Customer Satisfaction Strategies for McDonald's: SWOT, PESTLE, Porter's Five Forces and 7 P's of Marketing

This report analyzes the customer satisfaction strategies used by McDonald's through SWOT, PESTLE, Porter's Five Forces and 7 P's of Marketing. It covers aspects like political, economic, social, technological, legal and environmental factors affecting McDonald's. It also covers the strengths, weaknesses, opportunities and threats faced by McDonald's. The report further explains how McDonald's deals with internal and external factors to fulfill customer needs and wants.

Customers Satisfaction

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Statement analysis.......................................................................................................................3
Pestle analysis ............................................................................................................................3
Customers satisfaction ...............................................................................................................5
Ansoff Martix ...........................................................................................................................10
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Customer satisfaction means those perspectives which is focused upon making customers
needs to be fulfilled with the help of product and services provided by an organization. This
satisfaction makes organization develop strategies in relation over making customers satisfaction
achieved. Also organization should be focus over making innovative strategies created which
makes customers attracted towards organization. In order to make an organization achieved goals
and objectives various aspects related to market has been developed. This makes organizations
nature to be dynamic which helps in making development of organization done in right
direction . There are various kinds of communication channels helps in developing customer
base with more efficiency. The organization taken in the report is McDonald which is an
American fast food company and established in the year 1940. The file is base over aspects that
is related over customer satisfaction and various aspects related to it.
MAIN BODY
Statement analysis
In has been analysed from recent scenario that ‘to maximize customer satisfaction,
companies have long emphasized touchpoints. But doing so can divert attention from the more
important issue: the customer’s end-to-end journey'. Critically evaluate about innovative
marketing strategies which makes awareness created over brand which makes managing and
evaluating of customers journey in relation over communication channels which helps in
ensuring about expectation of current and future stakeholders fulfilled with theories and
example.
Pestle analysis
This is one of the most important analysis which has been used for making external
analysis done over external factors which makes organization like McDonald achieved its goals
and objectives achieved in more effective way (Zhao, Xu, and Wang, 2019). Also through this
analysis customers satisfaction is achieved which makes organization like McDonald develop
structure from performing within market in more effective manner. Further, analysis has been
done as follows:
Political factors

Political factors involves the political stability, reforms, trade restrictions, tax policies,
environmental regulations and tariffs. For McDonald political factors affected as an threat and
opportunity both. McDonald has an opportunity to expand their business internationally it
happened due to increasing in internation trade agreements. Government has released an diet and
health guidelines which McDonald can convert it to an opportunity by introducing healthy and
organic food into the menu. Iran and Bermuda has banned McDonald, as they are against of fast
food.
Economical factors
Economical factors directly affects the company on long term basis which involves cost
of living, unemployment, credit availability, working hours, economic growth and decline,
minimum wage, exchange, inflation and wage rates. Developed countries slow but stable
economic growth is an advantage to McDonald, it can grow and increase stability of
McDonald(Zhang, and Zhang, 2019). Due to slowdown in Chinese economy it is becoming a
threat to McDonald's as Chinese market is main contributor to the McDonald revenues. Recent
recession has decreased the demand of fast food in the world, people are not ready to invest more
in junk food.
Social factors
Social factors involves health consciousness, cultural norms, population growth rate,
expectations, health, age distribution, career attitudes and safety. Concern of health is rising all
over the world which is leading to avoid junk and involving healthy and organic food according
to the requirements of the customers, it can become a threat to McDonald's. McDonald's menu's
are different in different countries, according to the demand of local customers for serving their
local flavours to them. Due to rising of disposable income, McDonald's has the opportunity to
expand and make customer buy fast food rather than cooking in their homes.
Technological factors
Technological factors involves the automation, research and development which affects
the operations of the firm in market. McDonald's has introduced new self table scanners in the
seats to order, which reduces the customer effort and does not required to stand in counter.

McDonald's is expanding their revenue through mobile by serving customers online and order
and take away facilities. McDonald's can also increase the productivity of restaurant by
increasing the business automation.
Legal factors
Legal factors involves the resources, access of materials, taxations, import/exports and
changes to laws which are affecting employment(Yi, and Nataraajan, 2018). McDonald is
having threat of minimum wages which increases the cost and reduces the overall profitability of
the firm. As McDonald is a multinational firm dealing in various countries and has to follow the
laws and policies differentiated with each country, which sometimes become difficult and lead to
mismanagement.
Environmental factors
Environmental factors involves environmental offsets, weather, geographical and climate
changes. McDonald is getting large customer base by following all ecological sustainable
operations. Change in climate conditions affects the restaurant in availability and sustainability
of food and raw material supply. McDonald's follows all the environmental and ecological
friendly measures for sustaining in the market. It should be major responsibility of a business to
follow environmental policy of government to conduct ethical and sustainable business.
Customers satisfaction
Customers satisfaction is one of the most important part of an organization which helps in
making customers derived business developed within an organization. The concept is based upon
collecting data in more effective manner which make organization like McDonald understand
about customer. In order to enhance customers an organization like McDonald is required to
focus over internal factors which helps in improving business process with more effectiveness. In
order to analyse these factors SWOT analysis requires to be conducted.
SWOT analysis: This is an important tool which is used for making analysis developed
over strengths, weakness, opportunities and threats. Thus it is used as techniques by an business
organization to understand about internal factors impacting business growth. The tool is used by

McDonald in order to develop better understanding bout factors which can hinder the customers
base negatively. Thus the analysis has been conducted in relation to McDonald as follows:
Strength Weakness
 Brand value is biggest strength which is
possessed by an organization like
McDonald. It has helped in attracting
customers in more effective manner.
Through brand value awareness created
within customers that helps in making
McDonald attract more and more
customers(Torlak, Demir, and Budur,
2019).
 Delicious meals this is another
important aspect which has helped in
gaining customers all over the world.
Also authentic taste made McDonald
achieve more popularity within country
where expansion has been done.
 Technological development has helped
McDonald in capturing market during
the time of COVID 19. As online
delivery system has helped in making
reach possible over customers.
 Negative publicity over the products of
McDonald has impacted its sales sof
organization which eventuality
impacted customers percentage. Also
problems like obesity and fatigue made
sales impacted drastically. Through
negative publicity brand value
decreased for McDonald.
 Expansion challenges this weakness has
made McDonald face problems during
the time of expansion. Since the market
of US is very saturated in terms of
burger joints which made McDonald
shift to other countries leading cultural
and economic challenges faced by
organization. This made customer
percentage impacted.
 Also the organization like MacDonald
due to slow dividend rate lost its
approach towards new customers
making customer base disturbed.
Opportunity Threat
 International expansion is one of the
biggest opportunity which has helped
McDonald in gaining good percentage
within market. Through its premium
 Government policy has become threat
for McDonald making intensity of
competition rise which made customer
base effected. Also through government

products the organization was able to
capture global market in faster and
better manner.
 Through developing better supply chain
McDonald is able to make customers
satisfaction created helping
organization gain more profit and
revenue.
 Customers centric campaign made
organization like McDonald attract
more new customers which made
organization achieve goal of high
customer increased.
polices tax increased which made
intensity of sales reduced.
 Its competitors and rivals has made
McDonald face tough competition
which made McDonald's customers
shift to another brand making sales
reduced.
 The customer nowadays are health
conscious they are more lean towards
the products which are healthy. This
become one of the biggest threat for
McDonald making its popularity
decreased within market.
After SWOT and PESTLE analysis it can be observed that organization like McDonald
makes strategies developed by keeping in mind customers preferences as both internal and
external factirs are dependent over customers needs in more effective manner.
Porters Five force
Porter's five forces are those analysis which makes aspects like competitive rivalries, new
market entrants, suppliers, customers and competitive substitute covered with the help of
organization(Thakur, 2019). The forces are important in order to make sustainability developed
for a organization helping in targeting areas with the help of strategies making profit increased.
Through this analysis competitive position of an organization like McDonald is understood with
its position. The tool is focused upon concept of five forces which is used for determining
competitive intensity of market. Also it is helpful for organization to understand bout power that
is present in business situation. The analysis often use in order to make development done over
product and services with potential to increase profitability. This make various factors improve
which impacts market position of an organization. Porter's five force determines company's

competition to sustain in the industry and make strategies according to the targeted area to
maximise profit. The analysis has been conducted in relation over McDonald as follows:
Competition in the industry:
Competition is related to competitive organization with similar targets areas and large
competition make power lesser for an organization within industry. Organization like McDonald
has large products variety which makes more and more competitors arise in relation to fast food
chains. The major competitors are Subway and Burger King which makes competition high.
New Entrants into an industry:
In this new company has been entering within the industry which makes less time and
money involved within making prayerful and changes done within position. McDonald dominate
the market which makes new entrant face difficulty in making organization develop various
changes over position of an organization(Otto, Szymanski, and Varadarajan, 2020). Also
economy scale has been benefiting which ear about exceeding business. In this new entrants does
not impact McDonald's customer as its is well known brand. This makes new entrants create
lower impact over an organization like McDonald which makes impact of new entrants reduced.
Power of suppliers:
Suppliers helps in making organization dependent over supplier which makes unique
inputs to be set by an organization. In this McDonald is used by supplier which making impact to
be created over moderating supply which makes an organization. This is used for selling
materials which helps in making organization like McDonald develop innovative ideas and
technology making moderate supply level to be given to suppliers.
Power of customers:
It depends on how much customers or buyers does the company has, a smaller and
powerful client base depicts the power of negotiating with prices and powerful deals. In
McDonald due to low shifting power reduces the barrier for McDonald customers to buy auto
mobiles from other providers , and due to low volume of purchase it militate the influence of
McDonald customers. The switching of buyers and sellers is difficult at global level.

Threat of substitute:
Substitute over product and services within the organization makes profit and competitive
over organizations making goods making reduction done over power selling and lower
requirements of product in market(Gonzalez, 2019). This can be understood with the electric car
which helps in substituting gasoline and fuel based cars. Mc Donald has low substituting power
in latest technology with innovation.
Through this model various aspects has been covered which makes an organization like
McDonald deals with aspects present within market. Also it makes customers view point to be
understood in more effective way. Through this important strategies are used making
organizations development done in right direction. This is used for making McDonald achieved
all elements which is used by for making product prepared with more perfection. Also it
increases organizations quality as per needs of customers. Also it makes customers perspective
understood with better ability to be developed in relation ton stakeholders.
7 P's of marketing
The 7 Ps means those marketing tactics that has been use in relation over combination which
helps in making satisfaction created over customers target within market. The 7p are based over
subject with internal and external marketing environment. Through combining various marketing
tactics customer's needs and wants are fulfilled. Further, 7 p has been used By McDonald in
improving customers satisfaction and has been explained as follows:
Product
This is based over those aspects which is related upon including over various features
dealing with benefits provided to customers making them goods and services enjoyed by them.
Under it various aspects related over customers needs and wants has been satisfied. Also in this
styling, quality, repairs, and accessories are included within its products.
Price
It is related over prising strategy which is used over various kinds of products and
services that has been affecting customers. This makes identification of customers possible as
per the segmentation done by McDonald of its product(González-Mansilla, Berenguer-Contrí,
and Serra-Cantallops, 2019). Also it makes customers identified in more effective manner which
make competitive edge developed through providing combos, discounts and coupons. This also
helps in strutting price policies for an organization.

Promotion
These are promotional aspects which is based over various kinds of perspective relation
over making product to be introduced within market. As per this products and services,
including advertising, sales tactics, promotions and direct marketing has been handled which
make marketing perspective developed within an organization.
People
They are based upon staff and sales persons making working of business included which
helps in making customers services improved with an positive experience over marketing brands.
Also through this customers experience is shared through taking feedback from them making
organization deal upon various aspects. This is an important part of competitive advantage
through recruiting right people which leads over making diverse staff developed through
retaining goods staff.
Process
This is based upon involving delivering product and service which makes customers
satisfaction achieved. As per the process manufacturing, production and delivery is included
within it. It makes all kinds of aspects developed which makes quality improved(Gerdt, Wagner,
and Schewe, 2019).
Physical evidence
These are those evidences which is based upon customer and interaction done within
them in this various factors are included that is physical environment, layout, design, packaging
and branding. It helps in making an organization develop various aspects which makes
organization like McDonald develop better structure within process of organization.
These factors of 7 Ps of marketing helps organization in developing various aspects
which lead upon making organization like MacDonald develop strong structure making
organization's capacity to perform with overall development possible. Through the factor
marketing analysis takes place helping in growth of an organization. This is one of the most
effective model which has helped organization growth done in right direction.
Ansoff Martix
This tool focus on the future growth of the company and evaluate opportunities for
organisation to increase its sells by providing alternative combination for new market helps firm

to chalk out strategy for product and market growth(Famiyeh, Asante-Darko, and Kwarteng,
2018). It is a important strategy which helps company decide what steps can be taken based on
market scenario currently present helps companies evaluate and formulate strategy for future
business growth. McDonald is one of the leading retail company of UK, it has multinational
company operating across the world, company primary the grocery retailer, later it gets expand
and deals with multiple items. Hear is the detailed Ansoff matrix of McDonald :
Market penetration- its all about selling companies more product to the existing market
with the aim of increasing overall market share this only possible when company achieve to
make more sales to the existing customers or by discovering new customer with established
market without any changes in the product(Chung, Ko, Joung, and Kim, 2020). If the managers
of McDonald adopt this technique by competitive pricing strategy and ad campaigns have been
very useful, it also give special offers on some products with a view increase sales.
Product development- A strategy in which firm introduces a new product in existing
market, the firm exists in the existing market but it increases its product range by introduce new
product,which leverage the brand image with brand value and meet the expectations of
customers in the keep going market. The managers of McDonald uses this technique by
identifying the opportunities and introduce new product in the market it offers organic food after
seeing the customer preference. Also starts providing loan, mortgages, insurance along with
electronics etc it is also provide one step solution to the customers. Company understands what
customer wants so they introduce environment friendly products and social responsibility. And
last but not least they are working on biofuel other than petrol and diesel.
Market development- when firm seek to introduce itself in the new market with the
existing product it is more risky as compare to market penetration. It is a growth strategy in
which the firm identify and develop new market for the same product. In the year 2019 the
managers of McDonald decided to open 750 new stores in Thailand over the next three years by
doing this McDonald failed in some countries its stores shut down in US, China but somehow
they manage to stay in Thailand and generate good revenue(Budur, and Poturak, 2021).
Diversification- In this strategy company enters in the new market with the new product
this strategy is the riskiest among all the because it involves untested product that you don't have
experience. The managers of McDonald adopt this technique they should direct use diversify the

company by introducing new products in the, market includes books, electronics, credit card also
started insurance products. However, McDonald failed in some of its diversification strategy.
After the above discussion of all the techniques if managers of McDonald , uses product
development approch then they dont need to put more efforts of consumers because McDonald
is the leadiong rewtail company in UK and customers have faith in their firm so they don’t need
to put more energy in consumer satisfaction, apart from this it also provide the industry to
expand its product in market to by introducing new innovation or ideas in the market helps
identify need of target audience by taking feedbacks.
All these strategies and models that has been discussed above makes motive to be
produced in relation over consumers experience. The organization like McDonald helps in
making restart for consumer affect customer experiences (Budur, and Poturak, 2021). The
organization like McDonald is required to develop outcome which makes customers satisfaction
created in its best manner. These strategies make organization develop needs of customers. Also
analysis has been done over the basis making interaction upon consumers which makes
modification done with regular services. This makes organization like McDonald helps in
making customers satisfaction achieved with stakeholders analysis. Further the strategies makes
stakeholders analysis done in more effective manner which makes customers satisfaction
achieved. Also through the models various aspects of market has been analysed which makes
customers satisfaction achieved.

CONCLUSION
From the above discussion it can be concluded that customers satisfaction is one of the
most important factors which is pose by an organization in order to make development done with
more effectiveness through such aspects an organization makes its popularity increased through
developing organization in positive manner. Then in this various kinds of models has been
discussed which is used by organization gain customers satisfaction and understand market in
better way through positive approach.

REFERENCES
Books and Journals
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