Almost all people, especially the adolescent group, have a great liking for burgers. Now when we talk of burgers, the most popular brand which comes to our mind is McDonald’s. It is a brand that has been serving mouth-watering and tasty burgers for quite several years now. Though the business of Mcdonald’s was hitting a downfall in the past few years, it has gained back momentum again and is flourishing at a lovely pace these days.
Here is a STEEPLE analysis of McDonald’s which is a tool of strategic planning and is helpful while performing strategic positioning of the brand in the market. STEEPLE analysis involves Social, Technological, Environmental, Economic, Political, Legal and Ethical factors that influence a brand’s performance. Let us have a look into those details-
- Social factors: Social factors are important because there are social trends, changing lifestyle and other factors that directly influence a brand’s performance. With changing lifestyles, the drive sales rise or fall. These days, consumers are health conscious and hence they desire their favorite brands to have menus that would suit their preferences. The present menu list of McDonald’s consists of many high-fat foods that are not being appreciated by consumers and hence they need to focus on revising their menu.
- Technological factors: None of us is unaware of the importance of technology in flourishing a business. It can amplify business to the next level. Advertising, marketing, sales and customer service- all involve the utilization of technology. Online orders and online payments in McDonald’s are constantly being handled at the stores and social media is a mode of publicity of this burger brand to people.
- Environmental factors: Environmental protection and sustainability are topics of concern these days. It is not a trend but a matter that needs long-term focus. McDonald’s makes use of the items and frame policies which are eco-friendly.
- Economic factors: This factor needs to be taken into consideration while operating on a global level. Since McDonald’s is a brand that runs on a global level, it faced a lot of ups and downs a few years back due to recession. But nowadays, it has become economically stable and the performance of the brand has also improved.
- Political factors: The government plays a great and important role in the performance of any brand and so McDonald’s is also not an exception. It involves regulations of trade and tax-related matters. In countries where the government is highly influential, it becomes very difficult for a brand like McDonald’s to flourish.
- Legal factors: Law also poses a certain extent of the impact on the business of McDonald’s all over the world. In many nations bureaucracy and red tape makes it difficult for the business to operate properly. Compliance often stands as an interfering factor and so in many countries, the brand cannot flourish its business.
- Ethical factors: This involves a wide range of social values that influences a business. Such values create a ground for McDonald’s in deciding what is right and what is wrong.
Thus, we can conclude that there are many sides of a business that must be considered to make it reach great heights of success. It can be said with confidence that without withstanding the trends of global turmoil, a stable economy and several technological advancements can lead to the emergence of McDonald’s as the leading name in the fraternity of fast-food brands.