Impact of Global Forces on McDonald's Business: A Report

This report examines the various global forces influencing McDonald's, a prominent fast-food chain. It delves into the economic environment, analyzing how McDonald's adjusts its pricing and offers incentives to maintain customer loyalty. The competitive landscape is explored, highlighting challenges from companies like Jollibee and McDonald's innovative responses, such as online ordering and family-friendly environments. The sociocultural environment is discussed, emphasizing McDonald's adaptations to diverse cultural and religious preferences, including vegetarian and halal options. Political and legal challenges, such as international trade agreements and food regulations, are addressed, along with McDonald's compliance strategies. The report also considers the impact of technological advancements on staff improvement, communication, and food production. The conclusion underscores McDonald's proactive approach to navigating the ever-changing global business landscape.

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Global forces that impact businesses: McDonald's
McDonald’s is one of the most successful fast foods outlets today having been
established in the 1940’s in California by two brothers. Over the years, McDonald’s has
managed to create a unique brand which has been operating outlets in most countries
all over the world. This has been through franchising the brand to more than 120
countries globally (McDonalds: 1995).
Economic environment
McDonald’s has been facing economical factors in most countries especially in
the Asian countries. In order to maintain their customers, McDonald’s has been
regulating its prices to match the economic factors that are affecting the business. The
company has been doing this by giving incentives to the customers (Carrigan et. al, 7).
For instance the company has been creating favorable prices for specific days. This not
only brings more customers, but rewards the existing royal customers.
Competitive environment

Due to its success in the fast food industry, McDonald's has faced stiff
competition from companies that seek to have a share of the market. Today, many
companies have copied the original ideas that were set by McDonald's and which set
them apart from the rest of the fast food companies. A case I point I the Jollibee
Company which was started in Philippines and which copied MacDonald’s ideas to
become one of the leading competitors with presence in over 25 countries (Nytimes,
2005).
The company is working on the competitive environment by adding value to its
products through innovation such as customers making orders online without visiting the
outlet. In addition, the company has enhanced the Family Friendly environment by
providing car parking and children playing grounds for its customers in its environment.
Social cultural environment
Due to the company’s operational in various countries; McDonald's has faced
different cultural experiences. This involves working in different cultural and religious
environments.
The company has taken an initiative of offering their customers services in line with
their cultural and religious demands. For instance in countries like India, Hindus do not
eat beef and consequently the Muslims are not allowed to eat pork. The company
initiated vegetarian meals and Halaal food to cater for the different cultural and religious
beliefs (Taylor and Francis, 2003).

McDonald's change their traditional menu in order to satisfy the diverse markets all
over the world. Companies change according to the host countries culture (Ghosh,
2017)
Political and legal environment
As a global company, McDonald’s has faced political and legal challenges in their global
franchise. Some of the challenges are the ever changing international trade agreements,
different government’s rules and regulations for diet and health and the public health
policies. MacDonald has been complying with the food regulation in different countries
which threaten to closure among other penalties.
However in order to overcome this challenge, McDonald’s comply with rules and
regulations found in various countries. In addition, McDonald’s employees must abide
with the food and health laws while working in different countries. This has enabled
MacDonald to continue thriving as a franchise in different location all over the world.
Technological environment
Every business work hard to improve its productivity and enhance profit making
(Clayton, 2017).Technology advancement has affected McDonald’s both negatively and
positively. McDonald’s has made use of technology in staff improvement,
communication and food production. This has increased expenses while at the same
time increased productivity.
In conclusion, every global company faces positive and negative impacts to its
business. McDonald's has not been an exception. However, the company has always

been a step ahead in ensuring that they remain relevant in ever changing world of
business.

Work cited
McDonalds: Behind the Golden Arches by John F. Love 1995. aboutmcdonalds.com
2009
Carlos H. Conde, Jollibee stings McDonald's in Philippines, MAY 31, 2005
https://www.nytimes.com/2005/05/31/business/worldbusiness/jollibee-stings-
mcdonalds-in-philippines.html. Retrieved March 26, 2019
Carrigan, Marylyn and Patrick, How ethical consumers sustain values in the global
Business, International Marketing Review (2012), 26(6), pp. 674– 687,(p.7).
Taylor & Francis, Globalization: Culture and identity critical concepts of sociology
(2003), pg 141
Clayton, Thomas. “Assessment: From Reflectivity to Process Knowledge”
Knowledge and Theory, Ed London: Jessica Kingsley, 2017. 128-137. Print
Ghosh, Biswajit. Changes in cultures in the era of globalization trends,
“Journal of Developing Societies, SAGE Publications, (2011) 27(2): 153–
75.