This paper is on the topic of Environmental factors pertaining to McDonalds. The first section of this paper will analyze the influence of global economic interdependence and impact of agreements and trade practices. The second section of the paper examines the relevance of physical infrastructure and demographics. The third section of this paper will analyze the influence of cultural differences. The fourth section of this paper will examine the importance of social responsibility and ethics versus legal obligations. The following section will analyze the influence of international relations and impact of political systems. The next section of this paper will discuss the influence of the FCPA (Foreign Corrupt Practices Act of 1977) , in addition to the influence of international, local and national legislation. The final section of this paper will explain the effect of technology.
Legal realism in different nations has led to many important choices that entail marketing. These comprise of the ability to make certain claims, the capability of selling products in specific ways, selection of business practices and a selection of aspects. These aspects are needed to be well thought-out and understood while creating marketing plans. Other aspects influencing marketing composes of the environmental factors and social accountability. In many cultures, these issues are important and in some cultures they are no concern. McDonald’s needs to follow the legal conditions in the country they operate that influences the environmental and social practices, and meets the expectations and needs of locals on such matters. If not McDonald’s cannot gain the trust or respect locally and globally.
An organization like McDonald’s that are involved in a global business, should have complete understanding and needs to respond to the environmental factors that are involved in their business and take right marketing decisions. The environmental factors faced by McDonald’s in marketing situations are the legal and cultural elements of carrying out business in foreign countries and customs and develop and maintain their views on beliefs, social responsibility and surroundings. All these can force the important marketing choices that orbits around the 4Ps. McDonald’s needs to review the global culture carefully and develop an understanding of practices or changes needed to be placed to be successful. McDonald’s does this by offering and deleting food items from their menu such as no beef products in India, no ketchup in Chile, adding rice and beans in Costa Rica, beer in Germany and salmon in Norway (Adams, 2007).
It is not easy for McDonald’s to operate within the global market. Taking on the varied cultures of several countries is an important consideration before operating in that country. If a business cannot understand the business ethics in a country, it can damage the global company attempting to work in that country. Every business should keep an open mind when starting and doing business in a foreign country. A company like McDonald’s cannot come to a foreign country and expect them to follow McDonald’s business ethics; in a foreign territory, it is understood that McDonald’s needs to follow foreign country’s regulations. McDonald’s needs to adjust to foreign culture, if they do not it would be considered as disrespect in that country.
When operating in another country, McDonald’s needs to adapt to foreign country’s culture. McDonald’s should understand the laws and regulations, how to manage employees, the needs of customers, the ability to conduct business and language barrier with other suppliers and trading partners in different business areas. McDonald’s would not do anything that offends anyone or is considered as unethical. It is these challenging occurrences that are less important in the global procedures of the company, if a business can place their global standards in the business ethics. According to Trevino and Nelson (2006), individual employees have their right of working in a safe environment. Managers are responsible for creating and maintaining good working teams. Ethical, responsible management helps to avoid social issues such as personal arguments, racism, harassment and snide remarks. It is important for managers as per the business policy to examine both internal and external surroundings, to recognize the opportunities and risks as well as the strengths and weaknesses. McDonald’s global business needs to continually learn in the internal and external surroundings. This allows McDonald’s to become accustomed to any possible change and improves the success abilities of their businesses.
It is necessary for a global business to acquire a language translator that will help in conducting business. This will help the parties involved to understand each other and avoid developing any misunderstanding. At McDonald’s headquarters based in India, the help desk assistance needs to be set up for employees who speak English. This helps for communication between people from two cultures. Also, an important factor as the time difference should be taken under consideration. This also works for global companies that are doing business with clientele and trading partners in different time zones; McDonalds should accommodate international and domestic clientele and trading partners. McDonald’s must investigate their regulations, culture, laws, business ethics, etc. as it is important for global business to expand become successful.
As per McDonald’s (2011), every year employees at McDonald’s certify that they will abide by the firm’s standards of business conduct. Employees also have to complete training on the Standards and various regulations, laws and company-specific policies. McDonald’s and their employees in different countries should comply with FCPA (Foreign Corrupt Practices Act). Employees in the international offices of McDonald’s certify compliance annually with the local version of Standards as well. “ McDonald’s Global Compliance Office monitors and enforces the company’s policies prohibiting money laundering, bribery and doing business with terrorist groups, as directed by the US Patriot Act, the FCPA and Executive Order 13224” (Standards of Business Conduct for Employees, para. 2).
Over the years, McDonald’s Corporation has helped to change the way in which the eating joints/establishments use technology. McDonald’s stress on consistency and it has provided the chain aptitude to provide better or new technology nationwide. Through the past few years, McDonald’s has taken steps to move forward in their endeavours to press for better technology (BNET, 2011).
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BNET. (2011). Innovation is on the menu: technology moves McDonald’s forward. Retrieved 25 May 2014 from, http://findarticles. com/p/articles/mi_m3190/is_15_39/ai_n27855108/? tag= mantle_skin; content
McDonalds. (2011). Standards of Business Conduct for Employees. Retrieved 25 May 2014 from, http://www. aboutmcdonalds. com/mcd/investors/corporate_governance/standards_of_business_conduct. html
Trevino, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right (4th ed). Hoboken, NJ: John Wiley & Sons.