The production, marketing and distribution of the food products that are exposed to governmental regulations are increasingly becoming complex day by day. Apart from the dissimilar governmental policies and regulations, certain other factors within the political context such as licensing requirements, trade as well as pricing practices and environmental factors also laid significant impact upon the operations of the company. Moreover, the increment in tariff rates comprising value added taxes also had an immediate effect upon the business operations of the company (Kellogg Company, “Risk Factors”). Economic It has been viewed that McDonald’s performs its operational functions in different regions throughout the globe.
The company fixes the prices of its products by taking into concern the economic situation of the countries where it operates. The company strategically fixes the prices of the products in order to increase its sales volume along with profit margins (Kellogg Company, “Risk Factors”). It is worth mentioning that the economic conditions of an organization depends mainly depends upon certain significant factors that include interest rates, conversion of currency and tariff rates among others. It has been observed that due to economic instability as well as disruptions in certain regions, the company is facing considerable problems that are affecting their business at large (Kellogg Company, “Risk Factors”). Socio-Cultural In the social context, McDonald’s focuses upon the approach of performing Corporate Social Responsibility (CSR) activities for promoting its business as well as delivering healthy and nutritional breakfast to millions of people especially the children.
By taking into concern the socio-cultural factors, initially, the company targeted the school children for effectively marketing its different products. But due to increased competition, the company now targets entire family members along with the children.
Thus, it can be stated that the company has intended to evolve the eating habits by a significant level (The Times 100, “Supply chain from manufacturing to shelf”). Technological In order to compete with the competitors and to enhance operational activities, Kellogg’s introduced highly featured computerized systems as an innovative technology in its several restaurants that ultimately made the company to serve its customers effectively. In this similar context, the company progressively depends upon the technological aspects for processing and storing different business related information that would help them to attain sustainable competitive position over its major business market contenders (Kellogg Company, “Risk Factors”).
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