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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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:
Politics plays a significant role in the functioning of any organisation, especially ones as big as McDonald's. This involves:
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.
Three significant economic factors cause shifts in the business strategies for McDonald's. These are:
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.
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 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.
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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.
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.
Several legal factors have affected McDonald's over the years. For example,
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.
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:
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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:
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