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Comparing the analytical techniques used by McDonalds

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Introduction

M2 Comparing the analytical techniques used by McDonalds. There are many analytical techniques which can be used on products on services in marketing. The three techniques I have chosen are the SWOT analysis, the product life cycle and the PESTLE analysis. In this essay, I will compare the analytical techniques used by McDonalds and see how they relate their marketing decisions on their chosen products and services. The SWOT analysis This allows McDonalds to look internally and externally to see what is good for them and what is potentially bad for them. They can evaluate this my looking and predicting any opportunities that may arise to them and be able to pre-judge and threats that they may be involved in, in terms of their competitors. The Strengths (S) and Weakness (W) look internally of an organisation and the Opportunities (O) and Threats (T) refer to the external factors of an organisation. Strengths relate to anything that is positive about an organisation or a factor in which they hold that holds a competitive edge over their rivals. One of McDonalds main strengths may be that their brand name is so strong that it is recognisable my many people across the world. The products that McDonalds sell can easily be identifies by consumers that the food has come from their rather than other fast food restaurants. Weakness relate to anything in which the organisation possesses that is likely to hinder them on a whole or a negative factor in which they encounter. ...read more.

Middle

PESTLE stands for Political, Economical, Social, Technological, Legal and Environmental. These are 6 external factors that influence an organisation. McDonalds can use a PESTLE analysis by: Political- McDonalds is referred to this as they have to ensure that employees are paid the national minimum wage minimum and that employees are at least 16 or above. Economical- as it is the period of a recession, consumers are saving more and spending less than usual. The demand for products will be relatively low and therefore, McDonalds have to make sure that they are not affected as much. Social- as obesity concerns are raging across the globe, not many people are into eating fast food. They would look for healthy options and something that would keep people fit and healthy. McDonalds were affected until they were forced to introduce healthier products. Technological- McDonalds have to keep up-to date with their technology to make sure that their customers experience will be a comfortable one. McDonalds have allowed wi-fi connections when customers shop at their restaurants so that customers can sit down and relax. Legal- McDonalds have to follow the rules of non-smoking in public places. As this law was introduced, public places were ensured that people would not smoke in public places. If McDonalds fail to do so, they can come under scrutiny and fined for their failure to follow such regulations. Environmental- McDonalds will be concerned that vast amount of trees have to be cut down in order for products to be made such as cup holders. ...read more.

Conclusion

However, a disadvantage of using a SWOT analysis is that it does not concentrate on a specific product, this leading to a basic overview of how the product will run. The depth overview will be concerning the organisation rather than products and see what influences McDonalds rather than the products they sell. The PESTLE analysis is effective as it allows McDonalds to look externally and see what influential factors influence them on the outside of the McDonalds. McDonalds can use this to relate the factors around them by referring to what can be done to avoid these external factors. A disadvantage is that if a new law is introduced by the government to increase the national minimum wage, organisations such as McDonalds will have to follow the new rules in which the government set. Failing to-do so could lead to organisations being publicly fined. The product life-cycle is effective because it allows McDonalds to analyse specific products and to see how the demand for products will either rise or go down in specific periods. McDonalds can also examine factors in which will help them boost profits and be able to introduce new products to the market and see how well that product will do in the future. The disadvantage of using this technique is that it only concentrates on specific products and only what will happen to the product after a period of time. However, it can show clear indications to McDonalds to invest into departments in which will help boost their profits by analysing their products using this type of analytical technique. ?? ?? ?? ?? 1 Rizwan Zaid SC2006004807 ...read more.

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