Environmental Factors

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Environmental Factors Week 5
Chris Eden
January 28, 2013

Environmental factors are identifiable elements in the physical, cultural, demographic, economic, political, regulatory, and technological environment that affect the survival, operations, and growth of an organization. A global organization such as McDonalds has to take into consideration these environmental factors to continue to grow outside the borders of the United States. This paper will analyze global economic interdependence, the effect of trade practices and agreements, the influence of cultural differences, the effect of political systems, and the influence of international relations in relation to McDonalds. This paper will also analyze the importance of demographics and physical infrastructure, the concepts of social responsibility, and the ethical and legal obligations of McDonalds. . An explanation of the effects of technology and the influence of the Foreign Corrupt Practices Act of 1977 as well as the influence of local, national, and international legislation on Target policies and practices, are included.

The influence of global economic interdependence and the effect of trade practices and agreements are a determining factor in what countries the franchise has moved to. The fast food giant also has to deal with different cultural differences along with environmental concerns when it sets up a store in a different country. In various cultures these issues are vital and other cultures it is not a concern. McDonald’s should follow legal conditions in countries that influence social and environmental practices, and still meet the expectations of locals on these matters. These aspects should be understood and well thought-out when creating marketing plans if not McDonald’s could not gain the respect or trust locally and globally as a company.

One of main points that the company has to look at when doing business outside of the United States is the importance of...
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