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New Forces for Operating to McDonalds

Essay by   •  July 23, 2011  •  Essay  •  1,788 Words (8 Pages)  •  1,538 Views

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The purpose of this essay is to analyze the above question by using the advanced marketing knowledge. It will briefly describe the McDonald's concept is altering from 50 years ago to now. The following paragraphs will explore the concerns of what environmental forces concealed in these changes. Eventually, tThis essay will provide the new forces for operating to McDonald's in the near future.

As Rix, Peter (2004) state, , a macro-environmental and a micro-environmental forces that have an incredible influence on all company's marketing planning and strategies. Due to these external factors will be change suddenly, an organization's marketers need to monitor their competitor's activities frequently, and closely communicate with suppliers and identify the economy and society in target places.

Nowadays, McDonald is the leader in the international fast food business and has approximated 32000 restaurants in Asian and European market; it serves over fifty million customers per day.Reference here (you need to reference all facts)... (McDonalds, 2010) The McDonald's concept was brought by Dick and Mac McDonald's in 1937s in California, but sometime later, his sons, Richard and Maurice changed the restaurant's name from "The Airdrome" to "McDonald's" and produced the fast food culture in United State. Back to the micro-environment, according to Rix, Peter (2004, P. 51) it consisted of the company's market, suppliers and marketing intermediaries.

In the 1960s, McDonald's marketers had concern about customers' feeling and and their conveniencet on products and services. New sentence here, The company , they focused not only upon takes away services but also the drive service for drivers not to get-off for ordering, also concerned dine-in services. Reference this point here (McDonalds, 2010) Meanwhile, McDonald launched a new product which called "Big Mac" and "Egg McMuffin". As a result, these hamburgers become recommended specialties of the restaurant and continually expand their product development in the following years. Reference In addition, McDonalds made a long-term relationship with their suppliers in order to maintain reasonable purchasing cost and quality, marketers established efficient supply chains which constantly offer excellent products and services. Furthermore, as Courtland L. Bovee, Michael J. Houston and John V. Thill (1995), state, McDonald decided to utilize "M" symbol which lead the existing and potential customers easily to remember and identify their brand image. It is because they want to sell McDonald's products and services into general public through advertisement, making people remember and build up a concept that they will serve you in everywhere and anytime. Interestingly, during 1960s, McDonald's had not been affected by any competitor and external macro-environmental forces. Broad claim, what facts do you have to make this statement?

McDonald used a proper marketing mix to satisfy consumers' want and needs. For instance, they provided huge range of choice (various burgers), most of the terms are at affordable price, (Refer to McDonald's History websiteMc Donalds, 2010) creating "Mayor McCheese", "Hamburglar", and "Grimace" in "McDonaldland" to attract young consumers apart from this. Finally, McDonald is always located at convenient location. In addition, they have spent lots of money in establishing Hamburger University which provide training program to new employees and franchisees. In other words, McDonald promotes a "Happy meal" and birthday party for kinds. It makes people have a wonderful memories and deep impression when their childhood. It is a systematic attempt to consolidate their competitive ability and market share.

You are not really saying what the environmental forces are.. define these according to theory. Elements such as technological, political changes, demographic changes

After two decade in 1980s, the macro-environmental forces guided McDonald to become a global fast-food business leader. According to J. Paul Peter and James H. Donnelly, Jr. (2007, P.598) showed "The World's largest fast-food chains" recorded 35 restaurants chains were McDonald's global competitors from 1970 to 2004, and more than a half corporate headquarters were come from United State which similar to McDonald's. It is no doubt on "Hunger Jacks or Burger King" is McDonald's direct competitor in fast-food industry, such as in Hong Kong, Australia, American, etc. However, even if "Hunger Jacks or Burger King" attracted customers and offered a numerous of choice, McDonald's sales revenue had sharply soared, due to marketers accurately utilize external and internal factors to increase opportunities to exotic markets throughout 1990s. You are not addressing the question, what is the reason for above, you need to show why the company was able to gain more customers and success, how it related to customer needs.

As Rix, Peter (2004, P. 38) stated external macro-environment combines with demographics, economic conditions, competition, social and cultural forces, technology, political and legal forces. Those characters cannot be predicted and controlled by an organization. McDonald analyzes their market segments were extremely successful in Asia, such as establishing stores in Australia in 1975-1990s. Due to the multicultural residents and immigrants in various countries, people are easy to accept new things. Meanwhile, Australian financial conditions were increasing and appearing upper and middle class families in that period, they prefer the American flavor. Broad claims, no facts to support Moreover, McDonald entered Australia successfully, because they are not only through legally sold franchise license to gain profit, but also cooperate exciting and potential local suppliers for inventory

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