standards between markets within which the organisation is operating for

Standards between markets within which the

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standards between markets within which the organisation is operating, for example, the USA and Europe. However, health issues, such as concerns regarding obesity, also make business activities more expensive, especially if taxes on fast foods are increased or certain ingredients are banned. 1.1 Increasing international trade agreements (Opportunity) 1.2 Governmental guidelines for diet and health (Threat and opportunity) 1.3 Evolving public health policies (Threat and opportunity) Economic - Economic factors which impact on McDonalds include international, national, and local conditions due to it being a global brand. This means that the whole company was impacted by the 2008 economic recession due to its impact in the USA and Europe and
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the fall in disposable income, increased unemployment, and wage stagnation. The success of McDonalds is therefore reliant on a strong economy with low rates of unemployment. Falling sales can also be attributable to changing tastes and increased competition in the industry. The exchange rate also impacts on McDonalds and a weaker US dollar enables a better exchange rate and thus financial reporting. 2.1 Slow but stable growth of developed countries (Opportunity) 2.2 The slowdown of the Chinese economy (Threat) 2.3 The rapid growth of developing countries (Opportunity) Socio-Cultural - The changing tastes of consumers can impact on McDonalds in terms of their sales. The growth of the coffee industry has led McDonalds to develop a McCafé menu to provide an alternative to Starbucks. Changing tastes, such as the increased focus on health have required brands such as McDonalds to cater to these or loose the sales. Changing customer demographics mean that McDonalds needs to meet the changing demands such as the health and price conscious nature of millennials. In order to sustain demand and to increase its sales, McDonalds will need to adapt their menu choices accordingly to include low fat choices. The continued concerns regarding obesity has also meant that McDonalds has needed to provide healthier choices for all of its customers, and particularly children. 3.1 Rising disposable incomes (Opportunity) 3.2 Busy lifestyles in urban environments (Opportunity) 3.3 Increasing cultural diversity (Threat and Opportunity) 3.4 Healthy lifestyle trend (Threat and Opportunity) Technological - Changing technology not only allows McDonalds to improve business process such as re- ordering and reducing waste, but also allows it to develop greater connections with its customers. Technology can assist McDonalds in strengthening its brand by providing different channels for ordering by customers, such as in-store self-service and collection or online ordering. Online ordering can enable organisations to gather data on customers and undertake personalized marketing through promotions. This technology allows for higher levels of convenience for customers which organisations will need to meet or customers may choose to go to a competitor. Technology can also enable a
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