Six Element of Mcdonald’s | Case Study

Running head: McDonald’s CASE STUDY
McDonald’s CASE STUDY
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1McDonald’s CASE STUDY
Answer to Question 1
The six different elements of external environment that are applicable to McDonald
are as follows:
1. Political Factors- McDonald’s needs to abide by the policies of the local government along
with foreign investment policies for business strategy related to franchise.
2. Economic Factors- Having branches in different countries requires McDonald’s to abide
by different scales of tax along with revenue measurement. It also faces various problems due
to international currency fluctuations.
3. Social Factors- The change in demands of the customers require that McDonald’s comes
up with changes in its services.
4. Technological factors- It is required that McDonald’s adopts technological changes so that
it can meet customer’s expectation.
5. Environmental factors- It has been criticized for using Styrofoam containers and non-
biodegradable substances for the drinks glasses (Perera, 2017).
6. Legal Factors- This can affect its operations as for example in Muslim counties it is
required that it complies with Halal food authorization.
Among the six elements the most important one is economic factors because this
depends on the tax reforms in different countries.
Answer to question 2
In case of environmental factors, McDonald’s has removed high fructose corn syrup
from its buns, use of real butter instead of liquid margarine, using chicken raised without