Report on PESTLE Analysis of McDonald's for English Academic Skills 1

This report presents a PESTLE analysis of McDonald's, examining the macro-environmental factors that significantly influence the company's operations and strategic decisions. The analysis covers political factors, such as governmental regulations and taxation, which necessitate careful business policy design. Economic factors, including inflation and raw material costs, are evaluated to determine optimal purchasing and manufacturing strategies. Social factors, such as cultural values and consumer lifestyles, are considered in relation to marketing strategies, including the impact of toy promotions on children's health. Technological factors highlight the need for advanced technologies to enhance product quality and delivery, including online ordering systems. Legal factors emphasize the importance of adhering to international regulations regarding food production and employment. Environmental factors focus on hygiene and public health concerns, driving the need for increased environmental focus. The report concludes that a thorough understanding of these external factors is crucial for McDonald's future growth and success. The analysis is supported by references to academic journals and online resources.

English Academic
Skills 1

PESTLE analysis is a tool or framework used by the marketers for analysing and
monitoring macro environmental factors that are putting a huge impact on an enterprise (Harris
and Ashton, 2011). The result obtained from the pestle analysis are used in identifying threats
and weaknesses of company. The impact of external factors such as political, economical,
social, technological, environmental and legal factors of McDonald are described in this project.
Rules or norms of government are playing a vital role in the business environment. McDonald
has to design its business policies and strategies in such a way that can minimise the impact of
political dynamics like taxation. The second one is related to economy i.e. economic factor.
Taxation rate and inflation are the major component of economy. By concentrating on these
elements,enterprise will decide that where it has to purchase best quality raw material at
minimum prices.
They also have to decide from where the goods have to manufacture so that less
labouring or production cost incurs. The third one is social factor which is very important when
company is designing their strategies.(Von Suchodoletz and et. al., 2013). Cultural values, living
style of people, etc. put their impact on the business. McDonald are making attractive policies
like they are offering their fast foods along with toys which is attracting a large number of
children. This has been analysed that this policy of giving meal along with toys are increasing
the selling rate of fast food. But due to that the problem of obesity has been arisen in large
number of kids. So, government in some of the nations have strictly prohibited the selling of toys
with meals. Technological factors are also impacting a lot on the performance of organization
(Pestle Analysis of McDonald, 2017). Advanced technology is needed by McDonald in order to
produce high quality products and delivering such to their consumers. These modern
technologies are providing best backups to the management of enterprise.
Organization can promote home delivery by using online ordering system with the help
of internet. Legal factors state that McDonald has to concentrate on the legal requirements of
production of food. As company is doing their business internationally, so, it is important to
consider different rules and regulations of all countries regarding the employment laws, ways of
food production, etc. They have to run their business by fulfilling those legislations.
Environmental factors are also considered here. Food Corporation always demand higher level of
hygiene production methods (Von Suchodoletz and et. al., 2013). Hence, the enterprise has to
concentrate more on such factors while manufacturing their food items. Public awareness
1

regarding issues of health are also impacting on the company and are demanding to give
additional concentration on environment dynamics. Company has a huge chain of restaurants but
still they need to be more focussed in terms of business environmental analysis for their growth
in the future.
From the above based report, it has been concluded that different external factors are
there like political, legal, environmental, economic and social factors that are giving a huge
impact on the performance of firm. This impact can either be positive or negative in nature.
2

REFERENCES
Books and Journals
Harris, A. J. and Ashton, J., 2011. Embedding and integrating language and academic skills: An
innovative approach. Journal of Academic Language and Learning. 5(2). pp.A73-A87.
Shapiro, E. S., 2011. Academic skills problems: Direct assessment and intervention. Guilford
Press.
Von Suchodoletz, A. and et. al., 2013. Behavioral self-regulation and relations to emergent
academic skills among children in Germany and Iceland. Early Childhood Research
Quarterly. 28(1).pp.62-73.
Online
Pestle Analysis of McDonald. 2017. [Online]. Available through:
<http://marketingdawn.com/pestle-analysis-of-mcdonald/>. Accessed on 19th August
2017.
3

4