McDonald's Company has significantly contributed to the UK's economy through its support for the countless suppliers as well as employees and communities. The fresh meals have attracted millions of customers, thus maintaining a positive financial trend. McDonald's experience for the restaurants with new technologies such as self-services enhances its performance for the customers. Also, the use of soft skills, the coalition of employers, and the business groups have improved the performance of McDonald's Company. The announcement of McDonald's UK British potatoes for its fries developed the new signature collection through YouTube with its performance trending based on the quality of food. The annual reports, as well as the marketing interviews, have revealed the McDonald's strategies that have led to its consecutive growth (Vignali, 2018). The multigenerational workforce, as well as its power of virtual reality, has enhanced its reputation. McDonald's Company is already an international company with several countries, including Asia, enjoying its standard menu characterized by regional foods. In the United States, McDonald's have had limited trails on the revenue as compared to the UK, where it offers a partial breakfast menu during the hours the restaurants are open. The current market shared of McDonald's Company is valued at an estimated $16 based on the restaurants' situation. As a result, McDonald's Company earns significant revenue from rental payments as well as the real estate investment trust. The UK and Ireland business model differs from the US, with 30% fewer restaurants. The main rivals of McDonald's Company include the fast food processing kiosks, which respond to the growing consumer awareness of the fast food chain changes.
McDonald's has been outperforming based on its orientation as well as the strategies. The marketing concepts of McDonald's have ensured the growth of the Company hence all-time high. SWOT analysis of McDonald's assesses the fast food giant and what keeps it growing on a high-calorie diet.
- Successful rolling out of new items
- Expansion of menu choices
- Operations are spread around the world
- Hard to find the prime location
- Annual dividend hikes
- New restaurants outside the United States
- Menu innovation
- Low-interest rates
- Government regulation of fast food
- Competition form strong peers
- New product rollout
McDonald's Company is considered one of the most comfortable, based on its success. The Company has enhanced its touch with customers internationally with its sales and earnings growth. The stock price of McDonald's products in the UK is considerable, with various restaurants located near the customers. The innovation by McDonald's have attracted customers, thus standing a fast food giant with increased income annually. The simplified menu gives the customers unique experience of the products, therefore products moving over at high speed. The customers have identified McDonald's brands with quick and straightforward ordering that makes the customers happy. Changes in a serving of the customers are based on the complaints by the patients with the tricky menu being simplified to avoid frustrating and keeping patients in the restaurant. McDonald's focuses on improving the quality of the core products with the use of locally sourced ingredients for the high standard of quality products (Yeu et al., 2017). The customer services ranging from the management level ensures the customers are provided with a pleasurable experience that matches with the competitors. The change in trends for improving McDonald's is based on the self-service kiosks with machines that allow fast and precise ordering. Fair prices ensure that customers are attracted to McDonald's with the simplified menu keeping a variety of items.
The first McDonald's in the UK was based in southeast London, with the Company focused on attracting the entire population of London. With the expansion of the McDonald's in the UK, about 1,249 restaurants are covering whole Britain with the income for each McDonald's Company ranging from PS2.89 to PS3.91 million (Bryman, 2017). The growth of McDonald's in the UK is evident through its sale of 91 million Big Macs with the introduction of more warps as well as sandwiches. As a result, McDonald's provided beef from about 40,000 cattle for its products (MarketLine, 2016). The unique items on the menu attracted the customers of McDonald's in the UK with all of London demanding early breakfasts as well as late meals, thus an increased shift of workers. The McDonald's headquarters in the UK can be described as absolutely enormous based on its ability to handle the whole of Britain. The McDonald's Company ethics, as well as the food nutrition, are constrained by the law after the McLibel trial when the McDonald's took action to sue several activists in court over the Company's ethics written on a pamphlet.
McDonald's in UK corporation strategies address the various issues of the environment as identified in the PESTEL analysis. The analysis of McDonald's strategic management identifies the various external factors which present the opportunities as well as threats based on political, economic as well as sociocultural, and ecological factors. The approach addresses the external factors of McDonald's background as well as the competitive rivalry as a fast food restaurant chain in the world.
Political Factors Affecting McDonald's Business
The political factors of McDonald's entail the governmental policies and actions on the business as well as its economy. The policies determine the rate of McDonald's development. The PESTEL, therefore, shows how the governmental policies for the diet as well as health for the restaurant business chain, thus putting McDonald's on pressure based on the effects of the products on the consumer business. The most significant political factors that McDonald's in the UK have to address include:
- Increased international agreement on trade
- Guidelines by the government on diet and health
- The public health policies
Economic Factors Important to McDonald's Company
The financial aspect of McDonald's Company is based on the economic conditions as well as the trends of the business. The economic changes influence the performance of the business. Therefore, McDonald's Company regional economies are influenced by the fooling economic factors:
- The developed countries growing slowly
- The Chinese economy growing slowly
- The developing countries growing rapidly
Although the slow growth of developed countries affects the McDonald's Company growth, it is an opportunity due to its stability, thus makes the Company remain the most significant business of fast food distribution (MarketLine, 2016). The factors are strategic issues with the Chinese market positively contributing to the growth of McDonald's commercial.
Sociocultural Factors Influencing McDonald's Business
The social trends affect McDonald's Business, especially consumer behaviors, based on the revenue terms. In the case of McDonald's Business, the external sociocultural factors to be addressed include:
- The disposable incomes
- The lifestyles in the urban environment
- the increased cultural diversity
Technological Factors in McDonald's Business
The factors entail the impacts of technologies as well as the related trends in McDonald's Business. The success of McDonald's Business depends on its ability to maximize technological trends. The Company, therefore, has to solve the following technical factors:
- Moderate industrial activities
- Increased business automation
- Increased sales through mobile phones
- Ecological/Environmental Factors
- For McDonald's business environment, the resulting environmental factors have to be addressed:
- The interest for the Company's ecological programs
- The business strategies emphasis
- The climatic conditions
McDonald's Company is effectively implementing promotional as well as the marketing mix, which contributes to its leading performance as well as its brand. As a result, McDonald's business has become the international food restaurant industry based on various promotional tools. The tools for the promotional mix entails tactics of the market used to communicate with the customers effectively. The Company uses the following tools in its promotional combination:
- Public relations
- Marketing directly
Advertisement is the essential tool in McDonald's Company promotional tactics. The sales promotion draws customers to the restaurant. For instance, McDonald's offers customers a discount on certain products (MarketLine, 2016). The McDonald's Company public relations promote the business to the customers through goodwill as well as the strengthening of the brand. For example, the McDonald's program for the Global Best of Green ensures the communities boost the value for the Company.
Bryman, A. (2017). McDonald's as a Disneyized Institution: Global Implications. American Behavioral Scientist. https://doi.org/10.1177/0002764203256181
MarketLine. (2016). McDonald's Corporation. McDonald's Corporation MarketLine Company Profile.
Vignali, C. (2018). McDonald's: "think global, act local" - the marketing mix. British Food Journal. https://doi.org/10.1108/00070700110383154
Yeu, C. S., Leong, K. C., Tong, L. C., Hang, S., Tang, Y., Bashawir, A., & Subhan, M. (2017). A Comparative Study on International Marketing Mix in China and India: The Case of
McDonald's. Procedia - Social and Behavioral Sciences. https://doi.org/10.1016/j.sbspro.2012.11.370
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