Environmental Factors Paper: A Study of McDonald's Corporation

Essay by mike2680 January 2009

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Environmental factors have wide-reaching implications across a company's comprehensive marketing platform. Numerous areas, such as economic or social aspects, can be sensitive and must be concentrated on appropriately for marketing success. McDonald's Corporation is an international corporation that faces these challenges and issues, a number of which will be addressed in this dissertation. Additionally, the significance of technology and how it influences McDonald's marketing decisiveness will be explained. Finally, the importance of social conscientiousness and ethics will be addressed as it pertains to McDonald's.

Domestic and Global Environmental FactorsDemographic EnvironmentThe world's age is shifting. In various areas, frequently in urbanized countries such as the United States, Japan and many in Western Europe, the median age of the population is on the increase, due to slowing birth rates and longer life expectancy. In the newer, up-and-coming countries, such as those in Asia or Africa, the median age is getting younger more often than not due to higher birth rates.

These different trends necessitate different marketing approaches.

McDonald's caters to both segments of the population, domestically and globally by targeting each segment independently. It is not extraordinary to see television commercials showcasing older generations enjoying a McDonald's meal. A viewer is just as prone to see a different commercial aimed at the younger generation, characterized by progressive music or urban attractions. In McDonald's stores, patrons will see "Happy Meals" inclusive with an advertisement for the most recent Hollywood action movie as well as coffee offered to senior citizens for 49 cents.

In September 2006, McDonald's Japan, faced with operating in a country with the fastest aging inhabitants and the utmost percentage of senior citizens in the world (Statistical Handbook of Japan, 2005), has eliminated its obligatory retirement policy. While the move follows legislation approved by the Japanese administration in April of...