Investors are not used to weak financial figure of the company. Also, the company can further diversify its supply chain to address the threat of changes in climate conditions in some regions. Still, McDonalds is the king of fast food world. Thus, economic forces have a direct impact on the financial performance of the economy. Mcdonald's also uses teenagers for part time help, which opened up a larger variety of people who were allowed to work causing even more jobs to open. Political changes occurring in the Asian countries can sometimes have worse than desired impact on the performance of the international brands.
Governmental intervention can determine the rate and path of business development. Mathew DiFrisco, an analyst with Lazard Capital, highlighted the consequences of the sluggish economy in Europe and a recent slowdown in Asia. Health policies of the government too have an impact on the performance of fast food brands. Its target market is mainly made of the young people from the middle class. When you have money you go to your favorite restaurant and have a three-course dinner.
If the legal environment is relaxed, the companies do better. Located in Da Nang City, Vietnam, Keyhinge Toy Factory provides about 1, 000 jobs 90% of them are young women between the ages of 17 to 20. However, its menu might need to be updated to suit their preference. Globalization and Health, 13, 7. South African foods are mainly non-processed meats as well foods that are high in natural fibre, whereas McDonald foods are full of artificial colours and preservatives in order to ensure long shelf life.
Technology can amplify the power of any brand. Ultimately, Burger King won the case. They started charging 10 cents for each toy to be able to still give them out without changing the contents of their meals. Political Factors Influencing McDonalds: Political factors impact the performance of any brand. This is at the heart of all restaurant economics.
Compliance is an important factor. This can go towards greatly benifitting the country the taxes are paid to as they can use this massive amount of capital to better the lifestyles of people in the said country. On the other hand, changes in climate conditions in some regions threaten the company. They have also adopted new marketing strategies and channels. Since the 1970's, the fast food industry in the United States has grown at an exponential rate. It requires brands like McDonalds to have a menu that suits their preferences.
Conclusion: The global environment is full of possibilities. And every day, all around the globe, we put people, processes and practices into place to make quality food, more responsible sourcing choices, a stronger community and a better planet. This will adversely affect the prices customers pay for menu items. Since the famous McDonald's Happy Meals are such a main contributor to childhood obesity a law was passed in certain cities that prohibited fast food restaurants from handing out free toys in meals that are over 600 calories, does not contain fruits or vegetables, and includes a drink with excessive sugar. Not just this, technology is also being used in the area of research and development to grow a brand and its number of followers.
The brands like McDonalds have a huge line of fans and followers that follow it on the social media. Increasing hospitality from the staff and more delivery options for the consumers have brought them to the fast food industry in droves. They have profiles on every major social media platform and all of these accounts are well managed by professionals who understand the subtle art of damage control. When compliance becomes the bigger issue, brands find their focus shifting. In less than 50 years, this industry has evolved a great deal. McDonalds has been expanding into both rich and poor parts of the world, including South Africa. For May, the company says global sales at stores open at least 13 months rose 3.
In nations where the business environment is heavily regulated, the situation for these brands is difficult. Overtime is necessary and shifts are 9 to 10 hours a day seven days a week. Technology is just as important for McDonalds too. From the start, we've been committed to doing the right thing. When price is no longer a concern, fast food restaurants typically need to expand their offerings.