c-4079-l1TBWQwPVepS-1631101489549531591
2
8/8/2019 c-4079-l1TBWQwPVepS-1631101489549531591 http://slidepdf.com/reader/full/c-4079-l1tbwqwpveps-1631101489549531591 1/2 Environmental Factors Paper: A Study of McDonald’s corporation environmental factors have wide-reaching implications across a company’s comprehensive marketing platform. Numerous areas, such as economic or social aspects, can be sensitive and must be concentrated on appropriately for marketing success. McDonald’s Corporation is an international corporation that faces these challenges and issues, a number of which will be addressed in this dissertation. Additionally, the significance of technology and how it influences McDonald’s marketing decisiveness will be explained. Finally, the importance of social conscientiousness and ethics will be addressed as it pertains to McDonald’s. Domestic and Global Environmental factors demographic environment the world’s age is shifting. In various areas, frequently in urbanized countries such as the United States, Japan and many in Western Europe, the median age of the population is on the increase, due to slowing birth rates and longer life expectancy. In the newer, up-and-coming countries, such as those in Asia or Africa, the median age is getting younger more often than not due to higher birth rates. These different trends necessitate different marketing approaches. McDonald’s caters to both segments of the population, domestically and globally by targeting each segment independently. It is not extraordinary to see television commercials showcasing older generations enjoying a McDonald’s meal. A viewer is just as prone to see a different commercial aimed at the younger generation, characterized by progressive music or urban attractions. In McDonald’s stores, patrons will see “Happy Meals” inclusive with an advertisement for the most recent Hollywood action movie as well as coffee offered to senior citizens for 49 cents. In September 2006, McDonald’s Japan, faced with operating in a country with the fastest aging inhabitants and the utmost percentage of senior citizens in the world (Statistical Handbook of Japan, 2005), has eliminated its obligatory retirement policy. While the move follows legislation approved by the Japanese administration in April of the same year, McDonald’s Japan maintains that the action was taken because job opportunities should be accessible to anyone who has the capability and desire to work, no matter what age (Smerd, 2006). Cultural environment the cultural environment changes, sometimes considerably, from city to city, nation to nation. This is a particularly essential area for McDonald’s because food and people’s eating behaviors are generally a extremely social and personal acts. In order for McDonald’s to be attractive worldwide means that they must make local concessions. For instance, in India, where 20% of the inhabitants are vegetarian (Kala, 2005), McDonald’s India offers 100% vegetarian food items, together with an egg-free mayonnaise developed specifically for McDonald’s India. They do not offer any manner of beef products due to local spiritual beliefs, exchanging chicken and fish items instead (2006). This kind of cultural sensitivity is paramount to McDonald’s international success. Domestically, the U.S. is becoming more culturally diverse. This fact has not escaped McDonald’s. Marketing experts view McDonald's as the most perceptive in targeting the growing black and Hispanic population. The corporation has a protracted history of inclusive marketing, and continues to aim various television commercials to those segments, which is likely to use more urban communication and music (Warner, 2006). Economic environment since the introduction of McDonald’s Dollar Menu in the United States three years ago, the corporation has seen its revenue amplify 33% and its share price thunder in excess of 170%. This can only mean one thing: people want (or need) inexpensive food. McDonald’s states the lower-priced menu invites the young, lower-income and ethnic category of the market. Marketing to this segment has paid off: double cheeseburgers worth $1 bring in more returns than any other menu items, such as salads or chicken sandwiches, which cost $3.19 to $4.29 (Warner, 2006). There can be no doubt that those on the lower end of the monetary scale gravitate towards fast-food for its value and convenience. McDonald’s has seen this need and given the people what it requires. Technology and Marketing McDonald's has contained emerging technologies and put them to use as a component of its marketing plan and text messaging is at the vanguard. McDonald’s has used text messaging for promotional activities such as games and contests. It has been so successful that the company now views text messaging as a significant part of their U.S. marketing plan. McDonald’s sees consumers using text messaging to arrange their food orders before reaching the restaurant and paying the statement through their phone carrier. McDonald’s is also trying multimedia interests, such as giving consumers the occasion to download music, games and movie trailers from selected areas of the restaurant (Carpenter, 2006). McDonald’s is also rolling out wireless internet connections in various locations. It being marketed as the subsequent phase in convenience, something McDonald’s supposes it initiated. By donating an open network to all consumers, McDonald’s is tapping in to the pinnacle of convenience (m-Travel.com, 2006). All technological developments are tremendously important to McDonald’s marketing vision. By executing different strategies and staying on the summit of new technologies, it will keep McDonald’s fresh and pertinent to an ever-changing public. Social Responsibility and ethics social conscientiousness is at the core of McDonald’s business. Ray Kroc, the creator of McDonald’s, stressed the significance of giving back to the communities that the company operates, and the philosophy is accepted by the company to this day. McDonald’s has a devoted portion of their corporate website addressing its standards and commitments and has a annual international corporate responsibility statement available to download. The three top issues acknowledged as important for McDonald’s to address are: What are they doing to speak to current trends in obesity? How are they using their purchasing power to persuade the upstream supply chain? How does McDonald’s as a organization impact on climate change? Furthermore, in the report is a table detailing the 5 Ps (People, Products, Place, Price, and
Transcript of c-4079-l1TBWQwPVepS-1631101489549531591
8/8/2019 c-4079-l1TBWQwPVepS-1631101489549531591
http://slidepdf.com/reader/full/c-4079-l1tbwqwpveps-1631101489549531591 1/2
Environmental Factors Paper: A Study of McDonald’s corporation environmental factors have wide-reaching implicationsacross a company’s comprehensive marketing platform. Numerous areas, such as economic or social aspects, can besensitive and must be concentrated on appropriately for marketing success. McDonald’s Corporation is an internationalcorporation that faces these challenges and issues, a number of which will be addressed in this dissertation. Additionally, thesignificance of technology and how it influences McDonald’s marketing decisiveness will be explained. Finally, theimportance of social conscientiousness and ethics will be addressed as it pertains to McDonald’s.Domestic and Global Environmental factors demographic environment the world’s age is shifting. In various areas,frequently in urbanized countries such as the United States, Japan and many in Western Europe, the median age of the
population is on the increase, due to slowing birth rates and longer life expectancy. In the newer, up-and-coming countries,such as those in Asia or Africa, the median age is getting younger more often than not due to higher birth rates. Thesedifferent trends necessitate different marketing approaches.McDonald’s caters to both segments of the population, domestically and globally by targeting each segment independently.It is not extraordinary to see television commercials showcasing older generations enjoying a McDonald’s meal. A viewer is
just as prone to see a different commercial aimed at the younger generation, characterized by progressive music or urbanattractions. In McDonald’s stores, patrons will see “Happy Meals” inclusive with an advertisement for the most recentHollywood action movie as well as coffee offered to senior citizens for 49 cents.In September 2006, McDonald’s Japan, faced with operating in a country with the fastest aging inhabitants and the utmostpercentage of senior citizens in the world (Statistical Handbook of Japan, 2005), has eliminated its obligatory retirementpolicy. While the move follows legislation approved by the Japanese administration in April of the same year, McDonald’sJapan maintains that the action was taken because job opportunities should be accessible to anyone who has the capabilityand desire to work, no matter what age (Smerd, 2006).
Cultural environment the cultural environment changes, sometimes considerably, from city to city, nation to nation. This isa particularly essential area for McDonald’s because food and people’s eating behaviors are generally a extremely socialand personal acts. In order for McDonald’s to be attractive worldwide means that they must make local concessions. Forinstance, in India, where 20% of the inhabitants are vegetarian (Kala, 2005), McDonald’s India offers 100% vegetarian fooditems, together with an egg-free mayonnaise developed specifically for McDonald’s India. They do not offer any manner ofbeef products due to local spiritual beliefs, exchanging chicken and fish items instead (2006). This kind of culturalsensitivity is paramount to McDonald’s international success.Domestically, the U.S. is becoming more culturally diverse. This fact has not escaped McDonald’s. Marketing experts viewMcDonald's as the most perceptive in targeting the growing black and Hispanic population. The corporation has a protractedhistory of inclusive marketing, and continues to aim various television commercials to those segments, which is likely touse more urban communication and music (Warner, 2006).Economic environment since the introduction of McDonald’s Dollar Menu in the United States three years ago, thecorporation has seen its revenue amplify 33% and its share price thunder in excess of 170%. This can only mean one thing:
people want (or need) inexpensive food. McDonald’s states the lower-priced menu invites the young, lower-income andethnic category of the market. Marketing to this segment has paid off: double cheeseburgers worth $1 bring in more returnsthan any other menu items, such as salads or chicken sandwiches, which cost $3.19 to $4.29 (Warner, 2006). There can beno doubt that those on the lower end of the monetary scale gravitate towards fast-food for its value and convenience.McDonald’s has seen this need and given the people what it requires.Technology and Marketing McDonald's has contained emerging technologies and put them to use as a component of itsmarketing plan and text messaging is at the vanguard. McDonald’s has used text messaging for promotional activities suchas games and contests. It has been so successful that the company now views text messaging as a significant part of theirU.S. marketing plan. McDonald’s sees consumers using text messaging to arrange their food orders before reaching therestaurant and paying the statement through their phone carrier. McDonald’s is also trying multimedia interests, such asgiving consumers the occasion to download music, games and movie trailers from selected areas of the restaurant(Carpenter, 2006). McDonald’s is also rolling out wireless internet connections in various locations. It being marketed asthe subsequent phase in convenience, something McDonald’s supposes it initiated. By donating an open network to allconsumers, McDonald’s is tapping in to the pinnacle of convenience (m-Travel.com, 2006).All technological developments are tremendously important to McDonald’s marketing vision. By executing differentstrategies and staying on the summit of new technologies, it will keep McDonald’s fresh and pertinent to an ever-changingpublic.Social Responsibility and ethics social conscientiousness is at the core of McDonald’s business. Ray Kroc, the creator ofMcDonald’s, stressed the significance of giving back to the communities that the company operates, and the philosophy isaccepted by the company to this day. McDonald’s has a devoted portion of their corporate website addressing its standardsand commitments and has a annual international corporate responsibility statement available to download. The three topissues acknowledged as important for McDonald’s to address are: What are they doing to speak to current trends in obesity?How are they using their purchasing power to persuade the upstream supply chain? How does McDonald’s as a organizationimpact on climate change? Furthermore, in the report is a table detailing the 5 Ps (People, Products, Place, Price, and
8/8/2019 c-4079-l1TBWQwPVepS-1631101489549531591
http://slidepdf.com/reader/full/c-4079-l1tbwqwpveps-1631101489549531591 2/2
Promotion), what the plan is to win the dream and the related corporate responsibility (McDonald’s, 2006).McDonald’s takes principles just as acutely. They have their Standards of Business Conduct accessible on the corporatewebsite where they state that personal responsibility extends into everything they do (McDonald’s, 2006). In the post-Enronepoch, corporate principles ranks high among customers. People choose with their money and if the corporation is crookedthe legitimacy will ultimately be found out and consumers will decide to spend elsewhere. It is significant that McDonald’snot only writes these words down but follows them to the letter. The adage “actions speak louder than words” is not at alltruer than in corporate ethics.ConclusionMcDonald’s Corporation faces exceptional challenges as it strives to stay the leader in fast-food around the
world. Varying demographics, diverse cultures and economic issues impact its marketing strategies both at home andabroad. Attracting the diverse markets by using compassion, along with remaining contemporary by embracing newtechnologies and perpetuating social responsibilities and maintaining elevated standards of business ethics will go a longway in helping McDonald’s maintain their global accomplishments.
