PESTEL Analysis: The Pestel Analysis Of Hong Kong

822 Words 4 Pages
2. Construct a PESTEL analysis to show the competitive advantages that McDonalds has to stay and continue its operation in Hong Kong. Basically, in any business, there are always has the PESTEL analysis, same goes to McDonalds. PESTEL is an analysis of the external macro environment in which a business operates. According to (2008), PESTEL stands for political, economic, social, technology, environmental, and legal factors.

Hong Kong has an advantage of having political stability and it is a good opportunity to McDonalds. Hence, there would rarely be any political factors that will interrupt and slow down the company’s growth. Other advantages in Hong Kong are there was no minimum wage policy, and it allows McDonald to hiring the worker to lower wages for them to maximize their profits. Then, in Hong Kong also do not have the goods and services tax. In this case, it will more encourage McDonald has a lower expense.

Demand for lower prices of food increase sharply and has benefited McDonald, because the food was cheap yet quality is guaranteed. This is due to the economic collapse triggered by Lehham Brother who has led Hong Kong to enter a recession phase in the economic cycle. After that, inflation will cause increased supply costs and this will encourage McDonald's raised prices of their food. In
…show more content…
Hong Konger also was used for western food and McDonald has a large customer base. Then, when McDonald's is a fast food restaurant company, it enables the service they performed in a short period and appropriate with this fast-paced lifestyle in Hong Kong. However, the public in Hong Kong aware about nutrition and healthy lifestyle will reduce the nutrition they have high cholesterol. Then, McDonald tries to ensure customers do not switch the direction of other foods. So, McDonald tried to including healthy foods in the menu, such as salads and

Related Documents