All this results to people tends to spend lesser and more careful on their spending. Corporate companies here in Singapore are tightening their budgets; hence there will be less company event will in term result to an opportunity loss for the food and event industries. This will definitely impact the business of the fast food company like McDonald’s. Exchange rates also play a part as fast food chain like McDonald’s tend to import much of their raw materials for their business. All this economic factors plays a part in the operation and management of McDonald’s.
Essay Example on Mcdonald’s Business Environment
Social Factors Singapore is facing an aging population and the annual growth is on the rise. The old age support ratio for person age 20-64 years per elderly aged 65 years and over is falling every year. (Department of Statistics Singapore, 2012) It will probably be harder for fast food employer like McDonald’s to hire young workers as the fast food industry tend to employ young people to reflect their dynamics. The social trend is also changing; there is an increase trend towards consumption of more processed food and the use of western style fast food restaurants.
Technological Factors McDonald’s generates a demand for their own products and the company key tool for marketing is by means of television advertisements. There are some claims that McDonald’s are inclined to interest the younger populations more with the existence of play spots as well as toys for happy meals and id’s meal offered by the company. And since drive-thru service represents a huge portion of corporate sales for many chains, the focus is primarily on the use of technology to assemble orders, collect payment, and deliver food by delivery service.
Being able to offer their product 24 hours a day is also a key point for them on the capture of market share. Not forgetting their online order system which enables customers to place order and get them delivered to them in a very convenient way. The improvements of machines for handling of foods increase the productivity and shorten the waiting time of the customer. All this technological edge enable the fast food chain McDonald to stay ahead as the leader in the fast food industry in Singapore.
Conclusion The brand name McDonald’s in Singapore is a well establish brand name and have a worldwide representation of restaurant all around the world. Their marketing and sales strategies are well structure and their target population are well work out on family oriented. As Singapore is a fast paced environment and working adults will have minimum time to spend with their children and McDonald’s had targeted this group by doing many promotion for family outing and dining at their restaurant on weekends. We will need to understand the need of Singapore and cater to our multi-racial society.