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 of the corporation. The first factor is globalization which tends to bring a close interaction of people between different ports do the world with increasing possibilities of personal exchange, mutual understanding and friendship. Technology is the second aspect and refers to the applied techniques which make operations easier. Innovation involves research and development efforts to create a new technology. Diversity is the difference among people and cultures. The final factor in this analysis is ethics which is described as a set of principles of right conduct. The following analysis explains how the above factors impact on the management process when conducting business around the world of Vermont Teddy bear Co.Inc.
Globalization is an important aspect for success growth and survival of a business in the world market. The toddy bear product is 100 years old and commands markets in different countries around the world. (Vincelette. et al 2001) Until 1994, Teddy bear experienced a great deal of success and profitability. This is a credited to the Bear-Gram delivery service to reach the outside world. The company has also since 1998 changed its philosophy by exploring the offshore sourcing of materials outfits and manufacturing in offer to lower costs. Their global networking allows for new ideas and planning meant to capture the global market.