External and Internal Factors

Topics: Management, McDonald's, SWOT analysis Pages: 5 (1725 words) Published: May 18, 2012
Week Two: Team Assignmen
McDonald’s history began with the dream of two brothers, Dick and Mac McDonald, who opened a bar-b-que restaurant in San Bernardino, California, in 1940 (McDonald’s, 2011). The popularity of the drive-in burger joints faltered the McDonald brothers’ business, so in 1948, they revamped the menu making the main staple hamburgers and French fries (McDonald’s, 2011). Gaining the reputation for quality and service, the McDonald brothers wanted to expand their dream by starting a national franchise of restaurants (McDonald’s, 2011). Today McDonald’s serves millions of customers worldwide providing the same reputed quality and service since its inception. The McDonald’s executives credit factors and functions of its management for their success over the years (McDonald’s, 2011).

Internal and external factors have an effect on any business environment (Bateman & Snell, 2009). Internal factors determine the culture within a business (Bateman & Snell, 2009). Mission statements, values, practices, codes of conduct, and QSC and V (quality, service, cleanliness, and value) are the internal factors that govern the behavior of the employees at the McDonald’s corporation (McDonald’s, 2011). These controlling elements are what makes McDonald’s number one in the global marketplace. McDonald’s mission statement implies a strong focus on customer satisfaction; customer satisfaction is also one of the core values of McDonald’s (McDonald’s, 2011). Belief in their core values causes everyone to share the same goals and priorities within the McDonald’s Corporation. The shared goal at McDonald’s is to serve its customers with professional and personal integrity by earning the trust of its customers (McDonald’s, 2011). They earn the trust of their customers by providing a quality product, friendly service, and a clean environment in their restaurants. McDonald’s implemented codes of conduct for employees to allow a connection between the board of directors and management in every aspect of business at McDonald’s (McDonald’s, 2011). In every strong business culture there is a possibility for weaknesses (Bateman & Snell, 2009). Some of McDonald’s weaknesses are legal issues because of unhealthy food and fierce competition (McDonald’s Corporation, 2009). These weaknesses contribute to the external factors of the McDonald’s Corporation.

External factors are relevant outside sources of a business (Bateman & Snell, 2009). External factors determine how companies conduct business (Bateman & Snell, 2009). The contributors of the external factors of an organization not only consist of customers and suppliers but also the economy, the government, and the competitors (Bateman & Snell, 2009). Some external factors have a negative effect on business (Bateman & Snell, 2009). For example, the recent rise in health concerns caused environmentalists to pursue a class action against the McDonald’s Corporation (McDonald’s Corporation, 2009). The issue was unhealthy foods prepared in trans fat. The environmentalists stated that trans fat can lead to obesity, heart attacks, and strokes (McDonald’s Corporation, 2009). For this reason, management had to plan and organize a solution to counteract McDonald’s contribution to the growing health concerns. In 2007, McDonald’s began the holistic approach for the Happy Meal (McDonald’s, 2011). They also offer fruits and salads on their menu to all customers. McDonald’s stopped preparing foods in trans fat. Their commitment is to the well-being of their customers (McDonald’s, 2009). Organizing, leading, planning, and controlling have many effects on the success of McDonald’s, and the following areas of business in the following ways: Globalization- It took careful planning and organization for McDonald’s to target the various markets before globalizing its franchise chain. Research and development provided data about countries...

References: Bateman, T. S., & Snell, S. A. (2009). Management: Leading & collaborating in a competitive world (8th ed.). Boston, MA: McGraw-Hill Irwin.
 MCDONALDS. (2011). AboutMcDonalds.com. Retrieved from http://www.aboutmcdonalds.com
McDonald 's Corporation SWOT Analysis. (2009). McDonald 's Corporation SWOT Analysis, 1. Retrieved from EBSCOhost.
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