Managment Theory
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The major four functions of management involve planning, controlling, organizing and leading. These functions can be affected by the internal and external factors n a business environment. The external forces that affect the functions of a business include sociological, political, economical and technological (Montana & Charnov, 2000)
External factors:
Sociological: Includes; the demographic status and trends, work ethics and personal values, and general cultures. (pg, 566.) This factors influences differently on how management accomplishes its jobs. The social environment presented by each country is unique and as the business becomes international, management s ought to understand these unique environments. This understanding assists the management to plan for the future and design products for particular groups of people
Economic and political: Includes; all the essential factor such as competitors, suppliers and customers in an open model of business the management must study the economy and political environment for a continual and dynamic relationship. In this system the management assumes that the business or company has both input and output. By studying the companies’ suppliers’, competitors and customers as well as current political factors, the management are capable of making effective managerial and decisions. The products designed under this should posses place, form and time utility to succeed in the mark place.
Technology: Technology has the most dramatic effect on business as changes in this external environment are often quickly felt by firm. As the market can change overnight the management should be in a position to make decisions that will put the company in a flexible poison to adapt with the technological changes (Karger, 1991).
Internal factors
Internal factors or environment of a business consists of the organizational resources available to accomplish its goals. These are human technological, financial and physical resources. The task of management is to acquire these resources and make efficient and effective use of them within an organization. In this task the management of each business is in competition with all other businesses in the life. Organizational resources are therefore scarce and management success depends on how well these resources are both acquired and used. (Montana & Charnove 2000)
In an in-depth analysis of Vermont Teddy bear Co.Inc, the several factors affected the success