PESTLE Analysis: Influencing The Threat To Macdonald's

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1.5.3 Macro environmental Analysis

Macro environmental factors are factors that relate to the company’s external environment, factors that the company cannot control. These factors have the possibility of posing as a threat to the company but may also provide an opportunity. The PESTLE analysis can be used to determine the company’s macro environmental factors.

The first letter P stands for political and looks at the political factors that affect the company. A factor that could represent a potential threat to McDonalds would be government legislation on unhealthy foods. As adult obesity rises in New Zealand, marking nearly a third of the adult population as obese. Dieticians are forcing government hands to legislate against Big Foods - a
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With economists predicting that New Zealand may be going into another recession in the near future. All sorts of industries and companies will be impacted in a mostly negative but possibly positive manner. A recession in New Zealand would cause a major economic downturn, causing losses in revenue and profits to many businesses. However, in the past, recessions have actually made fast food restaurants more successful. During the 2009 recession, Statistics New Zealand released information that showed an increase of $10.5 million in fast foods sales from February to March (Forbes, 2009). This is due to the fact that fast food restaurants are largely accessible and is considered a substitute to fine dining restaurants due to its lower costs. This increases demand, generating more profit and would be an opportunity for …show more content…
As the awareness to be healthy is increasing and society is seeing the importance of dieting and exercising, people are starting to choose healthier options and make healthier choices. These decisions that society is making, influences the consumption of products, and decides what consumers will buy. For society to shift to healthier options, this would pose a threat to McDonalds because of its largely considered unhealthy menu.

The traditional style of eating at home has been overshadowed by the increasing popularity of eating out. This consumer behaviour is due to a rise in consumer confidence where people are not so tight with money. A common trend is the casual Friday nights or weekends, where consumers regularly purchase fast food or takeaways on these days. This is a socio-cultural factor, and fast food chains such as McDonalds are taking advantage of this by selling items in bulk known as family packs which make it much more convenient for consumers. This is an opportunity McDonalds has taken as the trend can only

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