The purpose of this document is to discuss the external and internal factors that influence the management functions of McDonald's. This will be accomplished by explaining how McDonald's addresses each of the external and internal factors. Three factors were chosen to outline the success of the McDonald's company. The first factor is globalization, understood as closer contact between different parts of the world, with growing possibilities for personal exchange, mutual understanding and friendship between "citizens of the world". Diversity, the difference between people and cultures, is the second factor discussed in the document. The final factor is ethics, which can be defined as a set of principles of right conduct. This document explains how McDonald's companies use factors to conduct business around the world. In today's society, companies and businesses are expanding their businesses into global markets. Globalization is necessary for success and survival in the world market; however, global competition is not easy (Bateman & Scott, 2004). By the end of the 20th century, the list of Fortune 500 companies no longer included only US companies due to an increase in international companies joining the list (Global Capitalism, 2005). As a leader in foodservice retailing, McDonald's joins these companies with restaurants in 119 countries (McDonald's, 2004). Important strategic decisions are a key factor in their success taking into account both internal and external factors. When considering the foreign market, companies must consider that risks exist. Local marketing is needed to attract local consumers and also to build relationships and trust (Bateman & Scott, 2004). Therefore, the…… half of the document……9, 2005, from http://www.mcdonalds.com/usa/good/report.RowPar.0002.ContentPar.0002.ColumnPar.0001 .File.tmp/USA%20Report %20Layout%20(No%20Back%20Cover)%20(12-1-04).pdfRobinson, W. I. (2005). Global capitalism: the new transnationalism and the madness of conventional thinking. Science & Society, 69(3), 316. Retrieved October 10, 2005, from the ProQuest database. Sustar, B. & Sustar. R. (2005). Manage marketing standardization in a global context. Journal of the American Academy of Business: Cambridge, 7(1), 302. Retrieved October 10, 2005, from the ProQuest database. Welcome to McDonald's India. Retrieved October 10, 2005, from http://www.mcdonaldsindia.com/ourfood/nonveg/index.htmlwww.mcdonalds.com, People, 2005www.mcdonalds.com, Environment, 2005www.rmhc.com, Ronald McDonald House Charities, 2005  Lifestyle changes in China It is up to the consumer to demand action