Environmental Factors Essay

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Environmental Factors MKT/421 Environmental Factors Environmental factors can influence and effect the way an organizations make marketing decisions locally, nationally, and globally. McDonald’s is one of the many organizations that has years of experience in the global market and has developed their marketing plans based on environmental factors such as economic interdependence, trade practices, and culture differences etc. “In 1965 McDonald's went public and today is the leading global foodservice retailer with more than 30,000 restaurants, located in more than 100 countries” (Daszkowski, 2012). Throughout this paper, various types of environmental factors and how these factors influence and effect marketing decisions for McDonald’s will be discussed. Global Economic Interdependence Global economic interdependence is a “Characteristic of a society or macro-economy with a high degree of division of labor, where people depend on other people to produce most of the goods and services required to sustain life and living” (Economic Interdependence, n.d.). In McDonald’s particular case, their business growth in the U.S. as forced the organization to look at other avenues to purchase beef because of the shortage in lean beef in the U.S. According to (Kilman, 2004), “About 20% of the beef used by McDonald's Corporation restaurants in the U.S. now is from foreign cattle. A McDonald's spokeswoman said a shortage of lean beef in the U.S. is forcing the company's hamburger suppliers to turn to cattle from Australia and New Zealand” (para. 23). McDonald’s has definitely noticed the need to rely on other counties to produce beef in order to keep up with their customer demands. Effect of Trade Practices and Agreements The effect of trade practices and agreements with McDonald’s and other countries is currently taking place between Australia and New Zealand.
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