Internal and External Factors Essay

Businesses everywhere have to plan and set goals in order to thrive and succeed in whatever conditions the economy may be in. Part of planning and goal setting for any company is identifying internal and external factors that will have an impact on the success of a company as well as determining how they will impact the company. Knowing what the influences are and how they will impact the company allows a company to plan and set goals accordingly. For the purposes of this paper the company Goodwill is going to be used as an example.

This paper will identify some key internal and external factors that influence the company, how those internal and external factors affect the four functions of management, and how managers can use delegation to manage the different factors and management functions. Goodwill is an organization that is defined itself as a team of people that have a vision, respect, ethics, learning, and innovation (“Goodwill Industries International”, 2011). In order to work as a successful organization they must consider all the internal and external factors.

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There are going to be situations and events that will affect the way the organization is run, the situations can have a positive impact or a negative impact. Internal factors that will drive this organization are those that occur within the structure of the organization itself. These things need to have a structure that can be adhered by all those involved. When looking into the internal structure one must consider many factors such as financial management, organization of the employees, and the planning of how the message of the goodwill will get to the public.

If there is no structure the organization will fall apart thus leading to the collapse of the organization. External factors are those that affect the outside of the organization. The goodwill is known for the way they help people, they are an organization that does many things including helping families in need and training people for employment so that they may stand on their own (“Goodwill Industries International”, 2011). In order for them to have been successful they would have needed to consider many things including competition, the outlook of the industry, social environment aspects, and the economy.

In order for the organization to succeed one needs to not only look at the planning and organization of the present time, but be prepared for what can become of the future. With Goodwill being so widespread throughout the world making sure that the organization is able to focus on their internal and external aspects is what will drive them to success. Goodwill Industries has thousands of thrift stores spread across several local chapters throughout the nation. Although most known for its thrift stores Goodwill also brings in large revenue through industrial and service contract work.

With this big of a nationwide organization delegation becomes a mandatory requirement. Managers for Goodwill Industries on every level will use delegation to perform efficiently and effectively for the company. Goodwill has corporate, district, and individual store managers that are responsible for delegating any needed task to the correct person, area, or department in order to complete assigned work within deadlines. Technology has made it possible for Goodwill Industries to expand through globalization therefore Goodwill now has fourteen affiliated organizations in other countries around the world.

The use of technology has also made it possible to use global outsourcing to obtain resources such as goods and services at a reasonable cost and timely manner. Another asset of technology is the freedom it gives a manager to hold conference meetings, fax information, scan, e-mail and numerous other office duties via a computer making delegating, connecting and sharing with other managers easier than ever before. “Workplace diversity refers to the variety of differences between people in an organization. “Diversity includes race, gender, ethnic group, age, personality, education, background and more. ” Learning to work with different personalities and cultures can make or break a manager, and Goodwill is known to work with the mentally or physically handicapped with a high success rate as well. Goodwill also prides itself on its innovation embracing continual improvement, creativity and change. In fact, innovative training seminars that focus on the employment of a diverse population are one of Goodwill Industries biggest successes.

Managers have delegated leaders to work innovative training seminars to train and build strengths and skills to a diverse population. “At Goodwill, we focus on the growth of individuals with disabilities and other barriers to independence,” said Dan Rogers, president & CEO of Goodwill of Orange County. “We assist these individuals with their work and social skills, their cultural and language differences, and aid their access to a community that will allow them to enter the workplace and enhance their self-respect and dignity. Orange County Business Journal” (2005). In the topic of business ethics Goodwill Industries has a written code of conduct concerning ground rules and consequences concerning ethics. Goodwill delegates this to top management to make sure the code is being followed. Top management delegates store management to provide training to all employees, monitor their compliance, and give incentives and rewards for complying with all ethical standards. To build a strong team and good working relationships you must have value, integrity and honesty.

Goodwill provides ethical programs that support employees in their motivation, performance, growth, and character. Through the levels of management at Goodwill Industries delegating is a part of each manager’s day. As Goodwill Industries is a non-profit organization corporate managers and board members play a major role in the planning and analyzing of the Goodwill Stores and other subsidiaries related to Goodwill. After researching planning and gathering information and resources, the corporate manager will pass the plans to, and delegate, the district managers to organize staff and place leaders in individual store.

The district manager delegates responsibilities to the managers to achieve good bottom line facts in keeping within budgets and meeting state and labor board requirements among other things. These leaders or store managers then delegate responsibility to assistant managers and floor shift leaders to accomplish all the work in the different departments of the thrift stores. From loading and unloading, sorting, pricing, putting on display, to ringing out the customers. The district manager and the managers work together in the controlling function to make sure everything is running right and make needed changes if necessary.

There are many factors that can influence and affect how a company plans and how they choose to conduct business and not all businesses will react the same to particular conditions or factors. This is why it is crucial for a person who is in management, or trying to get into a management position, to know how to identify those factors, how these conditions will affect the functions of their management position, and how to delegate the agreed upon actions in response to those factors to all the management levels down the chain of command.

At every level of management there will be new factors to consider making each level of mangement’s actions unique to their own respective departments just as every company’s response to the identified factors will be different and unique. Each Goodwill is an independent organization governed by a voluntary board of directors. Each organization considers its country’s unique social and economic climate when developing programs and services that enable citizens to become economically self-sufficient, support their families and build better communities Goodwill Industries International (2011).

Through proper knowledge and implementation of globalization, technology, innovation, diversity, and work ethics Goodwill is the success it is today and can hold true to its values and mission. Values ~ We conduct ourselves with integrity. We behave ethically, communicate with honesty, and work as a team with trust and accountability. Mission ~ “Goodwill Industries International enhances the dignity and quality of life of individuals, families and communities by eliminating barriers to opportunity and helping people in need reach their fullest potential through the power of work. Mission Makes a Difference (ND)


Bateman, T. S. , & Snell, S. A. (2009). Management: Leading & collaborating in a competitive world (8th ed. ). Boston, MA: McGraw-Hill Irwin. Goodwill Industries International. (2011). retrieved from: http://www. goodwill. org/about-us/our-mission/ Goodwill Industries of Central Texas, Mission Makes a Difference (ND) retrieved from: http://www. austingoodwill. org/ems/mission. html Orange County Business Journal, Monday February 14, 2005 Retrieved from: http://www. allbusiness. com/north-america/united-states-california-metro-areas/897154-1. html