External/Internal Factors Affecting Management Functions
McDonalds is a multi-million dollar corporation that opened its doors in 1955. It is known worldwide and is now in 122 countries with over 22,500 restaurants throughout. To create the successful business that McDonalds has created, there is an excellent foundation of planning, organizing, leading and controlling. These are the four functions of management. However, there are many factors that affect these four functions. They are affected by internal and external factors. They are also affected by globalization, technology, innovation, diversity and ethics. The McDonalds management teams use delegation ...view middle of the document...
Technology changes almost daily and may not be compatible with current technology being used.
Globalization is a necessity for success and survival in the market; however global competition is heavily populating the area with the fast-food industry today. McDonalds has joined corporations with restaurants in 119 countries. Important strategic decisions are a key factor with McDonald’s success with thought for both internal and external factors. When a company is considering the foreign market, they need to consider the risks. Global marketing is not any different from local marketing but a company’s decisions are made unique to each country and their laws. With McDonalds working in a global market, this allows them to work with different cultures and backgrounds of employees and customers. This business strategy keeps them to their commitment in a diverse workforce.
Changes in technology have provided many new opportunities for companies all over as well as damage others. For instance, the invention of the Internet has changed the way that nearly every company markets their product but has also hurt many industries such as the post office. Postal Services are being shut down all over the United Stated because electronic mail and automatic bill paying options are forcing their hand. Companies like McDonalds, however have remained successful by acceptance of the changes and implementing their business with the new technologies today. McDonalds utilizes a website in which consumers can view their menu and daily nutrition information as well as a restaurant locator. They have even implemented free Wi-Fi connections for their customers.
Innovation is the introduction of new goods and services. In the planning process the managers must take into account that there are other companies around them that are also trying to offer that same product. The goal of the managers should be to market their product better than their competitors; Management must organize how they plan on getting their product into the public eye and plan on how they need to continue to make their product more and more appealing to their target customers. Some companies may put a team in place to hype up the customers via advertising to keep them coming back and there should also be a team in place to monitor how the product is moving and monitor the competition just in case changes need to be made. For example, McDonalds has some great advertising skills. The majority of their commercials appeal to children with Ronald McDonald and the different toys they offer. Their marketing team stays on top of their research and keeps up with the latest kids’ movies as well as kids’ games and toys that come out; that way when they are always ready with something new to offer the children on a daily basis. Even though their menu has been the same for years they have different incentives to bring the children and parents through the doors.
There are two forms of diversity that...