This report provides a comprehensive business environmental analysis of McDonald's Hong Kong, employing the PESTLE and SWOT frameworks. The PESTLE analysis examines the impact of political stability, corporate taxes, labor laws, safety regulations, GDP, inflation, lifestyle trends, health concerns, technological advancements, capital requirements, foreign investment, corporate governance, social services, and food wastage on McDonald's operations. The SWOT analysis identifies the company's strengths, such as brand awareness and menu variety, and weaknesses, including high employee turnover and perceptions of unhealthy food. Opportunities include political stability, lifestyle trends, and technological adoption, while threats include strict labor laws, food safety regulations, inflation, health issues, and regulatory penalties. The report highlights the interrelationships between internal strengths and weaknesses and external factors, emphasizing the influence of social factors and the impact of external elements on the company's performance and decision-making. References are provided to support the analysis.