McDonald's PESTEL Analysis
McDonald's is one of the leading fast-food chains, employing millions of employees every year. Hence, it's no surprise that McDonald's PESTEL analysis is a popular topic you will encounter during your case studies research.
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McDonald's PESTEL Analysis Marketing Case Study
A PESTEL analysis of McDonald's is the perfect way to dive deep into the details of the external factors that affect the business and has made it the success it is today. Understanding the pros and cons related to the Political, Economic, Social, Technological, Environmental, and Legal factors come in handy when framing any business strategy or developing appropriate solutions to problematic situations.
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On that note, let's go over the six factors that define any McDonald's PESTEL analysis in 2021:
1. Political Factors Influencing McDonald's
Politics plays a significant role in the functioning of any organisation, especially ones as big as McDonald's. This involves:
- International trade agreements that increase the company's opportunities for growth abroad
- Governmental dietary regulations and restrictions
- Public health policies
McDonald's has been receiving criticism from health experts for its unhealthy menu items for years. Therefore, such regulations and policies can cause severe issues with marketing assignment writing and business operation.
The best way for the company to counter the criticism and stay in line with the policies is to introduce salads and healthy items to their menu to attract customers.
2. Economic Factors Influencing McDonald's
Three significant economic factors cause shifts in the business strategies for McDonald's. These are:
- The slow economic development in third world countries
- Rapid economic growth in first world countries
- Stagnation of the Chinese economy
The first two factors provide immense opportunities for growth for MacDonald's as it opens up avenues for newer franchises. However, the stagnation of the Chinese economy would require some changes in the business model as the Chinese market constitutes a significant portion of McDonald's revenue.
If you're struggling to find detailed research material on the topic, our writers can help you explore deeper into the economic conditions for your McDonald's PESTEL analysis case study.
3. Social factors Influencing McDonald's
It is the customers who keep any business afloat. Therefore, it is safe to say that social factors are crucial for any service-related business whose consumers come from all economic sections of society. For example, if people worldwide decided they'd never eat anything from McDonald's one day, the company would crash to the ground despite the best marketing efforts.
Hence, even a giant like McDonald's needs to keep the social factors in mind when chalking up a business strategy, such as:
- The rise in disposable incomes
- Cultural diversity
- Busy lives in urban centres
- Health consciousness
The rise in disposable income and busy lifestyles would prompt people to be more indulgent with fast food. However, cultural diversity and health consciousness in society can have the opposite effect.
At MyAssignmenthelp.com, you can find the best ghostwriter experts to provide McDonald's PELTEL analysis to explain the social factors in great detail.
4. Technological factors Influencing McDonald's
McDonald's ability to adapt to the rapid technological changes in society and incorporate them into its workflow plays a crucial role in its current position as one of the leading fast-food distributors in the world.
The fast-food giant has been able to maximise its effectiveness and output of better services through business automation. For example, introducing a mobile app increases their reach further and opens up more potential for revenue growth.
However, unless you are familiar with technological jargon, it would be impossible to explain the sheer impact of automation in your McDonald's case study. But at MyAssignmenthelp.com, you can find instant professional help to ensure high-quality writing regardless of the complexity of the topic.
5. Ecological/Environmental factors Influencing McDonald's
McDonald's environment analysis shows how intimately dependent the fast-food chain is on global climate change. However, with growing environmental concerns, McDonald's initiative to switch to sustainable business strategies has impacted the organisation positively.
However, climate change conditions in many regions have affected the food source, making the impact prominent on the supply chain. Hence, McDonald's needs to figure out ways to diversify its supply chain to maintain business stability.
6. Legal factors Influencing McDonald's
Several legal factors have affected McDonald's over the years. For example,
- Increased regulations of fast food in schools
- The rise in basic wage for employees
- Animal welfare laws
The increased health regulations in schools and workplaces have severely affected McDonald's revenue from these sources. Meanwhile, the increased animal welfare laws have caused a considerable increase in spending towards the food supply chain. Furthermore, an increased minimum wage is another factor that leads to increased costs.
Writing a PESTEL analysis of McDonald's would require you to dive into all these six factors that have a significant impact on the operations and functioning of the organisation. However, as the process is time-consuming, we can lend a hand and take some of the burdens off your shoulders.
Four Factors of McDonald's Case Study SWOT Analysis
A SWOT analysis is a perfect way to explore the organisation's Strengths, Weaknesses, Opportunities and Threats. In the case of McDonald's, these are:
- Dependable brand name
- Extensive product range
- Value for money
- Affordable pricing range
- Brand loyalty from customers
- Have faced animal cruelty allegations
- Fewer options for vegans
- Promotion of unhealthy food
- Long queues at driveways
- Increase range to include the vegan community
- Introduce alternatives to the classic fries
- Introduction of more decaffeinated drinks
- Addition of fish products to the menu
- Competitors in the fast-food industry like KFC, Burger King, Subway, etc.
- Increase in basic wage
- Low consumer consumption
- Less disposable income
- More health-conscious awareness
If you have never written a SWOT analysis before, you can find many examples on MyAssignmenthelp.com to better understand how to approach the assignment.
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Most Frequently Asked Questions By Students:
Q1. How To Create A SWOT Analysis Of McDonald's?
First, you can conduct a McDonald's PESTEL analysis highlighting the six factors that influence the business: political, economic, social, technological, environmental, and legal. Once you have the data, you need to cover the following steps:
- Identify the objective
- Create a grid and divide it into four boxes
- Label each box with Strengths, Weaknesses, Opportunities and Threats
- Identify the points from the PESTEL analysis that you can include in each box
Q2. Does Myassignmenthelp.Com Provides Pestle & SWOT Analysis Solution Of McDonald's?
MyAssignmenthelp.com is the leading provider of PESTEL and SWOT analysis solutions of McDonald's, where you can get excellent quality solutions aligned with the standards of the top universities worldwide. Our writers have decades of experience assisting students through every bump on the road. Moreover, we also ensure that your papers are factually correct and free of any plagiarised content.
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