The External Environment and Its Effect on Strategic Marketing Planning: A Case Study for McDonald's

The external
environment and its
effect on strategic
marketing planning:
A case study for
McDonald’s

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Political Factors that affect McDonald’s restaurants internationally.....................................1
Economic considerations that affects the business of McDonald’s internationally...............2
Socio-cultural factors that affects international business of McDonald’s..............................3
Technological development effects on the international business of McDonald’s................4
Legal factors that affects international business of McDonald’s...........................................4
Ecological or environmental factors that affects international business of McDonald’s.......5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
External environment refers to those factors that influence the business from outside,
such as political, economic, social, cultural, technological, legal and ecological factors. In the
international business an organisation faces many issues related to external environment related
to government policies, trade laws, cultural exchange, changing technology etc. An
understanding of external environment helps the company to evaluate the potential threats and
opportunities in market. McDonald’s is an American fast food corporation with its franchise
branches across the globe, established in the year 1940 and headquartered at San Bernardino,
California, US. McDonald’s is present across more than 100 countries with its 30,000 local
restaurants serving 52 million people each day. This report will present an evaluation of how the
external environment factors affect the business strategic marketing of McDonald’s in the
internal market.
MAIN BODY
The external environment factors affect a business in many ways that operates
internationally. McDonald's is among the most successful global fast-food retail services which
operates in more than 100 countries and provide IT services to 52 million people each day. The
business of this company is affected by political, economic, sociocultural, technological, legal
and economic changes and dynamics that occur constantly in the international market.
Underlined are the various aspects that show how the business of McDonald's restaurants is
affected in the international market.
Political Factors that affect McDonald’s restaurants internationally
Political factors refer to those macro-environment influences that occur on the business of
McDonald's due to the effect of government policies and actions within a particular economy
(Arslan and et. al., 2021). The political factors or government influences determined the overall
action, rate and process of business development. Political factors include many laws,
regulations, rules, agencies and groups that influence and restrict actions of organisations and
individuals that may be negative for a particular economy. The most significant political factors
in the international market that affects the business of McDonald’s are as follows:
 Rising international trade agreements (opportunity as well as threat)
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