Mgt/230 Internal And External Factors Paper
Internal / External Factors
Mike Reed
May 12, 2014
MGT/230 Management Theory and Practice
Mr. Doyle Young
Internal and External Factors
There are many different opinions on what makes up the fundamental functions of business; but the majority of experts consider planning, organizing, leading, could also be called directing, and control the most widely used to run a successful business. In this paper I will be defining the four different functions of business and give examples on how they used in business. One example of a business that used these is Ford Motor Company. Henry Ford was a visionary like no other in his time. He used and developed management skills and developed methods that were unheard during his time. When …show more content…
he started his business the ideas of management planning, organization, leading, and controlling had not yet been defined in the sense that we use them today. Nonetheless, he paved the way for innovation and forward thinking in the ultra-competitive automobile industry that exists today.
The first function is planning. Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals (Bateman & Snell 2011, pg 15). Basically what this function of management does is it looks at the process or vision when the company determines the goals and objectives while trying to plan for the future. It also determines what actions are needed to fulfill the goals. One example would be how Henry Ford planned his financial backing for his motor company. Today Ford is the world’s third largest automobile manufactures. There are three major branches of Ford Motor Company; Ford, Lincoln, and Ford Motor Credit: But in the beginning this was not true; Founder Henry Ford decided one day that he wanted to create a new automobile that the American people could afford and was convinced America would open its arms and welcome a new type of automobile, one that was not only effective in transporting people but also help save money. Henry Ford called his new company Detroit Automobile and created it in 1899. It failed initial because he failed to plan for things like finances to pay a fare wage for employees, unable to meet product demand and other contributing factors. To help him fix these problems, he hired Alexander Malcomson. Malcomson’s job was to find new investors to help fund Ford’s company. By planning and hiring Malcomson, Ford’s vision came to life.
The second function is organizing. Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals (Bateman & Snell 2011, pg 15). There are many different types of organizing from putting shelves in your closet so you will be able to find things more easily to organizing a birthday party which you have to invite people and have a cake. You use some or most of the same skills in the business organization. Business organizing is a little more complexed. Let’s discuss on how to organize an event for an award’s dinner but you could apply the steps to almost any aspect of the company. The first thing to organize is the date; it has to be far enough in the future to not disrupt any other major events that are happening within any part of the company. Once the date is set, then the organizer needs to appoint people to perform different tasks. Some of these tasks would be event location. This individual would locate a place that could be used to hold the event on the day that was selected. Dinner theme would be another one, be it casual or formal. Food organizing is difficult due to the fact that so many people have different tastes and you would have to take into consideration if the attendees have food allergies or if they are allergic to items on the menu. These are just some of the things you have to think about when you have to organize an event.
The third function is leading.
Leading is stimulating people to be high performers (Bateman & Snell 2011, pg 15). Everyone thinks that they are a great leader. But the fact is that not everyone has the skills or mindset to be a great leader. We have all be around good and bad leaders, we tell ourselves to not become that bad leader. To be a great leader, you need to be able to enlist the support and aid of individuals to complete a common task. Some of the tools that a great leader has are charisma, intelligence, vision and situational awareness. Henry Ford was a great leader because he had all these tools that he used to create a global automobile company. Ford valued the people that worked for him; he showed this by paying them an extremely high salary for working on the assembly line. By doing this, he was able to attract the very best workers and by attracting the very best worker, you produce the very best product for customers to buy. He also thought that self-belief was essential. He preached it constantly because a leader that believes in himself, that belief becomes infectious and others will become inspired to believe in …show more content…
themselves.
The forth function is control.
Controlling monitors performance and implements necessary changes (Bateman & Snell 2011, pg 16). Controlling is not in the sense that you have your thumb on everything and nothing is done unless you authorize it, which is called micromanaging. When you use control, you need to determine what it that you want to control. For example, if the team that you are leading is presenting a plan to the president of your company on a new product. You, as the leader have control on things like planning, organizing, use of company resources, personal assignments and monitoring the information presented. In the early years of the Ford Motor Company, it produced eight different models and made one hundred cars a day. Henry Ford was not satisfied with this because he wanted to make one thousand cars a day. Being the majority stockholder, Ford took control of the company and announced that they were going to make only one automobile model, the Model T. by taking control and explaining his vision, he produced with is considered to be the most popular car of all times.
From planning to controlling, you cannot single out which function is more important than the others. To run a successful team or business, the four fundamental functions of business; planning, organizing, leading, and control should always be used together to produce the very best product or project together. Henry Ford once said "The best we can do is size up the chances, calculate the risks involved,
estimate our ability to deal with them, and then make our plans with confidence”.
References
Bateman, T. S., & Snell, S. A. (2011). Management, Leading & Collaborating in a Competitive World (9th ed.). Retrieved from The University of Phoenix eBook Collection database.
Ford History. (2011). Retrieved from http://www.semnfordclub.com/history_of_ford_company.html
SWOT, Strategy and Corporate Finance Report. (2012). Retrieved from http://www.just-auto.com/market-research/ford-motor-company-swot-strategy-and-corporate-finance-report_id157306.aspx?lk=amlt
Ford Motor Company History. (2012). Retrieved from http://en.wikipedia.org/wiki/History_of_Ford_Motor_Company
Ford Motor Car Company History. (2012). Retrieved from http://fordmotorhistory.com/history/index.php
Mike Reed
May 12, 2014
MGT/230 Management Theory and Practice
Mr. Doyle Young
Internal and External Factors
There are many different opinions on what makes up the fundamental functions of business; but the majority of experts consider planning, organizing, leading, could also be called directing, and control the most widely used to run a successful business. In this paper I will be defining the four different functions of business and give examples on how they used in business. One example of a business that used these is Ford Motor Company. Henry Ford was a visionary like no other in his time. He used and developed management skills and developed methods that were unheard during his time. When …show more content…
he started his business the ideas of management planning, organization, leading, and controlling had not yet been defined in the sense that we use them today. Nonetheless, he paved the way for innovation and forward thinking in the ultra-competitive automobile industry that exists today.
The first function is planning. Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals (Bateman & Snell 2011, pg 15). Basically what this function of management does is it looks at the process or vision when the company determines the goals and objectives while trying to plan for the future. It also determines what actions are needed to fulfill the goals. One example would be how Henry Ford planned his financial backing for his motor company. Today Ford is the world’s third largest automobile manufactures. There are three major branches of Ford Motor Company; Ford, Lincoln, and Ford Motor Credit: But in the beginning this was not true; Founder Henry Ford decided one day that he wanted to create a new automobile that the American people could afford and was convinced America would open its arms and welcome a new type of automobile, one that was not only effective in transporting people but also help save money. Henry Ford called his new company Detroit Automobile and created it in 1899. It failed initial because he failed to plan for things like finances to pay a fare wage for employees, unable to meet product demand and other contributing factors. To help him fix these problems, he hired Alexander Malcomson. Malcomson’s job was to find new investors to help fund Ford’s company. By planning and hiring Malcomson, Ford’s vision came to life.
The second function is organizing. Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals (Bateman & Snell 2011, pg 15). There are many different types of organizing from putting shelves in your closet so you will be able to find things more easily to organizing a birthday party which you have to invite people and have a cake. You use some or most of the same skills in the business organization. Business organizing is a little more complexed. Let’s discuss on how to organize an event for an award’s dinner but you could apply the steps to almost any aspect of the company. The first thing to organize is the date; it has to be far enough in the future to not disrupt any other major events that are happening within any part of the company. Once the date is set, then the organizer needs to appoint people to perform different tasks. Some of these tasks would be event location. This individual would locate a place that could be used to hold the event on the day that was selected. Dinner theme would be another one, be it casual or formal. Food organizing is difficult due to the fact that so many people have different tastes and you would have to take into consideration if the attendees have food allergies or if they are allergic to items on the menu. These are just some of the things you have to think about when you have to organize an event.
The third function is leading.
Leading is stimulating people to be high performers (Bateman & Snell 2011, pg 15). Everyone thinks that they are a great leader. But the fact is that not everyone has the skills or mindset to be a great leader. We have all be around good and bad leaders, we tell ourselves to not become that bad leader. To be a great leader, you need to be able to enlist the support and aid of individuals to complete a common task. Some of the tools that a great leader has are charisma, intelligence, vision and situational awareness. Henry Ford was a great leader because he had all these tools that he used to create a global automobile company. Ford valued the people that worked for him; he showed this by paying them an extremely high salary for working on the assembly line. By doing this, he was able to attract the very best workers and by attracting the very best worker, you produce the very best product for customers to buy. He also thought that self-belief was essential. He preached it constantly because a leader that believes in himself, that belief becomes infectious and others will become inspired to believe in …show more content…
themselves.
The forth function is control.
Controlling monitors performance and implements necessary changes (Bateman & Snell 2011, pg 16). Controlling is not in the sense that you have your thumb on everything and nothing is done unless you authorize it, which is called micromanaging. When you use control, you need to determine what it that you want to control. For example, if the team that you are leading is presenting a plan to the president of your company on a new product. You, as the leader have control on things like planning, organizing, use of company resources, personal assignments and monitoring the information presented. In the early years of the Ford Motor Company, it produced eight different models and made one hundred cars a day. Henry Ford was not satisfied with this because he wanted to make one thousand cars a day. Being the majority stockholder, Ford took control of the company and announced that they were going to make only one automobile model, the Model T. by taking control and explaining his vision, he produced with is considered to be the most popular car of all times.
From planning to controlling, you cannot single out which function is more important than the others. To run a successful team or business, the four fundamental functions of business; planning, organizing, leading, and control should always be used together to produce the very best product or project together. Henry Ford once said "The best we can do is size up the chances, calculate the risks involved,
estimate our ability to deal with them, and then make our plans with confidence”.
References
Bateman, T. S., & Snell, S. A. (2011). Management, Leading & Collaborating in a Competitive World (9th ed.). Retrieved from The University of Phoenix eBook Collection database.
Ford History. (2011). Retrieved from http://www.semnfordclub.com/history_of_ford_company.html
SWOT, Strategy and Corporate Finance Report. (2012). Retrieved from http://www.just-auto.com/market-research/ford-motor-company-swot-strategy-and-corporate-finance-report_id157306.aspx?lk=amlt
Ford Motor Company History. (2012). Retrieved from http://en.wikipedia.org/wiki/History_of_Ford_Motor_Company
Ford Motor Car Company History. (2012). Retrieved from http://fordmotorhistory.com/history/index.php