McDonald's And Its Environment

INTRODUCTION
Business environment is a working scenario which comprises of different
internal and external factors that can affect the functioning of a business.
These factors include customers, competitors, government, suppliers, social
cultural factors and many other responsible factors which can influence a
business operation (Fernández-Olmos and Ramírez-Alesón, 2017).
McDonald's is a fast food company which was founded by Richard
McDonald and Maurice McDonald in the year 1955. The company offers a
wide variety of fast food and quick bite food products and is currently
offering their services too many different countries at reasonable prices. The
poster will depict the impact of internal and external business environment on
the business and how business managers the impact of external business
environment on their daily operations.
McDonald's And Its Environment
External Environment
Political factors- International trade agreements has created a positive
impact on the business. Whereas, government guidelines and public health
policies can affect the business positively as well as negatively.
Economic factors- Stable growth in developing countries has offered
business expansion opportunities. Whereas, slowdown of Chinese economy
has negatively influenced the business.
Social factors- Incline in disposable income, busy lifestyle in urban areas has
offered increase in sale and more profits for business. While, cultural
diversity and heathy lifestyle has been a threat and opportunity for the
business.
Technological factors- Incline in sale through online ordering, increased
business automation has offered new heights to business.
Environmental factors- Implementation of corporate environmental
program and sustainable business strategies has helped in maintain a good
image in the industry (Sallet and et.al, 2021). Whereas, due to rapid change
in climate conditions in various regions can affect the products of the
company which can lead to incline in wastage.
Legal factors- By following all legal rules and regulations, this has offered
success and sustainability to the business (Susanti, Sule and Sutisna, 2015).
Whereas, incline in minimum wages, incline in health regulations has
adversely affected the operations of McDonald's.
How McDonald's impact its context External Environment
Political factors- By following government guidelines, policies and programs, McDonald's can
minimize the negative impact of such factors.
Economic factors- By expanding the business in Asia can be an opportunity for business growth
and profitability for McDonald's.
Social factors- By valuing local and regional market ca be helpful for product development
which can minimize cultural differences. This will enhance flexibility and increase profits for
McDonald's.
Technological factors- Implementation of automation can be helpful in bringing change in
operations and functional management and can increase profitability of McDonald's.
Environmental factors- By diversifying the supply chain, McDonald's can address the impact of
climate change which can impact profitability of the business. By also focusing on CSR can also
offer business growth and sustainability (Wang and Peng, 2020).
Legal factors- By implementing comprehensive animal welfare policy, can be helpful for
McDonald's in attracting more customers and spreading awareness regarding animals and
employee satisfaction policies at the workplace.
Internal Factors
Strengths
Valuable brand- McDonald's have a strong brand image by offering quality
products and services and also helps in facing high competition in the
industry.
Technological initiative- With the changing technological advancements,
McDonald's also implemented self-service with kiosks, mobile order and
payment systems which helps them in retaining and attracting maximum
number of customers.
Weakness
Lack of employee satisfaction- Due to increase in conflicts with the
employees regarding their wages, this has led to more strikes which can harm
company reputation and increased employee dissatisfaction from their jobs
(Hanggraeni and et.al, 2019).
Supply chain interruptions- McDonald's is facing many issues due to
disruptions in their supply chain management as this can arise due to limited
availability of products.
Opportunities
Rebuilding the brand image- McDonald's can rebuild a brand image by
taking an initiative of offering healthy and customized food products which
will lead to increase in sale and growth in profit.
Online ordering- By offering online food services for delivery, this will help
McDonald's to generate higher sales and more profits for attracting more
customers (Nasim, 2018).
Threats
Environmental concerns- Such environmental responsibilities create an
immense pressure on McDonald's to focus on reducing wastage and using
products which will minimize environmental pollution.
High competition- As there are many other companies which are offering
same product line, this creates high competitive scenario for McDonald's to
generate higher sales.
REFERENCES
Fernández-Olmos, M. and Ramírez-Alesón, M., 2017. How internal and external factors influence the
dynamics of SME technology collaboration networks over time. Technovation. 64. pp.16-27.
Hanggraeni, D and et.al., 2019. The impact of internal, external and enterprise risk management on the
performance of micro, small and medium enterprises. Sustainability. 11(7). p.2172.
Nasim, K., 2018. Role of internal and external organizational factors in TQM implementation. International
Journal of Quality & Reliability Management.
Sallet, J and et.al., 2021. Impact of internal and external factors on prosocial choices in rhesus
macaques. Philosophical Transactions of the Royal Society B. 376(1819). p.20190678.
Susanti, E., Sule, E. T. and Sutisna, H., 2015. The impact of internal and external service quality (A case
study among lecturers and students). Mediterranean journal of social sciences. 6(5 S5). p.77.
Wang, C. W. and Peng, J. Y., 2020. The impact of internal and external factors on the relationship between
information opacity and open‐market repurchases. Accounting & Finance.
CONCLUSION
From the above listed information, it can be concluded that business
environment comprises of internal as well as external environment. To
identify the internal environment. SWOT analysis technique can be used.
Whereas, to monitor the changing external business environment, PETEL
analysis has been use to face the challenges and gain competitive advantage
for business.