Internal And External Factors Affecting Mcdonalds

About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.

Internal and External factors affect the four functions of management in several ways. A way that affect the external factor would be to encourage spending and making sure websites are readable and that buttons are operable and viewers have easy access without a large amount of difficult and straits. This can drive away business. The driving forces or environmental or forces, internal driving forces are inside the business and external forces are outside the business. Things that affect internal forces are machinery, equipment, computers capacity, culture, management systems, financial systems, employees moral. External factor are things outside the business things that affect this force is the

McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's

The macro- environment is an extremely influential factor when considering change dynamics within any company. Because of this, it is important that each company learns to adapt to any external changes in the macro- environment that become apparent. To do this companies must be aware of factors such as political, economic, social and cultural and technological that may influence their business and their internal processes. For McDonalds, these four factors are significantly influential. The correct way of dealing with the effects of these factors will ensure McDonald’s success both in the short term and long term.

• Choosing the socio-cultural and global segments of the general environment and explaining which segment would rank highest in the influence on McDonald’s Corporation and also assessing how those segments affect McDonald’s Corporation.

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

External factors are those factors which are external to the business organization and cannot be controlled by the management. But in order to sustain in the industry and the market every firm has to manage these factors. The success of a strategic business unit depends on its ability to react timely to change in the external environment. A company having good organizational strategy will always alert to these external factors and will make measure to control them on time always. Major external factors include economic conditions, market, technology, climate change, legal, media, political and demographic factors.

As a result, its operations in Oman being a local place, the organization experiences various drawbacks most of which originates from concentrating on competition than on providing the consumers with the desired products. First, Oman market has been pinpointed by other competing companies the likes of Pizza Hut and Wendy as a major hub for McDonalds and a significant contributor to its success (Love, 2009). Consequently, these organizations has flocked the market hence the intensified competition that confines the designated organizations to a single locality closing down the chance to expand. Therefore, despite McDonalds’s strategies to broaden its market share, it faces considerable antagonism that is quite a peril to its efficient operations. Additionally, McDonalds international ranking is a disadvantage to its functioning. Such realization base on the grounds that, making significant changes from the routine follows an extensive chain of consultation and by the time the alterationsare made it might have been outmoded or deemed unnecessary. Hence, innovation aspect is burdensome for McDonalds and the period it takes to make meaningful innovations; other smaller companies will have taken the complete enaction process in their operations making it susceptible for being outdated in its operations (Böhm,

McDonalds needs to constantly examine trends and to come up with new and improved innovative strategies to maintain its competitive advantage so that it does not lose its position to competitors. In addition, since McDonalds is global, this may be a more difficult challenge. Therefore, McDonalds must pay special attention to various outside forces, such as changes that occur within different country’s economies, laws, or local area concerns.

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

McDonalds Corporation had developed to become the leading fast-food chain of restaurants since its inception to the extent that it serves more than 47 million customers across the globe on a daily basis. The corporation is the largest global food-service retailer since it has over 30,000 local restaurants that serve approximately 52 million people in over 100 countries every day. One of the critical factors attributed to the success of McDonald's global business is operations management, which focuses on the careful control of processes that are used in manufacturing and distribution of goods and/or services.

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

In the Fast food restaurant market McDonalds can be found as the global leader due to its effectiveness responding to Porter’s five forces model inside its environment. This model is supposed to analyze the environment and identify the most relevant factors that could influence the firm’s performance, in this case the fast food restaurant industry. McDonald’s success reflects how effective the company is in overcoming issues related to its environment and how it addresses them.

I think that McDonalds is using a smart strategy when it comes to being a major player in the globalization market. The strategic planning and marketing has proven to be quite lucrative for the company. The company is wise because they incorporate locate, home grown products in

McDonald’s is a leading global food service retailer with more than 35,000 restaurants serving nearly 70 million people across 100 countries every day. It was found in 1940 and it was the first fast food industry in the world market. It has 1.8 million employees and 80% of the restaurants are franchised. The main revenue of McDonald’s is generated from rent, royalties and fees paid by the franchisees.