External and Internal Factors of Management essay

Management involves more than telling staff what they are supposed to do. Before you think of becoming the boss, take a look at management functions. The major functions of it can be categorized as: controlling, organizing, leading and planning. Management can be affected by internal and external factors. These factors can sometimes have a great negative and positive impact on any organization. Here, I will discuss how five external and internal factors are affecting the management of Safaricom.

Safaricom is the biggest telecommunication company in East Africa. It is the first company to introduce mobile phone money transfer service called M-pesa (M stands for mobile while pesa is a Swahili word that means money). Its major shareholder is Vodafone Group that owns 40% of the company. External and internal factors have been affecting the management of this organization like any other business. Let’s starts by explaining the influence of globalization on this company.

Globalization can be defined as the integration of firms, government and people across the world (Borrow, 2012). Unlike the past decades, the world is now considered as a global village. Globalization is an external factor that affects the planning of the company’s operations. Through globalization, managers of Safaricom have specific outlines on how it would be successful on the market. The company uses planning to acquire more modern equipment to ensure that communication across the globe is easy and fast. Globalization also affects controlling functions of this company by keeping different plans moving together. Therefore, it has become much easier and cheaper for the management of this company, to control from their main office what their outlets are doing.

 

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Organizing the firm’s activities has become much better due to globalization. It effects on organizing activities of the companies through making their staff and equipment support different plans they have. For Safaricom it is now possible to hire people from different parts of the world. Due to globalization, the company’s leading functions are changing. The management can easily reach the employees who are working outside their native country. Therefore, it is easier for the management now to show the staff the company’s vision in order to reach the objectives of its plan.

Another external factor that affects the management function of this company is the technology. Technology can be defined as the application of scientific knowledge in the practical work of the company (Borrow, 2012). It encompasses all forms of technological changes in communication, marketing, manufacturing just to mention a few. Rapid changes in technology are in progress around the world. Due to the changes in technology, three aspects of this firm’s environment will be affected. First, the competitive and market environment of the company will be changing. There are also the requirements for diversity and improving the quality of products and services that this company is offering on the market. The managers of the firm are forced to adjust on how they control, organize, lead and plan.

Technology is affecting the planning process of the Safaricom Company in different ways. There are specific plans to purchase more modern equipment for production purposes. Modern equipment means that the company needs to hire staff that has intellectual capability to operate it or to educate the existing staff to acquire the knowledge (Carayannis, 2013). Therefore, the company needs to plan how it will hire new employees or educate the existent ones to run these modern mechanisms.

Changes in technology also have an effect on controlling. Now it is becoming easier for different departments of this company to move together to achieve their objectives. Managers can analyze different data and make critical decisions. New computer applications installed in this company mean that the company can sum up the results of market plans, sales and business relations whenever the managers want to receive this information. Now they can trace the mistakes and make correction easily.

Innovation is concurrently internal and external factor that changes the business plan of this company. It adds uncertainty, risk and interest into the company’s operation (Carayannis, 2013). The management of this firm thinks not only about the negative impact of the innovation risks, but also about the benefits they will have if it is successful. Safaricom managers understand that risks have ups and downs. They understand that the benefits of risk in innovation are earned when it leads to better products or services on the market.

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Innovation also has an impact on the planning of this company. In order to be effective in innovation, the firm relies on environmental scanning. Hence, the company can monitor the early signs that to accommodate potential threats and opportunities and plan for adjustments the changes are required. Innovation also has an impact on controlling. Due to this factor the company can measure the influence of the innovation magnitude. Therefore, it is possible to come up with programs and policies and to make investments in order to gain the maximum effect.

Modern firms strive for greater diversity among their staffs (Carayannis, 2013). They hire employees of different gender, ages and races in order to bring varied experience to the company. Organization that can manage diversity may have solid benefits over a firm that does not embrace this factor (Carayannis, 2013). Planning in Safaricom is also affected by diversity. Now the managers are taking steps to include people of different gender, ethics and age to this company. Safaricom management is formulating the best ways to ensure that there is diversity in their company.

Business ethics is important in helping the management making decisions and conclusions (Lussier, 2012). Ethics are critical when it comes to making decisions planning within this organization. Therefore, the company plans to maintain a higher ethical standpoint to benefit both the internal and external stakeholders. The firms’ ethical viewpoints continue to diversify as they enter different markets in the world. Each individual’s action within the organization has effect on the entire firm. Consequently, managers take necessary measures to perform the actions that positively affect the company.

To sum up, the functions of management can be affected by internal and external factors. Technology, innovation, business ethic, diversity and globalization are some of them that have a great impact on how the business survives in the market. Therefore, business should consider the effects of the abovementioned factors while its operations to be successful. Safaricom is efficient on the market because it considers the named factors in making critical decision.