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What are the micro and macro environmental forces which may pose direct or indirect challenges that affect the success of McDonalds?

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Introduction

Assignment 1: Effectiveness of Marketing in an organization context Learner Name: Tr�n B�ch Ngoc Anh Class course: BTEC Level 4 Professional Diploma in International Business FIN: G1131871T Date: 15th May, 2012. Task 2: Analysis report McDonalds is a leader in convenient foods and beverages, with revenues of about $23 billion and over 1.6 million employees serving the customer's world -wide. The company consists of the snack business of Beverages and Foods. McDonalds's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of people. McDonald's is continuing to expand and introduce new alternative beverages in the market. Their mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. Greater variety and quality choices surprise and delight customers with the food and beverage they desire. McDonald's corporation is currently one of the most successful consumer products company in the world with annual revenues exceeding $23 million and has more than 1.6 million employees. McDonald's products are recognized and are most respected all around the globe. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. McDonald's believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity. So what are the micro and macro environmental forces which may pose direct or indirect challenges that affect the success of McDonald's? This report will prove this issue. Using Porter's five forces model can help to assess and analyze the competitive strength of McDonald's. The first force that can affect McDonald's is buyer power. Since there are no switching costs for a customer to leave McDonald's and go else where, McDonald's has to do things that will keep the customers coming back. ...read more.

Middle

Thirdly, articles on the international strategies of McDonald's seem to function on several fields to guarantee lucrative returns for the organization improves on establishing a position mind-set from their core consumers. McDonald's indulge a particular variety of consumers with definite types of personalities. It has also been noted that the company have given the markets such as the United Kingdom and India, an option with regards to their dining needs. McDonald's has launched a sensibly valued set of food that tenders a reliable level of quality for the respective market where it operates. Additionally, those who are aged just below the bracket of thirty-five are said to be the most frequent consumers of McDonald's franchises. The multifaceted character of business nowadays is reflected in the harsh significance of the information on the subject of the existing market. Information with regards to the appeal and potential fields of the market would double as obstructions to the success of the company if this area of the operations is neglected. In the case of McDonald's they establish a good system in determining the needs of the market. The company uses concepts of the consumer behavior product personality and purchasing decisions to its advantage which is clearly evident in case of India as the company was quick in removing their Pork and Mutton products from India's menu. It is said to have a major influence on the understanding of the prospective performance of the organization in a particular market. McDonald's should obtain the relevant information from the target market in addition to the individual customers of the organization. It is imperative that before a franchise is granted to a particular market, a well drafted and comprehensive market research should be conducted initially so as to establish the acts that would conform to good customs, public policies, and morals of the said Country's society. Similarly, the company should find out the shifts in areas like the consumer behavior and purchasing patterns of the market. ...read more.

Conclusion

Beef is not on the menu in India because are considered sacred. Like that, in Muslim they introduced halal meat for burger. Because of McDonald's is an international worldwide restaurant company, the globalization affects their corporate strategy. The company is trying to expand its business in global market like China. That's why before moving into global market McDonald's needs to consider about the region, culture, and religion of customers. Moreover, they need to think food habit and chose of customer of new regions. And the same time regions government rules, law, economy, politics influence McDonald's to build their business. Different country got own law which influence McDonald's. Health and safety has a distinct impact on the functioning of chains in different countries. For example, all restaurants in the Muslim region are halal-approved, meaning food is prepared and handled according to the tenets of Islamic law. Share holders impact McDonald's because they invest money on that. That's way, if MacDonald's do good business and if its prospect is good, then price of share will increase and there is a possibility of getting more dividend for shareholder. On the other hand, if the company needs more money for invest, then McDonald's will issue more share in market. Though, still McDonald's is the largest over the counter quick service food restaurant in the world. After that they should consider the environmental factors which impact the company. And the strategies which company is using now, those have positive and negative effect on business. The management of McDonald's has to continuously keep an eye on the umbrella activities of the organization, by evaluating what works and what don't to create the organization strategies. In order to implement the strategies effectively and successfully, the upper level management should create a safe environment for reassure, support, changes, and commitment of the organization. It is then recommended that McDonald's must make sure that all the strategies are well planned and implemented carefully beforehand, because these changes and strategies will be the deciding for the success or failure of any organization. ...read more.

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