The operations of Mcdonalds are affected by government policy on the regulations such as health and hygiene policy. Governments have realized the health problem have been a major concern for everyone therefore they decided to control the marketing of fast food restaurants because of cardiovascular, and cholesterol issue and obesity among young children. Governments have also controlled the number of licenses issued to new fast food restaurants which creates a barrier of entry to potential entrants to the business. Furthermore, a good relationship with the government allows Mcdonalds to function better in the industry. It also gives both sides mutual benefits such as employment and tax which is necessary to serve in any foreign market. According …show more content…
Some economic variables that affect the organizational performance include tax rate, exchange rate and unemployment rate. Running a business in local country means the company must face government regulations on tax or profit from its operations and other tax such as entertainment and restaurant service tax. Each country has its own set of regulations on tax and Mcdonalds should follow the rules if it wants to continue its operations. (what are Canada’s tax laws on food?)
Regarding the demand side for Mcdonalds products, it is affected by the economic condition and growth of the country. For instance, the demand for Mcdonalds products will certainly decrease if the economy is bad and income per capita is affected. Furthermore, a bad economy means not many people will have the income range to consume the products like the way they did before. On the other hand the good economy means people will have higher disposable income to spend on food at fast food restaurants. (Must be specific to …show more content…
Nowadays, people are preferring to have quality services and food so they would be willing to eat at more expensive fast food outlets. In a country like Canada, people eat hamburgers and fries. Whereas in other Asian countries such as China, people prefer rice in their meal since it is considered a healthier option. Mcdonalds should meet the customers’ eating behavior according to each different country. (we’re talking about canada only)
Technological Factors
For a fast food restaurant, technology does not give a very high impact on the company. However, Mcdonalds should integrate high technology within the organization since it will improve its management and performance of productivity. Technology is used in a variety of ways which include providing wifi and internet services to the customers dining in at the restaurant. Other technologies include supply chain management system which is used to manage the supply, and provide easy payment and ordering systems for the customers. (citation) Industry