Write 4 page essay on the topic Internal and External Factors Affecting Four Functions of Management.Download file to see previous pages... However, an organization that does not reflect on these fact

Write 4 page essay on the topic Internal and External Factors Affecting Four Functions of Management.

However, an organization that does not reflect on these factors is likely to flop since the external and internal factors will have dire consequences on its performance.

To begin with, technology is one factor that has significant effects on the performance of an organization. In the current developing and developed world, many organizations are embracing technology to perfect service and product delivery. Some organizations were formed long before technology was enhanced. However, these organizations are benchmarking other organizations that have incepted technology in its operations. For instance, IKEA was formed in 1943, when technology was not enhanced. However, the organization has been able to enhance its technology to continue giving savored services. Apparently, it is considered that organizations that embrace technology continue to give unparalleled services and products to its customers. This is one factor that has enabled IKEA to attract a large market niche for its products. With improvement in technology, the organization has been able to offer high quality products and services. However, the induction of enhanced technology comes with its challenges and setbacks. First, the organization has to settle on technologies that will offer quality services. The technology should offer maximum utility to substantiate the investment in the technology. Secondly, technology is a huge investment which needs massive resources. Therefore, the organization has to collect massive resources in ensuring it is improving in its performance. Lastly, technology requires apt decision making.

The organization has to make sensitive decisions on acquiring the stated technology. The second factor that affects the four functions of management is globalization. Globalization is a factor that has improved the performance of many businesses across the globe. Organizations that embrace globalization are likely to reflect a better performance than other organizations that are operating in a defined location. Spreading to other geographical regions exposes the organization to vast markets which create a greater demand for products and services. For instance, IKEA has embraced globalization by opening stores in many places of the world. Initially, the organization recorded low profits and revenue due to its location. However, the management decided to increase its market share by opening other stores in other countries. This has proved a positive approach as the business continues to sprout (Caglar, Kesteloo and Kleiner, 2012). Though this is a big investment, it is also a source of large amounts of revenue. For instance, IKEA has opened large stores in Sweden, Croatia, China and Germany. Previously, the organization was specialized in offering services in Europe. However, with the influence of globalization, it started offering services and products in many parts of the world. Apparently, the biggest stores that the organization has initiated are not situated in the same geographical region. The largest stores in the organization’s name are in Stockholm, Shanghai, Shenyang, Tianjin and Berlin. This shows that the organization is recording a positive performance from the diversity of its market niche.