McDonald's Growth on the European Market

McDonald's fears that it is heading towards a limited growth in the European market. Although many Europeans are intrigued by American food, McDonald's burgers and fries are yesterday's news. As a result of this decline in sales, McDonald's has begun an aggressive price competition in most European countries. Recognizing a steady and stable demand for fast food in Europe, McDonald's is quite willing to spend a substantial amount of capital for advertising and promotion if this would appear to be a good investment. In recent years, McDonald's has been able to develop burgers and fries that tend to contain less fat than those of most local fast food competitors, however only a limited number of customers are aware of this change. Confidential research has shown that many Europeans are getting tired of conventional burgers and would be more interested in contemporary fast foods such as Tex-Mex, Nando's and Southern Fried Spicy Chicken. Furthermore European consumers are more environmentally conscious and this has made McDonald's weak corporate responsibility track record somewhat unappealing to them. Research has also found that preferences for local food are on the increase and greatly differ from one country to another.

Based on the previous text and your own additional research, answer the following questions in an essay format:

• Explain the environmental aspects that McDonald's needs to consider and reevaluate.
• 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.
• Based on your answers to the previous questions, give specific recommendations on how McDonald's should address its growth issues on the European market.