Internal and External Factors of McDonald's

EXTERNAL AND INTERNAL FACTORS OF MCDONALD’S
Internal environment
Strengths
•Technological initiative- Due to advancements in technology, McDonald’s introduced
self-service kiosk, mobile ordering system, digital/cashless payments through which they
can maintain their competitive position in highly dynamic business environment.
Weakness
•Poor employee satisfaction- Due to poor working scenario and incline in conflicts and
disputes, this is a shortcoming for McDonald’s which makes the company face incline in
employee strikes and also hampers the brand image of the company.
Opportunities
•Use of e-commerce and social media platforms- McDonald’s can make effective use of
social media platforms through which they can promote their offers and attract greater
number of customers (Fernández-Olmos and Ramírez-Alesón, 2017). With the help of e-
commerce platforms, McDonald’s can deliver their products to greater number of
customers through their website and online ordering app which will be an opportunity for
enhancing the capital of the company.
Threats
•High competition- McDonald’s is operating in fast food industry which makes business
face high competition and it is responsible for dividing the customer base of the company
which can bring threat for profitability of McDonald’s.
INTERNAL AND EXTRENAL FACTORS OF MCDONALD’S
INTRODUCTION
Business environment is the composition of internal and external factors which can create an
impact on the profitability and success of an organization. Business environment can bring
opportunities as well as threats for the organization (Doan and et.al., 2018). McDonald’s was
started by Richard McDonald and Maurice McDonald in 1955 which offers variety of fast
foods and quick bites. This poster will define the internal and external business environment
and how McDonald’s deals with external business environment.
External factors
Political factors- Government laws and public health policies may either benefit or hinder a
business.
Economic factors- Stable growth in emerging countries has provided chances for company
expansion (Sallet and et.al, 2021). The slowing of the Chinese economy, on the other hand,
has had a detrimental impact on business.
Social factors- Cultural diversity and healthy lifestyle can create a negative threat for the
company and incline in disposable income can bring opportunity for business.
Technological factors- Increased company technology and a rise in sales through online
ordering have given businesses new peaks.
Environmental factors- Rapid changes in climatic conditions in various places can have an
impact on the company's products, leading to an increase in waste.
Legal factors- Increases in minimum wages and health restrictions have had a negative
impact on McDonald's operations.