Business and Business Environment Report: McDonald's Analysis, 2018/19

This report provides a comprehensive analysis of McDonald's business environment, focusing on both macro and micro factors. The report begins with an introduction to the business environment, organizational structures, and managerial aspects. It then delves into a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting McDonald's. Following this, a SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats. The report also examines the interrelationship between these micro and macro environmental factors, providing insights into how external factors influence the company's internal capabilities and strategies. The conclusion summarizes the key findings and emphasizes the importance of understanding the business environment for organizational success. References to supporting literature are included.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
P1 Different types and purpose of organisation.....................................................................3
P2 Size and scope of organisation..........................................................................................3
P3 Inter-relationship with different functional units..............................................................3
ACTIVITY 2....................................................................................................................................3
TASK 3............................................................................................................................................3
P4 Positive and Negative impact of macro environmental factors of McDonald's................3
TASK 4 ..........................................................................................................................................4
P5 Strength and weakness of McDonald's.............................................................................4
P6 Interrelationship of Strength and weakness with external macro factors .......................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business and Business Environment contains all the external & internal factors which
affect a firm such as Organisational structure, organisational culture and managerial structure.
The report will outline positive and negative impact of Pestle analysis of McDonald's. It is one of
the leading brand among youngsters. Further, the assignment will identify strength and
weakness of firm with the help of Swot analysis. Lastly, it will discussion interrelationship of
macro and micro environmental factors of McDonald's
TASK 1
P1 Different types and purpose of organisation
Incorporated in Power point presentation
P2 Size and scope of organisation
Incorporated in Power point presentation
P3 Inter-relationship with different functional units
Incorporated in Power point presentation

ACTIVITY 2
TASK 3
P4 Positive and Negative impact of macro environmental factors of McDonald's
< Source: 2016.ScanningtheEnvironment:PESTLEANALYSIS[Online >
A PESTLE is environmental factor used to analyse macro environmental factors that can affect
any business it can be political, economical, social, technological, legal and environmental
factors.
 Political factors: This includes government policies which are imposed to the businesses
as taxes, fiscal policies which affects company directly As foe this company external
factors as increasing international trade agreement, evolving public health policies are
creating positive impact as they have an opportunity to expand its business based on
international trade and negative impact as focus on health policies is creating less sales
for the company.
 Economic factors: These factors as inflation increases causes directly impact to
purchasing power of consumers are affecting economy directly or indirectly. This firm is
getting affected as slow but stable growth of envelopes countries which acts as a positive
aspect for the company to grow its business. Slow down of Chinese market can be

negative point for the company as Chinese market is major contributor to Mc Donald's
revenue.
 Social Factors: These macro factor focuses on cultural diversity and population analytics
of society. For this company growing disposable income of consumers acts as positive
aspect for them as growing tendency of consumers to buy fast food instead of cooking at
home and negatively getting affected as growing tendency of healthy lifestyle.
 Technological Factors- These factors relate to technical advancements .For this
company Modernise R&D activity and increasing sales through mobiles resultant in
effective sales and also these factors results in negative effect as due to technical defect
sometimes our working gets affected
 Legal Factors: These factors have both external and internal side. As In this firm g
health regulation in workplace and schools can impact business of this company directly
and as demand of fast food among youngsters acts as demanding factor this can results in
positive factor for business.
 Environmental Factors: These include all those factors which are affected by
surroundings it can be natural calamity. This company offers free services to sufferers
which helps in gaining good brand image and building customers during such
happenings company implement certain modification in its work style which can't affects
their operations team and can perform their task smoothly without any inconvenience.
TASK 4
P5 Strength and weakness of McDonald's
Swot analysis is strategic technique used to identify its strengths weakness opportunity
and threats of the company.
 Strengths: These are areas which defines company weak and strong points that where
the company excel and where it is lacking. This company has successfully launched its
variants as coffee, smoothies, burgers. Its operations are spread around the world means it
is workable for all the currencies these aspects can have positive effect as company can
generate more revenue from its variants offered and wrong impact as health conscious

crow is increasing leading to be a risk for the company as they have decided to launch
new products.
 Weaknesses: These are factors which unable s any to reach at their optimum
performance level. As This company Location preference is a hurdle for the company as
US has saturated with its restaurants so growth will come internationally, So it becomes
difficult for the firm to locate its products to get good performance.
 Opportunities: These are the factors' whee an external factors gives an organisation a
competitive advantage enhancement of technology. As this firm have a great chance to
expand its business outside United States . And company tries to explore China as it Best
Opportunity for them to expand business and with good technical enhancement can
increase its productivity.
 Threats: These are factors that can cause a harm to an organisation it can be natural
calamity or other factor as increasing cost of material, rising competition. For this
company Government are considering regulations targeted food can be a threat for the
firm as other products will be get untouched and have to bear great loss.
P6 Interrelationship of Strength and weakness with external macro factors
As increasing brand image and popularity of its products among consumers acts as
strength for company which relates to social factor which undertakes societal factors as
income ,demand of consumers.
As development in technology resulting for the company to give good effective
productivity through online selling this can relates to technological factor as technical
enhancement is an opportunity for the firm to grow in market.
As increasing competition in market is threat for company as high competitive market
there is less chance to maintain stability which can be linked to environmental factor as
competition occurs in environment which can act as external factor.
CONCLUSION
The Report summarised that how external macro factors affects any organisational
activities this has been concluded by taking help of PESTLE analysis as a tool to analyse effect
of macro factors on company. And also study of micro factor has been done with help of SWOT

analysis. Further this report explains interrelationship between micro and macro environmental
factors of company MC Donald's
REFERENCES
Books and Journals
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Igliński, B.and.et.al., 2016. The study on the SWOT analysis of renewable energy sector on the
example of the Pomorskie Voivodeship (Poland). Clean Technologies and
Environmental Policy. 18(1). pp.45-61.
Sammut‐Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1
Online reference
2016.ScanningtheEnvironment:PESTLEANALYSIS[Online].Availablethrough:<https://
www.busness-to-you.com/scanning-the-environment-pestel-analysis/>