Impact of External Environment on McDonald's International Business

INTERNATIONAL
BUSINESS-
PROJECT 2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Effect of socio- economic cultures on McDonald Restaurant in International Business............3
Impact of technological developments on McDonalds international business............................4
Impact of political environment considerations on McDonalds..................................................5
Ecological considerations taken by McDonald Restaurant affect their international business
decisions in the markets they operate..........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
International trade refers to import and export of the good and services across the
different country in the world (Liao, 2018). International trade helps the company in increasing
its revenue and it will help in the access to export financing options of the country.
McDonald is the multinational chain of the fast food provider. It is holds the largest share
of the market across the globe in the restaurant chain (My McDonald’s app., 2022). The
customers are attracted towards its restaurant because of its brand value. It is operating its
business by the online and offline mode.
This report discusses international trade of the enterprises that has lead to increase in the
global economy. Additionally, the impact on the growth and development of the international
business for increasing the business across the world. For the improvement and development of
the businesses, the analysis of the external environment of the company is essential.
MAIN BODY
Effect of socio- economic cultures on McDonald Restaurant in International Business
Various socio demographic trends cause shifts in the spending power of the consumers.
The changing family patterns which involve moving towards one – person households indicate
the rise in demand for in- home products (Akpoviroro and Owotutu, 2018). In the past,
McDonalds has been impacted by the social forces such as the prevailing family structure of US
which comprised of children being the decision maker of place to eat. By giving special
emphasis to children and teenagers, McDonalds advertising was successful in capitalizing these
social trends. Culture also impacts McDonalds international business. Catering to the traditions
and religious beliefs while designing marketing and production activities prove to be a good
opportunity for organizations to become successful in the international market. For example,
while entering India, McDonalds had to decide to remove Big Mac burger from the menu as beef
was prohibited in Hindu Culture in India. In some countries, due to impact of the social factors,
the restaurant had to change its food preparation methods. For example, in Singapore and