McDonald's: International Business Strategy & Environmental Factors

This case study examines McDonald's international business operations, focusing on the impact of socio-economic, technological, political, and ecological factors. It highlights how socio-cultural differences, technological advancements, and political regulations in various countries influence McDonald's strategies and decision-making. The analysis covers examples such as McDonald's adaptation to cultural norms in India and Japan, the challenges of adopting technology in different markets, and the influence of environmental regulations on packaging and waste management. The report concludes that understanding and adapting to these external factors are crucial for McDonald's to achieve sustainable growth and profitability in the global market. Desklib provides a platform for students to access similar case studies and solved assignments for further learning and research.

Case Study
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
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Identify and illustrate the manner in which socio-economic cultures affect McDonald
Restaurant in international business.......................................................................................3
Identify and illustrate how technological developments affect McDonald Restaurant
international business.............................................................................................................4
Analyze and explain how the political environment considerations affect McDonald
Restaurant international business decisions in the markets they operate...............................4
Analyze and explain how the ecological considerations taken by McDonald Restaurant affect
their.........................................................................................................................................4
international business decisions in the markets they operate.................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Business environment is inclusive of number of factors such as political, legal,
technological, economic, social, culture, environmental aspect. It is essential for an organisation
especially those who are operating in international business market to analyse impact of these
factors upon business growth and decision-making (Chia and et. al., 2020). Negligence of this
will not only impact their international business success but will also affect the capability of
revenue generation. Present report is conducted on McDonald's which is an American fast food
company. This organisation was founded in the year 1914 and offer number of products and
services to customers around the globe. This report discusses socio economic culture which
affect McDonald's restaurant in international business. In addition to this report also include
discussion upon technological development which is affecting McDonald's restaurant
international business. Furthermore, political environment consideration and ecological
consideration that has been undertaken by McDonald's restaurant is also discussed in present
report.
MAIN BODY
Identify and illustrate the manner in which socio-economic cultures affect McDonald Restaurant
in international business
McDonald's is operating a fast food company in restaurant industrial sector. This company offers
wide range of products and services to consumers around the globe. It has been identified that
there are some certain socio economic cultural factors which are affecting McDonald's
restaurants in international business. In this it has been underlined that in context with socio
cultural factors significant shift in spending power is a major element which is affected by social
logical, demographic trends (Dekkers, 2020). In terms with technologies there are some certain
social forces which are greatly affecting its success in international market segment. Some of
these factors include youth oriented culture, changes in context with decision making role that
has been significantly changed to the extent in which children seems to be made at the selection
of a place to eat. In this it is essential for company to focus on advertising as to attract youth-
oriented consumer market and influenced children.
In addition to this culture is mainly defined as an Institution of number of elements such as
perception, basic values, preferences and behaviour. Culture continues to play an important role
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which is impacting McDonald's on international platform. It has been evaluated that traditions
and religion brief have often engage in conflict with international media messages. For example
when McDonald entered in India the respective restaurant decided not to launch its big Mac
burger as a result of differing the Hindu prohibition against beef consumption. While it has been
seen that in Japan where family ties are strong McDonald's enjoyed use success as well as
popularity, as in this organisation invite consumers to associate the restaurant with family
members interacting in various situation. It has been identified that social and cultural factors
have huge impact upon organisation. It can be seen in terms of McDonald's in which different
type of factors affect McDonald's restaurant in international business and make them to change
their strategies that they are using in United States. Furthermore, in terms with economic factors
that it has been evaluated that spending pattern and consumer purchasing power are some certain
economic trends which is having major impact upon McDonald's international business. In this it
has been evaluated that there are major difference which is existing between country in different
states of economic development. This makes respective organisation to have systematic price
variation by understanding consumers and economic development of a country. Along with this
low level of literacy and countries with low economic development have impact upon
international business of McDonald's, as in this they are needed to undertake use of cost effective
methods of promotion and make that product affordable to the target set of customers.
Identify and illustrate how technological developments affect McDonald Restaurant
international business
Technology is playing important role in every industry which affects overall business operations
of organisation. In terms with McDonald's which is a leading organisation and offer number of
products and services to customers around the globe, it has been evaluated that technology
development have significantly made international communication as well as travel more
accessible to consumers. Along with this technology is also making change in social fashion as
well as habits in an effective manner. Furthermore, technological factors such as social media is
changing attitude and lifestyle of customers (Duggal and Alexander, 2018). There are some
certain technological factors such as creating new products new technologies and making market
opportunities which is essential for an organisation to consider in order to take advantage of
technology to gain high success. It has been identified that in order to expand in a country
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McDonald's emphasize upon using same high standard technology, for example when
McDonald's entered in the market segment of Russia company identified that Soviet machinery
last 1—20 years behind western technology. This company to have new machinery from Holland
to make french fries. Technology is an important aspect for an organisation if they are serving
large base of population. In this it is essential for company like a McDonald's restaurant to
conduct in-depth research of the available technology and future technology growth within a
country in order to expand their business operations in the market segment. With the help of
taking advantage of technological development organisation can influence mindset of customers.
For example in some countries social media sites like Instagram and Facebook is banned. Social
media act as an important tool to influence major group of consumers especially young
generation. In this it is essential for McDonald's to make investments in research to identify the
technological development within a country as to ensure success and long-term growth. With the
help of this company can not only perform their roles and responsibilities in effective manner but
can also ensure long-term growth and success (Rajawat and et. al., 2020). Technology in today's
business environment is a major factor which impact upon international business operations of a
country. With the help of emphasizing upon technological development within a country
McDonald's can assure growth and advancements in the market and can successfully operate in
efficient manner. Thus, it is essential for an organisation to identify the aspects of technological
development in a target market as to gain success. From the above analysis it has been evaluated
that there are some certain technological factors such as variety of promotional methods, lack of
technology in some countries as compared to western which is affecting McDonald's
international business. In this it is essential for them to conduct prior research and invest in
technology to make global expansion in successful manner.
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Analyze and explain how the political environment considerations affect McDonald Restaurant
international business decisions in the markets they operate
Political environment plays important role for an organisation where there are operating their
business roles and responsibilities. In terms with McDonald's it has been identified that political
factors such as agencies laws and groups into an organisation McDonald's faced strict
government regulation and restriction in the countries like France and China, as in this
government have some certain strict laws of door to door selling. This factor is affecting
McDonald's international business in number of face. In this it is essential for company to
effectively overweight these factors before making their business expansion in a particular
country. Furthermore, it has been evaluated that in 1993 a legal issue occurred in Russia for
McDonald's. In this the law has passed in Moscow which needs all stores to have Russian name
or at least name which need to be translated into the Cyrillic alphabet (Langert, 2019). This made
that company had to translate its brand name which lead McDonald's to have at least retain the
sound of its name. Same case also occurred with McDonald's in Japan. Thus, it has been
identified that political factors have major impact upon McDonald's international business and
affected their business. In this it is essential for company to conduct research in order to
understand political background of different regions around the world in order to make plan
accordingly. This will help company to have effective operation that will benefit them to take
advantage of opportunities. It is essential for organisation to evaluate foreign market as well as
their political environment in order to identify that any law government regulation to not impact
upon the product design of company, as in this company need to make major modifications in
their strategies and policies (Pangarkar, 2018). In addition to this it has been identified that with
the help of emphasising upon political aspects company can gain success. Thus, according to the
above analysis it has been identified that there are a number of political issues that affected
McDonald's international business decisions.
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Analyze and explain how the ecological considerations taken by McDonald Restaurant affect
their
international business decisions in the markets they operate
In today's environment both consumers and governments have political attitude towards
environment. This make McDonald's restaurant to consider some ecological elements in their
business operations which impact the international business in the market in which they are
operating. Most of the countries around the world made some laws and regulation which is
essential for organisation to understand and implement (Putri, 2021). It is essential for
McDonald's to evaluate new market in effective manner in order to consider the terrain and
climate in the appraisal. Furthermore it has been identified that some environmental group forced
McDonald's to take use of plastic packaging. In addition to this McDonald's also agree to work
with environmental pressure group and environmental defence fund in order to significantly
reduce harmful as well as and necessary waste.
CONCLUSION
Thus, according to the above mentioned report it has been concluded that, business
environment is inclusive of number of factors such as economic, political, technology, social,
culture, environmental etc which impact upon organisation direct-indirect decision making and
effective profitability level. In terms with the selected organisation in this report it is has been
evaluated that organisation is performing its operation in the number of international business
market. It has been identified that there are number of factors and technological development,
socio cultural aspects, economic aspects, political and ecological aspects which affect the
international business decisions. In order to overcome the challenges with the help of taking
advantage of effective strategies policies and evaluation of international business plays with the
help of in depth research and investing on digital platforms company can gain success and can
acquire profitability in a well defined and effective manner.
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REFERENCES
Books and Journals
Chia, X.R and et. al., 2020. Contributing Factors to Organizational Success: A Case Study of
McDonald’s. International journal of Tourism and hospitality in Asia Pasific
(IJTHAP), 3(2), pp.38-47.
Dekkers, J., 2020. From servant to driving force: Transforming the role of the supply chain in
McDonald’s The Netherlands. Journal of Supply Chain Management, Logistics and
Procurement, 3(1), pp.6-17.
Duggal, R. and Alexander, P., 2018. Staff management training in McDonalds.
Hamza, S. and Karabulut, A.T., 2021. Global or Local Strategies? McDonald’s Turkey
Example. International Journal of Commerce and Finance, 7(2), pp.101-121.
Langert, B., 2019. The Battle to Lead Both Business and Society. In The Battle to Do Good.
Emerald Publishing Limited.
Pangarkar, N., 2018. The formula for successful innovation at SAS: Integrating internal and
external knowledge. Global Business and Organizational Excellence, 37(2), pp.24-31.
Pufpaff, M., Xu, H. and McCann, D.P., 2021. Expired Meat, Anyone? Shanghai Husi Food
Company Ltd. In Doing Good Business In China: Case Studies In International
Business Ethics (pp. 169-176).
Putri, A.M., 2021. PERENCANAAN STRATEGIS SISTEM INFORMASI PADA
MCDONALD'S MENGGUNAKAN METODE WARD AND PEPPARD. JURNAL
TEKNOLOGIA, 4(1).
Rajawat, A and et. al., 2020. Factors: responsible for McDonald's performance. Journal of the
Community Development in Asia (JCDA), 3(2), pp.11-17.
Schmid, S. and Gombert, A., 2018. McDonald’s: Is the fast food icon reaching the limits of
growth?. In Internationalization of Business (pp. 155-171). Springer, Cham.
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