PESTLE analysis of McDonalds : Assignment

Added on - 21 Apr 2020

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Running head: MANAGEMENTPESTLE analysis of McDonaldsName of the student:Name of the Candidate:Author note
1MANAGEMENTIntroductionThe strategy of McDonald’s has been analyzed with PESTLE model. This will enable usto get an idea about the various factors that influences the business in many different ways.There are both internal and external factors that will determine the threats or opportunities to thebusiness, based on the macro environment.The company has maintained its focus on the socio-cultural and economic factors (Sachdeva, 2015). Nevertheless, the success of the company hasproved to be indicative of its proper strategies in order to deal with the external factors.McDonald’s is one among the big and well known fast food restaurants in the world.As a resultof this, the company has a large number of branches in different parts of the World. Thecompany is also exposed to many different conditions of the industrial environment.Political factorsMcDonald’s has its branches in many different parts of the world. As a result of which italso has to adhere to many different political scenarios as well. This is because of the fact thatdifferent countries have different political scenarios. The political factors are related to thedifferent strategies taken by the Government.In the case of McDonald, the important externalpolitical factors are gaining opportunities from increasing the number of internationalagreements of trade, pending the tax reforms and rising policies of the public health.The company has the chance and the resources to extend the business operations based onthe improving the Global trade, that can further encourage the chains of international supply(Eva et al, 2014).The company has also gained the opportunity to bring reformation in itsstrategies and practices to reduce the negative effect that can be created on the firm due to thehigh rates of taxation.The Present day generation is very much concerned about their health and
2MANAGEMENTvarious health related issues. As a result of this, they often try to avoid eating the fast food fromrestaurants like the McDonald’s.The company however has enough resources to increase thenutritional values in their products and design them in such a way so as to meet the healthstandards of the present day generation.Economic FactorsEconomic changes in the world are also influencing the industrial environment ofMcDonalds, by considering its global nature. There are certain factors influencing the externalfactors from the economic point of view and they are stable growth of US economy, the presenceof stable and risky economies of Europe and the slowing down of the economy of China.The company has gained opportunity to grow, even slowly in the economy of America,which is regarded as the biggest market of firm (Sachdeva, 2015). However, by taking intoconsideration the Europe’s current economy, which could appear as threats to the company’sgrowth in the region. Additionally, the slowing down of the economy of China threatens thegrowth of economy is Asian subcontinent. In this economic aspect, the external factor threatensthe business’ growth.Social factorsIn order to grow and prosper the Company also has to take into account many importantsocial factors. McDonald’s has taken into account that their target consumers include peoplecoming from different income backgrounds. So, the Company realized that the customers withless income cannot afford the products if the prices are very high. Hence, McDonald’s decided toset their products at reasonable price so that it can be afforded by people of all income groups. Itwas an effort by the company to bridge the gap between the rich and the poor.
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