Mcdonald's Corporation: Pestel Analysis Of The Fast Food Industry

Decent Essays
Case 3: McDonald’s Corporation

PESTEL Analysis of the fast foods industry
• Political: Fast foods industry need to comply with country specific or government regulations, such as on pertaining to health and hygiene, international trade agreement, national minimum wages, tax law, labels and packaging. Especially, for corporations like McDonald’s, which operates in over 100 countries, its political exposure is all over the board and heavily influenced by the individual state policies enforced by each government. Opportunities for the industry is to expand business based on improved international trade, which can help to improve global supply chains, and reform the strategies to decrease the impact of taxation.
• Economic: For organizations
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Almost all of the organizations within the industry chose to include healthier products in their menus, and customers these years put more attention on the concept of eating healthy. Options like advocating a healthy lifestyle, offering low calories options and salad side and demonstrating the freshness of material used will be used by many fast-food players in the future. Moreover, operations with international presence will offer different product that appeal to local customers, such as rice burger in China and Curry Berger in India.
• Technological: Advanced technology will help the organization to operate with increasing productivity, better management and improve customer satisfaction while reducing the wasted time and resource. Business automation can help customers to easy order and pay, and help managers to tract, analyze and forecast sales. Another big trend is the use of mobile apps and social media.
• Ecological: These days, people caring more about sustainable and environmental protections. Not only the government but also the customers want the fast food organizations to be more eco- or environmental-friendly. This trend about the environmental awareness provided fast food operations an opportunity to positions themselves as “Green” and “Sustainable” to gain more customers and maintain customer
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McDonald’s has a low price strategy and mainly focus on products such as burgers, fries and various drinks. Customers come to McDonald’s generally aim to save money and time. However, since more people have a job or higher income, price is no longer the only things people look for. Health concerns has become a global thing, and more and more people nowadays are seeking for a high quality and healthier lifestyle. Even though McDonald’s took some actions to follow the current healthy trend, for example, it announced its intent to stop selling chicken products from birds treated with antibiotics important to human health, the overall firm did not make a big change toward the theme “Healthy”. Therefore, by introducing more low-calories product and make sure the food provided meet the regulations for health purpose. Also, since McDonald’s operates in over 100 countries, the strategy of having customized product based on geographic locations would greatly help to add more value to the company. As McDonald’s expand to more countries in the world, create different dinning culture within each McDonald’s store will help the company to gain more competitive value among the

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