Macro and Micro

Environment Analysis of
McDonald’s

Presented by:-
06) ANJU GIRI
07) ANKIT JAIN
08) ANKITA SAHA
09) ARGHYA GANGULY
10) ARNAV DEY
ASSIGNED BY :-
MR. AMOL SIR
 INTRODUCTION:
McDonald’s is an American fast food restaurant chain founded in 1940 as a barbeque restaurant
operated by Richard and Maurice.

Its present headquarter is in Chicago, Illinois, USA.

It has a worth value of 22 billion dollar.

McDonald's is the world's largest restaurant chain by revenue, serving over 69 million customers
daily in more than 100 countries across the globe and approximately 38000 outlets as of 2018.

McDonald's is known for its hamburgers, they also sell cheeseburgers, chicken products, French
fries, breakfast items, soft drinks, milkshakes, wraps, and desserts.
MACRO ENVIRONMENT ANALYSIS (1/2)

Demographic: The demographic of

McDonald’s refers to all the level of
population growth, age, gender, education
patterns, family influences etc. They try to
focus on all of them.

Technological :McDonald’s predominantly

markets its items through TV commercials
and bulletins. There are cases that
McDonald’s just targets kids in their
commercials. This is clear in the TV
advertisements and the play spots and toys,
further demonstrates this reality. Other
publicizing technique that McDonald’s use is
utilizing well known big names to advance
their items.
MACRO ENVIRONMENT ANALYSIS (2/2)

Economic: The economic environment of McDonald

comprises the nature of economic system of the country, the
structural anatomy of the economy, the economic policies of
the government, the nature of factor endowment and
markets.

Cultural: McDonald’s always tries to “fit in” every country

with some unique menus. The menu is based on the
country’s cultural food and so it is in Cyprus.

Natural: Cyprus weather is very different from the other

countries. The Summer is an extremely hot season and
Cypriots prefer transportation with vehicles than walking.
PORTER FIVE FORCES MODEL OF MAC`D
 MAJOR COMPETITORS:

Brand Name Menu Market Capital

Subway Sandwiches, Salads $ 11.3 billion

Burger King Hum Burgers, Chicken $ 1.2 billion

Sandwiches, Chicken Tenders

Pizza Hut Pizza $ 25.3 billion

KFC Chicken dishes & Burgers $28.81 billion

Dominos Pizza, Pasta $ 21.2 billion

Starbucks Sandwiches, coffee, tea, $ 68.7 billion

pastries etc.

THREATS:
Its competitors are working such as KFC,
Burger King, Subway, Pizza Hut, etc for the
same population of the customers.
 Fast food companies are criticized due
to unhealthy food.
 Variation of foreign currency effect its
operation.
• Because of low pricing of competitors
the competition is highly increasing
OPPORTUNITIES:
 The company is also trying to strengthen
its position,In the high-margined
caffeine beverages industry.
Mc café which is its own Subsidiary has some
success by keeping prices very
competitive. Now the Mc Café includes
fruits
smoothies, an appeal to more healthy
consumers.
 EXPANSION PLANS: McDonald’s always try
to expand its market share by introducing
and launching very effective and healthy
products in the market so that more and
more consumers attract towards it.
 CONCLUSION:

 McDonald’s faces some difficult challenges that can only be overcome through
following ways..

1. Key to its future success will be maintaining its core strengths – an unwavering focus
on quality and consistency - while carefully experimenting with new options.

2. These innovative initiatives could include launching higher- end restaurants under new
brands that wouldn’t be saddled with McDonald’s fast food image.

3. The company could also look into expanding more aggressively abroad where the
prospects for significant growth are greater

 The company’s environment effects, should not

overshadow its marketing initiatives, which is what the
company is all about.