Internal and External Factors Paper PayPal is a global online payment business that has allowed people to make

payments and money transfers securely, without sharing any financial information since 1998 (PayPal, 1999-2013). In order for an organization to become so successful, the functions of management have no doubt been used by the organization. The four functions of management are planning, organizing, leading, and controlling. With every organization there are also internal and external factors that can affect those four functions. Factors such as globalization, technology, innovation, diversity, and ethics affect the management functions in many ways.

Innovation and Globalization According to Globalization (n.d) The tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange.(). Going global is the main goal of most companies worldwide and paypal has done an excellent job operating in 190 countries with more than 100 millions of active accounts and making transactions in 25 different currencies (paypal 1998). This successful business has been the result of an excellent organization where the four functions of management were involved. Planning, organizing, leading and controlling, its success is attributed to the several tools, services and presence in most countries around the world having into account worldwide population despite the difference of culture and languages with a unique objective, of offering a service to make transactions faster and easier.

In order to succeed in a business world companies needs to innovate day by day, paypal a company that have helped people worldwide to send a receive payments in a secured way. According to paypal(1998) PayPal is the faster, safer way to pay and get paid online, via mobile devices and in store. The service allows people to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 123 million active accounts in 190 markets and 25 currencies around the world, PayPal enables global commerce. (para. 1). Paypal offering these multiple services has allowed people to be more flexible at the moment of buying and selling goods online also is method to receive payments for a determined service. Traditional methods used to pay includes credit cards or bank transfers allowing people to know personal information that might be used to commit fraud or identity theft; the need to protect personal info and ease people lives was born with paypal on 1998 an innovative idea that moved the financial world, this way of innovation in business is called Disruptive Innovation. According to Clayton (n.d) A disruptive technology or disruptive innovation is an innovation that helps create a new
market and value network, and eventually goes on to disrupt an existing market and value network (para. 1). Paypal brings innovative solutions such as the use of mobile devices like Smart phones, laptop computers, tablets as a tool to use their service, for example when shopping in a supermarket that uses paypal services there are two ways to pay, first one is typing phone number and paypal pin second one is to swipe a paypal card and this will complete the transactiont. ("How Paypal Innovation Is Driving Online Payments", 2012). Globalization forces humans to be more efficient and paypal offers several tools to make these to be more proactive with service that can be used they way users want, when they want and how they want. (How Paypal Innovation Is Driving Online Payments", 2012).

Technology Technology is an ever-changing process in the world today. PayPal is a business that allows its customers to make payments and transfer money using a secure website. Technology has to play a big part in the four functions of management for PayPal. When PayPal is in the planning stage of the four functions of management, it has to look at the technology and plan to use new technology to its advantage. It needs to plan using new security programs so that it can keep hackers out and prevent online fraud. It also must have plans in place so that it can stay active in the world of mobile technology. PayPal needs to have plans in place that keeps up with the changing world of new and improved technology. When organizing, PayPal looks at the whole picture. First, it needs to organize what new technology it will use and how to use that new technology. Next it would have to organize where the financing for this new technology will come from. Last, PayPal will have to organize who will be responsible for researching and implementing this new technology. PayPal would be greatly benefitted if it organizes the use of technology. PayPal would need a leader who had a background in technology. This leader would have to understand how rapidly technology changes so that he or she would be prepared to teach whomever was underneath him or her what those changes are and what they mean. The leader would make sure that the subordinates could do their jobs effectively. Leadership is important when it comes to technology. PayPal is an ever-changing organization and this organization would need some control. The organization would need to have somebody that would keep an eye on security that the organization is using. It would also have to make sure that the security is doing the job that it is

intended to do, and that the security software does not need to be changed or upgraded. PayPal also needs someone who can keep track of the technology within the Internet and mobile devices to make sure that the organization is kept up-to-date. Technology changes so fast and organizations have to be sure they are able to meet those ever changing needs. Diversity Diversity is a challenge for any company, but a company as global as PayPal probably has much more. With a global presence in 190 markets and doing transactions in more than 25 currencies, it obviously has employees all over the world. With different ethnicities and races, no one set of management rules or procedures can work throughout the entire company. Religious holidays and beliefs from every different country must be considered by management. According to Indeed.com, a former employee said Very dynamic; the work is super interesting, lots of opportunities to make a difference. There is a significant amount of positive feedback as far as having good management and allowing employees to balance work and home life and even working remotely. This shows that PayPal is doing everything that it can to deal with all the diversity it encounters by keeping a happy staff. Management is taking opportunities to groom employees to become stronger and better. However, as times change the approach to management must change as well. Indeed.com also states, Management style is different from region to region. Fort Shanghai and KL, the culture is good. For the most part, the employee satisfaction rate is high and that means that management is generally doing a good job of handling the functions of management. Of course, like everything else, all is not always good. There were some negative reviews about being micromanaged. Employer doesn't communicate with employees about requirements or any other news given by upper management. One can be sure that PayPal is working on a

way to change plans and reorganize to iron out the few flaws that it does have. Because of the different cultures and languages, the management structure has to be led with strong communication skills and an open forum to allow the employees to give feedback. Ethics Ethics are internal factors that affect the four functions of management and are the system of rules that governs the ordering of values (Bateman & Snell. 2011. Pg162. Para 2). Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen (Bateman & Snell. 2011, pg164.para4). PayPals executives and managers must follow a Code of Conduct and Ethics set forth by EBay whenever planning, organizing, leading, or controlling any of the processes of business. The Code of Conduct and Ethics states Beyond legal compliance, all eBay employees are required to comply with this Code and all other applicable company policies (EBay.nd.pg1.para8), therefore making it a requirement for all managers to consider ethics first when completing management functions, and thus guiding and affecting the direction and outcome of the four functions of management. Conclusion PayPal has become such a successful global business because of its executives and managers effective use of planning, organizing, leading, and controlling. This is seen and proven by PayPals decisions and directions on how to handle internal and external factors such as globalization, technology, innovation, diversity, and ethics that affect those management functions.

References Bateman, T.S., & Snell, S.A. (2011). Management: Leading & Collaborating in a Competitive World. (9th ed.). New York, NY: McGraw-Hill Irwin. EBay (ND). The Code of Conduct and Ethics. Retrieved from: http://files.shareholder.com/downloads/ebay/2325532861x0x40683/67c44500-d234447f-bd98-3587e00213cd/EBAY_WebDoc_649.pdf

Indeed.com (ND). PayPal. Retrieved from http://www.indeed.com/cmp/Paypal/reviews? start=40&lang=en PayPal. (1999-2013). About PayPal. Retrieved from https://www.paypal-media.com/about Clayton, M. (n.d). Disruptive Innovation. Retrieved from http://www.interactiondesign.org/encyclopedia/disruptive_innovation.html How PayPal Innovation Is Driving Online Payments. (2012). Retrieved from http://readwrite.com/2012/11/28/how-paypal-innovation-is-driving-online-paymentssponsored-post Globalization. (n.d). Retrieved from http://www.investopedia.com/terms/g/globalization.asp#axzz2LIcmjECE