Macro and Micro Environment of McDonald’s

In this post we will discuss macro and micro environment of McDonald’s.  Market research is important for organizations. It is of utmost important for the companies to do a market research before entering into a territory for expansion of the business. One of the significant checks which are done during the market research of the company includes the macro and micro environmental factors influencing the marketing decisions of it. This will be looked into through this section.

Macro and Micro environmental factors influencing the marketing decisions of McDonald’s:

There are various kinds of environmental factors which are directly affecting the company marketing decision. Factors are:

• Macro factor - This will be looked through a PESTEL analysis
• Micro environmental factors – This will be looked through a SWOT analysis

Political Factors: There is hardly any political factor which affects the current operations of McDonalds apart from the some of the food safety related guidelines for operating in various nations.

Economic Factors: Due to the sub premium pricing of McDonalds the lower economic mood in various parts of the USA and Europe beneficial for the company and the marketing decisions of the company.

Technological Factors: The technological development of the company in terms of supply chain management, vender management etc. adds to the marketing effectiveness of the company and thus the improved marketing decision making of McDonald’s.

Social Factors: The social rise in customer knowledge regarding obesity and increased health consequences of junk foods is negative for the company and hence the marketing decision making of the company needs to be taken in accordance to the same.

Environmental Factors: The Company has a well-defined policy of usage of water, energy etc. as well as preservation of the same and hence it is important that the company communicates the same to the consumers through the marketing activities of the same.

Legal Factors: There are hardly any legal factors which affects the current operations of McDonalds apart from the some of the food safety related guidelines for operating in various nations.

SWOT Analysis:

• Strength: The market size, the business potential and the opportunity of growth in the target is also an important factor that influences the marketing decision by the company.
• Weakness: There can be various risks and their different levels in the target market for McDonald’s. These risks or factors include social, political, economic, environmental and technological factors. These factors are needed to be positive for the company to take more aggressive marketing decisions. In case any of these factors are not as per the expectation of the company, the marketing decisions and strategies need to be changed.
• Opportunities: The market size and the business potential is also an important factor that influences the marketing decision by the company in view of the fact that with a market which is bigger and has more potential of future earnings, is will be possible for the company to allocate a higher marketing budget for the market. However if the market is smaller or has less possibility of future sales, the marketing strategy will also be prepared accordingly by McDonalds.
• Threat: In spite of the growth and business of McDonalds it can be said that the fast food industry segment is an intensely competitive industry where there are many regional as well as international brands are present which can lead to a lot of reduction in the market share of McDonald’s. Hence one of the major environmental factors which the company needs to consider while making its decision regarding the marketing is the competition level in the market for which the company is taking the marketing decisions.

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