University of Phoenix
August 23, 2010
“Factors affecting a firm’s growth and performance may be viewed in two categories: “external factors” and “internal environment”” (Acar, 1993, p. 1). How managers use and adjust to both these factors will be reflected in their management style and competency of their employees. A manager who adapts and uses the four functions of management (planning, organization, leading, and controlling) will be able to handle any external and internal factors that may present itself in their industry.
Management must first understand the forecast of the business; knowing that, they can set the goals the team will work towards with a plan in place of how to achieve those goals. Some important internal factors of the planning stage of management are things like “marketing strategies, production competency and age of the firm” to name a few (Acar, 1993, p. 2). If a business is just developing and not at full production, it must be understood by management that a large shipment or customer expecting immediate availability of a product might not be possible at that time and have a plan in place to make sure they satisfy the customers’ needs.
Production competency can be vital to a business’s planning stage of management, for example in the banking industry the expectation is that a bank is responsible to keep customer’s money safe and secure from fraud, but available at the same point for the customers convenience. Situations arise when a customer expects all of their funds available the second they walk in, but due to production of money and availability a bank can hold at one time the case comes about where a manager must explain to a valued customer they do not have that amount at this time. That type of…...