PESTLE Analysis of McDonald's: Impact of External Factors on Business Operations

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of organization public, private and voluntary and their purposes,...............3
P2. The size and scope of a range of different types of organization..........................................5
TASK 2............................................................................................................................................7
P3. The relationship between different organizational functions and their interconnection with
organizational objectives.............................................................................................................7
TASK 3............................................................................................................................................9
P4. PESTLE analysis of McDonald's .........................................................................................9
TASK 4..........................................................................................................................................10
P5 SWOT analysis of McDonald's ...........................................................................................10
P6. Strengths and weaknesses of organization interrelates with external macro factors...........12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment consist of internal and external factors that impact a business organization.
Business environment is helpful in identifying business opportunities and threats. By analyzing
business environment organization can improve its overall performance. The project report will
outline the different types of organization like public, private and voluntary and their purposes.
The report will further explain the size and scope of different types of organizations. The report
will explain the relationship between different organizational functions and their interconnection
with organizational objectives and structure. The report will do Pestle analysis and will identify
negative and positive impact of macro environment factors upon business operations. The report
will further do Swot analysis to identify strengths and weaknesses of organization. Lastly the
report will explain how strengths and weaknesses interconnect with external macro factors.
TASK 1
P1. Different types of organization public, private and voluntary and their purposes,
Private organization – McDonald's
McDonald's is American fast food company. The McDonald's is founded on 15 April
1940. McDonald's is operated by Richard and Maurice McDonald's. The headwaters of
McDonald's were situated in the Chicago, Illinois in United Kingdom. The McDonald's was
started initially as a hamburger but the later company turns into franchise. McDonald's is the
renowned largest restaurant chain in the world.
Purpose – The purpose of McDonald's is to make customers favorite place to eat and drink. To
serve the customers with Delicious and tasty food (Deasy, S., Meyer, R., and Strudel, 2016). To
provide better services to the customers and to make continuous improvement in their business
operations to enhance their customer's experience.
Objectives –
• The objective of McDonald's company is to serve fresh food with simplicity.
• To do continuous improvement in their food products.
Legal structure – McDonald's has a hierarchical corporate structure. It consists the chief
executive officer which is followed by chairman of the board. CEO operates the legal and
secretaries department of McDonald's. The Legal and secretaries department looks-after the
Legal laws, procedures and polices of the company.

Public organization - H&M
H&M is a Swedish multinational clothing retail company. It is known for fast fashion
clothing for men, women children and teenagers. The Company was established in the year 1947
about 72 years ago. The founder of H&M is Erling Persson. The headquarters were situated in
the Stockholm, Sweden. H&M is public limited Company that is listed on NASDAQ Stockholm.
Purpose – The purpose of H&M is to build demand for sustainable clothing. That ensures that
they maintain their accessible points (Hamilton and Webster, 2018). They are looking for annual
innovation and bringing up new ideas in their products to generate the better solutions in order to
make fashion circular and to protect the planet earth.
Objectives –
• The objective of H&M is to provide availability of sustainable fashion and design in their
garments to their customers.
• The objective is to educate their customers in order to take care of their garments to
protract their lifespan.
Legal structure – The H&M legal structure consist of various department like production,
finance, marketing, sales, legal and product development. The legal department looks afters that
the H&M is following laws and proper guideline of government or not. The legal department
also controls and insures that marketing department is following proper advertising laws and
code of conduct.
Voluntary organization – Oxfam
Oxfam is a charitable organization. The Oxfam was founded in the year 1942. The
Oxfam was founded by Cecil Jackson-Cole at Oxford, England. The executive director of Oxfam
is Winnie Byanyima. The Oxfam focused on alleviation of poverty at global level. The
headwaters of Oxfam is situated in Oxford in United Kingdom.
Purpose – The purpose of Oxfam is to create long lasting solutions to the injustice of poverty.
The Oxfam is working to empower the people in order to create a future secure that is free from
poverty (Kolk, 2016.).
Objectives -
• The objective of Oxfam is to end the injustice of poverty. The Oxfam runs the several
programs to overcome the poverty.
• The objective of Oxfam is to change the way people thinks about poverty and its causes.