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Environmental Factors and McDonald's

Essay by   •  December 10, 2011  •  Research Paper  •  1,267 Words (6 Pages)  •  7,239 Views

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Environmental factors affect companies of every industry. However, every company may not be affected by every environmental factor or by every factor in the same manner. Environmental factors that affect industries include economics, culture, demographics, technology, and government factors. Businesses depend on the information they obtain from the effect of environmental factors. The businesses strategies, objectives, and tactics are aspects of environmental factors. Through analyzing the environment businesses can make effective marketing decisions. This paper provides information on the global and domestic environmental factors and their effect on the marketing decisions of McDonald's. Global economic interdependence and its effect on trade practices and agreements are present in this paper. Demographics and physical infrastructure, the influence of cultural differences, and the importance of social responsibility and ethics versus legal obligations are processes that are addressed in this paper as well. The influence of the Foreign Corrupt Practices Act of 1977 and the influence of local, national, and international legislation and their relation to McDonalds marketing decisions are identified.

Economic factors that affect marketing decisions include business operation expenditures, resources, and income. Cultural factors include cultural characteristics, behaviors, values, attitudes, customs, traditions, and social class. Demographics that affect marketing include age, family size, gender, income level, buying patterns of consumers, attitudes, and ethnicity. Marketing teams study demographic trends to determine changes in population characteristics (Friedman, 2011). Technology affects marketing because it plays an important role in the decision-making processes for every type of business. The Internet is the biggest technological tool that businesses use to generate international sales. Changes in technology also referred to as technological forecasting is a process that businesses do that allows them to predict future technological advancements. Government factors that affect marketing include restrictions and policies affect the way marketers make marketing decisions. Most industries adhere to policies that benefit them in bringing in profits they want to see. Industries such as McDonald Corporation are vulnerable to the ever changing laws and court interpretations.

McDonald's is one of the world's largest fast food chains serving millions of people in several countries daily. McDonald's has more than 300,000 locations globally (Vrontis & Paulou, 2008). McDonald's demonstrates in ways that shows their appreciation to their customers. They do this by offering the customers superior service, high quality foods, clean yet welcoming environment, at a great value (McDonalds, 2008). McDonald's has to make both global and domestic marketing decisions generally daily. These decisions are affected by environmental factors that include social aspects, cultural changes, technological advancements, and economic situations. McDonald's provides marketing attention to both global and domestic market segments by analyzing the factors that affect them.

Global interdependence and effects of trade practices and agreements in relation to McDonald's marketing strategy are wide reaching-affects. However, they can't produce everything they need so they use a distribution channel that helps them receive products. McDonald's lettuce, cheese, sauces, buns, meat, dairy products, and other products they purchase by local suppliers. McDonald's industry affects diverse populations globally, and they are strict in where they purchase their products. Several factors affect international marketing including economics and social aspects. Regulations as well as government and community agreements are factors that affect marketing globally. McDonald's has to take into consideration that what sells in the United States may not sell that same exact way in another country. This is a situation that requires the implementation of different marketing plans. McDonald's has an impact globally their competition is increasingly global and suppliers and buyers are increasing throughout the world. McDonald's conducts business, tastes, production tasks, and lifestyle changes with constant analysis, ever improving as times change.

Demographics and physical infrastructure influence McDonald's in several ways. There is currently a greater demand for prepared and fast foods. McDonald's uses a demographic segmentation strategy. Their main parameter is age they target children and teens, they target families with children and teens (Kadu, 2010). McDonald's takes notice in the changes, and this allows them to make improvements to their marketing

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