Business Environmental Analysis

Business
Environmental
Analysis
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Management 1
Contents
Introduction......................................................................................................................................2
PESTLE analysis.............................................................................................................................3
Political factors............................................................................................................................3
Economic factors.........................................................................................................................4
Social factors...............................................................................................................................4
Technological factors...................................................................................................................5
Legal factors................................................................................................................................5
Environmental factors..................................................................................................................6
SWOT analysis................................................................................................................................6
Interrelationships of strengths and weaknesses with external aspects.............................................8
References......................................................................................................................................10

Management 2
Introduction
The aim of the report is to demonstrate the positive as well as negative impact of the macro
environment factors on the operations of business. The analysis of the macro environment is
conducted with the help of PESTLE analysis of selected company. The company that has been
selected for conducting the analysis include McDonald’s Hong Kong. In addition, report also
includes analysis of the internal strengths as well as weakness of McDonald’s along with their
interrelationship with diverse external macro factors. In the end, the critical reflection of key
findings has been done which shows how they can influence the decision-making process.

Management 3
PESTLE analysis
PESTLE analysis is a tool that is majorly used by managers of business to assess the exterior
aspects that influence the functioning of business (Baker, 2014). McDonald’s Hong Kong
implement the tool with the motive to analyse positive and negative influence of factors based on
the examples associated with the company.
Political factors
The political aspects majorly comprise of changes or fluctuations in rules and regulations of
administration towards company or industry.
 Political stability: - In the Hong Kong market, there is political stability which is leads to
the positive impact for McDonald’s as they don’t have to deal with any sort of issues due
to change in government. In addition, this stability brings the growth in the economy that
is in favour of McDonald’s company (Frynas and Mellahi, 2015).
 Corporate taxes: - The tax that is imposed by the government of HK is less that leads to
the positive impact for McDonald’s in the market.
 Strict labour laws: - The labours laws of Hong Kong are strict that leads to the negative
impact because it affects the recruitment process of the McDonald’s HK that leads to
huddle for the smooth operations of business (Armstrong, Adam, Denize and Kotler,
2014).
 Safety regulations: - In Hong Kong, McDonald’s majorly deals safety regulations
related to food imposed by the government that affects their operations negatively as they
need to be very conscious for the products and services that are used by them for offering
the final products to customers (Grant, 2016).