The macro- environment is an extremely influential factor when considering change dynamics within any company. Because of this, it is important that each company learns to adapt to any external changes in the macro- environment that become apparent. To do this companies must be aware of factors such as political, economic, social and cultural and technological that may influence their business and their internal processes. For McDonalds, these four factors are significantly influential. The correct way of dealing with the effects of these factors will ensure McDonald’s success both in the short term and long term.

There are many political factors that have the potential to influence McDonald’s in the near future. One of the main things that can be influential is unemployment levels. McDonald’s currently help Australia’s high unemployment rate by providing people with jobs who may not have been given the opportunity to work otherwise. These people may or may not have disabilities, but do however have little experience and qualifications if any. This affects the unemployment rate in Australia as McDonald’s aim to give people opportunities to further their careers (Gould, 2010). For McDonald’s, Australia having a high unemployment rate would mean that more people would be applying and they would have a larger pool of people to choose from when hiring. This would in turn cause the quality of employees to rise within the company which can only improve McDonald’s as a whole (Gould, 2010).

Changes in policies and regulations also play a major part in the internal processes of McDonalds. For example, there are food standards of level of quality and cleanliness that McDonalds needs to meet. This ensures product quality and safety while ensuring consumers that what they are buying is safe. This would be a great point of advertising for McDonalds.

Economic factors within the hospitality industry have the potential to influence McDonald’s and their processes. Obviously their aim is to be profitable and have a large proportion of market share. Currently in America, Wendy’s are stealing McDonald’s market share by offering premium products at a higher price than McDonalds (Matthews, 2015). On the other side of the spectrum, Burger King are also stealing McDonald’s profits by offering products at a lower price. Traditionally, McDonald’s is seen as a business that offers products in the low price range and that’s how they market their products (Matthews, 2015). It is assumed that when people think of McDonald’s they think cheap and fast being a fast food restaurant.

Social and cultural factors are extremely significant to consider especially for a large growing organisation such as McDonald’s. As consumer preferences change, so too do McDonalds’ product range. It is vital to undertake market research to ensure consumer preferences are met and McDonald’s know who they are targeting their products to. It has become evident for McDonald’s in Australia recently that consumer preferences have altered. Through surveys and feedback McDonald’s workout out that consumers want better quality food and are willing to pay the extra price for a good meal (The Economist, 2015). This lead to the introduction of the new ‘Create Your Own Taste’ range. This allows customers to not only enjoy the classic favourites on the menu but also come inside for a high quality, made to order burger which can be created completely by themselves (The Economist, 2015). For McDonald’s ensuring they are up to date with social wants and needs ensures that they stay profitable by continuously changing and altering the way they operate. Another example of taking on board consumer feedback and using this information to create a culture of change is the introduction of barista made coffee through drive thru (The Journal, 2015). Through these two initiatives it is evident that McDonald’s have taken advantage of these changing consumer preferences and ensured that they remain profitable.

As the world is becoming increasingly more technologically advanced, McDonald’s are aiming to take advantage of this. With the introduction of mobile ordering, people can order easily off their mobile phones which saves time and removes any chance of possible barriers in communication (The Journal, 2015). McDonald’s understands that the use of technology can only improve their processes and as more technology becomes available they will continue to jump of any opportunity that comes their way. As previously mentioned, the introduction of the new ‘Create your own Taste’ range at McDonalds comes with many technological improvements (The Journal, 2015). McDonalds have tablets in the middle of most restaurants that make the customer ordering process more interactive while creating many internal benefits as well such as less staff are needed (The Economist, 2015). This self-serve process lets customers take their time when ordering as they get a better and clearer look at the menu available. Technology can either make or break a business. McDonalds understand the importance of keeping up with technology as times change and technology grows.

The successful running of any business is largely depended on their ability to change and the awareness of knowing when to change. External changes can have a huge impact on any business, it is however businesses that learn to influence external changes to suit their needs that succeed. A good basis of factors that businesses should be aware of are political, economic, social and cultural and technological. One of the many reasons as to why McDonald’s as a whole is so successful is because it has learnt to take advantage of any opportunities that come their way.

References:

Gould, A. (2010). Working at McDonalds: some redeeming features of McJobs. Work, Employment & Society, 24(4), 780-802. doi:10.1177/0950017010380644

Matthews, C. (2015). 3 Reason's why Wendy's is eating McDonald's lunch. Business Time. Retrieved from http://business.time.com/2014/01/23/mcdonalds-and-wendys-battle-in-fast-food-wars/

The Economist,. (2015). When the chips are down. Retrieved from http://www.economist.com/news/business/21638115-after-long-run-success-worlds-largest-fast-food-chain-flounderingand-activist

The Journal,. (2015). The McDonald’s of the Future is in Australia. Retrieved from http://www.thejournal.ie/mcdonalds-create-your-taste-2087069-May2015/