Factors Influencing Demand and Price Elasticity of Demand for MacDonald's

Management Economic

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Overview of the MacDonald’s.....................................................................................................3
Factors influencing the demand...................................................................................................4
Factors influencing the price elasticity of demand......................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Market equilibrium is the having the clear assumption based on subject of economics where the
supply and demand curve have the clear intersections is termed as economic or market
equilibrium. This defines their interdependence relationship between the supply and demand to
have the identification of the price and quantity of he given products in the service markets place
(Andari, Subali and Trisnawati, 2018). The fast food industry is quite completive industry as
some of the firm have the clear enjoying their monopoly of some of their products in which
MacDonald have been chasing there first position.
As per the recent analysis it can be stated as the consumer have the major preference of the
McDonald over burger king. In this report , there will be clear discussion on the demand, market
equilibrium, factors influencing demand and price elasticity for the product and services for
the MacDonald company.
TASK
Overview of the MacDonald’s
McDonald’s, in full McDonald’s Corporation, American fast-food chain being the largest
in the world famous for there it wonderful hamburgers headquarters in the Oak Brook, Illinois.
On the recent data the firm have there more than 36000 restaurants in over 100 countries under
employees along 2 million of people worldwide which have the inclusion of the employees at
company owned stores and corporate office employees. According to Euromonitor International
data, the company have their 7.1 % revenue of the share in the year 2017.
The firm have the offering of the inform menu which have the inclusion of the fries, the Big mac,
chicken sandwiches, chicken nuggets, hamburgers, wrap and shakes in order to ensure the
greater connectivity’s with the international markets along with offering the locally relevant food
menus as well (Chia and et.al., 2020). The company have the global adaptability as the serving
the gazpacho in Spain, Black white burger in china and veggie pizza McPuff in India so that’s
the company can have better level of competition at local operations to adopt the different food
local choices.
The firm have it major level of competitors YUM brand and burger kings which have
their usage of the franchise model as well as the company operated models in the restaurants
industries. He firm have the revenues in the company operate store and the franchised store
which helps the form to generate rate 44% of the revenue in year 2019 for the company
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operated restaurant plus there remaining revenues form franchises. This have been growing
significantly in last six years.
The firm have the beginning the value of delivering the great level of restaurant
experiences very times with all its owners’ operators, suppliers and the employee to work
together to meet the customer needs in there way the firm have decided (Coleman, 2018). The
firm in the year 2017 have their developed the growth strategy by introducing the velocity’s
growth plans.
In order to maintaining the demand of the company in the markets, the firm have the developed
the delicious and sustainable food for the customers, producers and the environments which have
the turned-out MacDonald as the leading restaurant trends to make its vison a part of reality.
Factors influencing the demand
As per the economic term, demand have been stated as the economic principles which is
referring the costumer desire to have the purchasing of goods and services with the willingness
to pay the certain prices for the specific good on the pertains time.
Demand
Demand for the specific items have the dependence of the functions of the item perceives, pies,
prescribe level of quality, conscience of times visible materials, purchases and taste. This is been
identified as the underlying forces which derives the economic growth and expansions as without
no business would have the bother of producing the different product and generate the significant
reference in perfect manner.
Market equilibrium
Market equilibrium is the having the clear assumption based on subject of economics where the
supply and demand curve have the clear intersections is termed as economic or market
equilibrium. This defines their interdependence relationship between the supply and demand to
have the identification of the price and quantity of he given products in the service markets
place. Macdonald have been the once which is among the talents hamburgers in Americas which
is increasing casual as restaurants (Hamilton, and Réquillart, 2017). The firm have their
abounded level of core brand being there fasts and cheap attempted to make the copy paste
upscales hamburgers palaces to have woo backswing the consumer in perfect manner. There firm
have been focusing in improving the quality of the core products which should have the addition
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