External Environment Analysis – Mac-Donald’s Malaysia

Running head: EXTERNAL ENVIRONMENT ANALYSIS – MACDONALDS MALAYSIA
External Environment Analysis – Mac-Donald’s Malaysia
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EXTERNAL ENVIRONMENT ANALYSIS – MACDONALDS MALAYSIA1
Executive Summary
Malaysia is one of the largest countries in the region of Southeast Asia and there are
many foreign businesses that are in operation in this part of the world. Malaysia is a country that
welcomes foreign direct investment in any and every form and one prominent multinational
business enterprise that is seen to be in operation in the country is McDonalds. This report
engages in an external environment analysis of the business environment in which McDonalds
Malaysia operates. The tools used in the report to carry out such an analysis are Pestel
framework and Porters 5 forces. The report concludes with a number of effective
recommendations that can be considered by McDonalds in order to grow as strategically as
possible in the coming years.

EXTERNAL ENVIRONMENT ANALYSIS – MACDONALDS MALAYSIA2
Table of Contents
Introduction......................................................................................................................................3
1. About Malaysia McDonalds.....................................................................................................3
2. External Environment Analysis of Malaysia............................................................................4
2.1. PESTEL Analysis of Malaysia.........................................................................................4
2.2. Porters 5 Forces Analysis of McDonalds Malaysia..........................................................7
Recommendations for Strategic Growth and Development............................................................9
Conclusion.....................................................................................................................................10

EXTERNAL ENVIRONMENT ANALYSIS – MACDONALDS MALAYSIA3
Introduction
Malaysia is a thriving country in Southeast Asia that is home to a cosmopolitan and
multi-ethnic population of substantive size. There are many global food chains and fast food
companies that are in operation in the country of Malaysia, a well-known example in this respect
being the McDonalds fast food joint. McDonalds has been running its operations in Malaysia for
quite some time now and has managed to acquire an excellent reputation for the high quality of
its food and efficient services (Ghazali et al., 2019). This report prepares an external
environment analysis of the McDonalds food chain as seen to exist in the country of Malaysia.
For this purpose, the report provides a background to the company, engages in a PESTEL
analysis of Malaysia followed by an analysis of the competitive environment in which
McDonalds operates using the model of Porter’s Five Forces. The report concludes with a
number of recommendations on the strategic options that can be used by the organization in
order to attain its key objectives.
1. About Malaysia McDonalds
McDonalds is a food outlet that has its presence in a number of important cities and
towns in the country of Malaysia. It is famous for its burgers, fries and shakes just as it is in other
parts of the world where it is known to operate (Harrington et al., 2017). The success of
McDonalds in Malaysia lies in the fact that this is a destination that can be visited by customers
of every budget and every economic background and its food products are not those which are
restricted to the elite alone. McDonalds burgers and fries in Malaysia are coveted by customers
of all ages too, with foods here catering to diverse tastes and giving customers value for the