Examples Of Pestle Analysis On Business

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4.0 PESTEL Analysis POLITICAL - The political environment in a country affects its business environment which in turn, affects the performance of a business organization. (Asdullah, M. et al, 2015). A lack of political stability in a country causes negative effects on business operations. Therefore, businesses strive to enter countries that are relatively politically stable. The Beri Index is a tool that measures the risk to a business by rating a country’s political stability inter alia. The United Kingdom’s (UK) political stability was rated at an index of 3, which is above average, making it an ideal country to operate in (, n.d.). The recent “Brexit” move, i.e. Britain’s exit from the European Union (EU), is another factor that has impacted Mc Donald’s operations in the UK. They no longer benefit from tax exemptions which automatically drove up prices of imported raw materials (Krasniqi, F. 2017). They have responded to this change by collaborating with designer Julian Mac Donald to …show more content…

Mc Donald’s adopted an e-business strategy to respond to such demands by launching a digital ordering platform - upgrading its restaurants with its “experience of the future” (Kim, T. 2017). This experience includes touch screen self-serve kiosks, tablets installed at tables, so customers can play the latest games or check their emails freely as well as charging ports for mobile phones (Wright, J. 2015). They have also partnered with UberEats to provide moped and bicycle delivery services between 7am to 2am for a fee of £2.50 (Titcomb, J. 2017). Such strategy has reduced their cost of traditional advertising and created an additional revenue stream with delivery fees and tips accounting for 10% of sales (Gerrard, B. 2017).

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