Mcdonald's Macro Environment

In: Business and Management

Submitted By ruzzy0615
Words 788
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Macro environment/Remote Environment Analysis
A firm’s macro or remote environment consists of the factors that originate beyond and usually irrespective of a single firm’s operating situation and consists of economic, social, political, technological, and ecological factors (Pearce and Robinson, p87). McDonald’s, a global leader in the fast food industry, remote environment contains many of these factors.
Economic Factors: Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability (Kotler, 2000). Changes in income and changes in consumer spending patterns can affect the industry. McDonald’s and other global competitors also face different scale of tax and revenue measurement in different countries. International currency fluctuations especially in global food distribution are also a factor.
Social Factors: Current customers are much more health conscious than previous generations and thus are switching to healthier and greener food like salads. In addition, customers are trying to associate themselves with good organizations that they feel are concerned for the environment. Fast food shops are now trying to improve their brand image by portraying their concerns for the environment.
Political Factors: Even in stable countries with no political unrest, political trends may have a significant impact on business (Jain, 2004). Different governments may focus on separate laws and enforce them more than other countries. New legislation has also played a major role in the fast food industry. There are many laws and regulations in force for the food industry. The FDA continues to monitor food quality closely. Also, the fast food shops have to maintain a minimum level of hygiene, number of staff, customer service, payments to staffs, and storage of unused…...

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