Marketing Report: McDonald's Micro-environmental Factors Analysis

This report examines the micro-environment of McDonald's, focusing on key factors impacting its marketing activities. The analysis includes the role of intermediaries, such as franchisees and distributors, and their influence on customer satisfaction and brand loyalty. The report also assesses the level of competition within the fast-food industry, highlighting competitors like Burger King and Starbucks, and the impact of these competitors on McDonald's marketing strategies and strategic decisions. It emphasizes the need for McDonald's to gain a competitive advantage through strategies like cost leadership, glocalization, and product innovation. The report references relevant sources to support its findings, providing a comprehensive overview of the micro-environmental forces shaping McDonald's business.

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Marketing
[Type the document subtitle]
9/16/2019
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Marketing 1
Contents
Micro environmental factors............................................................................................................2
Intermediaries..............................................................................................................................2
Level of competition....................................................................................................................2
References........................................................................................................................................3

Marketing 2
Micro environmental factors
Micro environment is the closely related environment and stakeholders within the company that
are impacting the performance and the marketing activities of the company. The key micro
environmental forces in a company include customers, intermediaries, suppliers, and company
itself, and public entities (Chatzoglou & Chatzoudes, 2018).
The 2 major factors in micro environment of the company that affect McDonalds business
include
Intermediaries
The marketing intermediaries include the middlemen or the companies that are supporting the
conduct of the business like warehouses, banking for finance operations, retailers, distributors,
advertisers, public relation firms and market research firms. The mode of entry of the company
in international market is franchising, that reflect the relevance and impact of the intermediaries
on the business. The impact on the business is depending upon the degree to which these
intermediaries could potentially decrease or responsible for increase of customer satisfaction.
The franchise may impact the brand goodwill and customer loyalty towards Mc Donald’s across
the globe. The controlling power in the case of franchising is reduced, due to which the impact of
the intermediaries that is franchise and distributors are more. Moreover, the company
standardized strategy that is to provide global standard products quality, taste and process
implementation is dependent on the intermediaries of the company. Moreover they will be
helpful for Mc Donald’s to sell, promote, and reach to the final buyers locally in every nation
and physical store (corporate.mcdonalds, about-us/our-business-model, 2019).
Level of competition
The competitors are the major stakeholders in the company who are responsible for the
marketing decision of the company, the reason being increase in competition may impact the
strategic decision of the company so as to compete and sustain in the industry. This will not only
impact the company but also impact the industry as a whole. The fast food and beverage industry
of Mc Donald’s have faced recent changing trends and increased competition from the fast food
chains around the globe. Some of the key competitors impacting the marketing strategy of the
company are Burger king, and Starbucks. The company needs to gain competitive advantage in
the industry in order to retain existing customers. For this, the company has found to consider
cost leadership strategy, which eventually shift towards the glocalization strategy, and product
innovation strategy also so as to compete with competitors. The impact of the competitors on Mc
Donald’s are also found to be on promotional strategies, as the close competition have increased
in the industry like food chains offering hamburgers with similar strategic capabilities like burger
king has impacted the company customers (corporate.mcdonalds, about-us/our-growth-strategy,
2019).

Marketing 3
References
Chatzoglou, P., & Chatzoudes, D. (2018). ). The role of firm-specific factors in the strategy-
performance relationship: Revisiting the resource-based view of the firm and the VRIO
framework. Management Research Review, 46.
corporate.mcdonalds. (2019). about-us/our-business-model. Retrieved from
https://corporate.mcdonalds.com/corpmcd/about-us/our-business-model.html
corporate.mcdonalds. (2019). about-us/our-growth-strategy. Retrieved from
https://corporate.mcdonalds.com/corpmcd/about-us/our-growth-strategy.html