Factors Influencing Demand in the Fast Food Industry

MANAGEMENT ECONOMICS Assessment 1

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Describe the business and its range of products & services....................................................1
2. Identify each factor which influence demand market equilibrium..........................................3
3. Evaluate the factor which influence the price elasticity of demand........................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managerial economics has been one of key principles that characterize the convergence of
specific economic ideas with market strategies in order to make rational decisions (Adekoya and
Jimoh, 2019). These arguments are based on reducing cost and productivity maximization by
efficient activities and production. This report is based to analyze how economic concepts
that can be implemented to business policies for several purpose. McDonald's is recommended to
perform this research that also deals with food industry and operates business in even more than
100 countries. To assess its competitive situation as well as the framework within it conducts
their operations; it compares total statistical data for that firm's financial status. In addition,
several recommendations for greater or lesser government interventions on its development are
also made beneficial for society or not.
MAIN BODY
1. Describe the business and its range of products & services
One of major service industries is the fast food& beverages industry, which performs well
in all aspects of the business conditions. It has been measured that, food sector of UK has
increased its growth because it has only doubled over the last couple of years. Taking into
consideration its global rise and globalization of business, it is expected that this sector’s
valuation will hit £ 9.8 billion by 2021. Via the National Statistics Agency, it was estimated that
UK's population spend nearly 22 percent on takeaway delivery, and it indicates high projected
growth of fast-food businesses in the future as well. McDonald's, founded in 1940, is among the
fastest - growing business (Ferguson, 2019). Initially, Richard and Maurice McDonald's who are
the co-founders have only opened single restaurant in San Bernardino, USA.
After that, they began to expand the operations at other destinations, both domestically and
internationally, that it first extended to Canada in 1967. After that, it reached ten thousand
restaurants in total until 1988. Preceding this growth by the 21st century thru the franchising as
well as other possibilities, it has decided to expand business with near to 35,000 stores in far
more than 100 countries. While development in the 90's was so fast in the 1990's that McDonalds
opened new stores globally throughout every 5 hours. That will make that company the biggest
fast food franchise company as being the most famous family restaurant, focusing its consumers
with affordable price food, delicious cheeseburgers and flavours as per their demand.
1