Environmental scan for McDonalds Company Term Paper

Environmental scan for McDonalds Comp any(prenominal) - Term Paper ExampleEnvironmental scan for McDonalds CompanyThis paper seeks to guide environmental scan for McDonalds Company and General Motors Company. One of the organizations internal environmental factors is its human resource strategy that has a vary training program for its personnel. The company makes significant investments into this initiative to develop a strong human resource base for efficiency and effectiveness towards a gauge driven competitive advantage. The company to a fault has acculturated quality production that has established its admiration among consumers who are satisfied with the organizations products. Similarly, the organization, in its management and operations, is self-propelled and flexible to different cultural needs across its diversified market. As a result, the company is able to meet its customers needs and expected utility. The organization also operates under strict food safety policy in which raw materials are only accepted into production processes if they meet safety standards (Marketing, 2012). A do of challenges also characterize its internal environment. The company for example faces a high employee turnover leading to more investment in recruiting and training new employees. such a high turnover rate also destabilizes implementation of policies and organizational culture that has to be continually reinforced. The organizations gainfulness has also been unsound and therefore unpredictable. This means that long-term financial plans cannot be established with certainty because it is difficult to obtain a reliable forecast of the organizations profitability (Marketing, 2012). External environment External environment refers to factors that emanates from outside the organization and which the organization has no power to control. McDonalds external environment includes political factors, stinting factors, technological elements, socio-cultural aspects, physica l environment, and competition among other factors. Political factors define to rules and regulations that control the organization in its operational localities. Being an outside(a) organization, McDonalds is subjected to different local laws and outside(a) regulations that shape its operations. As a result, the management should be informed of the laws and political systems in regions where the companys branches operate. It should also be flexible to adjust to any changes in regional laws that will affect its subsidiaries (Vrontis and Pavlou, 2008). The organizations economic environment defines demand for its products and trends in consumers spending habits. It is therefore susceptible to general economic trends such as recessions, periods within which the consumers economic potentials are constrained leading to low demand. Economic recovery periods however improve demand towards high profitability levels. The company, through its subsidiaries operates under different economic potentials across regions. This affects pricing strategy of the companys products and defines profitability across different regions. Successful international venture however indicates the companys success in implementing technology towards communication and coordination of its activities across geographical barriers. Application of technology also explains the organizations standardization in its subsidiaries such as the franchises. Similarly, social and physical environmental factors are variables across the company