Internal and External Factors of Management

1396 Words6 Pages
Annually, Fortune magazine releases a list of the top 500 largest companies in the United States (Time Warner Co., 2008). Being ranked no. 44 in 2008, Microsoft has increased its revenues 15.4% since 2006 because of its continued efforts to release latest technology (Time Warner Co., 2008). To understand how Microsoft continues to lead in profits, sales and technology, the consumer must realize internal and external factors influence how Microsoft performs and operates. In depth, Microsoft’s planning functions are influenced by the consumer’s need, which continues to influence Microsoft’s products and services. The purpose of this paper is to identify and explain the internal and external factors which impact the planning functions of…show more content…
The shortcoming is forcing Microsoft management to plan for a way to make up for the loss in profit (Schenker, 2007, p.1). Electronic business is an external trend that has developed rapidly changing the way in which businesses market their products. These changes have influenced Microsoft’s management to make plans to pursue the advanced abilities the Internet has created. Microsoft’s current goal is to achieve acknowledgement in the business arena of advertisement via the online market. “Microsoft (MSFT) aims to stitch together its software, ad serving, and media properties to become a formidable online power with many of the marketing pieces that advertisers look for as they embark on Internet ad campaigns” (Schenker, 2007, p.1). Microsoft is currently aligning a strategic and management plan which will appeal to its customers by using their reputable name and powerhouse infrastructure. Innovation continues to affect different planning functions of Microsoft. Innovation is defined as the “introduction of new things or methods” (Dictionary, 2008). Therefore, planning must be calculated in a strategic, tactical and operational manner in order to be effective. With strategic planning, Microsoft must think of long-term goals and strategies for its corporation (Bateman-Snell, 2007). Tactical planning is developed to specify goals and plans that target a majority of the corporation and its consumers (Bateman-Snell, 2007).
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