Big Mac: Inside the McDonalds Empire
Identify the external threats prevalent in McDonald's general environment by segment
One of the major external threats to McDonald’s business is existence of several competitors. These competitors all target the same market segment; young and busy Americans that are seeking for easy and ready cooked fast food. However, this segment continues to reduce owing to the emergence of health concerns as studies show that fast foods are the main causes of obesity and other health complications. Another external threat facing McDonald’s is change in lifestyles of consumers. As studies show, an increasing number of consumers are opting for healthy lifestyles. These lifestyles require them to reduce or eliminate fast foods from their diets and opt for alternative foods with low fats. As a result, consumers are opting to take their meals in restaurants; thus providing new foods choices rather than visiting McDonald’s, which has a long history of having few healthy meals in their menus. As a way of responding to this emerging issue, McDonald’s emphasized on the need to start interacting with parents and children while educating them on healthy diets. This is an appropriate way of showing the public that they are associated with healthy foods. After new competitors invade McDonald’s territory, the company will be unable to serve a large market segment. This trend translates to reducing profits.
In order for the company to create new market opportunities, it has to overcome the emerging threats and challenges. It should proceed in persuading alternatives that will have benefit to the entire organization. It should use its strengths to enhance enlargement of the margin between their strengths and weaknesses. Finally, the company has to institute a defense strategy as a way of combating weaknesses. Studies show that weaknesses have a high likelihood of weakening strengths in large organizations.
Reports and case studies brand McDonald’s as a well-established organization with a highly recognized brand, which commands respect globally. Thus, the company has made continuous efforts of ensuring that target customers gain access with variety and high quality. In order to address the consumer needs in details, the company embarks on extensive research with an aim of understand what constitutes to various consumer satisfaction. The company further employs several marketing and media strategies. For a long period, the company has emphasized on development of an image and brand that ensures that all customers scattered across the country, continent and world have a comfortable eating place. In these eating places, it proceeds to promote socialization in order to attract children and health conscious individuals.
As studies further shows, the external environmental issues in McDonald’s continue to change. Because of this change, McDonald’s continues to recognize the need for protecting and preserving the environment. This realization has prompted the company to institute an environmental action plan with an aim of addressing emerging issues. A good example is introduction of food sourcing policy. This initiative ensures that it delivers its foods as close to homes as possible.
4. Assess the decision to modify the menu as a response to concerns about obesity (in the U.S.)
As obesity incidents continue increasing in America, the blame game continues targeting small fast foods companies. Studies show that there is a strong correlation between obesity and emergence of fast food restaurants. As Americans adopt busy working schedules, McDonald’s is emerging as one of the highly gaining companies. It has solved consumer problems by availing quick and comparatively cheap food in varieties that suit individual needs. Therefore, because of increasing popularity of McDonalds, there is a growing concern that the obesity issue will continue intensifying. Therefore, Americans health institutions have partnered with community members in the effort to create awareness of the emerging impacts of unhealthy eating habits.
The obesity cases are prevalent among all the social classes. However, the trend has changed over the last two decades as an increasing number of low income families dominate in obesity list. This trend is caused by the availability of cheap fatty foods that trigger fattening. The low income individuals have limited time to embark on health eating habits. As a result, they end up eating in nearby fast restaurants that mainly specialize with fast foods. Also, studies attribute the increasing obesity incidents to lack of awareness and education on obesity and its effects. Moreover, fast foods dominate McDonald’s menus, reducing the chances of selecting health meals in their fast foods restaurants. One of the highly affected groups consists of children. Through utilization of attractive, tricky and luring marketing strategies, McDonald’s and other fast food restaurants succeed in luring several young individuals to unhealthy eating habits. Children are less conscious of their health and are likely to fall victim to appealing and cheap varieties introduced by McDonald’s to the market.
The prevailing criteria for addressing obesity involve promoting awareness campaigns. In the cigarettes industry, manufacturers are required to post a clear warning on the health impacts of smoking. The current criteria of McDonald’s involve conducting awareness and education to children and parents on healthy eating habits. They also take this opportunity to warn consumers on healthy effects of overreliance on certain types of foods available in their restaurant menus. It should shun from deceptive marketing, which is the current contributor to consumption of their foods. Over the recent past, McDonalds has faced allegations of exposing consumers to unhealthy eating habits through deceptive marketing promotions. Unless the company shifts their approach and adopts strategies that promotes healthy eating, this contentious issue of advertising will lay a basis for future lawsuits.
Rapid growth and expansion of fast food industry has resulted in market saturation. Thus, if the company wants to maintain a high profits in the future, it should evaluate on ways of integrating healthy market promotions. After diversifying their menu, McDonald’s restaurants will be able to increase consumer confidence while expanding consumer base in the long run. This move will also be able to address the rising health concern emerging from poor eating habits.
In order to address the health issue, McDonald’s has begun availing alternatives for adults and children. This is a move of promoting healthy eating lifestyles. However, there is need to promote continuous expansion of these initiatives through education, society engagement, and menu diversification. After making these moves, McDonalds will be recognized as one of the companies that are responsible for the consumer health. This is a positive move towards profit maximization.
5. From the perspective of corporate social responsibility, was the choice to modify menu items ethical?
The choice to modify menu items is ethical based on the explanation provided in this section. In order for McDonald’s to respond to particular consumer needs, it had to modify its menu. This response begins by prompting safety and quality in their ingredients in order for consumers to order a variety of food that addresses their unique needs. The company serves several types of customers: old, young, sick, youths and children. These consumers seek unique satisfaction in McDonald’s menu. Hence, this challenges the company to venture on research in order to avail various foods. Availing menu of choice is also a way of showing respect to individual needs while acknowledging that consumer demands are undergoing evolution.
In each target nation, McDonald’s ensures that the developed menu can fit with the cultural and consumption needs of consumers. This is why the company emerged successful in countries such as China and India where other competitors have been unable to thrive. To emerge successful in this distinctive customer target approach, McDonalds ensures that it researcher on the food requirements of various consumers in each targeted country. Afterwards, it embarks on promoting high quality in the delivered products. Through incorporation of CSR strategy, McDonalds has been able to identify unique consumer needs within various regions while developing and modifying menu in a way that fits their particular requirements.
The company proceeds to promote healthy dietary foods that are beneficial to their consumers. According to studies, fast foods have unhealthy outcomes. Yet, McDonalds goes against these findings by ensuring that the availed fast foods are free from fat, cholesterol and other elements that are destructive to human health.
The company goes ahead to incorporate qualified nutritionists that are friendly to consumers issues, and well aware of common issues associated with unhealthy diets. As it modifies is menu, it eliminates the foods that have spoiled its reputation as one of the companies contributing to obesity in America. Nutritionists also conduct public education forums with an aim of informing consumers to make appropriate decisions on what they eat. In modern America, consumer eating habits are strongly influenced by nutritional advice provided by nutritionists from McDonalds.
Reference
Inside McDonald’s Empire. Available at Youtube at: http://www.youtube.com/watch?v=MNtludttRh8
