Competition is one environmental factor that has great impact to McDonald’s operations. It is worth noting that many companies have entered the fast food industry posing a great challenge to the existing companies such as McDonalds. Some of the company’s key competitors include Taco Bell, Subway, Burger King and Wendy’s. Currently, these companies are outperforming McDonalds regarding stock. Besides, their market share is growing slowly with time thus proving threat on McDonald’s ability to compete in the market in the future (Marne et al 2).
The social environment is another factor that has a great impact on the company’s future competitiveness in the market. The consumer needs are changing with time and as per the moment; many customers have become healthy conscious. They require those foods that do not have health issues on their bodies. For instance, many of the U.S. customers need foods with low fat and sugar content to suppress obesity which has become a concern to many. Strict measures are from the government under the Protection, and Affordable care is also pressing the business very much. This is a great challenge to McDonalds that has been subject to the provision of unhealthy foods that have led to obesity. If the company does not rectify such mistakes, then it may lose its customers to its competitors (Marne et al 3).
Environmental issues are another external factor that may have a great impact on the operation of McDonalds. The company operates in various regions and offers products that have a great impact on the environment. Carry bags, oil, energy, power, and beef, are some of the environmental pollutants that the company faces. For instance, the beef practicing by the company has led to deforestation something that has influenced rain negatively. On the other hand, the beef cattle reared by the company are polluting the environment via emission of methane something that affects its social responsibility negatively. Commitment towards the environmental issues is key in promoting the social responsibility thus enhancing competitiveness in the market. If the company fails to consider and conserve the environment will lower its competitiveness in the market.
Legal factors are another external environment that has a great impact on the other operation of McDonald’s Company. In fact, the food industry today is highly regulated to ensure that consumers get the healthy foods which do not have effects to them. An outstanding example is the patient’s safety and sale of goods act which calls for the food processing companies to deliver quality and healthy foods to their consumers to ensure success in the market. McDonalds is therefore obliged to focus such provisions to ensure that it remains competitive in the food industry. The only way through which the company will be able to survive in the market is by ensuring compliance with such provisions.
Finally, technology environment is another external factor that a great influence on the future competitiveness of McDonald’s Company. Technology is rapidly changing every day posing a great challenge to companies that do not consider such changes. The consumer needs are still changing on change in technology. Therefore, they impel business to foster changes in technology to promote its competitiveness in the market. In fact, it is important for the company to utilize technology in coming up with unique products that are competitive in the fast food industry. Besides, McDonalds should focus on ensuring that it uses technology in its operations as a way of enhancing efficiency as well as promoting the performance of the company.
Works Cited
Marne, Arthaud, Frank, Rothaermel and Justin, Collins. McDonald’s (in 2013): How to win again. McGraw Hill Education.
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