Business and cultural environment has great impact on organizational behaviour. There are two kinds of business environment: economic environment and non-economic environment. The economic environment includes economic system, economic policies and economic condition. Whereas non-economic environment consists of natural, demographic, technological, legal, political, social environment. McDonald’s has food chains to nearly 120 countries. Their operation largely depends on the business and cultural environment of the countries where they operate. Economic environment differs from country to country. Social environment of business includes social factors like life expectancy rate, literacy, poverty, beliefs, values, traditions and customs. For example, Hindus don’t eat beef and Muslims don’t consume pork, McDonald’s does not sell beef in Hindu communities and pork in Muslim communities.
Political environment includes the political system,
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The ‘Day of Action’ has been repeated every year on the same date, and protests against “the promotion of junk food, the unethical targeting of children, exploitation of workers, animal cruelty, damage to the environment and the global domination of corporations over our lives. In 1997, two of the protestors were sued by McDonald’s for libel, after repeating some of these claims in many McDonald’s restaurant. The judge found in favor of McDonald’s for some of the allegations of libel, but found others had some truth to them and could not be considered libelous, including claims that they “falsely advertise their food as nutritious, risk the health of their long-term regular customers” and “are culpably responsible for cruelty to animals reared for their