INTERNATIONALLY TRADING ORGANISATION

Internationally Trading Organisation

Internationally Trading Organisation

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 to deal with the different factors to control the four functions of management on a daily business to keep McDonalds successfully running.

Internal factors that would affect the four functions of management are production methods, technical knowledge, and skill levels of employees. If production methods are not clean, healthy and free of contaminants, customers could become ill, forcing a shutdown until health inspections have been passed. If employees and management are not knowledgeable of the technologies used, the cost of fixing errors could raise financial goals and lower production goals. The skill levels of employees need to fit the company's expectations by the bare minimum or the training could become costly.

External factors that would affect the four functions of management are competition, customer behavior, economy, technology changes, and government interference. Competition could lower their prices below McDonald's prices and offer better sales. Customer behavior could be the choices that customers make between McDonald's and another fast-food organization. The state of the economy as a whole could affect the purchasing decisions of the customers and affect the sales goals from one time to the next. 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.

Changing environments affect the effectiveness of an organisation. Changes in the environment are the main think that affect a business internally and externally and also determine the success of the products and services.

How political is affecting McDonalds and its objectives

Taxation

Tax is an involuntary fee paid by individuals or businesses to a state, or a charge against a citizen's person, property or activity for the support of government

Recently on the news it showed that McDonalds profit dropped 14% because of unfavourable tax ...