FUNDAMENTAL OF MARKETING

PROJECT REPORT

COMPANY MICRO AND MACRO ENVIRONMENT

ANALYSIS
MCDONALD
AMAZON

SUBMITED BY:

PRATIK RATHORE

(JL19FS064)
ANALYSING THE MARKETING
ENVIRONMENT(McDONALD’S AND AMAZON)
MACRO ENVIRONMENT
Macro Factor refers to the factors which effects the whole sector not only the
particular firm. Organization has no control on these factor but by analyzing them
they can reduce the negative effect.

Some Macro Factors are-:

Political Environment-They consists of laws, government agencies, and pressure

groups that influence or limit various organizations and individuals in a given
society.

Technological Environment- The technological environment is one of the fastest

changing forces in the macro-environment. Technology has released such wonders
as antibiotics, robotic surgery, Smartphone and the internet.

Economic Environment-The economic environment consists of factors that affect

consumer purchasing powers and spending patterns.

Natural Environment- It involves the physical environment and the natural

resources that are needed as inputs by marketers or that are affected by marketing
activities. At the most basic level, unexpected happenings in the physical
environment-anything from weather to natural disaster.

Demographic Environment-Demography is the study of human populations in

terms of size, density, locations, age, gender, race, occupation, and other statistics.
Demographic environment is of major interest to marketers because it involves
people, and people make up markets.

Cultural Environment-The cultural environment consists of institutions and other

forces that affect a society’s basic values, perceptions, preferences, and behaviors.
People grow up in a particular society that shape their basic beliefs and values.
MICRO ENVIRONMENT
Micro environment are those factors which a particular firm not whole industry or
sector. It consists of the forces close to the company that affect its ability to engage
and serves its customers.

Suppliers- Suppliers provide the resources needed by the company to produce its
goods and services. Supplier’s problem can seriously affect marketing. Marketing
managers must watch supply availability and cost. Any delay or shortage may cost
sales in short run and damage customer satisfaction in long run.

Competitors
Competitors are the firm that provides same market offering as your firm is
providing. The marketing concept states that, to be successful, a company must
provide greater customer value and satisfaction than its competitors do. They also
must gain strategic advantage by positioning their offering strongly against
competitors’ offering in the minds of consumers.

Customers
Customers are the most important force in the company’s micro environment. The
aim of entire value delivery network is to engage target customer and create strong
relationships with them.

ORGANISATION
The Mission, Vision, objectives, marketing, strategies etc plays a very important
role in success and working of the Organisation.
 AMAZON

INTRODUCTION

Amazon is an American multinational technology company based in Seattle,

Washington which is now a global player, focuses on e-commerce, cloud
computing, digital streaming, and artificial intelligence. It was founded by Jeff
Bezos on July 5, 1994, in Bellevue, Washington. The company initially started as an
online marketplace for books but later on expanded to sell electronics, video
games, apparel, food items, furniture, and toys. It is considered one of the Big
Four technology companies along with Google, Apple, and Facebook. It operates in
more than 15 countries and ships products to over 75 countries

Net worth of Amazon is US$113.7 billion (August 2019).

MARKET ENVIRONMENT OF AMAZON

MACRO ENVIRONMENT

POLITICAL FACTOR
Political Stable country’s give Amazon an opportunity to expand their business. In
India, government restricts Amazon to sell the products of those companies they
have equity share, which lead to decrease in sales. Government aims to provide fast
internet connections for all and connect 250,000 villages in India by 2019,This
provides a huge opportunity to Amazon to exponentially increase their customer
base which is currently restricted to major cities.100% Foreign Direct investment in
E-Commerce will helps Amazon to grow in India.

ECONOMIC FACTOR
Consumer Disposal Income is increasing which give Amazon an opportunity to
grow. Higher Consumer Disposal means consumer will go for variety of Product,
this lead Amazon to wider their Market and cover large Market Share.

Inflation Rate increases to 3.05% in May 2019 compared to 2.99% in April 2019
which is not a good indicator for Amazon because high inflation rate create
recession which lead to lower purchasing power. And this will result into decrease in
sale.

Demographic Factor
Increase in working women leads Amazon to grow in India. There is shortage of
Time, men and women both are working so Amazon gave them the convenience of
Shopping any time at any place. India contains large proportion of Youth i.e.
34.34% by 2020 which are more towards online shopping and using internet which
lead Amazon to grow in India.

Technological Advancement
Technology is the main reason behind the success of Amazon in India. Because of
Fast speed internet, Amazon is able to success in his product which need high speed
internet access such as Amazon Prime, Eco dot. Amazon is also working on new
delivery system to deliver packages to consumers using Unnamed Aerial Vehicles
also known as drones to provide fast and less time delivery. Because of Technology
Advancement Amazon is also facing problem of cyber crime. According to CJ
Rosenbaum, A Lawyer who is working for Amazon sellers said that his several
clients informed him that they were hacked and lost their monthly sales.

SOCIO-CULTURAL FACTOR
In India people belongs to different religion, culture, believes etc. So Amazon has to
take care of the sentiments of the people by not selling article which hurts their
sentiments.

Few months’ back Amazon was forced into a hasty apology for selling a doormat
contains Indian flag. There is one more controversy arisen, Picture of Lord Ganesha
on Skate board hurts sentiments of people because Skate Board is used with the feet.

So Amazon has to understand the believe and culture of the people otherwise as it
has grown very quickly in India, as this same pace it will fall.

MICRO ENVIRONMENT

COMPETITORS
The major competitors of Amazon are Flipkart, Ebay, Alibaba, Walmart etc.
Amazon has to face tough competition from these companies. So as to face the
competition Amazon provides the fast delivery for prime members and also give the
facility of wallet in form of Amazon Pay.

CUSTOMERS
Amazon has created loyal customer because of his quality product at reasonable
cost. Amazon provides customer help service in different languages and also provide
24/7 customer service. To attract customer it provide customer with heavy discounts
in Prime Day and Great Indian Sale.

EMPLOYEES
The main reason behind Amazon success is their employees who treat customers
politely. Customer service employees provide quick redressel to customer grievances
which wins customer confidence in them.

ORGANISATION
The vision of Amazon is “Earth’s most customer-centric company”, the vision of the
company helps them to set their objective and provide path to operates. Efficient
Organisation structure of the firm make the Amazon global success.
 McDONALD’S

INTRODUCTION
McDonald’s as we know is one of the most famous American fast food company
which was established in 1940 by Richard and Maurice (San Bernardino,
California) United States.

McDonald’s being one of the world largest restaurant chains by revenue; it is

performing its function in more than 100 countries in world and is serving more
than 69 million customers daily.

McDonald’s is famous for their hamburgers, French fries but they also deliver
milkshakes, ice-cream, deserts etc. As per the 2 reports published in 2018, that says
that McDonalds’s being the second largest private employer with now having 1.7
million employees
The first branch of McDonald’s that was opened in Des Plaines, Illinois in June
1955, After that in coming five years more than 200 restaurants were opened
worldwide. After making a market the company went public which helped in
doubling of their price to $50.00 in first month and which by end of 1995 there were
18000 restaurants worldwide.

After getting a brand name McDonalds signed an agreement with Walt Disney
Company in order to help each other.

MACRO ENVIRONMENT

POLITICAL FACTOR
It’s very important for Mc Donald to comply with rules and regulation regarding
Health and hygine as other restaurant follows. If they don’t obey the code of
conduct they have to shut down. Fast Food restaurants are facing pressure from
government for pumping lots of sugar and sodium in the menu. Sugar and Sodium
is directly connected to many diseases such as type 2 diabetes and hyper tension.
Consuming more of fast food lead to obesity, stroke and heart attack .As a counter
measure MC DONALD is offering new healthy things to pre existing Product. Such
as now you can add protein to their fruit smoothies. McDonalds should protect its
workers by ensuring all the hiring, compensation, training in accordance to the
Indian labour laws.

Economic Factor

Economy of the Country plays a vital role in the success of MC DONALD.They

must have to decide whether to import or buy raw materials from local Market,
which highly depend on the number of tariffs for import resources and foreign
incorporation taxes.

In 2008 MC DONALD faces financial hit from the economic recession.Disposal

Income in the economy is low, as people were struggling to find in job.

MC DONALD is well known for high turnover rate.That means they hire and lose
workers on a consistent basis. It said that MC DONALD is “always hireing” but
there is hope for locations where unemployment is high.
The rate at which the economy of the particular country grows determines the
purchasing power of the consumers in that country.Hence Franchise operates in
weak economy they have to price their offering low to survive in the market.

TECHNOLOGICAL FACTOR
Technology is getting better day by day, so to survive in the market they have to
provide better offering with the use of technology.Technology Is used by MC
DONALD to improve staff productivity, communication amongst teams, and
produce food as quickly as their customers expect.

However MC DONALD has upgraded their menus with flashy screen hanging
behind the cashier. Now customers are not required to stand in the line or near
counter to take their order, screen hanging on the ceiling shows the order number
when order get prepared, customer simply walk to the counter and take their order
when order number displayed on the screen.

MC DONALD is also active on social media. They use social media platforms for
advertisements such as Facebook and Instagram ads to attract their customers
attention with their new or returning offerings like their summer hit,the McCafe
Vanilla.Keeping POS machine and accepting online orders shows MC DONALD is
adapting Technological changes.

The improvement of the inventory system as well as its supply chain allows the
company to operate in an international context

NATURAL FACTORS
MC DONALD is the largest food retailing chain in the world has to deal with many
environment challenges. It makes significant use of packaging material, napkins,
plastic carry bags, oil, water etc.

Its operations results into generations of solid waste which harms the environment.
The firm worked over the year towards for improving the ecological soundness of its
operations.

They tied up with the Environment Defense Fund (EDF) to ease the company’s
environment burden. They use packaging material which can be recycled and has
no or less affect on the environment such as instead of Polystyrene carry bag, they
use paper carry bag.
SOCI0-CULTURAL FACTORS
MC DONALD has to work in various diversified cultural and religious
environment. Socio-Cultural Factors had affect the MC DONALDS offering. MC
DONALD offers different product in different countries.

In India majority of the people don’t eat beef, so they launch Mc nuggets and Mc
Chicken Patty instead of Beef Patty which has huge demand in other country.

It has obtained certification of Halaal food for Islamic countries like Pakistan,
Malaysia, Bangladesh. The Firms menue in Morocoo offers Milk, Cookies and Date
during the holy month of Ramadan.

By providing different products to different cultural or society according to their

belief or religion, they tackle with the socio-cultural factors.

DEMOGRAPHIC FACTORS
Demographic factors include age, gender, population, marital status, education etc.

The success behind MC DONALD in India is major proportion of young and

teenager’s population. The taste and preferences of young individuals consist Fast
Food which leads MC DONALD to become most preferred burger junction of the
country.

MICRO FACTORS

SUPPLIERS
MC DONALD today Purchase 90% of its supplies from Indian Suppliers. It imports
only Oil and Fries. There core suppliers are Amrit Foods, Cremica Industries,
Dynamix Dairies, Trikaya Agriculture and Vista Processed Foods. Distribution is
done by Radha Krishna Foodland. Supply chain is so well organized and reasonable
that it made MC DONALD to become India’s most preferred outlet of Fast Food.

STAKE HOLDERS
MC DONALD in India was a 50-50 Joint Venture with Amit Jatia’s company
Harcastle Restaurant Pvt Ltd operates in South-Western region and Vikram bakshi
Cannaught Place Restaurant Pvt Ltd operates in North-East India. Conflict
between Vikram Bakshi and MC DONALD hampers Operations in India, which
leads to temporarily shuts 169 outlets in North and East India. Due to conflict MC
DONALD order suppliers not to supply supplies to Cannaught Place
Restaurant Pvt Ltd which lead to temporarily shut down of Outlets. And MC
DONALD terminates the Franchise agreements with CPRL.

COMPETITORS
The main Competitors of MC DONALD are Burger King, KFC, and Dominos etc.
Due to dispute between MC DONALD and its Partner Burger King gets
opportunity to cover their customer and wider their Market. Due to conflict Burger
king establish its market and become the king in this sector.

CUSTOMERS

Customer is the soul of any Business; MC DONALD creates it Customer by

providing them their offering at very reasonable cost. MC DONALD is a place
to buy cheap and tasty hamburgers which help in attracting customers and
making loyal customers.
EMPLOYEES

In India MC DONALD employing variety of individuals from across different

Indian States. Women consists 25% of the workforce across Mc Donald outlets in
North and South India. Diversified employees in the organization help them to work
efficiently and attract customer of all sector of the society. Women workforce in Mc
Donald ables the organization to create confidence among women in country
regarding ethical working environment.

ORGANISATION

Mc Donald Mission is “To be our Customer’s favorite place and way to eat”.
This Mission set the goal in front of management to provide best quality place
to hang out. This ables management to work efficiently to obtain the objective
and make company of people choice. Employees of McDonald are motivated
because of their Mission which encourages to serve the customers or firm
efficiently. Organizational structure influences the firm’s growth.