Understand how marketing environments are affecting the business.

Marketing environments are the factors and forces that influence a company’s capability to have a successful business with the target customers.

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McDonald’s Company can be affected by some marketing environments in the businesses such as technological, competitive, economic, global and sociocultural factors.

i)                   Technological Factors

Technological innovations are influencing each aspect of the social and business environment whether in marketing, promoting, sales or service for clients can boost the product’s performance. Therefore, McDonald’s concern and assure the suitable use of technology for accomplish the organisational goals and competitive advantage (Baldwin,2013 n.p.). Technology recently can fulfil customer’s needs and their expectation. For example, McDonald’s customers can place their order online and make the payment easily and quickly using smartphones with access to the internet. Not only that, some types of technology had been used by McDonalds to keep the foods, adjustment of temperature, food preparation, control the supply chain, manage the financial and reporting (IncisiveMedia, 2004, n.p). For example, in preparation for McDonald’s Big Mac only takes 60 seconds to process including the packaging (Baldwin, 2013 n.p.). To improve the productivity and keep the business success, McDonald’s compete with other fast foods brands such as Burger King, KFC and Pizza Hut to make sure that the accessing of technology for instance the internet facility and the entertainment facilities in some store can influence the customers.    


ii)                 Competitive Factors

This is one of the micro-factor that will influence a business. No company will stand alone without any competitors in marketing their products and satisfy their customers. Marketing manager of every company responsible in handling competitive environment. According to Philip Kotler, to predominate all the competitors, the best method is a company have to take the buyer’s viewpoint.  McDonald’s has some competitors which are continually looking for more share of the market (Raphel, 2014 n.p.). It is important that McDonald’s should familiar with the competition from the large company such as Burger King, Subway and KFC and some shops sell chips and fried chicken (Raphel, 2014 n.p.). McDonald’s also has several strong competitors for example Starbucks, Dunkin Donuts and The Coffee Beans & Tea Leaf (Raphel, 2014 n.p.). All of the competitors are constantly running on its quality of meals and services, as well as on diverse different alternatives and techniques to attract clients (Jargon, 2014b, n.p.).


iii)               Economic Factors

Disposable income of individuals, consumer footsteps, market brand, available of workers and the prices and availability of substances can be affected by economic change (Gasparo, 2012, n.p; Gould, 2012, p 608). So, the impact to consumers is their purchasing and spending power being affected. The economy downturn can benefit to McDonalds’ company due to the rate of unemployment has increased and the spending by customers decreased as their disposable income become lower, so many households and people had turn their food chains to fast food chains.

On the other hand, drop in economic also will lead bad impact to the consumers. If the economy is not being well, they will normally reduce their spending on their food as they will choose to have home-cook meals rather than spend money and having meals at outside. Therefore, this will affect some restaurant and businesses including McDonalds.


iv)               Global Factors

McDonalds has operated as a global market in this 21 century. Even though McDonald’s is being seen as unhealthy choice of food, but people still choose to purchase meals in McDonalds. This is due to the standard living in nowadays had become higher than before and people cannot afford to have their meals in the costlier restaurant. Therefore, household and individuals will prefer fast food due to the price and it is affordable for them even the food is unhealthy and may cause to obesity. Next, since McDonalds’ had involved in international business operation, so different country will confront with different scale of tax and sales measurement. International currency fluctuations mainly in its worldwide food distribution will lead McDonald’s company to difficulties. The businesses of McDonalds in different countries may be affected as some of them will having profit and some will face loses.


v)                  Sociocultural Factors

McDonalds’ company is having their business around the world. Therefore, there are customers who have different culture in their eating habits. McDonalds’ company in different country will provide different menu for the citizens depend on the culture of that certain country. For example, in Malaysia, pork is not added in to the menu of McDonalds because Muslin should practise halal and their culture should be respected. Otherwise, pork’s burger is available at Thailand. Besides, beef burgers are being introduced into Malaysia’s menu but it is not available in India. This is due to beef should be avoided by Indian and beef considered as their sacred. Eating burger habits actually not belong to Malaysian and also some Asian countries such as Thailand and India. The citizens in these countries have been influenced by western’s culture and now eating burger had become their meal and eating culture. This lead to McDonalds has become one of their choice of meal and their culture.


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