Mcdonalds

External/Internal Factors within McDonalds Corporation

This paper will discuss how internal and external factors impact the four functions of management (planning, organizing, leading, and controlling) throughout McDonalds Corporation. This restaurant food chain runs internationally.

Internal and external factors are a major part of the business environment when it comes to any of the four functions of management. External factors, meaning how companies small and large may be up against challenging effects with recession, competitors actions, and interference through government actions. All these factors may determine different things for any company.

The first function of management that would be affected by external factors of management would be planning. Planning is crucial to any aspect of the business. “Planning is a conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future” Planning is not an informal or haphazard response to a crisis; it is a purposeful effort that is directed and controlled by mangers and often draws on the knowledge and experience of employees throughout the organization.” (Bateman and Snell, 2007, p. 118) In ensuring that every manager follows strict guidelines in this aspect of the business there should be no conflict. According to Bateman and Snell, this would be the first step in clearly providing individuals and work units with a clear map to follow in their future activities.” Therefore, McDonalds has so many different positions, but starting out with something as small as a shift plan, this will enable the employees to their designated areas.

Second function of management, organizing would be affected from and external standpoint, because in order to run sufficiently an operation, McDonalds would need to “invest heavily in training their entry level workers, because they may not have been adequately prepared for some of the more complex tasks the modern workplace requires. Also, as education levels improve around the globe, more managers find that they are able to send even technical tasks to lower-priced but highly trained workers overseas.” (Bateman and Snell, 2007, p. 51)

Third, leading would be affected because managers will need to know “social trends regarding how people think and behave have major implications for management of the labor force, corporate social actions, and strategic decisions about the products and markets.” (Bateman and Snell, p.51)

Fourth, controlling will be effected internally because if the managers are not aware of what is going on throughout the business, this may have an effect on the team as a whole. For best results in controlling, one must have a powerful, strong, and determined leader for acquired success within the company.

This section of this paper will explain how globalization, technology, innovation, diversity, and ethics impact the following four functions of management (planning, organizing, leading, and controlling).

Globalization has been one of the largest contributing factors to the success of McDonald’s. The franchise has expanded to 31,000 restaurants in over 100 countries around the globe and has been continuing to grow since its inception in 1940. McDonald’s remains one of the most widely recognized names around the world and the golden arches are the most recognized symbol in the world. McDonald’s globalization strategy is the reason for its worldwide success.

Globalization is a strategy on which companies make an effort to expand to other countries around the world, or globe, in order to expand the markets and distribution. Though McDonald’s is recognized as the largest fast food chain in the world, its success did not come overnight. Since its creation in 1940, McDonald’s began to expand within the United States. Its first store outside U.S. borders was in Canada in 1967. This was the first step of many to come in an effort to expand to countries around the world. Overseas, McDonald’s has franchises in over 50 countries including every continent in the world. McDonald’s Chief Executive Officer Jim Skinner said, "We're committed to providing our customers with compelling value, unique menu variety and unparalleled convenience. Our steadfast focus on the customer experience and our alignment behind the Plan to Win continue to deliver positive results worldwide" (Press Release, 2008). Globalization has been the leading factor in the expansion of McDonald’s, helping it become the largest fast food chain in the world.

McDonald’s’ technological advances have played a significant role in its development as well. The ability to efficiently take orders from customers has been an ongoing goal for the McDonald’s franchises. Proper communication is what lets customers receive what was ordered, and aids employees understanding of what is expected of them. Through the use of automated machines for various kitchen appliances to interactive websites, McDonald’s has been persistent in its search for new technology. From the four functions of management, McDonald’s controls, leads, and organizes with the use of its technology. Orders are controlled through computers making it easier for employees to efficiently process customer requests. This way there are no unexpected mishaps and all food and drinks are measured equally on a consistent basis. This is the reason a person can receive the same tasting product in the U.S. or across the globe in Thailand. McDonald’s leads its competition largely because of McDonalds’ ability to outdo its competition.

Even as technology has played a significant role in customer service and employee response, innovation is another byproduct of the technological integration. McDonald’s has come up with many innovative ways to keep employees and customers happy and wanting to stay. With the Beijing Olympic Games less than two months away, McDonald’s has not only decided to open four Olympic restaurants in Beijing; it has decided to choose 1,300 “best of the best” employees from around the world to tend to these restaurants. There, employees will have the opportunity to experience the Olympic Games first hand and meet some peers from around the world including coaches, members of the media, and athletes (Press Release, 2008). Innovation is a great accomplice in McDonald’s efforts to expand to everyone in the world.

McDonald’s commitment to diversity is established on the foundational