Impact of Socio-Cultural, Technological, Political and Ecological Factors on McDonald's International Business

International Business
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TABLE OF CONTENT
INTRODUCTION............................................................................................................................3
MAIN BODY...................................................................................................................................3
Ways in which socio-cultural factors affect McDonald restaurant in international business......3
Technological developments that affect overall performance of McDonald restaurant..............4
Political environmental factors that can affect business decision and performance of
McDonald's...................................................................................................................................5
Ecological considerations, taken by McDonald restaurant that affect their international
business decision..........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES.................................................................................................................................8
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INTRODUCTION
International business refers to the trade of goods, technology, services and knowledge
across national borders (Szkudlarek, Osland, Nardon and Zander, 2020.). This study is based on
McDonald's, an American multinational fast food corporation. This study is going to discuss
ways in which socio-cultural and technological factors have affected McDonald's in both positive
and negative manner. It will further discuss some political and economic factors such as:
differences in income, cash inflow and others that can affect overall impact on productivity, sales
and performance. Lastly, it will discuss impact of advanced technology on organizational growth
and development.
MAIN BODY
Ways in which socio-cultural factors affect McDonald restaurant in international business
Socio cultural factors play a vital role and companies need to consider this factor while
introducing new product and expanding business. Nowadays, customers’ demands have been
changed to the great extent. In regard to fast food and hospitality sector, it can be said that fast
food chain including McDonald are striving hard because of changing needs of customers.
Customers have become health conscious so they prefer healthy as well as tasty food. Some
current socio cultural trends that can affect overall performance of this fast food chain in a
critical manner include:
Changing family as increase in one-person household create different needs. Developed
countries are adopting youth oriented culture (MacDonald and Diallo, 2019.). As per this culture,
children and young people decide the place of having meal and it can be beneficial for
McDonald. McDonald offer fast food and it is being liked by young people and children. An
ability of McDonald to focus on children and teenagers as advertising target can make it
beneficial in increasing sales as well as profit margin.
Another socio-cultural factors are: bringing food from outside due to busy schedule and
time-consuming process of preparing food. There is no doubt as McDonald has affordable prices
for its food items. Anyone can afford it. Nowadays, women are working, and they do not find
enough time to prepare food and due to busy schedule and time shortage, they prefer to order
food and McDonald's is easier accessible and provide online delivery. So, this trend can also have
positive impact on overall performance of company as it can increase sales and profit margin as
well. There are number of people who live far away from their family and due to busy schedule,
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