Evolution of Management

Evolution of Management

MGT 330 Management: Theory, Practice and Application

University of Phoenix

August 24, 2009

Evolution of Management

The four functions of management have been a staple in business structure. As companies grow and evolve in to global structures planning, organizing, leading and controlling still seem to be essential responsibilities for a successful company. However, it appears the concepts of planning and controlling may come to be the more important steps of all the management practices.

As the world gets smaller in terms of business interactions management concepts must evolve to meet this global perspective. On a domestic level classical organizational theory and concepts have worked well. However, on a world stage these existing models may not work as favorably. An example of how existing organizational structure may not work in a global market is Wal-Mart’s venture into Japan. In 2002, Wal-Mart bought the controlling stake in Seiyu LTD. This was an opening for Wal-Mart to bring the concept of Every Day Low Prices to the world. On the contrary, this concept has not caught on as well in Japan as it has done in the United States. One large problem is that most Japanese consumers buy groceries on daily basis versus a weekly basis as most Americans. Due to this fact, there is a greater demand for fresh meats and produce which are more expensive to obtain. In addition, preferences are extremely regionalized so buying in bulk in order to lower prices is more difficult. Lastly, Japanese consumers are not excited about low prices. To the average shopper in Japan, price equals quality. The cheaper the price, the cheaper the product and these shoppers are not buying (Asian Business, 2005). In order to make a dent in the second largest retail market in the world Wal-Mart must re-think some of the company’s core values.

The differentiation between a prosperous and poor company rests in the planning process. Planning is the...