The macro- environment is an extremely influential factor when considering change dynamics within any company. Because of this, it is important that each company learns to adapt to any external changes in the macro- environment that become apparent. To do this companies must be aware of factors such as political, economic, social and cultural and technological that may influence their business and their internal processes. For McDonalds, these four factors are significantly influential. The correct way of dealing with the effects of these factors will ensure McDonald’s success both in the short term and long term.
There are many political factors that have the potential to influence McDonald’s in the near future. One of the main
…show more content…
Currently in America, Wendy’s are stealing McDonald’s market share by offering premium products at a higher price than McDonalds (Matthews, 2015). On the other side of the spectrum, Burger King are also stealing McDonald’s profits by offering products at a lower price. Traditionally, McDonald’s is seen as a business that offers products in the low price range and that’s how they market their products (Matthews, 2015). It is assumed that when people think of McDonald’s they think cheap and fast being a fast food restaurant.
Social and cultural factors are extremely significant to consider especially for a large growing organisation such as McDonald’s. As consumer preferences change, so too do McDonalds’ product range. It is vital to undertake market research to ensure consumer preferences are met and McDonald’s know who they are targeting their products to. It has become evident for McDonald’s in Australia recently that consumer preferences have altered. Through surveys and feedback McDonald’s workout out that consumers want better quality food and are willing to pay the extra price for a good meal (The Economist, 2015). This lead to the introduction of the new ‘Create Your Own Taste’ range. This allows customers to not only enjoy the classic favourites on the menu but also come inside for a high quality, made to order burger which can be created completely by themselves (The Economist,