External factors upon the activities of a business Essay

IntroductionIn this assignment, I exit describe how external factors (political, legal, and social) argon impacting upon the activities of a business. My chosen business is McDonalds and I pull up stakes be explaining how the issues reckon in both UK and India.McDonalds is the worlds heavy(p)st chain of fast food restaurants. They mainly serve hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft potables, milkshakes and desserts. They also ache options such(prenominal) as salads, apples, milk, and pungency Wraps on the menu.Legal FactorsThese atomic number 18 the laws and regulations affecting the business. Some of the other factors may include freedom of information, data protection, employment law and copyright and so forthUK and Indias Legal FactorsHealth and synthetic rubber In the UK and India, the health and safety law is very important for each individual or employees oddly in the leanplace, to prevent injury, death and illness. This affects some businesses especially in India because they assume to eat up all equipment for health and safety which will constitute them a lot to fill it up.Food Hygiene In both countries, McDonalds has to be very hygienic in order for the business to stay commit and successful. The impact of an unhygienic restaurant would be catastrophic for the companys image.Recruitment and Selection Law All workers must be do by equally. For theoretical account In UK, you keisternot dismiss a worker for being pregnant. in that respect should be proper warning before dismissing a worker other it will be treated as unfair dismissal. The Government makes it obligatory to have a written contract of employment. It contains the details of the engross commit workinghours, and other necessary details regarding working conditions. The National negligible 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 compargon to UK. In co ntrast to the UK, India can employ individuals aged fewer than 16 and the nestling labour in India has a poor image as children are often left unpaid.Social FactorsThese are the aspects of population like for lawsuit immigration, age of population, taste and fashion, belief, individuals personality, attitudes and lifestyle.UK Social FactorsImmigration This has interdict impact upon the social factors in UK. A long time ago, at that place wasnt that many people living in the UK, however, in the twenty-first century, a lot of people from unlike part of the world started to transmigrate and live in UK. The major impact is on population. It has an advantage 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 Population The demographics in UK adorn that the numbers of older people are increasing. McDonalds can value from this maturement population as they can increase the range of their hot drink products in order to target and meet the needs of older people. McDonalds can deal out 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 Factors spicy population growth In India, due to high population, people have a hardtime to find a job, as a answer of this people dont have enough backing for their daily expenses.High degree of corruption level Corruption is a major issue that adversely affects its economy 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.Political FactorsPolitical factors are factors that deal with the public. For example EU membership, taxation political science 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, meaning 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 renew unlike UK the technology systems are much less advanced which could affect the business ability to prod uce, to sell, expand, and demand. The roads are not well established. And if McDonalds in India have poor machinery, poor buildings and facilities, thenit wont benefit the business and wont be able to expand.