McDonald's Case Study: Environmental Factors That Affect McDonald's

Case studies are one of the most important elements of all higher-level education courses.

And under this, the case study of McDonald's is absolutely the most important because of the market conditions it has gone through. Who does not know about McDonald's in today's era? And so, to let you know about the development and growth history of this fast-food giant, your teacher prefers to give you a McDonald’s Case Study to work on.

Well, the environmental factors have the biggest effect on the working of all organizations. There are certain controllable and uncontrollable factors. The extent of benefit and damage these uncontrollable factors can do to the business is hard to measure, and hence students generally need case study help to get out of this trouble.

This article will help you in understanding all of the internal and external environmental factors that pose an effect on McDonald's. In the later part of this, you will find an in-depth SWOT analysis of the organization.

Let's begin!

Globalization:

Every enterprise in today's day and age wants to expand its wings around the globe. And if you want your business to survive in the world market, it is really essential for you to understand the concept of globalization. Though it is not easy to be a part of the competition and lead in terms of revenue and other factors, McDonald's has very successfully done this through its delicious and healthy meals at such pocket-friendly prices. With its effective strategies and policies, McDonald's has its restaurants working in over 120 countries of the world.

Diversity:

Diversity is one of the biggest values that McDonald's has been following since its inception. It has over 30,000 restaurants in the world and has made sure that all of its franchises, operators, dealers, employees and customers display different cultures, caste, age, religion, ethnicity etc.

Ethics:

McDonald's stands tall on personal and professional integrity and even talks about the importance of ethics in the business values published by it officially. The world trusts this name, and it has helped in building its reputation around the globe. The founder of this giant Ray Kroc believes in giving back to the society in terms of value.

SWOT ANALYSIS

Strengths:

• Staff loyalty
• Brand equity
• Product Development
• Strong management
• Innovation that helps in retaining customers
• Large investments to support all franchisees. 75% of the total McDonald's stores are franchises.

Weaknesses:

• Not all franchisees are able to deliver the required quality.
• Does not promote healthy eating. Not for the people who want to avoid fast food and hence due to this, McDonald's loses a generous share of the market.

Opportunities:

• International expansion
• Work on its value proposition
• Building franchises at better locations
• Can innovate and include healthier food items
• Can get into joint ventures with retailers or supermarkets
• Use database marketing to spot the target marketing in a better way

Threats:

• Recession
• Pressure groups
• Social challenges
• Government intervention
• Not enabling focus on a healthier lifestyle

Make sure that you revise these factors well and include them in your case study. If you feel that this is not your cup of tea, then turn to experts online and seek their help.

Summary:

Case studies are generally tough for a lot of students. This article makes their work easy by helping them in understanding the environmental factors that affect the working of McDonald's along with studying the SWOT analysis of the enterprise.

About the author:

John Noels has been working with Instant Assignment Help for the past three years. His work has helped a lot of students to date in reaching their academic goals and dream grades. Other than helping students, he also loves to dance and sing.