Environmental Analysis of McDonald's

Environmental Analysis of McDonalds

Introduction

McDonalds is one of the most strong-known brands in the world, and is associated with burgers and with American-style desist food throughout the world. The company changed the way that Americans--and indeed, much of the world--eats, scarcely the company has also struggled in recent years. McDonalds relies on a vast network of franchisees, and has arranged to buy back franchises that cannot be sold. The companys stock price has plummeted in recent years, franchisees are infelicitous with the market placeing support--or lack thereof--that they receive, and the consuming public has changed its tastes both domestically and in the international market. This analysis considers the companys actions with regard to three environmental characteristics: external, industry and operating, and seeks to determine whether McDonalds has been adaptable within these environments.

The Remote Environment

The remote environment is the external environment over which companies have no control. Economic downturns around the world impact McDonalds performance, and the company is remainder stores in Japan, but perhaps too late to impede significant losses. McDonalds is an inexpensive debased food which should do well even during economic downturns since consumers may turn to such fast food from more expensive alternatives that they consume during better economic times.



However, McDonalds has not been able to capitalize on this and has lost market share as a result.

Demographics are also workings against the company in that consumers are increasingly better amend about nutrition and are interested in hearty alternatives to traditional fast food such as burgers. At the same time, however, consumers may be confused by the wag selections that McDonalds has introduced, particularly when those selections are not easily integrated--such as salads with dressings that cannot be accessed due to poor packaging. Consumers may not equate McDonalds with strong eating, and that might...

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