Macroeconomics: McDonald’s Challenges in 2012 Essay

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McDonald’s experienced global economic challenges in 2012. In this regard, consumers reduced their expenditure, especially on fast food commodities. McDonald’s challenge in conforming to evolving consumer taste and preference is critical. This can be attributed to the evolving industrial practices associated with food and nutrition. The number of competitors in the fast-food industry is growing each day. McDonald’s competition threat originates from grocery stores selling prepared meals. Consumer behaviors about the nutritional value of the fast-foods have been a global concern. In recent times, consumer education on food-related issues focuses on reducing fast-food consumption. Therefore, this hurts McDonald’s reputation as a global fast-food business.

Why was the company hoping that the demand for its products was elastic?

McDonald’s was hoping that a price change in its Dollar Menu strategy would increase demand for its products. The price demand elasticity strategy was a tactic to increase McDonald’s market share. However, the strategy did not work effectively for the franchise.

The Federal Reserve maintains low-interest rates as a tactical measure to stabilize the economy. The Federal Reserve maintains low-interest rates to ensure the country’s financial system supports employment. Besides, low-interest rates are critical in stabilizing prices of essential assets such as stock and properties.

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IvyPanda. "Macroeconomics: McDonald's Challenges in 2012." April 24, 2021. https://ivypanda.com/essays/macroeconomics-mcdonalds-challenges-in-2012/.

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