Professional Documents
Culture Documents
McDonalds
PESTLE ANALYSIS OF MCDONALDS
STRATEGIC MANAGEMENT
GROUP PROJECT REPORT
Name of Students Roll nos
Bipin Sharma 149
Amey Chopa 159
Sachin Thomas 165
Bipin Tiwari 173
Philip Dias 174
Darian Alvares 175
PESTLE ANALYSIS
PESTLE
Political Factors
Economical
Factors
Social
Factors
Technological
Factors
Legal Factors
Environmental
Factors
PESTLE ANALYSIS
Pestle is an analysis of the external macro
environment in which a business operates.
PEST analysis (Political, Economic, Social and
Technological analysis) describes a framework of
macro-environmental factors used in the
environmental scanning component of strategic
management.
. Some analysts added Legal and rearranged the
mnemonic to SLEPT;
inserting Environmental factors expanded it
to PESTEL or PESTLE, which is popular in the
United Kingdom.
INTRODUCTION
McDonalds is a leader in convenient foods and
beverages, with revenues of about $23 billion and
over 1.6 million employees serving the customers
world-wide.
The company consists of the snack business of
Beverages and Foods. PepsiCo brands are
available in nearly 115countries having more than
24,500restaurants in the world providing 24 hour
service.
COMPANY PROFILE
The modest beginnings of McDonalds in Illinois turned
out to be among the main brand names in the
international scene.
It has been synonymous to what is widely-accepted the
fast-food concept. The company operates over thirty
one thousand stores all over the world to date.
It was one of the first to perfect the concept of fast
service in the food industry in its early days of
operations in 1955.
Given that the products of the company are mainly
western in character, their operation has also expanded
to the Asian region.
In the rest of the globe, it operates thousands of store
franchises that functions autonomously.
POLITICAL FACTORS
There is an impending legal dispute in the McDonalds
franchise in India where certain infringement of rights
and violation of religious laws pertaining to the contents
of the food.
The existence of meat in their menus in India is
apparently offensive to the Hindu religion in the said
market.
. There are also other studies that points to the
infringement of McDonalds Stores with reference to the
existing employment laws in the target market.
Like any business venture, these McDonalds stores
have to contend with the issues of employment
procedures as well as their tax obligations so as to
succeed in the foreign market.
ANALYSIS OF
POLITICAL FACTORS
Since it is apparent that the company is expanding
continuously, it is wise to deal directly with the proper
authorities in the respective markets that they intend to
operate in.
This way, the company can adopt a good way of establishing
good relationship with the government. It is advisable that the
company rests on the good graces of the government on
which they will be penetrating.
To do this, all they have to do is accomplish all the prescribed
acts and satisfy all the prerequisites for doing business. The
company must also be acquainted with the law in order to
know what their responsibilities and their possible liabilities.
Also McDonalds should protect its workers by ensuring all the
hiring, compensation, training or repatriation in accordance to
the Indian labour laws.
ECONOMICAL FACTORS
Branches and franchises of McDonalds have the tendency to
experience hardship in instances where the economy of the
respective countries are hit by inflation and changes in the
exchange rates, India is not an exception to it.
The customers consequently are faced with a stalemate of going
over their individual budgets whether or not they should use up
more on these foreign fast food chains like McDonalds.
Hence, these chains may have to put up with the issues of
the effects of the economic environment. Particularly, their
problem depends on the response of the consumers on these
fundamentals and how it could influence their general sales.
McDonalds generates a demand for its own products. The companys key
tool for marketing is by means of Online Facebook and Google ads,
Collaboration with websites like Snap deal and Times deal to promote sales
in India, television advertisements, banners and hoardings.
There are similarly some claims that McDonalds are inclined to interest the
younger populations more.
The existence of play spots as well as toys in meals offered by the
company shows this actuality. Other demonstration of such a marketing
strategy is apparent in the commercials they use.
The like has become endorsers for McDonalds worldwide Im loving it
campaign. Moreover, the operations of McDonalds have significantly been
infused with new technology.
Elements like the inventory system and the management of the value chain
of the company allows for easy payments for their suppliers and other
vendors which the individual stores in respective markets deal with.
ANALYSIS OF
TECHNOLOGICAL FACTORS
McDonalds use the internet to their advantage. The
cost-effectiveness, interactivity and real-time effects
of the communications are a good way to find
suppliers.