Mcdonalds Pestle Analysis Case Study
McDonalds is an American multinational organization operating in various countries around the world and providing various kinds of food products to the customers. This organization was founded in the year 1940 and it was initially operated by Richard and Maurice McDonalds. There are various categories of subsidiaries of McDonalds. The subsidiaries of this organization include companies such as McCafe, McDonalds France, McDonalds Canada, and various other subsidiaries. This organization is the world’s largest restaurant chain in terms of revenue. The organization is currently serving 69 million customers daily across 100 countries. The organization has a total of around 38000 outlets all around the world. Various food products are offered by McDonalds such as hamburgers, chickens, French fries, soft drinks, milkshakes, salads, desserts, and other kinds of food products for the customers. The organization has been doing its operations in a very good manner and it shall likely continue to work in the same manner in the future also regarding the activities to be performed by it.
PESTEL analysis is a category of environmental analysis of an organization that includes various areas in which the organization has been working. The PESTEL analysis of the organization includes political, environmental, social, technological, economic, and legal environment affecting the working of the company. All these aspects of analysis shall be considered here for finding out whether the organization has been doing well in its operations or not.
a. Political: The political factors that influence how the organization performs its activities include the factors regarding an increase in trade agreements, guidelines of government for diet and health, and evolution of public health policies by the government. If these factors are positive for McDonalds then, the organization shall grow otherwise; it shall have issues in its operations.
b. Economic: The economic factors that influence the performance of McDonalds over the period include factors such as growth in the economy of the countries in which the organization has its operations.
c. Social: The social factors include the changes in tastes and preferences of the customers. The customers may or may not consider buying organizational products due to health reasons. The impact on the organization shall be negative at the time when the taste and preference of the customers changes against the organizational products.
d. Technological factors: Various technological factors make an influence on how the business of the organization is conducted. A moderate level of research and development shall be considered as a beneficial technological factor for the organization. The increase in business automation is also one of the beneficial technological factors for this organization. There is also a possibility that the organization might see an increase in its sales and that would also be considered as a beneficial technological factor for it.
e. Ecological factors: The organization has to see to it that, it is considering the corporate environmental programs. With the help of corporate environmental programs, the organization shall ensure that it can work up the tasks well, and accordingly, its position in the market shall improve considerably.
f. Legal factors: The organization also has to consider the legal factors. Regarding the legal factors, the organization should ensure that it is following the relevant rules and regulations. With the help of following the rules and regulations, the organization is likely to achieve its goals effectively and more appropriately.
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