Hospitality Environment: Macdonald's Business and Lifestyle Impacts

This report provides a comprehensive analysis of Macdonald's, a prominent restaurant chain, within the context of the hospitality environment in the UK. It begins with an introduction to the hospitality industry and then delves into Macdonald's historical background, tracing its evolution, mission, vision, and objectives. The report further examines the company's core competencies, products, and services, followed by a detailed SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. The second part of the report focuses on the impact of changing lifestyles on consumer behavior, exploring trends such as cultural flows, economic developments, cultural diversity, the rise of Asia, media influence, and social media's role. The report concludes by highlighting how these factors influence Macdonald's business strategies and market position, offering valuable insights into the fast-food industry's adaptation to evolving consumer preferences and global trends.

Hospitality Environment

Table of Contents
Introduction.........................................................................................................................................3
Task 1...................................................................................................................................................3
Task 2...................................................................................................................................................6
Changing lifestyles...........................................................................................................................6
Business law.....................................................................................................................................8
Conclusion..........................................................................................................................................10
REFERENCES........................................................................................................................................11

Introduction
Hospitality one of the most growing industry in the United Kingdom which provide
employment, economic growth and create an ideal image at the global level. It includes
lodging, event planning, transportation, accommodation, food and restaurant etc. The current
report based on Macdonald which is a restaurant chain and operate their business in UK
(Valta and et. al., 2015). they provide a wide range of products and services to its customer
with high quality. This study will explain about the historical background of the cited firm
and mission and objectives, area op operation and its long and short term targets. In the
second part of the report will discussed about the changing life style which h influences the
purchasing decision making of the customer. There is various legislation issue which can be
related with the employment law, consumer law and so on which helps to meet its long term
targets (Bujisic, Hutchinson, and Bilgihan, 2014).
Task 1
Historical background: Macdonald corporation is one of the leading restaurant chain
which having more than 60 million customers daily. It was founded in 15 may, 1940 approx.
77 years ago. The founder of the company Richard and Maurice Macdonald which
headquarter located in Oak Brook US and planning to move in Chicago in the next year. On
April 1955, Kroc purchase equity in Macdonald Brother restaurant for the worldwide
expansion. According to the given data by the end of 1965 the corporation is having more
than 700 Macdonald store which is quite large as compare to other organization. the total
revenue of the company recorded more $366 in the first day sales of their business (Borràs
and et. al.,2015). In the next few years business entity the top management expand operation
in to Canada and other part of the world. Between 1960-70 the marketing department of the
company focused on advertising and invested a large amount of capital on promotion
activities which helps to promote their products and services in an effective manner. The
higher authorities of the company went to issue share in order to expand their business at the
international level. The offered $22.50 per share and on the first day trading the share price
has increased by $30. In 1980’s which was expanding period due to opened a large number of
store across the world specially, Europe, America and Australia continent. Between 1990-
2000, they operated their business in to approx. 58 countries and more than 3500 restaurants
by using new business model; like joint venture, franchisee agreements (Dopson, Land
Hayes, 2015). In the year 2000, the firm focused on quality and stared restructuring process

there they closing approx. 800 stores. Because there is various franchiser compliant that
operational cost is too high which reduced their profit and revenue.
Mission and vision: It is essential for a business organization is to design their
mission and vision statement which provide future direction. A vision statement is described
the company’s strategy and about the purpose of their business. Therefore, every firm is tries
to established such statement and must be communicate with their employees. so that, they
feel confident and contribute in attaining organizational targets in an effective manner (Wang
and et. al., 2011). MacDonald’s corporation having their own mission and vision statement
which provide guide to the leadership in the international level. It is related with the
designing and developing goods and services. Apart from that, the vision statement is helps to
provide motivation to maintain their position at the global level. Today, MacDonald’s having
36000 stores in different countries and focused on innovation and improve product perforce
and enhanced customer loyalty. The marketing department using aggressive advertising
campaign which helps to sustain their market share.
MacDonald’s Vision statement: It is significant for a business organization is to create
their mission statement which guide them what they supposed to provide and what strategies
they are going to use. In the contexts of given case study, MacDonald’s is focused on their
customer and provide a high quality product at the right price (Adeoye and Elegunde, 2012).
They want to progressive in the burger market through offer unique customer experience and
committed to delivering attractive services and create an ideal image in the market. they also
promote innovation and continue improve their product and conduct feedback and market
survey which helps to meet customer experience.
MacDonald’s Mission statement: On the other hand, mission statement includes the
details of their market position. In the case of MacDonald’s their mission statement is
focused on customer, their product and place. The marketing manager of cited firm is used to
provide a great environment with positive community where its customer spent their valuable
time. They also promote in mission statement about the corporate social responsibility which
develop their business in a sustainable way (Goode, and et. al., 2013). for example, they
offer its product in eco-friendly packaging which can be recyclable. They also try to
concentrate on financial position which is too significant for every business unit.

Objectives: It is essential for business organization is to established their aims and
objectives which related to future direction. A company set their target with the time limit
and monitor these targets in regular basis. The objectives can depend on the capabilities and
resources of the corporation. It can be related with the profit, sales, market share etc. As per
the give case, MacDonald’s required that to set their short and long term goals and supported
by tactics and strategies (Ronit and Jensen, 2014). For this they can be used SMART
approach in designing such objectives. There are following objectives of cited firm:
 To increase market, share by 5 percent in the next few years.
 To expand its operations in to other emerging market.
 To increase financial performance in the next 5 years.
 To introduced new product range in order to sustain their position.
Core competencies: It is related with the uniqueness of the product, services,
operations and other capabilities which provide competitive position in the market.
Therefore, every business unit is tries to develop their core competencies which is too
significant. MacDonald’s is a valuable brand in the world. The number of store in the UK is
more than 36000 which increase customer satisfaction level in an effective manner.
Products and Services: MacDonald’s having a wide range of product on the basis of
their area of operation. The cited business entity having a wide range of goods which includes
SWOT analyses: Business environment is to complex and competitive which
required a careful analysis. There are micro and Marco factors which are related with the
external and internal environment. It influenced the business operation and future
performance of the business (Wiist, 2011). There are various tools and techniques can be
used by marketing manager to identify such environment and make strategies in order to
minimise potential risk on their business. There are following SWOT analyses of
MacDonald’s:
Strength MacDonald’s is one of the most popular brand in the United
Kingdom.
They provide a wide variety of products and services to its
customer.
The cited firm spending billions of dollars on advertising in order

to promote their goods in an effective manner.
Today, the cited firm is having more than 30000 chain in more
than 60 countries which is quite large as compare to other
business corporations.
Company also employed more than 1.5 skilled and talented
workforce which provide competitive advantage in the market.
Weakness Now a day’s people are more aware towards fast and junk food
which having adverse impact on demand of MacDonald’s
products and revenue.
The operational cost will increase which also influenced its
profitability.
Opportunities MacDonald’s needs to focused on developing healthy food which
maintain its market share.
There are various emerging market such as India and China which
provide long term growth to the company.
Threats There are various new ventures in fast food which affects its
market share.
People are more health conscious which is not good for the
company (Galbraith‐Emami and Lobstein, 2013).
There are also other global factors such as recession, slow done in
economic growth having negative impact on their future
performance.
Task 2
Changing lifestyles
Today the customer needs are changing over a period of time which increase the demand of
goods and services at the global level. The size and family structure are changing which
having a large impact on business and its future performance. there is various emerging
market where middle income groups are increasing day by day due to globalization,
liberalization and privatization (Speers, Harris and Schwartz, 2011). In the context of

MacDonald’s, it also enhanced their business at the next level. There is various area where
customer life style is transform and develop a modern market in the world. There are
following trends which are the part of lifestyle change:
Cultural flows: Today, culture plays a prominent role in the developing economies and
growth. After globalization people are interconnected with each other which increase
communication between one culture to another. Apart from that there are various culture
which influenced an individual and they will try to adopt such culture. For example, in 1960
fast food culture is growing in US which spread across the world and adopted by the world
community (Jung and Yoon, 2012). The growing awareness of products and services, brand
and new thinking also enhanced demand of new product.
Developing economies: Now a day, time is one of the most critical aspects for everyone.
People are going to be fast and save their time by using new technology and innovation.
There are various developed countries such as USA, UK, Germany Japan etc. which
economically sound. It motivates developing countries in order to growth their market
rapidly.
Cultural diversity: This is one of the strong element which influenced business organization
to sale their product according to different customer culture. It is related with the beliefs,
attitudes and norm of a society and followed by a group of people. In the context of
MacDonald’s which operate in different parts of the world and facing wide variety of cultural
aspects (Wang,and et. al., 2011). For example, UK is a multicultural society in to Wales,
Scotland, Ireland and England. Each state is having their own tradition which influence
MacDonald’s to design their products accordingly. It helps to increase customer satisfaction
level which is most significant for a business organization.
Asia rising: There are various Asian nations such as India, China, Indonesia, Malaysia which
are growing rapidly and influence the global market by their economy and cultural cloud.
There are various economic aspects such as GDP growth rate, innovation and technological
advancement, increase consumer market and so on (Borràs and et. al.,2015
). For example, India which is one fastest growing economy approx. 7.5 percent and their per
capita income also growing. On the other hand, the middle class of India also quite large
which provide most attractive destination for business the company like MacDonald’s.
Therefore, the investing large investment and expand its business and helps to increase their
sales and market share.

Media spread: As already discussed the role of technology having increase the awareness of
consumer and their aspiration. There are various media tools such as TV, radio, newspapers,
internet etc. It increases the information and knowledge of people relating to product and
services. Therefore, MacDonald’s investment large number of capital on the advertising and
promotion which helps to incre4ase awareness and create an ideal image in the market.
Social media: This is one of most transformed tools which change the entire world and
connect people where they can share their idea, culture and learn from each other. It involves
Facebook, Instagram, You Tube, Twitter which is provide a platform to customer as well as
company to share various information relating to their product and services. It also creates a
harmonious relation with the
Urbanization: In the last two-decade urban leaving has been increased drastically as compare
to past. According to the higher authorities, from 1960 the number people was 1 billion and
today its more than 3 billion. This will helps to completely change the life style from rural to
urban which increase their standard of living. After globalization, liberalization and
privatization the social life is going to transform and new idea, norms and traditions
established. The fast urbanization growth and development will help to increase the number
of potential customer and provide a golden opportunity to the business organizations.
Disposable income: It is related with the income of an individual which he can free to spend
on their entertainment and enjoy. In the last few years the disposable income of the consumer
growing with a god rate increase their spending power. It can lead to increase goods and
services which is too significant for the company. For example, in the context of UK the per
capita income is approx. $40000 which is quite large as compare to other European nations.
As per the above mentioned factors having a large impact on changing the lifestyle of an
individual person (Bujisic, Hutchinson, and Bilgihan, 2014). With the help of above elements
enhanced the demand of goods and services and also enhanced their standard of living. In the
context of given case MacDonald’s required that to conduct customer survey on the regular
basis in order to meet its changing demand. Apart from that they also required that to focused
on other aspects such as consumer income taste preferences so that cited company can
maintain its market position.
Business law
There are various business rules and regulations which are having a large impact on current
and future performance. The main aim of such policies in order to maintain discipline and

healthy business practices. It can be including regulatory law, labour laws, tax laws and so
on. It is the responsibility of a corporation to follow these legislations. There are following
significant laws:
Environment act: Today customer is more aware towards the climate and environment.
Therefore, it is the responsibility of every business is to follow these laws and prompted
sustainable growth. UK is the part of EU which concentrate on businesses with less impact on
environment (Valta and et. al., 2015). According to this act every company must follow the
various guidelines of EU which should be implemented by every firm. For example, there are
various standard regarding emission control. If any entity fail tom meet minimum standards
they must be paid financial obligation. It having a negative impact on business growth
regarding restaurant chain. Therefore, MacDonald’s provide various guidelines in apply all
store in an effective manner.
Consumer law: Consumer protection laws are affecting the operations of the business-to-
business. This act varies from company to company and state to state. To determine federal
trade commission and consumer protection agencies at the overall impression it leaves, rather
than true of the individual components. A businessmen make sure that follow state consumer
protection laws that apply on their business. These laws protect from unfair practices. They
go beyond the traditional legal remedies available for beach of warranty to really help
consumers. To avoid lawsuits a business man, need to know the details of your consumer
protection act tell employees about practices that could get trouble of businessmen. Most
consumer protection act contain a broad prohibition on unfair or deceptive practices. Over the
years the federal trade commission has taken action against many organisations accused of
engaging in false advertising
Health and Safety legislation: Human resource are the valuable asset for every business
organization. Because it contributes in the attain organizational goals and target. Therefore,
every business entity required that to provide a healthy and secure environment to their staff.
So that they feel safe and motivated and performed their task in an effective manner.
Intellectual property law: The main aim off this act to help UK businesses protect their IP
rights in UK and abroad it will help to improve economic growth. The main objective of
this act is streamline the patent application process by allowing the intellectual property
office to share information on applications. The specific ground on which the IPO is able
to give an opinion. The IPO has to ability to alter these rules in response to the demands

of the users of the IPO services. Business should ensure that commissioning design that
written agreement is drawn up including the provision that the ownership of the IP
produced will be assigned to the organisation by the designer the main aim of this act is
that ton protect properties of the people in the UK. This law is including patent law.
The act allows intellectual property office to send more UK patent information ton other
global patent offices.
Conclusion
As per the above mentioned report it has been concluded the understanding of
hospitality environment in the context of Macdonald. There is various issue involved in such
industry which needs to understand in order to meet their long term targets. The report
discussed about the history of the company and its different aspects such as mission and
vision statement, aims and objectives which helps to attain competitive advantage by using
various strategies. The next part of this report has been concluded about the change in the life
style which enhanced the demand of products and services.

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