J. International Business and Entrepreneurship Development, Vol. 3, Nos. 3/4, 2008 289
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The external environment and its effect on strategic marketing planning: a case study for McDonald’s Demetris Vrontis*
School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus Fax: 00357 22 353 722 E-mail: vrontis.d@unic.ac.cy * Corresponding author

Pavlos Pavlou
Department of Management and MIS, School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus Fax: 00357 22 353 722 E-mail: pavlou.p@unic.ac.cy
Abstract: This case study has been compiled
The external environment and its effect on strategic marketing planning
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Figure 1 The STRATICS PROCESS – marketing planning

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Source: adapted from Vignali et al. (2003)

Every company, after considering both its internal strengths and weaknesses and the external environmental influences that affect it (opportunities and threats) is in a position to develop an effective marketing plan. Failure to understand the external and internal capabilities may lead to sub-optimisation of the organisation’s strategy and resources invested. Multinational companies must highly consider environmental auditing and the development of the SWOT (strengths, weaknesses, opportunities and threats) analysis. This is vital if they want to capitalise on organisational strengths, minimise any weaknesses, exploit market opportunities as they arise and avoid, as far as possible, any threats.

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D. Vrontis and P. Pavlou

It should be noted that the external environment is very important as it dictates the behaviour of any marketing orientated organisation. Consequently, for the purpose of this case, considerations for the analysis of the external environment are highlighted for McDonald’s.

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McDonald’s and its