Show MoreMcDonald’s became a famous global name (refer to appendix 1) which had more than 33,000 restaurants in 119 countries (McDonald’s, 2012). How could it operate profitably in a competitive market? It was due to the flexibility in the changeable marketing environment (Lovelock, 2002). The marketing environment can be assumed as a flexible system. Just like the human body which may die if it fails to adjust to environmental modifications, so the business also may lose if it does not adapt to external and internal changes (Sowell, 2011).
Sargeant and Jay (2004) stated SWOT analysis contains specific indicators as to the key determinants of success in the company whereas most authors defined the marketing environment comprising microenvironment…show more content…
To satisfy children’s needs, McDonald’s celebrated birthday parties at Kids’ Zone and they were successful in this service (McDonald’s Malaysia, 2012).
No competitive marketing strategy is perfect for all companies, thus a company must identify an adaptable business strategy by considering competitors (Palmer, 2000). McDonald’s realised Vietnam was a risky market, because there were three big fast food companies (KFC, Lotteria and Jollibee) which had their own markets (Saigon Times, 2009). Moreover, McDonald’s got a foothold in the fast food marketing (refer to appendix 3).
By using the PESTEL model, we can analyse many different forces in a company's macro environment (Palmer, 2008). Successes in a difficult external marketing environment significantly depend on how well you use potential of the market and avoid the pitfalls (Gillespie, 2011).
The political forces are the less predictable factors that affect and limit a firm’s operations (Pride and Ferrel, 2010). McDonald's made trial evaluations in the mid-1990s but in 1996 postponed their plans because of an anti-Western political backlash in Vietnam (Sunday Times, 2004).
The economic situation determines some extent the success of organisations. The economic forces (including economic growth and unemployment, interest and exchange rates, taxation changes and inflation) have a vital influence on the
The Macro Market Environment Essay
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The Macro Market Environment
Before a Company launches a new product it must be aware of the environment that this will be introduced in. This is done to make sure that the product meets all expectations and respects the specifications that are needed to abide by the law. There are a number of factors, which need to be taken into consideration before a product is launched. One of these is the Macro-Market - the National Environment. This consists of the Political Environment, the Economic Environment, the Social & Cultural Environment and the Technological Environment, amongst others.
One of the most meaningful aspects that must to be taken into consideration when introducing a new product…show more content…
There are various factors that affect what purchases the consumer makes. The most vital of these is his income, that is - how much money he earns, this will in turn determine the amount of money he is able to spend. Budgets, inflation, deflation and if he has a job and also the type of job, influence the consumer's income. The spending power of consumers who use their credit card frequently on the other hand would be affected by credit limits and interest rates. The economic situation in the country will help the Company decide on the terms of payment, credit limit, etc.
The Social & Cultural Environment helps understand the behaviour of consumers. This includes 'values, perceptions, preferences and behaviours' - Kotler. This is significant because it helps the managers avoid any features in their product, which would not be accepted by the consumers in that particular country. This might be because it goes against their religion, culture or traditions. The Company might want to customise their product according to the country it is sold. For example, McDonald's serve corn soup and teriyaki burgers in Japan and pasta salads in Rome. While in India where cows are considered sacred, McDonalds sell Veggie Burgers instead of beef. To improve their image with their customers McDonalds gets involved in community activities, as it did in