Mc Donald’s Company Overview and Analysis

The report is based on research analysis of MC Donald’s company. The main scope of the research is generally characterized by three research hypothesis. These include environmental analysis and evaluation, company competitive analysis, and the marketing structure and size in terms of distribution in the international market.

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MC DONALD’S COMPANY OVERVIEW AND ANALYSIS
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Abstract
The report is based on research analysis of MC Donald’s company. The main scope of the
research is generally characterized by three research hypothesis. These include environmental
analysis and evaluation, company competitive analysis, and the marketing structure and size in
terms of distribution in the international market. MC Donald’s company is considered as one
best and biggest fast-food company in the entire world serving approximately more 40 million
customers on daily basis. Based on the SWOT and PESTLE analysis conducted on Mc Donald’s
environment situation, the company poses a significant competitive advantage both in its chain
structure and brand position (Vrontis and Pavlou, 2008). The organization structure and system
of Mc Donald’s management is considered one of the best and most effective in the entire fast-
food industry. This has led to an increase of loyal customer’s base which offers Mc Donald’s
great competitive advantage over its rivals (Eriksson and Kovalainen, 2015). With the Mc
Donald’s franchise network of over 31,000 branches, the company has significant control of the
entire fast-food market share in the provision of sustainable and quality standard services. The
main recommendations that the company should consider is increasing integrated marketing
communications in all its major markets and increase its market expansion in potential emerging
markets such as China and India (Chan et al., 2012). In summary, the business research done on
Mc Donald’s has been very successful in meeting the set objectives of the research and an
increase in the understanding management structure of the fast-food multinational company.

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Table of Contents
Abstract............................................................................................................................................2
Introduction/Background Analysis..................................................................................................5
Research Methodology....................................................................................................................6
Mc Donald’s Environmental/Situational Analysis..........................................................................7
SWOT Analysis of Mc Donald’s Company................................................................................7
The strength of Mc Donald’s...................................................................................................7
Weaknesses of Mc Donald’s...................................................................................................8
Opportunities for Mc Donald’s................................................................................................8
Threats of Mc Donald’s...........................................................................................................9
PESTLE Analysis of Mc Donald’s Company.............................................................................9
Political/Legal Factors.............................................................................................................9
Economic Factors..................................................................................................................10
Social Factors.........................................................................................................................10
Technology Factors...............................................................................................................11
Environment Factors..............................................................................................................11
Analysis of Mc Donald’s Competitive Forces...............................................................................12
Porters Five Forces....................................................................................................................12
The threat of New Entrance...................................................................................................12
Power of Suppliers.................................................................................................................12

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Threat of Substitutes..............................................................................................................12
Buyers’ Power.......................................................................................................................13
Threats of Rivalries................................................................................................................13
Competitive Advantages of Mc Donald’s.................................................................................14
Mc Donald’s Marketing Strategies................................................................................................15
Segmentation, Targeting, and Positioning in the Market..........................................................15
Market Mix of Mc Donald’s- The 4 p’s....................................................................................17
Product...................................................................................................................................17
Price.......................................................................................................................................17
Place.......................................................................................................................................18
Promotion..............................................................................................................................18
Discussion and Recommendations................................................................................................19
Conclusion.....................................................................................................................................19
Bibliography..................................................................................................................................19
Appendices....................................................................................................................................19

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Mc Donald’s Company Overview and Analysis
Introduction/Background Analysis
The following report is based on research analysis of MC Donald’s company. The main
scope of the research is generally characterized by three research hypothesis. Under each topic,
there is a comprehensive analysis of the results in focus on the factors that affect MC Donald’s
and their relative solution(s). The first research topic focuses on MC Donald’s environmental
positioning by measuring its strength and weaknesses. The second topic will analyze the
company market structure and its competitive advantages over its rival competitors. The third
research topic will focus on analyzing the marketing structure and size in terms of distribution in
the food industry and an international company. These research will broadly characterize the
company features as an international fast company and its bargaining and supply power in the
market. Basically, the research will focus on understanding MC Donald’s strategy management
distribution in its major operational branches.
Generally, the objective of the research is to understand business strategies, their
evaluation, and in line the implementation of business research methodology. The report also
outlines the understanding of the environmental structure of the company and the factors that
influence its performance structure. Basically, the main objectives include;
 One of the main priorities of the research is to produce a conclusive assessment of the
company’s environment and its surrounding factors which may influence the company
normal functioning.
 To have a conclusive idea and analysis of MC Donald’s competitive advantages and
position in the fast-food industry both in the local and international market.

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 Gain an understanding of the company Marketing strategic formulation and how the
company is able to meet its various objectives and goals as an international company.
 To generally attain an understanding of the advantages and disadvantages of different
management strategies.
MC Donald’s company is considered as one best and biggest fast-food company in the
entire world serving approximately more 40 million customers on daily basis. The company has
been in existence in the food industry for almost more than 77 years now. The company was
started by Richard and Maurice McDonald, in the year 1940, a just as a small restaurant in
California State. Since then, the company has grown to be the largest “restaurant chain” in the
world (Eriksson and Kovalainen, 2015). MC Donald’s is currently established in over 100
countries around the world thus also becoming the biggest earning revenue fast food company in
the United States and one of the best in the world. Most of the MC Donald’s restaurants around
the world are operated by franchises (Bryman and Bell, 2015). As per 2017 financial report, the
company reported a total revenue of 22.82 billion U.S. dollars. Major the company earns revenue
from sales in the restaurants, royalties, rents, and franchise fees.
Research Methodology
The main methods used for data collection are broadly characterized into two ways which
are the primary and secondary source. The primary sources have been utilized in the research in
several ways but generally in direct contact with MC Donald’s customers, employees, and the
management. The main scope of the primary field research was to identify the company real-
time effectiveness as a fast-food multinational company. The secondary sources were basically
reading materials such as books, articles, journals, and also some websites such as the MC

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Donald’s company website. Through the secondary sources, the aim of the research has been
comprehensively covered in terms of business management strategies and marketing strategies.
Majorly, the main data collection method that was utilized in the research is observation since
the nature of data was conceptual and also the report was more descriptive. The main limitation
of the study was mainly the field research level since it missed out a lot of important details of
the main research objectives due to unreliable practical situations.
Mc Donald’s Environmental/Situational Analysis
SWOT Analysis of Mc Donald’s Company
SWOT analysis is normally used to identify organization strength and weaknesses. It’s
categorized into four specific areas which are “Strength, Weaknesses, Opportunities, and Threats
of the company. The analysis is also focused on evaluating the microenvironment of an
organization and how it performance is affected by the envrionment situations (Dess, Lumpkin,
and Eisner, 2014).
The strength of Mc Donald’s
Through the company existence in over 78 years, it has managed to gain and portray a
significant experience in the fast-food industry in the world. The company main management
team are considered with high-level skills where most of the managers are promoted from
assistant managers. With this, the company has a wide skill range of management staff who more
than capable of dealing with unpredicted challenging situations (Dess, Lumpkin, and Eisner,
2014). Mc Donald’s company is currently operating in over 100 countries all over the world
whereas per last year annual revenue income the company reported approximately 22.82 billion
U.S. dollars. Approximately 80% of the company total restaurant are mainly controlled by

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franchises. Through the power of the franchise in most of the involved communities, the
company has been able to utilize most of its market capital share (Kotabe and Helsen, 2014). The
company has also a very effective supply chain which is related to the quality and safety of food
and services. This is can be majorly characterized as one of the main strength of the company
market share.
Weaknesses of Mc Donald’s
With the recent financial posts, the company has continued to experience fluctuation in
profit gain. The changes have also continued to occur with increase healthier food initiatives in
the world and the move to safer diet food (Gupta, 2011). Despite the strong company brand, the
company has been criticized for its less innovative strategies in maximizing its brand structure.
On the same note, there has been also reported cases of brand affiliation between Mc Donald’s
management and the involved franchises. Unlike other fast-food companies, Mc Donald’s has
also been lagging behind in service delivery and brand innovation. The issue has likewise been
characterized to continue to occur due to company operation dominance by franchises (Rohn et
al., 2014).
Opportunities for Mc Donald’s
One of a basic feature that suits Mc Donald’s is its food industry position. Despite the
economic challenges that may occur in the future, food is a basic human need that cannot be
ignored. There is an expectation of significant change in the rise of company revenue income
through an emphasized focus in inventing new food brand. The response to the new brand
innovation should specifically emphasize on healthier diet food which is now considered as a
critical issue in global health focus. The company has also expansion capabilities especially in

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emerging markets in Asia (Chan et al., 2012). Through this, Mc Donald’s will have an increased
capability in stretching its control power in market share. Mainly, this will be enhanced through
consideration of technological growth and adaptation and strategizing new brand segments such
as “McCafe’s” (Kotabe and Helsen, 2014).
Threats of Mc Donald’s
As stated earlier, one of the major concerns of Mc Donald’s as fast-food company is the
rise of junk food awareness. Example, in America obesity, and most chronic illnesses have been
related to the poor eating diet of the American population. This has also been the same case in
most company operational regions. Through the issue of fast-food as a national health issue,
major governments have enacted high levels of taxation to reduce the consumption rate junk
eating habits. The issue has correspondingly affected Mc Donald’s income generation in various
ways (Vrontis and Pavlou, 2008). The other threat factor for the company has been a constant
increase in competition in the market with rivals such as Starbucks, KFC, Burger King, and
Subway continuing to increase their performance level and position in the market. It’s also
considered that economy threat is another major concern to be considered for Mc Donald’s
current and future performance (Zhang and Zhou, 2012).
PESTLE Analysis of Mc Donald’s Company
Political/Legal Factors
One of the major factors every multinational corporation should consider is a political
and legal factors of a country or state. Example, Mc Donald’s has experienced a number of legal
issues concerning trademark an example is McDonald's Coffee Case in the year1994 (Grant,
2010). The issue of health concern in food control is one of the major legal concerns Mc

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Donald’s faces on daily occurrences (Nagle and Müller, 2017). Some of the issues that have
affected the Mc Donald’s are a concern for public health which led to the imposition of strict
policies and high taxation. Through political instabilities in various franchises regions, they also
directly or indirectly affect Mc Donald’s overall performance and its brand image. Example, in
the major Islamic States Halal food authorization is a significant issue that must be considered by
food industries companies. Ideally, this shows the company’s respect for regions beliefs and
cultural rules in relation to providing effective customer service (Papadopoulos and Heslop,
2014).
Economic Factors
Different countries and regions have different economic performance and challenges.
Through this, Mc Donald’s economic strategic positioning is altered by various factors which
directly influence its revenue income. Unlike in the recent years, the company has progressively
continued to reduce its debt level (Quinlan et al., 201l). Through the company capability to pay
its long-term debt effectively, its competitive advantage has similarly continued to increase. The
different currency exchange rate has also impacted Mc Donald’s profit rate (Kotabe and Helsen,
2014). Mc Donald’s economy variation is one of its significant challenge especially in price mix
where if the rise of raw material in some specific regions cause the rise of product(s) prices this
will also cause a decrease in customer base.
Social Factors
The society today is becoming very conversant in issues such as health and eating diet.
Basically, in America, more than 80% obesity and chronic illnesses are related to poor diet and
junk food. This can be categorized as one of the major issues that Mc Donald’s faces today. Over

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the years, Mc Donald’s has enjoyed significant brand recognition but with the recent change in
customer taste and preference, the company must create more 'Healthy Lifestyle' programs that
will be socially accepted in the company market share (Kotler and Lee, 2008). The recognition
of different cultural background and trends of various respective regions should be a key
strategic factor in creating more appreciated brands by the respective society. Through this, Mc
Donald’s has significant market influence through its franchises by relating more directly with
the local markets (Zhang and Zhou, 2012).
Technology Factors
The change of technology in the previous decade has significantly changed the entire
global business structure. Majorly, this has been characterized by the change in customer service
standards. Mc Donald’s company has been significantly affected by the change in technology
where the company has continued to restructure its supply chain to meet the customer needs and
wants (Yuece, 2012). Example, Mc Donald’s has emphasized its focus in creating more quick
and easy payment facilities, online services, internet facilities, customer entertainment
equipment’s, etc. With this in mind, Mc Donald’s also utilizes systems which are considered to
be more environmentally friendly and also reduce saving in operation cost of the company. This
has also mainly attributed the positive in reduction customer service cost (Ahmed and Rafiq,
2013).
Environment Factors
Mc Donald’s has faced a series of criticism in the use of non-biodegradable materials
such as plastics cups for drinks which have a significant effect in its surrounding environment.
The food delivery of Mc Donald’s is one of the majorly criticized issues i.e. the matter of food

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packaging based on polystyrene and Styrofoam containers (Feng, 2010). Like in most of the big
corporations in the world, Mc Donald’s should increase its emphasis on environmental
sustainability and more customer care health programs in eliminations of toxic substances in its
service operations. The other issue that Mc Donald’s should reconsider is the reduction of carbon
emission in its related operation by incorporating more advanced environmental technologies.
Analysis of Mc Donald’s Competitive Forces
Porters Five Forces
The threat of New Entrance
With the recent changes in globalization in businesses, the threat of new entrants in the
market has continued to increase due to a decrease in restrictions and increase in market demand.
The significance of a new entrance in the market is considered to be very important especially if
the competitor has huge brand recognition in the market (Yuece, 2012). Through this, Mc
Donald’s faces high competition level from its major operation regions such as America, Europe,
and Asia. Example, Starbucks market dominance in the fast-food industry has continued to
increase with its focus looking emphasized in recapturing Mc Donald’s already existing areas
(Zhang and Zhou, 2012).
Power of Suppliers
The power of suppliers is considered as very crucial matter especially to multinational
companies. The continuous operation of any company or organization significantly relies on the
effective supply relation that is able to the meet the standards of the raw materials required for
production (Quinlan et al., 2011). As a fast-food company, the power of suppliers is one of the
major competitive forces that Mc Donald’s critically approaches to meeting the required

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customer wants and needs. With also the representation of various franchises, Mc Donald’s
emphasize in building an effective relationship with all its related suppliers thus it can also be
able to account for the entire organization goals and objectives (Ahmed and Rafiq, 2013).
Threat of Substitutes
Generally, any fast-food product on the market is easily substituted. Humans are usually
predetermined to always change their taste and preferences in all major goods, especially in food
products. According to the research analysis, brand integration is one of the basic issues Mc
Donald’s have continued to strive to implement through its various franchises. The company
criticism in the production of an unhealthy diet is one of the direct effects that has led to the
increase of substitute threat (Culp, Bell, and Cassady, 2010). Another major factor that has led to
the increase of substitute threat is more recognition of a competitor brand. Example, if Starbucks
can produce tastier hamburger brand, it's very likely that Mc Donald’s will lose a large number
of the customer population to Starbucks (Roby, 2011).
Buyers’ Power
In any aspect of the business, customers or buyers have a significant effect on any
business in the matter of how they are willing to spend their money. Most of the economists
argue that most buyers usually approach the idea of accessing cheaper products and services with
the consideration of highest standards in the market (Popescu and Iosim, 2015). One of the main
approaches that Mc Donald’s has emphasized in the effort of becoming buyers’ number one
choice is through the provision of outstanding services. Also, the market structure of Mc
Donald’s has different buyer powers which influence the strategic approaches utilized in various
market locations. Example, Europe market has predominately continued to pose more profit

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increase as compared to all Mc Donald’s regional set ups. This can majorly be the effect
currency exchange power of the region.
Threats of Rivalries
According to most research analysis on market competitive positioning, the competitor’s
capability features are the main evaluation requirement in determining the threat of competition.
Mc Donald’s is considered to have the control of approximately more than 20% of total fast-food
industry in the entire world (Baker, 2014). It’s majorly the largest restaurant chain business in
the world. With other 80% of the total market share, Mc Donald’s has recently faced increased
competition from its rivals such as Starbucks, Burger king, Subway, KFC, and Greges. Through
the statistical analysis, Mc Donald’s has managed to maintain its competitive position in the
market by basically emphasizing its efforts in providing cheaper prices than its competitors and
Strongly maintaining clean and hygiene service standards (Yu and Zhang, 2009).
Competitive Advantages of Mc Donald’s
With the increase in market demand, also the competition in the fast-food industry has
continued to rise with various companies offering a variety of service and products. Despite this,
one’s again Mc Donald’s has proven to be the world largest and best restaurant service company.
One of the main factors that the company has utilized over the years is offering customer most
favorable service and product costs with also high-quality standards that make them come back
again and again (Povod, Roldugina, and Dmitrienko, 2016). With this, the company has majorly
focused on standardizing all Mc Donald’s store thus to meet the same customer experience in its
entire market share. The organization structure of Mc Donald’s management is considered one of
the best and effective performing teams in the entire fast-food industry. This has led to an

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increase of loyal customer’s base which offers Mc Donald’s great competitive advantage over its
rivals. Mc Donald’s is also considered to have one of the service systems in the world such as for
payment transaction and standardized method for high quality and efficient service experience
(Welch et al., 2011).
Through the spread of the company positioning in the market, Mc Donald’s has
continued to emphasize its focus approach to maintain a good relationship with all its respective
suppliers. This has been characterized as one of the most effective means of saving cost for the
company. Apart from all major criticism about food quality and health issues, Mc Donald’s can
generally be considered to have very strong brand recognition which is a result of its economic
stability over 77 years the company has been in existence. On the same note, Mc Donald’s has
successfully been able to reduce its long-term debt thus also increasing its competitive
advantage. With the Mc Donald’s franchise network of over 31,000 branches, the company has
significant control of the entire fast-food market share in the provision of sustainable and quality
standard services in the entire world (Summers, 2011). An example can be observed on Mc
Donald’s ¾ of total revenue generated are specifically in 8 major countries which include United
States, United Kingdom, Germany, Canada, Japan, France, and Australia. Market analysts argue
that Mc Donald’s has substantial potential for growth in profit and size if it increases its
strategies in capturing China and Asia food market (Beauchamp and O’Connor, 2012).
Mc Donald’s Marketing Strategies
According to HONG (2008), through the current business changes due to globalization
and industrialization, Mc Donald’s has majorly increased its focus on the implementation of
more effective strategies that enhance its market dominance. Generally, the company can be
categorized as ‘franchise business structure or model’ due to the company 80% operations being

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controlled by the franchises while it only handles 20% of the total operations (Welch et el.,
2011). Mc Donald’s has over 31,000 branches controlled by franchises in over 118 countries all
over the world. This accumulates to more than 20% of the total global market share in the fast-
food industry. The company competitive rivals include Starbucks, Burger King, Subway, and
KFC (Roby, 2011). According to the 2017 annual report of Mc Donald’s, the company reported
a revenue income of approximately 22.82 billion U.S. dollars which was a slight decrease as
compared to 2016 performance.
Segmentation, Targeting, and Positioning in the Market
The main segmentation applied by the company is demographic strategies. Mc Donald’s
focus is mainly on children, young populations or youths, and urban living families. The
segmentation process is usually approached on organization best interest gains and the ability to
maximize its tapping potential in the market. Majorly, more 60% of the world’s population fits
this demographic category which has also high-income circulation (Popescu and Iosim, 2015).
As stated above, the main target for the company include children, youths, and young
urban families. The approach in attracting children as main customers has been through
increased variety in types of food offered. The emphasis of food variance choice for children has
been increased through the creation of children related character representation such as Walt
Disney characters (HONG, 2008). The company has created a ‘fun place to eat’ environment
where children are offered a variety of entertainments such as air hockey and arcade games. This
is also one of the main reasons why young families are attracted to Mc Donald’s customer
experiences. In accordance with teenagers and/or youths target approach, Mc Donald’s has
emphasized on price consideration and correspondingly offering high-quality food and services.

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In general, Mc Donald’s offers a wide variety of food products which are able to meet the entire
market structure of the company (Summers, 2011).
Positioning is mainly considered as the ability of the company to be able to sell its brand
effectively and thus gaining the required recognition in the consumer’s eyes. According to the
research analysis of Mc Donald’s brand position, the company has successfully established itself
as one of the largest and best fast-food supply chains in the world. Through various franchises, it
has been able to effectively structure itself in the local market through the ability to relate to
society major needs and cultural values (Kotler and Lee, 2008). In order to expand its market
share, Mc Donald’s has encouraged the innovation of new brand which will curb the variety of
products missing in most consumer minds.
Market Mix of Mc Donald’s- The 4 p’s
Product
The major aspects of a product include brand, a line of the product, packaging, and out
looking quality in the labeling process. Mc Donald’s has a wide range of food brands which are
consumed on daily basis. Some of the most known products include Hamburger, vegetable
chicken burger, Cheeseburger, Chicken Nuggets, Chicken Wrap, Big Mac and many more
(Doole and Lowe, 2008). The brand popularity is considered to vary with influences of main
factors such as marketing segmentation and region cultural structure. Mc Donald’s services
offered include breakfast meals, children meals, and family meals. With the continuous change
in customer taste and preference, Mc Donald’s has regular menu product reshuffling which also
increases customer product experience (Ottenbacher and Harrington, 2009).
Price

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Meyer (2015) argues that pricing is one of the crucial elements of any organization
marketing mix. Mc Donald’s company mainly utilizes four aspects of pricing. The first strategy
is considered as product line pricing. This characterizes products that relate with one another or
are in the same line. Example, if a customer orders one hamburger value, the prices comes with
also value meal of fries and a drink. The second strategy is promotional pricing which is
available on Mc Donald’s occasional adverts and posters for a special meals price offer. Third
pricing strategy utilized by Mc Donald’s is penetration pricing. This is majorly used for new
products in the market and as a promotional strategy (Povod, Roldugina, and Dmitrienko, 2016).
The fourth and the last strategy used is value pricing. Value pricing is normally used by the
company in critical situations, such as during the company recession thus to be able to retain the
required sales.
Place
Mc Donald’s has significant strategic distribution through its operation application in use
of franchises to control its most international branches. Like any other company, Mc Donald’s
branches are mainly strategized in busiest streets and cities in the world which offer a significant
potential market (Meyer, 2015). The other factors that are also usually considered in the selection
of locations include the company demographic segment, culture and lifestyle of the population,
and other issues such as communication barriers. Apart from the spread of the company in terms
of branches, Mc Donald’s has one of the efficient supply chains in the entire fast-food industry
where this is considered as a main standardizing approach for equal customer experience in all
Mc Donald’s branches in the world (Aliouche and Schlentrich, 2009).
Promotion

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Promotion is a significant strategy tool for Mc Donald’s in relation to marketing
communication. Generally, promotion mix is effectively utilized by proper investigation
objective and how it can influence a positive outcome from the targeted market. Example,
despite teenagers also being young, they can never be fetched with the same promotional mix
targeted for children. Mc Donald’s has nowadays continued to adopt internet promotion such as
social media, websites, and pop-up adds which have reported significant response from the
targeted demographic segment (HONG, 2008). The company also does regular advertising
promotions such as TV commercials, print media such as newspapers and magazines, and many
other promotional features that can increase customer awareness of food items (Meyer, 2015).
Discussion and Recommendations
Through the overview of the research, Mc Donald’s is one of the most respected and
admired fast-food companies in the world. The main key findings of the research include the
company strong competitive advantages over its rivals. Despite all major criticism and legal
issues, the company has managed to prove itself as the largest and best restaurant supply chain
company in the global market. Through the research hypothesis on understanding its competitive
advantages, Mc Donald’s has majorly focused its effort on continuous improvement of its
services and foods (Ottenbacher and Harrington, 2009). This has also been the same
consideration of the company in creating cost-saving approaches and ideas that help in the
reduction of cost to customers (Hang and Wang, 2014). Mc Donald’s has over 31,000 branches
in overs 118 countries where it has also ensured the standardization of customer experience to be
the same in all its branches. The main approach of the company in achieving this has been its
high quality and effective supply chain system.

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Basically, the main target groups of Mc Donald’s are children, teenagers and/or youths,
and young urban families. The company main customer statistics comprise 70% of customers
age between 10 and 35 years old and 30% of customers aged between 35 and above (Summers,
2011). Majorly, in the satisfaction of research hypothesis based on the company marketing
strategies, Mc Donald’s list of customers can be characterized as attributed by several factors.
These include the good value of money, brand loyalty, high-quality services and foods that have
significant response in customer satisfaction, and a pleasant and friendly atmosphere especially
to its targeted group such children (McDonald and Wilson, 2016). Despite the company major
success in retaining and expanding its market share, the issues of a healthy diet have been one of
the concerns of the Mc Donald’s future performance (Kotabe and Helsen, 2014).
The main recommendation of the company should be to increase focus in applying more
cost-effective approaches such as technologies that will increase the value of money to
customers. On the same note, Mc Donald’s should create more supervised system approaches to
all its franchises in enhancing company standards (Doole and Lowe, 2008). To attain this, the
company must also enhance its customer relationships by taking customers feedback reports and
complaints regarding the experience of the food and services offered in all company branches.
Brand loyalty is another significant factor that Mc Donald’s must retain at it all best. The
company should increase promotional approaches through integrated marketing communications
that are able to reach the targeted market more effectively (Dess, Lumpkin, and Eisner, 2014).
With the company competitive advantages, it should emphasize its effort in expanding its market
share. The main concentration likely to have significant responses include countries such as
China and India which are one of the fastest growing emerging markets in the world.
Conclusion

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In summary, the research analysis and evaluation of Mc Donald’s have been directly
subjected to the scope of research questions where the results can be drawn as the following.
Through the globalization effect on business, the environmental analysis of Mc Donald’s
portrays a huge implication of both positive and negative factors in its daily operation activities.
With its wide market structure, the company faces various regional challenges which affect
significantly its income generation also in various ways. In order to effectively eliminate most of
its environmental challenges, the company must embark on thorough business environment
investigation which will help in identifying or predicting future expectations and the required
preparation initiatives (Castro, 2015). The company should also enhance its customer
experiences in all its branches through proper supply chain strategies and an increase in the
training requirement for all its franchises staffs. With this in mind, the company should also
strategize an analysis of all respective franchises in identifying all external and internal strength
and weakness that hinder company development progress (Collis and Hussey, 2013).
The research has also identified Mc Donald’s company with significant competitive
advantages such as its brand recognition and a large loyal customer base. Through this, one main
company efforts should also be to increase sustainable competitive advantages by adaptation of
more cost-effective operation approaches (Hang and Wang, 2014). The quality of services and
food should also be undeniable in the quality standards in cleanliness, conducive environment,
and generally in meeting the required customer satisfaction. With all identified competitive
advantages, Mc Donald’s has significant potential in the growth of its market structure and in its
annual income. The company should emphasize in its brand innovation to continue to meet
customer expectations in changes of preference and taste. On the same note, economists argue
that China, India, and mostly Asian market poses a very strong potential success for Mc

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Donald’s through its strong brand image and the utilization of franchises (Aliouche and
Schlentrich, 2009). This will majorly also increase all aspects of company revenue generation in
growing market share size and customer demand increase.

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Appendices

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Fig.1 Market share of Mc Donald’s.
Fig.2 Total Estimated Royalty Revenue.