Executive Summary
McDonald’s Company has established, managed, and enhanced its business visions in United Arab Emirates (UAE) where it sells hamburgers and other fast-food products. The company was founded in 1940s in San Bernardino, California; nonetheless, it has its headquarters in Oak Brook, Illinois (USA).
McDonald’s has grown remarkably in the past decades. This report unveils whether the company has increased the number of its customers since its establishment in UAE in the recent past (Brady 2010, P. 106). It is evident that McDonald’s has enhanced its market penetration, regional visibility, and customer services in the region.
This is based on the findings of the research executed on this matter. The research unveils that most people are satisfied with the company’s services and business prospects. Precisely, McDonald’s has increased its market share in UAE. There are internal and external environmental factors that dictate its progress within the region. Internal factors affect the company intrinsically and might influence its services to customers. Conversely, external factors affect the industry at large. Formulating research questions, objectives, designs, and the ultimate data collection, compilation, coding, and analysis have contributed to the mentioned findings with precision.
Background of the company’s internal and external environment (McDonalds UAE)
McDonald’s restaurants and fast food joints have performed tremendously in the UAE’s market as indicated by their market penetration and customers’ acceptability. It is evident that the company prepares quality products compared to its rivals in the similar market.
Nonetheless, there are various issues that emerge when the company’s background is subjected to both internal and external environmental analysis. This is an important observation since it provides the true picture of the company in the realms of business prowess and other relevant provisions.
From the data collected, it is evident that McDonald’s has grown remarkably and numerous customers are satisfied with its products and services. For example, an average (mean) rating of 3.62 out of the possible 5 (according to the research stipulations provided) is commendable.
It shows that the company is above the neutral gauges. This indicates that McDonald’s is performing well in the UAE’s market since its commencement in the Arab world. The respondents to the designed research indicated their satisfaction with the company.
Internal environmental factors relate to the conditions inside the organization. The company has established and embraced substantial internal environmental factors in the realms of competitive products, suitable pricing, profitability, customer services, innovation, novelty, and considerable business cultures among others (Hammond 2005, p. 276). On products, McDonald’s is branded with delicious hamburgers.
However, the company has internally diversified its products in order to respond to the dynamic/changing market demands. This is to ensure that the company remains relevant and competitive in the UAE’s market. Evidently, McDonald’s has increased its number of customers in the past few years due to the diversification of its commodities and services in order to serve customers’ vast interests. This has contributed to the success of the company with precision.
Other products that the company offers in its outlets incorporate cheeseburgers, French fries, soft drinks, and desserts among other viable fast-food products in the UAE market. This diversification has allowed McDonald’s restaurants and fast food joints to gain considerable eminence, competitiveness, and market share.
The provided research findings indicate the customers’ positive response to the McDonald’s commodities and service provisions as indicated earlier. The company has progressed considerably in the recent past. It has a considerable market divide and enjoys a massive marketplace presence and regional visibility with respect to UAE.
Another considerable internal factor in the realms of environmental analysis is the pricing strategy that the company uses in order to remain competitive in the UAE’s market. McDonald’s has established competitive prices for its commodities. This has allowed the company to compete favourably in the UAE’s market as indicated earlier.
Internally, the company has established and embraced viable pricing strategy for its hamburgers and other products within its outlets. This relates to what customers want and to what value and quantity. Consequently, there is a considerable marketing strategy that McDonald’s assumes in its business endeavours.
This is an important provision in the entire marketing and business contexts. Additionally, its ability to respond to other market demands indicates the flexibility of the business in the UAE’s market.
This occurs regardless of the stringent Muslim cultures in the region. Having studied the market, McDonald’s has ratified other business provisions to grasp and retain substantial quantity of clients. This indicates how the business is focused and endeavours to serve its Arab customers with delight. Evidently, this is a considerable provision in the business realms.
Another internal factor in this context is the brand name of the company and its adaptability into the UAE market. It is important to recognize that McDonald’s has a considerable brand name having served several customers globally with quality fast-food products since its inception in US (in 1940).
This has acted as a considerable strength for the company in the realms of business and expansion. Brand name helps businesses to grow faster since customers admire associating themselves with the prosperous brands. It is from this context that McDonald’s has managed to survive and grow remarkably in the UAE market despite the cultural challenges.
This has related to the aspects of adaptability assumed in this context. McDonald’s can easily adapt in a given market due to its novel products and other associated business cultures. It has strategic business position with substantial market segments for its commodities. This has allowed the organization to survive considerably in various markets globally.
The company equally strives to cut costs, attain quality, and enhance its profitability. This is a considerable internal provision when scrutinized critically. It is from this context that the whole marketing prospects for McDonald’s lie (Oxford Business Group 2007, P. 211). Additionally, the ability of McDonald’s to reduce its operational costs is helpful in managing the pricing strategies enacted by the company.
This forms the background of the company’s internal and external environment indicated earlier. Since the company deals in food products, the aspects of quality, reliability, taste maintenance, sanitation, and healthy living have been internal considerations of McDonald’s in order to remain competitive in the UAE market.
This provision conforms to the noticed increment in customer reception and expansion of the business in the Arab market since its establishment in the region. It is important to consider these provisions in the business context for any organization to remain competitive in the desired market.
This provision has allowed McDonald’s to enjoy a considerable market share and business opportunity in the Arab market as evident in the research findings provided. Additionally, the nature of the company’s employees, customers, and service provisions equally contribute to the background of McDonald’s internal environment.
The way the company intends to attend to its clients is important in this context. McDonald’s has established and embraced customer-focused services to its diversified clients. This has allowed it to capture and retain most of its clients in the Arab market and beyond. In addition, the company has increased the number of its customers in UAE due to these internal business provisions. It has also managed to enhance its market presence due to novelty and other business strategies applicable in UAE’s market.
Concurrently, the external environment in this context refers to factors that are outside the organization. They constitute opportunities and threats that engulf the company and its industry in the realms of business. These factors contribute to the background of the company when considered critically. It is from this perspective that the whole business prospects lie.
Factors considerable in this context range from social issues to technological aspects within the industry and beyond (Walker & Butler 2010, P. 110). Nonetheless, McDonald’s has managed to survive in the fast-food industry despite the challenges fronted by the external environmental factors.
Conventionally, every business has its specific external environmental factors that dictate the survival of the business. UAE is inclusive in this context. McDonald’s has managed to break such business barriers with precision in order to survive in the UAE’s market. Cultural and social challenges are other prominent external factors in the McDonald’s business background with respect to UAE. Nonetheless, the company has increased the number of its customers as evident from the research findings provided.
Stringent competition is another considerable external factor in this context. The company has managed to survive considerably amidst stern competition from both local and international firms operating in UAE and beyond. Precisely, competition is a substantial environmental factor that businesses must consider in order to operate appropriately and successfully.
Additionally, economic aspects of the region have contributed to the external forces that affect McDonald’s in the realms of business and other vital operations. The recent global economic crisis has played critical roles in formulating an external background for the company. Economic challenges affect the buying trends of customers and other associated factors.
This eventually affects the company’s sales, growth, and profitability. Additionally, political and cultural background of the region has also contributed to the mentioned business prospects. As an external environmental factor, political issues affect the business in the realms of policies, operational legislations, political instability, and other relevant factors that can affect the company adversely.
The aspects of technology embracement and ratification in the business are other considerable external factors, which can affect the company negatively if not considered critically. Using technology in transactions, communication, and booking of services has proved quite lucrative in various contexts.
It is the mandate to the company to ensure that its business prospects conform to the demands of technology. Precisely, these factors have contributed to the background of the company’s internal and external environment with regard to UAE.
Marketing Research question for consumer research
Research questions are important in probing respondents to provide the demanded information (with precision) for subsequent analysis. Since this report endeavoured to find out whether McDonald’s has increased its number of customers in UAE within past a few a years, it is agreeable the business has grown tremendously in its operations despite the challenges. From this context, the research question endeavours to unveil how McDonald’s has progressed in UAE (Peng 2011, P. 41).
In the business framework, it is important to ask whether McDonald’s is performing as expected in the entire context. The research inquires how people perceive McDonald’s in the market. The questions also ask why such trends happen. It is from this milieu that the entire business provisions with respect to external factors mentioned earlier emerge.
ccording to the findings provided, the research questions inquired from the respondents whether they perceive the McDonald’s as very convenient, convenient, neutral, inconvenient, or very inconvenient in the realms of business and customer focus.
Since respondents are allowed to choose only one choice based on his or her genuine experience with the business, indisputable answers can be attained from the respondents. These questions have managed to attain important data for analysis on whether McDonald’s has increased its number of clients in the UAE market within the recent few years. Precisely, the research revolves around how clients and other relevant prospects perceive McDonald’s with regard to its expansion in the UAE market.
Research Design of McDonald’s
In order to unveil whether McDonald’s has enhanced the number of its clients in the UAE market or not, a viable research design was involved to accomplish the research objectives. Precisely, the research design initially formulated problem statement followed by research objectives and consequently research questions (Kumar 2005, P. 44).
, the research design incorporated the aspects of literature review regarding the organization’s business aspects with reference to UAE (since it ventured into the Arab market). The literature review on the matter was to provide a viable synopsis of the matter from the business point of view. Concurrently, data collection method included the use of questionnaires with stipulated questions to be answered. The respondents were grouped demographically based on ages.
Each age group was assigned a code namely 1,2,3,4, and 5 denoting age groups of 18-23, 24-29, 30-35, 36-40, and 40+ respectively. It is important to establish appropriate questionnaires in order to attain the required information for further analysis. The questions given to clients probed whether McDonald’s has attained any remarkable market share, presence, and visibility within UAE. 120 respondents (from both sexes) were used to respond to the deigned questionnaires.
The targeted answers incorporated “very convenient, convenient, neutral, inconvenient, and very inconvenient”. Very convenient provision in the questionnaires scores the highest (5) while very inconvenient scores the least (1). After collection of the required data, there is data compilation, coding (designating numbers to respective answers) and analysis.
Data analysis, Findings, Recommendations
Analysis of the provided data reveals a lot on whether McDonald’s has attained any considerable market share in the UAE market. Since the study involved same number of males and females (60 respondents each), it was possible to attain a fair perception of clients with regard to McDonald’s prosperity.
Because respondents’ perceptions of the business were graded as either very inconvenient, inconvenient, neutral, convenient, and very convenient, only 5 of the 120 individuals rated McDonald’s as very inconvenient against 24 respondents who rated it as very convenient. This indicates that the business has prospered remarkably in the UAE marketplace. Additionally, the data collected has a mode of 4 (convenient) against the possible 5 (very convenient).
This demonstrates that the business is already thriving in the UAE’s market as indicated before. This claim is supported by a mean/average of 3.62, which when rounded off, comes to 4 (convenient). Evidently, this indicates that McDonald’s has increased the number of its clients prospectively since it ventured into the UAE’s market a few years ago.
This is important in various aspects especially to the growth of the business. Upon analysis, a standard deviation of 1.07 and a variance of 1.15 indicate some positivity towards McDonald’s prevalence in the Arab market. A standard deviation of above 1 means that respondents have varying opinions on the issue investigated. Nonetheless, the majority still view McDonald’s as convenient within the UAE’s market. This is quite important in various aspects.
This also relates to the standard deviation’s mean of 0.29598 as evident from the data. Additionally, it is important to note that men viewed McDonald’s more positively than women. This indicates that the business has grasped clients from both sexes. Concurrently, the business had a positive response from individuals aged 18-23.
This group forms the major market segment of McDonald’s in UAE. On recommendations, McDonald’s should enhance its marketing strategies and business endeavours in order to capture more customers and remain relevant in the market.
Limitations
There are various limitations that arise with respect to this report. The research was not comprehensive enough to uncover the respondents’ perception on various products offered by the company apart from the known hamburgers. Additionally, the sample size could have been expanded in order to give a precise inference and conclusion on the matter. 120 individuals are not enough to execute such a crucial and vast marketing research.
Reference List
Brady, D 2010, Essentials of international marketing, M.E. Sharpe, New York, US.
Hammond, A 2005, Pop culture Arab world! : Media, arts, and lifestyle, ABC-CLIO, California, US.
Kumar, R 2005, Research Methodology: A Step-by-Step Guide for Beginners, SAGE, London, UK.
Oxford Business Group 2007, The Report: Dubai 2007, Oxford Business Group, London, UK
Peng, M 2011, Global business, Cengage South Western, Ohio, US.
Walker, J & Butler, S 2010, Oman, UAE and the Arabian Peninsula, Lonely Planet Publications, London, UK.