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Internal and External Factors Essay

There are four management functions that are typically found in most of the business environments around the world. The four functions of management are planning, organizing, leading, and controlling. These are most commonly used in high level management to organizational management too. There are five major factors that affect these and many other business functions which are globalization, technology, innovation, diversity, and ethics. If you were to look into any organization, these would be factors and management functions would be found. McDonalds has been a global force in real estate and restaurant operation for many years now. The McDonald industry is always leading in globalization and is also using innovative technologies that help them continually improve in all areas of business management. They have kept a high level of diversity and ethical principles in all areas around the world with their business.

“McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving nearly 69 million people in 118 countries each day” (McDonalds, 2010-2013). Planning and organizing is all done at the corporate level at McDonalds so the mid-level managers do not have to deal with managerial functions. All levels of management are performed within the ranks of McDonald’s Corporation. McDonald’s offers the Hamburger University where they offer management and leadership courses for all levels of management. It also teaches in 28 languages which emphasizes the high importance the company places on globalization.

McDonald’s is able to deal with internal and external forces, while applying to leading by making their training program top priority so it covers all boarders around the world and cultures in application. External factors such as food and supply shortages or cultural requirements mean that the company’s senior leadership must be used in this matter. In cases like these, mid-level managers are given permission to take lead as long as it does not go against the McDonald’s corporation strategic goals. They strive very hard to make globalization a very high importance.

Technology with McDonald’s plays a very important role in the everyday corporation of McDonald’s and all of its stores. Technology is changing every day and has an impact on McDonald’s corporation. Technology affects planning and organizing in the same ways as the function of globalization’s impact. The organizational plans of development are sent down from the top level managers, to the store managers, all the way down to the shareholders through technology. This also opens up a weakness to competitors by being open for them to see their plans. This can be affected by internal forces. With technologies improvements on day to day basis managers are able to communicate with their employees on a less frequent basis. This means the leadership would be a less amount and managing effectively would become worse. McDonald’s counteracts this by using technology to make the training courses more convenient and available to managers.

Innovation is used by McDonald’s and that is why it is the world’s leading force in the fast food industry. It is done a lot in the menu offerings, internet services and the hiring and training courses. McDonalds keeps above the competition in America and all over the world in the innovation fast food world because of the real estate innovation combined with it. The internal and external factors have led McDonald’s to innovations in planning, organizing, leading, and controlling. McDonald’s has developed a second line of restaurants such as Chipotle Mexican Grill. They have also created a line of foods on the menu that offer low fat, low sugar, high fiber, and lower calorie options as a result of external factors. Things such as salads and most recent addition egg white egg mcmuffin, to provide healthy alternatives. Diversity is one of the high priorities at McDonalds because managers have to create a way to put out ideas and products to every different type of people across the world.

McDonalds must hire diverse groups from all over the world and at any store across the globe to ensure they are not looked at as discrimative towards anyone. All employees who are hired are trained equally as every other employee, and that they hire qualified candidates for each position. A lot of the employees hired at McDonalds are woman and minorities and that is why leading at McDonald’s is affected by diversity. Minorities at McDonalds are leaders in the corporation to represent the diversity in the U.S. Another thing that McDonald’s does now is having a scholarship program to motivate their employees to do the best they can at work to the best of their abilities. The diversity helps McDonald’s adapt to the changing world and be welcome with open arms to everyone. The ethical conduct is another applied principle to the McDonald’s corporation. The four functions of management are applied to ethics on a day to day basis with McDonald’s.

The internal factors at McDonald’s affect management by having to ensure that ethical standards are met every day because of the consumers they encounter on a daily basis. Making a healthier menu at McDonalds is top priority, because eating healthy is always becoming a newer trend and is getting bigger every year. With consumers changing their eating, McDonalds has to make changes to meet that value. Planning comes into play by McDonald’s evaluating their menu and set future goals. This means ethical standards have to be used to assure planning to attain the company’s goals and objectives.

McDonald’s has to make changes and decisions that do not affect ethical standards of products or services because of the external factors. The factors can be imported products, competition, and inflation and weather problems. McDonald’s is an ongoing corporation that is the dominating fast food provider of the world, and continues to evolve and stay number one in competition of the fast food world. They show the four functions of management at a top level as they evolve with both internal and external factors on a daily basis.

McDonalds. (2010-2013). Getting to Know Us. Retrieved from http://www.aboutmcdonalds.com/mcd/our_company.html

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