Internal and External Factors Essay Sample
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Internal and External Factors Essay Sample
The four functions of management consist of planning, organizing, leading, and controlling. They can have a positive effect on the internal and external environment. An external environment is things, which are important factors outside the organizations boundaries. For example, if a recession hit the company, it would be something out of the hands of the company. It would be very inevitable because of the effect on the economy. There are uncontrollable factors; such as the government rules and regulations and the action taken by the competitor of a company. Second, there is the internal environment or culture of a company’s organization that influences the organizations reactions to their environment. For example, when choosing a career a person would want to go with the company culture that represents an individual’s goals and values. In Technology there are many things to consider when doing business through the Internet. The Internet is always growing with different companies and ways to do business faster and more efficient. New advancement in technology makes AFLAC’s distribution method improve more than ever.
AFLAC considers the SmartApp System the chief piece of technology in the insurance business today. The SmartApp System is a laptop system that permits workers to transfer policies straight to headquarters. Normally it would take about 14 days to process an application, but presently it takes 24 hours. AFLAC is at 90% paperless, making profits tear through the roof. Externally, a person has to consider planning what he or she wants his or her organization to do in this rapid growing environment. Then they have to organize their information and resources to come up with something innovative to pitch to their target market. After that is accomplished a person has to begin to lead by motivating high performance for the company. Last, they would need to control by monitoring and making adjustments to what they produce. The external environment has effects on the government rules and regulations of the Internet. These things are copyright laws and monitoring of any hacking or cyber-stalking. Also other factors to consider would be the competition of their competitors. So forecasting what the company can come up with will save time and money to focus on other parts of the company’s organization. The culture of the organization is the internal environment.
The culture says much about the company and if it is not planned out right it can be the downfall of the organization. For instance, knowing the four functions of management when starting a company, a person needs to have core values and goals set that the company should follow. When a small business that can turn into a corporation first opens, there will be changes that can affect the culture of the organization. If the company has a strong culture this will not bring about too much of a change to their policy but if they have uncertainties and a weak culture, the company could face going out of business. Possessing social responsibility creates a platform for the company to show what it stands for. Diversity in a company’s organization can bring about different ideas and allow global business to occur. Globalization can allow diversification in which companies would branch out to multiple companies to do business.
This in return allows a competitive advantage of the input and output of the products and produces a name for the organization to be known throughout the world. In 1968, the uncle of the Amos brothers, decided to visit he World Fair in Japan. He observed people wearing medical masks to escape spreading colds. He knew Japan was a good location for the insurance market. It took six years for AFLAC to obtain a license and was the second U.S. Company to obtain a license in Japan. An apparent wide-spread of cancer directed the government to endorse AFLAC. Life expectancy after WWII and the complications that came from getting old jumped. In the present time, the Japanese people have the maximum life expectancy over most countries. Concerned about the longstanding effects of an older populace, the Japanese government gave AFLAC an eight-year trust.