Internal and External Factors
Business is an important driver of economic growth. It supplies the manufacturing industry with raw materials while simultaneously supplying the end-user with consumer goods. Additionally, the infrastructure that is built to facilitate the smooth operation of business organizations improves the standards of life of people. Essentially, business serves to improve the quality of life of people across the globe. Based on this importance, enormous effort has been expended to improve the efficiency and effectiveness of business operations. Nonetheless, some internal and external factors continue to affect business both positively and negatively. Therefore, this paper investigates the effects of internal and external factors such as globalization, technology, innovation, diversity, and ethics on the four key functions of business, which include operations, marketing, finance, and human resources.
Previous research has established that each of the four functions of business is affected to particular extents by internal and external factors (Long, 2009). This paper uses McDonald’s as the case example to facilitate the investigation of the effects of the above-listed internal and external factors on business functions. As already hinted in the introduction, business is of great importance to the livelihoods of many people across the globe. Some aspects of its importance manifest through its various functions. Therefore, it is important to delineate each of the outlined functions prior to investigating how they are affected by internal and external business factors.
The Institute of Company Secretaries of India (2012) defines a business function as a process that is routinely carried out by an organization to facilitate the achievement of its objectives. The four key functions of a typical organization are, as noted above include, operations management, sales and marketing, finance and accounting, and human resources. Operations...