Essay on Analysis of Marketing Environment

877 Words Apr 25th, 2014 4 Pages
1) Macro environmental analysis

Macro analysis is also known as PESTEL analysis which stands for-
Political factors
Economical factors
Social factors
Technological factors
Environmental factors
Legal factors
Political factors

The business operation of an organization is always influenced by the policies of state and its government. McDonald’s business is also under the control of government’s rules and regulations. The main issue of controlling food business is health and other issues are license, employee laws, tax issues etc. McDonald’s follows the local government’s policies as well as foreign investment policies on its franchise business strategy. Political instability of local state also affects McDonald’s business.
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The people of this modern urban society expect the highest level of service and all the latest facilities from a hospitality organisation. In addition, this changing demand is different in society to society and country to country. For example, in India, Hindu people prefer vegetable, Muslim people avoid pork. To fulfil the customers’ expectation, McDonald’s needs to research the market and also needs to provide effective food menu.
Technological factors
The impact of technological innovation is also considerable to meet the customers’ expectation. As all existing food chains for instance, KFC, Pizza Hut etc, compete each other, McDonald’s has to ensure the all technological access to influence the customers. Modern and speedy distribution channels, easy and quick payment facility, customer entertaining equipment in store, wireless internet facility in all stores etc. can help McDonald’s to keep on its success.
Environmental Factors
McDonald’s is criticised for using some harmful elements for example, non-biodegradable substances for its drinks glasses. Styrofoam containers are also being used in McDonald’s for meals and it is seriously discouraged to use. Environmentalists criticize McDonald’s because of food packaging based on polystyrene. For the greater interest of environment issue, franchisees are called by environmentalists to be aware about this issue.
Legal Factors
It is mandatory to follow some rules and procedures to

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