Economic Analysis

1. Compare and contrast McDonald's strategies in China with those of Wal-Mart in Mexico.

All businesses function within an environment which directly or indirectly affects the way they function. The environmental forces are not controlled by marketers. Marketers can control how they deal with those uncontrollable forces by identifying and monitoring those forces that are relevant to their firms. They must also forecast changes in these forces if they are to develop effective marketing plans and strategies. McDonalds has introduced itself in the Chinese market to become the world's largest and best fast-food chain. The largest retail chain, Wal-mart has expanded its business in Mexico as an international expansion. Both Wal-mart and McDonalds are famous for international expansion. All organizations operate within all profit and non-profit organizations surrounded by external forces. These forces affect customers' development of effective marketing mixes.

For both McDonald's in China and Wal-Mart in Mexico, the macroeconomic factors influence the microeconomic factors. For McDonald's, as China began to develop economically, macroeconomic factors improved. McDonald's in China and Wal-Mart in Mexico, the macroeconomic factors influence the microeconomic factors. For McDonald's, as China began to expand economically, macroeconomic factors improved. In the fourth quarter of 2007, China saw strong job and income growth and new wealth (Farnham, 2010). The global economic conditions deteriorated in the fall of 2008 and the Chinese Government announced an economic stimulus package that was mostly directed towards building highways, railroads and airports. With an increased money supply, the Chinese people began purchasing cars. With an increase in the number of people owning cars and traveling the new highways, McDonald's began adding drive in windows to their stores as a way of taking advantage of the increased wealth and money supply (Farnham, 2010).

Wal-Mart's expansion into Mexico is due in part to offset macroeconomic conditions such as slow-moving growth (Farnham, 2010). Wal-Mart also had to postpone its development plans in Mexico during the macroeconomic conditions in 1994 which caused many of its contenders to leave Mexico (Farnham, 2010).

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