External Environmental Factors Affecting McDonald's in International Business

International Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK .............................................................................................................................................3
Socio-economic cultures affect McDonald's...............................................................................3
Technological developments affect McDonald's........................................................................4
Political environment considerations affect McDonald's............................................................5
Ecological considerations taken by McDonald's affect the international business.....................6
CONCLUSION ...............................................................................................................................6
REFERNCES:..................................................................................................................................8
Books and Journals:....................................................................................................................8

INTRODUCTION
The term international business states the cross-border trade and other transactions
between organisations and governments that has been around for the years. But with the
upgraded technologies, trade barriers diminished and competition rises, the demand for
individuals who understand how to operate in an international market is stronger than ever. The
external business environment consists all external variables that affecting business and which
has no direct control over it. It involves both micro and macro environment of business. The
external environment changes frequently and need consideration when planning and regulating
activities of business (Buccieri, Javalgi and Cavusgil, 2020). It is the main responsibility of
business managers to monitor external factors of environment that can impact the functioning of
business and produce methods for overcoming threats. The report is based on a case study of
McDonald's Company that is a American fast food brand. It is one of the leading restaurant chain
in the whole world. It has speciality in varieties of products such as cheeseburgers, hamburgers
and french fries, chicken products, wraps, milk shakes, soft drinks and many more. It has approx.
37,855 outlets throughout the world (Zalan, 2018). The report is considering external
environmental factors of McDonald's in international business.
TASK
Socio-economic cultures affect McDonald's.
McDonald's business tactics addresses problems in its external business environment
such as found in the pestle analysis of the brand. It helps to realise the existing opportunities of
business and overcoming threats of the business. Socio-economic factors are affected by the
spending patterns of the consumers. McDonald's is highly known for shaping itself as per the
demand of consumers. On a very start of the business, the company bringing the sense of
“American way of life”. It initiate a step to serving to different nations as per the local demands
and requirements of people (Buckley, Enderwick and Cross, 2018). For instances, in India, most
of Indian citizen is against beef, so the company replaced beef with chicken and since most of
the population in India are vegetarians, it introduced veggie burger, Mc veggie and McAloo tikki
in the menu so that population can be delighted with the taste. For Japan, the list in the menu is
completely contrastive. It launches rice burger, green tea ice cream, shrimp burgers, teriyaki
burger keeping in mind the wants and taste of Japanese citizens. In several other countries, it