Internal and External Factors

In: Business and Management

Submitted By robsalazar80
Words 744
Pages 3
Internal and External Factors
To stay competitive in todays’ market it is important for a company like Netflix to stay up to date with growing trends and to continue to make improvements on how to do things to keep the bottom line intact. In order to keep up with competitors a successful company must take a look at both internal and external factors and how they impact or operations to measure the company’s longevity.
In every business environment there are four management functions found which are planning, organizing, leading, and controlling and each of these are used by everyone in a company from upper level management to the entry level employee. When thinking about internal and external factors we must look at globalization, technology, innovation, diversity and ethics which all affect these business functions. According to Bateman and Snell (2011, p. 4), “Companies that want to grow often need to tap international markets, where incomes are rising and demand is increasing.”
Internal factors include production, customer service, and marketing strategies. For example, company branding can affect a company’s image. One can associate with the quality of products and services with a company’s brand and is often the first thing that people see when interacting with a company. External factors include new market environments to which a company must be accustomed, consumer analysis, and market analysis. A new product introduced into a new market depends upon consumer reactions. A company must analyze trends by segmenting markets into different consumer types and identifying their motivation of buying.
Internally, Globalization influences the vision of expansion within the leaders of the company. The leaders of the company will have to properly evaluate what the demand is, in order to keep production moving at the rate it needs to be moving to meet supply…...

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