PESTEL Analysis of McDonald's: A Comprehensive Study

This essay delves into the application of PESTEL analysis by McDonald's, a global fast-food giant. It examines how the company leverages this framework to understand and navigate the political, economic, social, technological, environmental, and legal factors influencing its operations in over 100 countries. The analysis highlights how McDonald's has adapted its strategies to address challenges posed by changing consumer preferences, evolving regulations, and technological advancements. It also explores the company's efforts to mitigate environmental impact and promote sustainability. By analyzing McDonald's use of PESTEL, this essay provides insights into the strategic decision-making processes of multinational corporations operating in a dynamic global landscape.

An essay on PESTEL Analysis of McDonalds
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Table of Contents
Introduction......................................................................................................................................3
Analysis of Making use of PESTEL Analysis by McDonalds........................................................3
Conclusion:......................................................................................................................................4
References........................................................................................................................................5
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Introduction
McDonalds is an American fast food company established in the year 1940. It is an international
company working all over the world. The company deals with the fast food. McDonalds is
working in hundred (100) countries across the world. The internal and external factor analysis of
the company has enabled the company to work in so many countries in the world. In this essay,
the use of PESTLE analysis of McDonald has been depicted. Some details about the
aforementioned company have been presented herewith. In this section it has been shown how
the company has utilized PESTLE analysis for identifying its positive and negative aspects and
promoted its business by strengthening its strengths and removing its weaknesses related to its
business (Dey, 2016).
McDonalds has been facing some resistances from different lobbies for some time. These lobbies
claim that as fast food is leading to some diseases like obesity, cardiovascular problems and
others, food sold by McDonalds are potential threat to health of people consuming those foods.
Analysis of political factors of doing business in different countries by McDonalds has revealed
how it is facing some threats in many countries all over the world. Consequently, the company
has decided to comply with rules and regulations imposed by the country of business regarding
health and hygiene. (Sachdeva, 2015).
McDonald has been facing various economical factors from the governments in various countries
for purchasing raw materials, packing of materials and others. The company has faced with
various tariffs for imported goods, for payment of taxes in over 100 countries across the world.
The company for encountering with such threats has considered the economical factors and
utilized its business strategies. The social factors over hundred countries have influenced
McDonalds to change and modify its business policies. The customers in many countries have
changed their lifestyles and changed their taste over the past few years. The changed of tastes
and needs of the customers have pushed forward the company to diversify its products and
services from many aspects. Thus the company has analyzed its social aspects. McDonalds, for
keeping up with the changes in the world and to keep pace with its competitors, has advanced its
services and operations with modern technologies. It has utilized the social media for marketing
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and delivery service, it has utilized advanced accounting and inventory control method for
developing its activities in more than hundred countries (Rothaermel, 2015).
McDonalds, for providing the eco-friendly and healthy products to its customers has diversified
healthy products. It has innovated its productions and packing procedures with eco-friendly
materials so as to keep the environment free from pollution. Thus to promote business in more
than 100 countries, the company has analyzed the environmental factors. McDonalds, for
promoting its business successfully, has analyzed the labor laws, employment laws, business
laws, corporate laws in so many countries in the world.
Conclusion:
McDonals is an international fast food company being present in more than 100 countries in the
world. PESTLE analysis is one of the tools that has been applied by Mc.Donald for identifying
political situation of doing business in a country. In this assignment, it has been shown through
evaluation of PESTLE analysis by Mcdonalds has helped it to grow its business all over the
world.
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References
Dey, K., 2016. The fast food industry in the UK. Analysis of McDonalds with PESTEL, VRIN
and Porter's Five Forces.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sachdeva, A., 2015. Evaluation and selection of differentiation as a strategy for McDonald’s.
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