There are four functions of management.
These factors are planning, leading, organizing, and controlling (Bateman, T. S. & Snell, S. A. 2011). There are numerous internal and external factors that affect these four functions of management, both positively and negatively. Some of these factors are internal and external communication, internal structure, and economy.
In this paper we will be covering some of these factors using the globalization, technology, innovation, diversity, and ethics of Best Buy.With the changing of business and internet came the urge for many companies to take their organizations global, Best Buy was one of them. The globalization of Best Buy began in 2003 when they opened a store in China and then continued to open others in place like Turkey. This was the effect of internal communication of the corporate management team of Best Buy. This looked like a great move for them until the demand for new homes dropped off the table when the economy crashed in late 2008 (Bateman, T.
S. , & Snell, S. A. 011).With the drop of the economy and other external factors Best Buy decided they needed “a change of business strategy”, so they closed all of their nine outlets in China in 2011(Zhang, M. 2011).
By doing this Best Buy expects to save $70 million annually by 2013 (Zhang, M. 2011). The Best Buy Co. Inc. called the Chinese and Turkish operations “Test Stores” (Zhang, M. 2011). Saying that they were using these stores as examples of how they can do globally and have learned what to do and not to do from these stores.
This was a time that Best Buy’s management new they needed to find a way to adapt to the new circumstances. The functions of management that was affected the most by internal and external factors were, planning and controlling. Best Buy came up with new planning to focus on its Five Star branded stores and they opened 40 to 50 more locations in growing global markets to give them 210 stores by the end of 2012 (Zhang, M. 2011). Controlling these new stores is what management needs to do to keep the revenue flowing and increase the global market for Best Buy.In retail, like Best Buy internal and external factors have become very important.
Technology has impacted retail tremendously and has changed the way we shop. For example, with the help of technology we are able to purchase items online or with the help of an app. There are new features such as being able to listen to music before we buy partial albums, singles, or whatever we choose. This model has moved over to books, where multi-chapter samples are downloaded to our e-readers before we buy the book (” The Impact Of Technology On Retail”, 2010).This new feature has become a hit and gives the consumer control over what they want to buy as well as giving them a sample of what they are purchasing.
Technology has also help retail stores stay organized by advertisement and by the technology being used in the stores. For example, we can choose to receive emails in which we get the latest upcoming deals or when there will be new arrivals of merchandises that we like. The computer systems being used in retail stores allows the employees to clock in, cock out, request time off, view their working week as well as many other features.
It is important for the employee to stay organized and plan ahead if he or she needs time off. These programs give them the opportunity to do so. Ethics is the moral principles that a person and/or group, or organization lives by.
From a very young age one is taught to do the right thing and as one grows and learns through their experiences in life one builds upon ones ethical foundation. It is necessary to have a strong ethical standing in order to be a successful, marketable company.Ethics plays a major role in the four functions of management, which include planning, leading, organizing, and controlling.
As a manager one must have the utmost ethical view point and lead by example. It is important to make sound, ethical plans that will benefit the company as a whole. One must always lead with a strong moral belief system and always lead by example.
If a manager is unethical, it not only sets a bad example but also sets those standards for peers as well as employees.As a manager it is pertinent to control from an ethical and moral standing in order to help employees build upon their own code of ethics According to Best Buys code of business ethics, “we demonstrate our ethics by living our values. This means that we live our values every day in our interactions with one another, customers, vendors, business partners, competitors and in the communities in which we work, live and play” ( Best Buy, 2013 ). Over all having a strong ethical belief system is important in all aspects of life but especially in business settings.Not following a company’s code of ethics will not only most likely lead to termination but also set unethical standards. Doing the right thing and making positive choices will lead one to great things. Innovations are a factor that will set a company apart from its competition.
An innovation is introducing something new rather than different to its industry. Best Buy keeps up with the latest innovations which directly impacts the four functions of management. The Best Buy Corporation will need to carefully plan a strategy every time there is new innovation that must be introduce to stay with the times and above competition.The Best Buy executives will lead their team by using the leader function and set goals and targets for the team to hit while introducing the newest innovation to their clients and the rest of the world. An example of how the innovations factor directly impacts the four functions of management is the recent announcement of the partnership between Microsoft and Best Buy to showcase Microsoft products in the Best Buy stores.
This partnership caused an addition of 1,200 Best Buy employees that were trained by Microsoft to assist with these products on display (Cheng, 2013).In order for this partnership and innovation to be successful, Best Buy needs to use all four functions of management with their team. All or most of the different departments within Best Buy would need to be involved and given goals, targets to hit that would make this partnership successful which would be part of the planning function of management. The leaders would delegate the plan and goals to each department involved such as marketing, sales, and human resources who assisted in adding those 1,200 new Best Buy members.The Best Buy team would need to organize the systems, the employees, and the stores to be ready for this new innovation while the frontline managers oversee the showcasing of the Microsoft products to ensure this innovation becomes a success. Diversity is very important to the Best Buy Corporation. Best Buy has a program called “Diversity Community Giving Program” that focuses on different topics each year, but in 2013, Best Buy is focusing on Education, Growth Opportunities, Building Diverse Community Partnerships, and Community Partnerships.
Best Buy has partnered with many different on-profit organizations to improve the quality of life to the communities they serve. (Best Buy. 2008-2013). All parts of this year’s focus in the “Diversity Community Giving Program” will call for much planning, leading, organizing and controlling in order to make the program an ongoing success. Not many corporations put this much focus into diversity or making the communities around them better by contributing to a better life. Best Buy is one of a kind and proves that paying attention to these important external and internal factors, using the four functions of management, success is the only path ahead.