Strategic Analysis of McDonald's: Business and Strategic Management

Business management and strategic management

Business management and strategic management
Table of Contents
Strategic analysis of the McDonalds...............................................................................................1
Environmental analysis....................................................................................................................1
Overall analysis of the Quick-service restaurant industry...........................................................1
PESTLE ANALYSIS...................................................................................................................1
Porter five forces..........................................................................................................................2
INTERNAL ANALYSIS.................................................................................................................2
SWOT ANALYSIS......................................................................................................................2
Strategic options..............................................................................................................................4
References........................................................................................................................................5
Strategic analysis of the McDonalds
Environmental analysis
Overall analysis of the Quick-service restaurant industry
This is one of the famous quick service restaurant industries which serves quality food and
emphasizes on satisfying the customers.
1

Business management and strategic management
PESTLE ANALYSIS
Political factor
McDonalds manages its operations in more than 100 countries so the top management has to
face more interference of the government. The focus is given on various rules and regulations
which are imposed by the government to maintain health and hygiene factors. The company also
takes into consideration trade agreements in specific areas so that operations can be managed
smoothly.
Economic factor
It has been analyzed that the exchange rate affects the operations of the company and also weak
side of the US dollar enables the better exchange rate. Due to increase in tax rate, the company
has to face the issue and there are many outlets which are closed due to this reason.
Social environment
Due to the change in the customers taste, the impact can be seen on the overall sales of the
company. Now society is also health conscious so it is important for the company to focus on
offering products and services by considering the hygiene factors for the society. So,
McDonalds has to offer menu choices in relation to the low-fat choices (Puzakova, Kwak & Bell,
2015).
Technological environment
It is important for the company to consider proper scheduling so that it can be simple to maintain
the sales of the products in the competitive market. The company also considers the external
factors related to research and development which enhances the overall opportunity.
Legal factor
The company considers legal requirement related to labor and employment law. The essential
legal factor for the company is related to the new legal minimum wage levels in the US.
Environmental factor
The company focuses on the CSR activities which can help in achieving success in the market.
2