Diaz, Emilyn Ann A. Jan.

17, 2018

BSAT-3 MWF 8 :00 - 9:00 Pm

CHAPTER 8

QUESTIONS:
1. Dividing a market into distinct groups with distinct needs, characteristics or behavior who might require separate
products or marketing mixes.

a. Market Segmentation c. Psychographic Segmentation

b. Geographical Segmentation d. Behavioral Segmentation

2. The process evaluating each market segments attractiveness and selecting one or more segments to enter.

a. Micro Marketing c. Concentrated Marketing

b. Target Marketing d. Marketing

3. Demographics is one of the major bases of Segmenting Business markets, which focused on ?

a. Industry c. Location

b. Company size d. All of the Above

4. Calls for dividing the market into different geographical units such as nations, regions, states, countries and cities.

a. Personal Characteristics c. Demographics

b. Geographic Segmentation d. Situational Factors

5. Divides buyers into group based on their knowledge, attitudes, uses or response to a product.

a. Operating Variables c. Behavioral Segmentation

b. Purchasing Approaches d. Market Segmentation

6. Arranging for product to occupy a clear, distinctive and desirable place to relative to competing products in the
minds of target consumers.

a. Positioning c. Market Position

b. Management d. Markets

7. Typically defined by consumers on the basis of important attributes.

a. Positioning c. Markets

b. Market Positioning d. Management

8. Divides buyers into different group based on social class, lifestyle or personality characteristics.

a. Behavioral Segmentation c. Geographical Segmentation

b. Market Segmentation d. Psychographic Segmentation

ANSWERS:
1. A 2. B 3. D 4. B 5. C 6. C 7. A 8. D
CRITICAL QUESTIONS:
1. What is Marketing?
2. What are the three major steps of Target Marketing?
3. In order to choose the right target marketing strategy, what considerations should include?

ANSWERS:
1. Marketing is the action or business of promoting and selling products or services, including
market research and advertising.

2. a.) Market Segmentation

b.) Target Marketing
c.) Market Positioning

3. a.) Company resources

b.) Degree of product variability
c.) Products life-cycle stage
d.) Market variability
e.) Competitors marketing strategies
 McDonald’s environmental issues

There is evidence of corporate sustainability, which is a balance of economic, social, and

environment as a necessity for business. Additionally, companies caring about their environmental
issue will not only benefit the environment but also the company itself. Consumers show
preferences for green products and are willing to pay a premium price thus improve revenues.
While dealing with environmental impacts, corporates may find ways to reduce their costs and
waste. Reputation could be earned at the same time.
As one of the world's largest fast food chains, McDonald’s is criticized by environmentalists with
many problems. It is vital for McDonald’s to identify its key issues and provide solutions. In this
essay, McDonald’s impact on global warming and packaging waste as well as it responses will be
discussed. Then, recommendations are drawn.
The main issue of McDonald’s negative impact on the environment is global warming resulting
from greenhouse gas emissions from cows as well as damaging the rainforest for raising beef cattle
and grains. For one thing, methane emitted from cattle is a major contributor of global warming.
McDonald’s, as one of the world’s largest buyer of beef, is using 350000 cattle a year. With so
many cows farting all day, they could produce a considerable amount of greenhouse gas. In the
UK for example, 4% of the carbon emissions are the gas emitted by livestock. For another,
McDonald’s is causing the deforestation in the rain forest. McDonald’s often buys meats for its
burgers from privatized farms. These privatized farms, however, are being blamed for not
environmentally because the farmland they used to rear the cattle used to be a lush rainforest. In
addition, trees in the rainforest are cut down for agricultural to grow grain for the livestock and
poultry. According to Greenpeace, McDonald’s feed the chickens with the soybeans grown in the
Amazon rainforest because those soybeans are cheaper. Therefore, McDonald’s is not only
responsible for greenhouse gas emissions but destroying forests, which could help to address
global warming.
Global warming is an important issue for business as it could have negative impact on economies.
McDonald’s should care about this because global warming would influence food supply and
transportation, which are two main sectors for fast food industry. Regarding food, global warming
may affect production of seafood and agricultural. The rising water temperature has damage the
coral reef ecosystems, which are homes to many marine species. Loss of shelters is threatening the
survival of coral reef fish. Crop production may also decline. For instance, in parts of Africa,
growing season for crops is shortening due to the warmer and dryer weather. Farmers may have to
abandon their land that are too warm or too dry and invest in new areas. This causes problems of
decreasing revenue as well as food productivity. Furthermore, transportations may face an increase
in fuel cost because of climate-related policies. Since carbon dioxide emitted from burning oil
contributes largely to global warming, governments are imposing taxes to fossil fuel and result in
the price to rise. Prices of biofuels are increasing as well due to the decline of crop production. For
the society, global warming not only brings about economic impacts but social problems. People
would have a greater chance of suffering from drought, floods, and other climate-related disasters.
Thus, may lead to an increasing number of environmental refugees. The mass migrant is likely to
trigger conflict with indigenous resident and even conflicts between countries.
Packaging waste is another environmental problem McDonald’s should tackle with. Considering
how much waste is created when getting a meal from McDonald’s: a wrapper for burger, a box for
fries, a cup for drinks with a lid and a straw, napkins, and a bag for individual use. McDonald’s
use tons of unnecessary packing everyday, which end up littering on the street and buried in
landfills. Convenience and portability are the main reason for the packaging waste for fast food
industry. As people now in busy modern lifestyle prefer easy and quick food, the amount of waste
that fast food industry created therefore increased. According to a survey in England, 29% of the
litter on streets is the wrappers and cups from McDonald’s.
McDonald’s should take action to reduce its packaging waste since waste generation could cause
serious environmental pollution and put human health at rick. Within Europe, 50 million tons of
packaging wastes are produce every year. To burn these huge amounts of waste may release some
harmful chemicals into the air, which is harmful to people’s health. Landfilling, likewise, could
lead to land pollution and kill underground animals that live there. Wastes may also flow to the
ocean and become marine debris, harming marine life. Additionally, waste generation represents
human’s “inefficient use of natural resources”
REACTION PAPER: RESPONSIBILITY

In order to reduce packaging waste, using reusable containers and giving incentive to customer to
provide their own cups may be two options for McDonald’s. McDonald’s can replace some of its
packaging such as salad containers and coffee cups with reusable ones because recycling
packaging including glass and paper are proved to be less environmental than reusable packaging.
KFC has started using eco-friendly container in its US restaurants since 2010 and plans to replace
paper boxes with reusable plastic plates. McDonald’s could also offer discounts to encourage
customers to provide their own beverage bottle or coffee cups. For instance, consumers buying
coffee in Starbucks will have a ten-cent discount if they bring their own cup. Moreover,
McDonald’s indicate that such campaign could help companies to increase profit. With the
introduction of reusable containers and promotion, McDonald’s is possible to earn more while
reducing waste at the same time.
McDonald’s has been criticized for having bad influences on the environment. To provide meat
for its food, McDonald’s indirectly causing deforestation in rainforest and greenhouse gas
emission. In addition, McDonald’s use too much unnecessary packaging and many of them are
non-recyclable and non-renewable. Thus, it can be concluded that the main environmental issues
for McDonald’s are global warming and packaging waste generation. McDonald’s itself is aware
of these issues and has made several strategies to solve the problem. By stop purchasing soybean
in Amazon, improving carbon efficiency and using new farming techniques, McDonald’s could
successfully reduce its impact on global warming. However, McDonald’s still cannot guarantee
that its meat all come from sustainable recourse. With regard to packaging waste, McDonald’s
redesign packaging with sustainable materials and start recycling programs while neglecting the
importance of reducing waste generation. To better tackle with these issues, it is recommended
that McDonald’s draw up a code of conduct for its supplier selection to work with farms and
ranches that is not harming the forest. Furthermore, McDonald’s should monitor and support
supplier to reduce impacts on carbon and methane emission. Practices including carbon
sequestration, changing cattle’s diet and agroforestry may be useful. It is also important for
McDonald’s to use reusable container and promote customers to bring their own containers by
offering them discount to reduce packaging consumption. By doing so, McDonald’s could lower
its negative effects on global warming and packaging waste.
 ACCT 303-3

GOOD GOVERNANCE
AND
SOCIAL RESPONSIBILITY

CORPORATE ISSUE
OF A COMPANY

Submitted by:
Diaz, Emilyn Ann A.
BSAT-3
MWF 3:00 - 4:00 Pm

Submitted to:
Ms. Maria Belen T. Magallanes