Is there any challenge faced by the American company McDonald’s on the European market? Explain
McDonald’s is facing a crisis in the European nations. The crisis involves a reduction in sales as more people in the society have altered their preferences in food. While the culture of the European people is inclined toward consuming a lot of fast foods, the products offered by McDonald’s are being viewed as outdated menus. People in the nations have particularly been looking to purchase products from the new fast food companies that seem too have better menus, which include spicy chicken and other foods that have been modernized. McDonald’s is left at a situation where it either has to change the products or compete on the basis of prices.
Identify the environmental aspects that McDonald’s needs to consider and reevaluate in the European Market
The European market is associated with the presence of a society that has a growing concern about the environmental impacts of different companies, and their respective efforts toward offsetting the negative implications on the environment. McDonald’s has done little to prove to the people that it is willing to reduce its carbon footprint and pollution levels. One of the factors that must be considered by the company is the development of a corporate responsibility program that enhances its commitment in reducing the carbon footprint associated with the supply chain, distribution, and other processes.
Additionally, the company must start focusing on enhancing the production of packaging material that is recyclable. These efforts might have a positive impact on the perception of the consumers in the European countries. By simply showing more concern about the environment, McDonald’s can effectively harness a larger market share. This implies that the consumer behavior of the Europeans is dependent on the conduct of the companies in the market.
Discuss the product and consumer related factors that McDonald’s should take into account in order to compete successfully in the European fast food sector
The market in the European nations has indicated that the consumers are more interested in products associated with the post-modern culture. Food is a cultural artifact, and the Europeans have demonstrated that their tastes and preferences in food have been changing. The majority of the people are more inclined toward consuming healthier products, whereas the rest of the society has a keen eye on the consumption of modernized foods.
Differentiation of products in fast food joints is one of the factors that attract more consumers, and since McDonald’s has always operated on a fixed menu that is dominated by burgers and fries, it has not been able to increase its market share of the recent past. Price is also a major factor in consumer behavior in Europe. It is apparent that Europeans have a high appreciation for affordable quality products because of the value adding factors.
Based on your answers to the previous questions, give specific recommendations on how McDonald’s should address its growth issues on the European market
Firstly, the company has to respond to the requirements highlighted by the consumers. Disarming the European consumers will depend on McDonald’s ability to provide an environment where the consumers have nothing to complain about the company. This implies that it should start being conscious about the environment, and it should also introduce new products in its menu. Competing with the companies in the market will only be successful if McDonald’s menu also has the popular modernized foods. Secondly, the marketing campaign will be instrumental in providing information to the consumers about the health attributes of the products at McDonald’s.
Since most Europeans are looking for fast foods with healthier qualities, the low-fat products at McDonald’s are likely to harness a larger market share. This means that even the new products in the menu must also be associated with low-fats, which calls for innovation on the part of the company.