Mcdonald’s Corporation - Pest Analysis

The use of PEST analysis can be seen effective for business such as their strategic planning, marketing, and product development. Furthermore, PEST ensures that company`s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST have four factors which are Political, Economic, Social, and Technological. However, we use these factors to check how they interplay to the business or the activity of an organization.Using PEST analysis is important when a company decided to enter its business operation into new markets and new countries. In this case, using PEST will help to adapt effectively to the realities of the new environment and to make contingency plans for threats by preparing business and strategic plans (Byars, 1991; Cooper, 2000).

McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and

McDonald’s Corporation operates in the food service industry. The company has its restaurants in more than 100 countries of the world. McDonald’s, the world’s largest food chain is headquartered in U.S. having an employee population of 390000 (About McDonald's..., 2008).

McDonald’s offers a wide variety of employee benefits to ensure they keep outstanding employees. These benefits also allow McDonald’s to compete with other organizations and make they more appealing to someone looking for a career. McDonald’s also recognizes employees with awards such as the President’s Award and Circle of Excellence Award to top performers. Depending on eligibility McDonald’s offers the use of a company car covering the cost of insurance and repair (McDonald’s, 2011).

Once people start to realize what fast food it doing to their kids and better themselves, there will be a positive change for the better. Many fast food industries try to make their foods more appealing to kids by introducing popular character to sway the younger audience. Instead major companies such as MacDonald’s should try to use those characters to promote healthier living and healthier foods, whilst advertising their brand at the same time. Major companies should understand that once people realize how unhealthy their foods are they would be loosing customers. By providing healthier alternative and promoting healthier lifestyles they will be able to keep their customer and be known for promoting a healthier lifestyle a the same

Types of marketing mix that McDonald’s use to achieve their marketing goals are longer operating hours, everyday value meals, and optimizing efficiency in the drive-thru. McDonald’s also uses marketing campaigns. In 2007, McDonald’s used the Shrek movie to give children a choice between milk, fruit, or vegetables as part of their Happy Meal. In addition to their commitment with children, McDonald’s is

McDonald’s has been negatively publicized to be an unhealthy option. The food is perceived to be loaded with fat, sugar, salt and carb at a high rate. It has been disapproved by numerous people as being a promoter of unhealthy diet pattern especially for the young generation who are extremely obsessed with the ease of availability and cheaper rates. It has been blamed to cause weight gain among consumers. Due to these facts, the group of health conscious people avoid McDonald’s even after the healthier pickups introduction. (Kane, 2013)

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:

Fast food companies do not hold back, and they take full advantage of this by advertising their fattening food products that appeal to the children. The American Psychological Association website explains that “Research has found strong associations between increases in advertising for non-nutritious foods and rates of childhood obesity” (“The Impact of Food Advertising on Childhood Obesity”). This direct relationship shows the harboring effect that advertisements have on childhood obesity. This also affects the child psychologically. “Most children under age 6 cannot distinguish between programming and advertising and children under age 8 do not understand the persuasive intent of advertising” (“The Impact of Food Advertising on Childhood Obesity”). Without even realizing it, children are channeling in on these persuasive and luxurious looking advertisements. One tactic that some fast food restaurants use is the inclusion of a free toy with a kid’s meal. “For more than 30 years, McDonald’s has included toys alongside children’s Happy Meals. And for more than 30 years, the rates of diabetes and obesity in children have steadily increased” (“Childhood Lost”). By promoting their business with bribes like this, unhealthy eating habits form, which can result in obesity problems. The fast food industries know that children are vulnerable, so they target them with these bribes. “Happy Meals are marketed as explicitly for children, and then children are rewarded with toys for consuming the high amounts of fat and sodium” (“Childhood Lost”). This is a crafty technique that some fast food restaurants use to sell off their products. Children are too young to realize the effect the advertisements have on them and the long term consequences that may come with

In recent years there has been a growing epidemic of obesity, especially in America. According to the National Health and Nutrition Examination Survey posted on the Center for Disease Control website there are 12.5 million children from ages 2 through 19 that are obese. Many people are starting to complain that the commercials and ads for these restaurants are the result of such an incline in obesity. Although there have been current ad campaigns aiming at children to live a healthy life style there are still hundreds of advertisements that are putting restaurants in a sort of ultimatum position. Either restaurants change their advertisements or they improve their menus. In 1979 McDonalds debuted their world famous Happy Meals to the

McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.

By creating unique brand products, such as: chicken McNuggets, Big Mac, and McFlurry. McDonald’s is setting itself apart from its competitors. The “innovation strategy is used to create new and unique products like, chicken tenders and Newman’s own salads” (Skenazy, Lenore). As well as special celebrity endorsements (athletes, actors/actresses), partnerships/sponsorships (music, Olympics, special movie toys), charities (Ronald McDonald House), games/promotions (monopoly game), which allow McDonald’s to develop their unique corporate image that sets them apart from their rivals.

McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants. There are over 31,000 McDonald’s locations worldwide primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts.

What should a company do when its core product is considered “unhealthy” or even “harmful” by the public? Is it even possible for such a company survive and thrive; or will it have to shut down its business? McDonald’s fast food has for a long time been considered unhealthy by the public. In recent years, the health conscious trends have become increasingly popular. Moreover, many scientific studies and findings have surfaced and successfully confirmed that children’s increasing intake of fast food, which often contains high sodium content, sugars, saturated fats, and calories, for a long period of time would lead to childhood obesity. Moreover, obese children have a much higher risk of many health