Pest Analysis of Mcdonald

MKT 204 Principle of Marketing 2 Individual Assignment warm nutrient industry Swot Analysis Name Ting Ze Kai ID I11008551 particle 5K1 Lecturer Mr CHEAH SIN CHYE Table of Contents Company Background 3 PEST Analysis 4-9 4Ps St commitgies 10-11 References 12-13 Appendix 14 Company Background McDonald is a largest chain of hamburger fast food for thought restaurants in the world. Approximately 68 million customers in 119 countries daily are served. The birth of McDonald began with Raymond Albert Kroc.He found dickens br another(prenominal)s (Richard and Maurice McDonald) who run a hamburger restaurant and acquired the franchising right from them to run McDonalds restaurant. In 1955, McDonalds Corporation was founded by Ray Kroc and opened the initial restaurant in Des Plaines, Illinois. In 1980, GOLDEN ARHCES RESTAURANTS SDN BHD take hold ofs the license to wreak McDonalds restaurant in Malaysia from McDonalds Corporation USA in 1980. The first restaurant McDonalds Malaysia ope ned at Jalan Bukit Bintang, Kuala Lumpur. Now, it has more(prenominal)(prenominal) than two hundred restaurants operated in Malaysia. PEST Analysis- McDonaldPolitical * Raising retirement maturate * Healthy complete * Taxation Economic * Exchange currencies * Economic growth * Interest rate Social * Seek to crack look * engineering science with teenagers Technology * Online advertise * Mobile CRM * New technology Political Raising retirement age correspond to the V. SHANKAR GANESH and EUNICE AU (2012), they stated that the retirement age for the public orbit has already been raised to 60 by government. It terminate be a huge impact for the participation. Normally, go up with paid gritty salary for the white-haired players which contain extravagantly skill and experience.For saving approach, company will promote new histrion which paid low salary to cover worker near retirement age. But, the retirement age has been change magnitude and old worker still with racy salary. It will lead the cost of labour increase to the company. Healthy Issue According to the Audrey Edwards (2012), he stated that 35 major(ip) food and beverage(F&B) producer and fast food has been asked by the government to impose the sugar and salt content in their crossway. It implies government will kickoff to enhance the standard of requirement of the food and request fast food company emphasis on more bouncing food.Therefore company should adjustment the standard of their food to reach the government requirement. It might affect the try protrude of their inter bittion point and losing their customers. Taxation Prime Minister Dato Seri Najib in Budget 2012 announced liberty fee is now levy deductible in Malaysia. Those fees for franchise air they paid are allowable for tax deduction (NBC, 2011). It is great intelligence for those franchise companies. Normally, a rise in corporation tax has the same effect as increase cost. Company will breathe some of thi s tax on to consumer with higher price.Whereas, franchise business spate use those fees they paid to deduce the tax from company. Therefore, the cost will be decrease and they grass allow for more value meal for their customer. Furthermore, they ware more capital to find a new food market much(prenominal)(prenominal) as hot drinks market, healthy food market and so on Economic Exchange currencies According to the The tip (2012), it mentioned that the ringgit climbed 3. 7% to 3. 0598, the biggest bring in since the terce quarter of 2010. A head of treasury at Bangkok trust Bhd said that the currency is on a strengthening trend and could screen 3. 3 to the dollar in the near term (The Star, 2012). It heart that the alternate currency maintains at the high level and it will be change magnitude in the following. McDonald always imports most of its raw material such as squawk and potatoes due to local market raftnot supply in immense to take care the demand of its prod ucts. Therefore, the strengthening of ringgit progress tos company cost of purchase decrease. Then, company is able to lower their product price and diversify their promotion tools to post more value meal to attract customer.Economic growth According to The Star (2012), it mentioned that Malaysias economic growth awaits hearty and is at a comfortable level when compared with that of the global economy and the central bank has project the Malaysian economy would grow at a steady 4%-5% this year anchored by resilient domestic demand. As the food approximately above normal foods, not many people will defecate the income outrank to consume the products. Moreover If the economy is bad and their income is affected, the demand of McDonald product will certainly going down.But Malaysias economic remains strong means Malaysian have more fluid income and they dissolve overtake more and more expensive food at fast food restaurant. Interest rate Malaysian busy rates currently at thr ee per cent have remained accommodative (The Star, 2012). It could be a sober for the company. Businesses often need to take out short term bestow to make up for shortfall in expenses, so higher interest rate makes such shortfalls more costly, since the business will have to more interest back to lenders. Company also frequently take out longer term debt for improvement and infrastructure.The higher interest rate, they should face more costly on their debt. Therefore, they should lower their cost of production by apply different way and strengthen their marketing strategies to gain more usefulness to overcome. Social Seek to better tint Malaysian quality of vivification history index increased from 100 points for the base year 2000 to 111. 9 points in 2010 (The Star, 2012). When their quality of life is improved, they have higher expectation. They will start to fate have quality in services and more conveniences that asshole differentiate one restaurant from another.All the se needs should be considered by the company. If company havent noticed it yet, it will be difficult to gain competitive advantage in the market. Technology with teenagers According to the Joy lee(prenominal) (2012), he mentioned that technology has no doubt brought about the luxury of convenience. Nowadays, level(p) a toddler or kid is in tune with technology. It means that technology is changing the life style. Teenagers want technology in their life and facilities such as credit card payment, wireless mesh and other attraction for their hangout and eating.So all these need should be considered by McDonald Company. Technology Online publicizing During the height of the tech boom, online business is getting normal nowadays. It brings agreeable to the customer and company. According to the Jack Komperday (2003), McDonalds sat on the internet advertising side lines. This will get closer with their target market because teenagers get in touch with technology more. Compare with TV advertising, online advertising is more effective and cheaper. Furthermore, company are easier to spread their new products and news through their official website such as www.Mcdonal. com. my. Customer also shag take order easily through their official websites. Mobile CRM According to the Chantal Tode (2012), Mcdonalds will introduce a mobile CRM program with the design of rewarding customer and driving loyalty. The program involves use the Mowingo mobile performance to notify customer about regional promotions and lay in-specific coupons that are exclusive to the app and the store issuing them such as they can get a dislodge coffee or other through the app (Chantal Tode, 2012). This will lead cost saving for the company and attract more customers. New TechnologyTimes have changed and evolution of technology in the fast food industry is picking up the pace. According to the Kerry Pipes (n. d. ), touch-screen kiosks and self-checkout lanes will happen in fast food restaura nts such as McDonald, Burger King and so on. These contactless payment kiosks often included colourful, airy touch-screen menus that give customer the option to browse through the entire menu, produce their order, and then pay with cash a credit card Kerry Pipes (n. d. ). It is very(prenominal) fantastic system for McDonald which is a fast food industry provide fast services.They give customer more freedom and convenient. It will increase the speed of service and ease long lines. Company also can cut their labour costs due to the machine has replaced labour work. 4P Strategies moot with issue Product For dealing the health issue, company can come up new menu with healthy food. McDonalds specialise product is burger so they can come out a healthy hamburger, chip in salad and fruit with circle meal or organic food. It will meet the requirement from government and open new market to attract healthy conscious customer.Furthermore, Malaysias economic is growing, Malaysian has more steady and disposable income and they will choose more expensive and quality food to run into them. Therefore, McDonald can adapt better raw material to produce products with high price and high quality such as triple burger, high quality beef burger and so on to satisfy customers taste. Price In marketing mix, price is very important for a product. Due to the franchise fee is now tax deduction in Malaysia, McDonald are able to use more pricing strategies to position their products such as promotion price, value price, price skimming.But for the vegetarian burger and high quality beef burger, company can use pricing skimming method to set initial high price with them into market because they adapt high quality and healthy material to make it and then slowly lowers the price to make the product available to a wider market. It will position the healthy burger with high price high quality in peoples mind. In addition, exchange currencies issues bring the cost of production decrease an d hence they can earn more profit. Promotion For the new launching of product, company can advertise new product with bar code.Customer scan the barcode with their smartphone, they can get free drinks with new product. Online advertising is getting normal nowadays. Therefore, company can use various form of online marketing techniques such as waft advertisements, videos or accessible medial to promote their product. In addition, McDonald, social liable company so they can expand their online advertising related with social responsible. It can build a positive image in the market. Furthermore, using CRM program maintains customer relationship and loyalty.McDonald has opportunity cooperate with mobile cooperation to wider their range of customers such as customer will get free coupons when they purchase certain brands mobile. Place Malaysians are starting to seek to better quality now. McDonald should increase their outlets nearby work place, bus station, and airport. Furthermore, they should increase their location of acquit service and provide training for their employee to build a faster and better service for their customer. For the new launching product such as high quality beef burger, they initially can only available few outlets which located upper middle class area.References * V. SHANKAR GANESH and EUNICE AU, 2012. Raising retirement age. getable at http//www. nst. com. my/top-news/raising-retirement-age-1. 94353. Accessed on 19 June 2012 * Audery Edwards, 2012. Passion for food feeds disease. visible(prenominal) at http//thestar. com. my/news/story. asp? file=/2012/4/15/nation/11069279& irregular=nation. Accessed on 19 June 2012 * The Star, 2012. Asian currencies complete quarterly gain. operable at http//thestar. com. my/news/story. asp? file=/2012/4/15/nation/11069279&sec=nation Accessed on 19 June 2012 * The Star, 2012.Minister Economic growth stays strong. Available at http//biz. thestar. com. my/news/story. asp? file=/2012/3/26/business/10 986390&sec=business Accessed on 19 June 2012 * The Star, 2012. Interest rates remain accommodative. Available at http//biz. thestar. com. my/news/story. asp? file=/2012/3/21/business/20120321195459&sec=business Accessed on 19 June 2012 * Joy Lee, 2012. instantlys toddlers and kids are in tune with technology. Available at http//thestar. com. my/ electron tube/story. asp? file=%2F2012%2F6%2F2%2Fcentral%2F11395408&sec=central.T8nYyO-wHmE. facebook Accessed on 19 June 2012 * The Star, 2012. bill shows better quality of life in 2000-2010. Available at http//thestar. com. my/news/story. asp? file=/2012/6/11/nation/20120611220429&sec=nation. Accessed on 19 June 2012 * Tan Cheng Li, 2012. Malaysians do their part to protect the environment. Available at http//thestar. com. my/lifestyle/story. asp? file=/2011/4/22/lifefocus/8485754&sec=lifefocus. Accessed on 19 June 2012 * NBC, 2012. Franchisee fee is now tax deductible in Malaysia.Available at http//www. nbc. com. my/blog/franchise-fee-t ax-deductible-in-malaysia/. Accessed on 19 June 2012 * Jack Komperda, 2003. Buying Time Online. Available at http//www. usnews. com/usnews/culture/articles/031006/6ads. htm. Accessed on 19 June 2012 * Chantal Tode, 2012. Mcdonalds bites into mobile CRM at over 500 locations this summer. Available at http//www. mobilecommercedaily. com/2012/05/18/mcdonald%E2%80%99s-bites-into-mobile-crm-at-over-500-locations-this-summer. Accessed on 19 June 2012 Appendix