1. What variables other than price appear to have the biggest impact on the demand for McDonalds products? How much influence does the company have

1. What variables other than price appear to have the biggest impact on the demand for McDonalds products? How much influence does the company have over these variables?Both the cases of McDonalds in China and Wal- Mart in Mexico show how the interplay of microeconomic and macroeconomic factors influences managers’ competitive strategies. For both of these companies, expansion abroad was a strategic move that helped offset slowing growth in the United States. However, both cases show how the companies had to understand consumer behavior in these countries and the nature of the competition from both local and interna-tional sources. Production and cost- cutting strategies that worked in the United States often had to be modified in the foreign setting. Both companies also faced risk from political and macroeconomic events in their developing markets. Managers can use the tools and models presented in both Parts 1 and 2 of this text to understand the microeconomic concepts of demand, production, cost, and market structure and how these factors are influenced by the overall macroeco-nomic environment. Managers can develop industry and macroeconomic analyses similar to those in this chapter by combining the conceptual analysis in the text with data on firms, industries, and the macro economy. This process should enable managers to make better decisions and develop more successful competitive strategies as they attempt to cope with the complex and ever- changing economic environment.