McDonald's PESTLE and SWOT Analysis for BTEC Unit 1 Assignment

This report presents a PESTLE and SWOT analysis of McDonald's, examining the external environmental factors impacting its operations. The PESTLE analysis covers political, economic, socio-cultural, technological, environmental, and legal factors, while the SWOT analysis identifies McDonald's strengths, weaknesses, opportunities, and threats. The analysis highlights key findings such as the influence of government actions, economic conditions, demographic trends, technological advancements, environmental concerns, and health regulations. It also considers internal factors like healthy lifestyle trends and employee compensation. The report concludes that efficient environmental analysis is crucial for business success and recommends formulating a marketing plan to achieve set goals and objectives, emphasizing the importance of continuous environmental assessment.

McDonalds PESTEL AND
SWOT ANALYSIS.

INTRODUCTION
PESTLE analysis is an important analysis tool for any business as it enables the
business identify the external environmental factors that have an impact on its
operations
Pestle analysis model enhances strategic management by the business on how to
deal with the external factors that affect its performance in the competitive
business environment
In line with this analysis, McDonalds apply various strategies to enhance the
maximization of various opportunities within its business environment
The formulated strategies aim to address the external business environmental
factors so as to know how to compete with rivalry businesses like Starbucks
Coffee Company, Burger King, Wendy’s subway and Dunkin’s Donuts.

McDonalds PESTEL ANALYSIS
Political factors
Economic factors
Socio-cultural factors
Technological
Environmental factors
Legal factors

Political factors
Actions by the government
 Political stability.

Economic factors
High inflation rate
 Lagging economic
growth.
 Fall of the Chinese
economy

Socio-cultural factors Demographic trends
 Increased Income among the people
 Increased cultural diversity
 Busy lifestyle of the community

Technological factors

Increased Online marketing
Automation in production

ENVIRONMENTALFACTORS
Changes in climatic conditions
Increased emphasis on
sustainable business strategies

Legal factors
Increased health
regulations
Wage policy

MacDonald Restaurant
SWOT ANALYSIS
10
S
W
O
T
Strength
Weakness
Opportunity
Threats

INTERNAL ANALYIS OF KEY
FINDINGS
Healthy lifestyle trend by the customers
Employee compensation

External analysis
Advertisement through
mobile applications