McDonald's UK PESTLE Analysis

This report provides a PESTLE analysis of McDonald's operations in the UK. It examines the political, economic, socio-cultural, technological, legal, and environmental factors impacting the business. The political section notes the impact of trade agreements and tax reforms. The economic section discusses the stable UK economy and the riskier European economic climate. Socio-cultural factors include the wealth gap and cultural diversity. Technological factors cover R&D, automation, and mobile sales. Legal factors include minimum wage laws, health regulations, and animal welfare standards. Finally, environmental factors address corporate environmental programs and climate change. The report concludes by summarizing the opportunities and threats identified for McDonald's in the UK market.

ENGLISH

TABLE OF CONTENT
PESTLE analysis of McDonald's UK..............................................................................................1
REFERENCES................................................................................................................................3

PESTLE analysis of McDonald's UK
Pestle is basically termed as a business analysis tool that greatly incorporates in assessing
those influential factors in the market that directly affects the undertaken operations of an
organisation (Chhabra and Kiran, 2015). The below report has hereby referred to evaluate such
influential factors of a renowned food organisation called McDonald's that is famously known in
the industry of fast foods. Below are the five definite constituents of this analytical model to
scrutinize the business environment of McDonald's in UK- Political- A rising trend of worldwide trade agreements is currently prevailing in the
political dimension of its UK market where this in turn reflects a considerable
opportunity for McDonald's to enlarge their business in several other nations (Dey,
2016). A pending tax reform is referred to be yet another political tact for McDonald's in
UK market whose impact can be duly reduced by them with more reformed business
strategies. This being another vital opportunity for McDonald's depicts a leading threat
from developing public health practices. Economic- It is in accordance to the present economic state of McDonald's in its UK
market that indicates a stable growth of economy over there along with a steady yet risky
growth in the European economies as well. Socio- cultural- This factor is apparent to enlighten the societal condition of UK market
that are likely to influence the business operations of McDonald's (Sachdeva, 2015). Thus
in context to its recent market situation, a broadening wealth gap has been envisioned that
could lead to a substantial opportunity for McDonald's to target medium to low income
consumers. Beside this, there together exists a rising diversity in culture with a trend of
leading healthy lifestyle. Technological- This element is together referred to play a considerable role in giving a
partial success to McDonald's where in concord to the present market situation of UK,
there exists an average R&D activity in fast food industry. Also, there is an increasing
trend of business automation that has also risen the sales via mobile technology. Wherein,
all of these factors are referred to be a principle opportunity for McDonald's to succeed
towards a prosperous future ahead. Legal- This is to ensure a legal structuring of McDonald's in its UK market as a way of
detecting any existent threats or opportunities to them (Schlegelmilch, 2016). With
1

reference to which, a new judicial norm for minimum wage level has been prescribed
with some local health modulations in the schools and workplaces along with certain
animal welfare standards. Herein, all these regulatory norms are considered as a
threatening scope of growth for McDonald's.
 Environmental- These are those ecological factors that equally impacts upon the
undertaken business activities of McDonald's. It is therefore in concord to the prevalent
market situation of McDonald's in UK, a tactful emergence in the corporal environmental
programs has been depicted where it in turn emphasising upon sustainable business
practices. However, sudden climatic change has been together visualized that represents
to be a major threat for McDonald's.
2

REFERENCES
Journals and Books
Chhabra, S. and Kiran, R., 2015. An Empirical Analysis of Total Factor Productivity in Food
and Beverage Sector. Productivity. 56(2). pp.121.
Dey, K., 2016. The fast food industry in the UK. Analysis of McDonalds with PESTEL, VRIN
and Porter's Five Forces.
Sachdeva, A., 2015. Evaluation and selection of differentiation as a strategy for McDonald’s.
Schlegelmilch, B.B., 2016. Global Marketing Strategy. Springer International Publishing:
Imprint: Springer,.