PESTLE Analysis Report: McDonald's UK Business Environment

This report provides a PESTLE analysis of McDonald's UK, examining the macro-environmental factors impacting its business. It explores the political environment, highlighting opportunities from international trade agreements and tax reforms, while also acknowledging threats from evolving public health policies. Economic factors are discussed, including slow but stable growth and potential risks from European and Chinese economies. The social environment is analyzed, emphasizing widening wealth gaps, cultural diversity, and changing consumer preferences for healthy lifestyles. Technological advancements, including business automation and mobile services, are identified as strengths. Legal factors, such as minimum wage and health regulations, are considered as threats, alongside opportunities related to animal welfare. Finally, the report highlights McDonald's commitment to corporate environmental programs and sustainable business strategies. The analysis concludes that McDonald's faces both opportunities and threats within its external environment, emphasizing the need for strategic adaptation to maintain a competitive advantage.

ENGLISH

In the present scenario, to analyze and monitor the macro environmental factors that can
put a direct impact on functioning of a business, organizations use marketing theory or tool of
PESTLE analysis. With the help of this approach, company comes in the position to make
suitable strategies by which it can gain fruitful results and attain the set objectives within
stipulated time period in an effectual manner. Here, the chosen firm is McDonald’s, UK, which
is a fast food restaurant specialized in hamburger with having several franchises across the
world. It is one of the largest fast food restaurants in world that is public limited (Pestle, Crowley
and Weirauch, 2014). There will be discussion on the PESTLE analysis of McDonald’s, UK so
as to assess it macro-environmental factors by which its business can get affected. As the market
in which McDonald’s is operating highly competitive due to presence of numerous firms in the
restaurant sector that are offering identical products at similar products, PESTLE analysis will
play a significant role in making the firm aware with its strengths and weaknesses and
accordingly, it can formulate the strategies to gain competitive advantages over others present in
the same market.
The political environment of McDonald’s, UK provides lots of opportunities to the
organization in terms of increasing international trade agreements as well as pending tax reform.
With the help of this, company is gaining the opportunity to expand its business in other nations
as well as to reform its practices and policies so that impact of taxation on trade can be reduced
along with advantage of not violating the law. However, evolving public health policies may
prove to be a threat for organization. In addition to this, under economic factors, it can be said
that McDonald’s is having slow but stable growth in the nation but, there are some limitations in
relation to economic environment like stable but risky European economies as well as slowdown
of the economy of China. Apart from that, social environment of the organization is highly
positive as well as in favor of business and thus, providing several opportunities (Greenspan,
2017). The most significant sociocultural factors are like widening wealth gap, rise in the cultural
diversity as well as changing trends in the market like now, customers prefer healthy lifestyle.
However, it may lead to serve as a threat for firm as if it would not provide products as per the
changing demands of customers, it may lead to face issues like reduced profits and customer
base. In addition to this, technological environment of McDonald’s is very strong as there is
moderate research and development (R&D) activities in the industry with increasing business
automation as well as enhanced sales through mobile services (Cadle, Paul and Turner, 2010).
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Further, the legal factors create threat for the organization because nation keep on changing and
imposing norms, laws and legislation like new legal minimum wage level and local health
regulations at the workplace. It also includes animal welfare regulation that serves as an
opportunity and threat both. Last but not the least; rising interest of McDonald’s for conducting
corporate environmental programs leads to provide lots of opportunities to business. Also, with
increasing emphasis of firm on sustainable business strategies is also helping it to stay and
survive in the market for longer duration (Roederer, Nozzi and Nason, 2011). So, overall it can
be said that company is having lots of opportunities in its external environment with few threats
in accordance of which it needs to formulate and implement strategies in a way that competitive
advantages can be gained.
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REFERENCES
Cadle, J., Paul, D. and Turner, P., 2010. Business analysis techniques: 72 essential tools for
success. BCS, The Chartered Institute.
Greenspan, R., 2017. McDonald’s PESTEL/PESTLE Analysis & Recommendations. [Online].
Available through: <http://panmore.com/mcdonalds-pestel-pestle-analysis-
recommendations>. [Accessed on 31st March, 2017].
Pestle, W. J., Crowley, B. E. and Weirauch, M. T., 2014. Quantifying inter-laboratory variability
in stable isotope analysis of ancient skeletal remains.PloS one. 9(7). p.e102844.
Roederer, M., Nozzi, J. L. and Nason, M. C., 2011. SPICE: Exploration and analysis of post‐
cytometric complex multivariate datasets. Cytometry Part A. 79(2). pp.167-174.
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