Last Updated 10 Jan 2022

Mcdonalds Pestel Analysis

Essay type Analysis
Words 600 (2 pages)

McDonald’s Pestel analysis Political- * There is currently legislation being brought in to prevent fast food companies from advertising at certain times of the day, this is due to the large number of obese children currently in our country. It will see a large change in how the companies can advertise as they feel many kids are being targeted from a young age by fast food companies. * All products need to have full nutritional value on them so consumers can be made aware of the health risks of some of these products, for example in McDonald’s they show on their chips the levels of salt, fat , carbohydrates etc. nd how each portion measures in terms of the recommended daily human intake of these products * The government hold to right on the final say of who is approved to open a franchise, this takes this power out of McDonalds hands Economical- * As a business entity, McDonalds need to face a lot of economic variables outside its company or its macro environment. When looking for a supplier internationally for some of their products McDonalds should be aware on the global supply and currencies exchange.

Although McDonalds use larger amounts of Irish beef than previously not all of their products are produced here so any changes in exchange rates may have a massive effect on what they pay on their imports. * McDonalds must face government regulations on tax of profit where it gains from the operation. They also face other costs such as for advertisements and for certain entertainment (such as in store music). Each country may have different scale or types of tax available and McDonalds should follow the regulation if it wants to continue the operation.

As most of their branches are a franchise McDonalds will have to cecum to paying certain percentage of the revenue to the parent company in United States. Social- * There is a great need for McDonalds to cater for the different types of customers in different regions, For example in India people (Hindu) do not take beef, Muslim countries do not take pork, German like beers, Finnish like fish type of food menu, Chinese like to associate food with something good (for example prosperity), Asian like rice and Americans eat in big-sized menu. * Technological- Advances in online ordering and methods of paying that McDonalds have yet to adapt may have a negative effect for them, some fast food restaurants offer home delivery and online ordering this is something that McDonalds currently does not do. * They need to look for the next big thing in terms of technology and see how it can benefit them in remaining a power house in the fast food industry. Smart phones and tablets are becoming massive business and is where a lot of innovation takes place. Microsoft’s Xbox Kinect and smart glass are examples for their ambition to remain top in the gaming market, what will McDonalds do?

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Environmental- * Huge emphasis on recycling and proper waste management over the last few years it’s important that McDonalds focus on making themselves more environmentally friendly. * Is there more in store that they can do to improve their eco rating. The body shop offers customers the chance to bring back their old bottles to be refilled and reused, while this may not be possible for McDonalds to do due to health and safety they should still look at ways of improving the stores waste management etc. Legal- * Sales figures in Ireland of McDonalds, Supermacs, KFC and Burger King. 1. McDonalds- 2. Supermacs- 3. KFC- 4. Burger King-

Mcdonalds Pestel Analysis essay

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What is the PESTLE analysis of McDonald's Corporation?

In this PESTLE analysis of McDonald’s Corporation we are going to take a look at the various macro environment factors that affect the performance of this global restaurant chain. Here we will perform pestle analysis of McDonald’s.

What external factors are considered a threat to McDonald's in this analysis?

On the other hand, the slowdown of the Chinese economy is considered a threat in this PESTEL/PESTLE analysis. This external factor is a strategic issue because the Chinese market is a major contributor to McDonald’s revenues. Nonetheless, the company has the opportunity to grow through expansion in high-growth developing markets, such as in Asia.

What factors affect the success of McDonald's?

I’ve examined essential political, economic, socio-cultural, and technological factors that affect the current and future success of McDonald’s. Let’s dive into this PEST analysis of McDonald’s. McDonald’s must respond to political laws and influences in over a hundred countries.

What is the strategic objective in this Pestel/PESTLE analysis case?

In this PESTEL/PESTLE analysis case, the strategic objective is to reach a higher level of R&D activity compared to competitors. Also, the company can apply more automation to maximize productivity, based on the external factor of increasing business automation.

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