of diversity and inclusion Is carried throughout our company” ( Porter, March/Apr 2009). One may not believe these numbers. However, if you walk inside any Wal-Mart, these numbers would be understandable. Every Wal-Mart that I visited in my area, I always notice the diversity. Wal-Mart has created many different programs. Diversity Goals program is one of the many programs in place to help diversity in the organization. The diversity goals program has two main goals: Placement Diversity Goals and Good Faith Efforts Diversity Goals. Placement Diversity Goals help field management establish objective target/goal of placing Women, African Americans, Hispanics, Asians and Pacific Islanders and American Indian and Alaskan Native associates at a rate consistent with the qualified, interested and available applicant pool in field management positions. Good Faith Efforts Requires managers to demonstrate their diversity leadership by participating or sponsoring diversity events, as well as mentoring at least three associates, including persons of diverse race, gender or background. “We continue to make great progress in Diversity and Inclusion training. Each year newly-hired and promoted associates complete this valuable and strengthening program that teaches practical ways to recognize and appreciate different backgrounds, cultures, talents, skills, and life experiences” ( Porter, March/Apr 2009). With these different programs in place to ensure diversity, I believe Wal-Mart might become the leader in diversity. Although, many companies are starting to implement diversity, I believe Wal-Mart’s diversity plans is somewhere at the top of the chart. Since Wal-Mart Stores, Inc. was founded, it has always been a values-based, ethically led company. The values that guide Wal-Mart decisions and leadership are based on the Three Basic Beliefs; respect for the individual, service to our customers, and striving for excellence. These principles are meant to help Wal-Mart associates make the right decisions and to act with integrity. Appropriate disciplinary action, up to and including termination, may be taken against any Wal-Mart associate whose conduct violates their Statement of Ethics or applicable laws and regulations, including the Guiding Principles. Wal-Mart is committed to a safe and healthy workplace for everyone. The use of alcohol and illegal drugs can create serious safety risks in the workplace. The possession, solicitation, or use of illegal drugs, or being under the influence of such drugs on company time, while on company property, or at any Wal-Mart– sponsored event, is prohibited and will not be tolerated. In some instances, associates may consume alcoholic beverages at company-sponsored events when appropriate monitoring is in place, off Wal-Mart property, and with the appropriate level of approval. The company will take common business practices into consideration in countries where a moderate consumption of alcohol with a meal is common. All associates should ensure their performance and judgment are unimpaired by alcohol consumption during working hours. Harassment is another issue that may arise at Wal-Mart and any other company or organization. Wal-Mart believes in treating each other with respect, whether it’s a co-worker, supplier, customer, or anyone doing business. Verbal, visual, or physical conduct of a sexual nature is not acceptable in the workplace and may be determined to be sexual harassment. Wal-Mart strives to provide an environment free of harassment. As a corporation, Wal-Mart uses the four functions of management very effectively. This is our example of how successful you can become if you implement the four management functions in your day-to-day business. “More than half of all Americans live within five miles of a Wal-Mart store, less than a ten-minute drive away. Ninety percent of Americans live within 15 miles of a Wal-Mart” (Fishman, 2006). This project has proved very effective for the corporation because it allows for convenience for shoppers. Combined with everyday low prices, the Wal-Mart Corporation has undoubtedly made a name for itself in this struggling economy.