Internal and External Factors of Management Essay

Custom Student Mr. Teacher ENG 1001-04 7 October 2016

Internal and External Factors of Management


Businesses rely heavily on the four basic functions of management Planning, Organizing, Directing, and Controlling; however, the skilled management of internal and external factors will ultimately determine the longevity of the company. Management teams are measured on how quickly they can build a company over a short period. However, the real measure is how well a company can continue to grow. Company success is continually evolving as the world changes, making it difficult on management teams to adapt as internal and external forces mold new paths. Google is a prime example of a leading company who must constantly evaluate their business objectives to keep up with the changing technological landscape.

Traditional business models use a top down approach may leave the company unable to change, as the business leader is unable to change. “It is noteworthy that neither Larry Page nor Sergei Brin, Google’s founders, has proclaimed himself “chief software architect,” the badge Bill Gates wears at Microsoft” (Hamel, 2006) Instead the founders have designed a concept the makes every idea stand on its own merits. Internal and external factors such as Globalization, Technology, Innovation, Diversity, and Ethics carry large weight in management strategies and the method in which ideas are executed.


Planning is the first of the four management functions. Google manages to plan for their future by recognizing that planning requires research and development. Investing in new technologies takes time and money, and not every cent or minute can be dedicated to research without other sources for income. This is why Google invest in smaller companies to fund the evolution of change in the technological world. So even though the company’s overall growth may experience slow periods the overall income will continue to grow with the acquisition of these multiple smaller companies.


Organizing is attracting people to the organization as well as assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. “Google is famously elitist when it comes to hiring. It understands that companies begin to slide into mediocrity when they start to hire mediocre people. Google’s grueling hiring process, akin to a Mensa test, values nonconformity nearly as highly as genius.” (Hamel, 2006) Google also allows their employees 20% creative time, which is off budget, and off project. This off shift time can attribute to some of Google’s most profitable ideas and software implementation. Providing the creative outlet for the company’s highly creative employees has yielded great results and is part of Google’s overall planning model.

Hamel, G. (2006, Apr 27). Management a la google. The Wall Street Journal Asia. Retrieved from

The ultimate test of any management team is not how fast it can grow its company in the short-term, but how consistently it can grow it over the long-term. In a world where change is relentless and seditious, this demands a capacity for rapid strategic adaptation. In many cases, companies haven’t been changing as fast as the world around them.What the laggards have failed to grasp is that what matters most today is not a company’s competitive advantage at a point in time, but its evolutionary advantage over time. [Google] gets this. While Google’s growth will inevitably slow, there’s a good chance that its revenues will arc upward for years. Why? Because its novel management system seems to have been designed to guard against the risk factors that so often erode an organization’s evolutionary potential: When power is concentrated at the top, a tradition-bound executive team can hold a company’s capacity to change hostage to its own ability to adapt.

That’s why it usually takes a financial meltdown and leadership change to set a company on a new course. It is noteworthy that neither Larry Page nor Sergei Brin, Google’s founders, has proclaimed himself “chief software architect,” the badge Bill Gates wears at Microsoft. Rather than assume they’re infallible seers with a divine right to dictate Google’s next strategy and the one after that, Messrs. Page and Brin have created a Darwinian environment in which every idea must compete on its merits, not on the grandeur of its sponsor’s title. Google understands that even as it’s ramping up today’s business model, it has to be buying options on the future by creating a lot of little “Googlettes.” Evolution demands a lot of new experiments; but experimentation takes time and money, scarce commodities when every hour of time and every dollar of capital have already been allocated to some “mission critical” project.

That’s why every Google developer can spend up to 20% of his time working on off-budget, out-of-scope projects. This time is more than a perk; it’s Google’s seed corn for the future. The payoff? In one recent period, more than half of Google’s newly launched products could trace their origins to a 20% project. You have requested “on-the-fly” machine translation of selected content from our databases. This functionality is provided solely for your convenience and is in no way intended to replace human translation. Show full disclaimer Neither ProQuest nor its licensors make any representations or warranties with respect to the translations.

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