External factors upon the activities of a business Essay

IntroductionIn this assignment, I will describe how outdoor(a) factors (political, legal, and social) ar stuporing upon the activities of a argument. My chosen railway line is McDonalds and I will be explaining how the issues affect in both UK and India.McDonalds is the worlds largest chain of fast food restaurants. They mainly serve hamburgers, cheeseburgers, chicken products, French fries, eat items, soft drinks, milkshakes and desserts. They also have options such as salads, apples, milk, and Snack Wraps on the menu.Legal FactorsThese argon the laws and regulations affect the business. Some of the other factors may include freedom of information, data protection, employment law and copyright etc.UK and Indias Legal FactorsHealth and safety In the UK and India, the health and safety law is very historic for each individual or employees especially in the workplace, to prevent injury, death and illness. This affects some businesses especially in India because they need to have all equipment for health and safety which will terms them a lot to adopt it up.Food Hygiene In both countries, McDonalds has to be very hygienic in order for the business to stay open and successful. The impact of an unhygienic restaurant would be catastrophic for the companys image.enlisting and Selection Law All workers must be treated equally. For example In UK, you cannot dismiss a worker for being pregnant. There should be proper warning before dismissing a worker other it will be treated as unfair dismissal. The Government makes it mandatory to have a write contract of employment. It contains the details of the wage rate workinghours, and other necessary details regarding working conditions. The issue Minimum Wage in UK is currently 6.31 while in India the minimum wage is 118 rupees per day or about 1.50 which is very low compare to UK. In contrast to the UK, India can employ individuals aged few than 16 and the child labour in India has a poor image as children a re frequently left unpaid.Social FactorsThese are the aspects of world like for example immigration, age of population, taste and fashion, belief, individuals personality, attitudes and lifestyle.UK Social FactorsImmigration This has negative impact upon the social factors in UK. A long time ago, on that point wasnt that many mass living in the UK, however, in the 21st century, a lot of people from different part of the world started to migrate and live in UK. The major impact is on population. It has an return such as a lot of people are skilled to be employed in the business. However, some migrants might be illegal entrants or maybe visa over stayers.Ageing universe of discourse The demographics in UK illustrate that the numbers of older people are increasing. McDonalds can benefit from this ageing population as they can increase the range of their hot drink products in order to target and follow the needs of older people. McDonalds can sell more healthy products such as fruits and salads.Lifestyle Businesses are always affected by the lifestyle as people have different fashions, tastes, ethics, beliefs etc. As UK is a multi-cultural country, McDonalds needs to provide different selections of foods from different cultures such as in India McDonalds do not sell any beef products as it is prohibited in their religion.India Social FactorsHigh population harvest-home In India, due to high population, people have a hardtime to find a job, as a military issue of this people dont have enough funding for their insouciant expenses.High degree of corruption level Corruption is a major issue that adversely affects its parsimoniousness in India. The causes of corruption in India include excessive regulations, complicated taxes and licensing systems so they add extra cost to the business.Bollywood popularity Bollywood is the nickname for the Indian film industry. It became very popular as Indians are in love with movies. governmental FactorsPolitical fa ctors are factors that deal with the public. For example EU membership, taxation government support for business, infrastructure (roads), skills, business ethics (corruption).UK Political FactorsEU membership McDonalds will need to act in accordance to the European regulations. One of the regulations is the working hours where workers must only work for no more than 48 hours.Taxation McDonalds is affected by the government taxes, such as income taxes and business rates as it is a large business, importation that a lot of tax is taken away from their profits. And McDonalds will have to pay tax. Tax has an impact on McDonalds as it will be taken off their annual profit which will result in less diligence for shareholders.India Political FactorsInfrastructure India isnt modernized unlike UK the technology systems are much less advanced which could affect the business ability to produce, to sell, expand, and demand. The roads are not easily established. And if McDonalds in India ha ve poor machinery, poor buildings and facilities, thenit wint benefit the business and wont be able to expand.