The foundation of McDonald’s, a well-known brand name in fast food industry, dates back to 1940 when the McDonald brothers, Dick and Mac, opened a drive-in restaurant in San Bernardino, California. They came up with an idea of using an assembly line process to serve more customers in the same amount of time. In 1948, that idea turned out to be a success as the potato chips were replaced with the world famous French fries of McDonald’s. The real person behind the company’s history, however, is Ray Kroc (picture) (Fast Food Restaurant 2015). Thanks to Kroc’s open mind by focusing investment on advertisement, McDonald’s experienced a tremendous growth between the period of 1960s and 1970s. In 1962, McDonald's introduced its now world-famous Golden …show more content…
External environmental analysis (PEST)
Besides looking at a business’ internal resources and industry factors, it is necessary to understand the external environment factors that may have a profound impact on a business’ performance and activities in the long term. The external environment analysis (PEST) is the framework which best suits those needs. PEST stands for Political, Economic, Social and Technological. The PEST analysis on McDonald’s can help identify great opportunities or significant threats concerning the changes in the business environment.
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McDonald’s UK is affected by factors such as inflation, interest rates, unemployment rates, purchasing powers and global economic stability. When the rate of inflation is high, competition is intense since the cheapest food providers will win the greatest market share. In time of price increases and exchange rate fluctuation, McDonald’s UK may have to re-establish its food supply chain that satisfies both the low price requirement and high quality. It can do so by sourcing local food supplies, especially when inflation in UK fell to 0% in June 2015 due to a fall in clothing and food prices (United Kingdom Inflation Rate 2015). Other factors such as purchasing power, unemployment rates or cost of living determine the supply and demand relationship and the sale of McDonald’s products. High unemployment rate means less income to spend and hence, lower revenue. When economic conditions are stable with low interest and low inflation, McDonald’s UK is more likely to take risks in franchise-expansion investment to
PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are
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).
The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.
Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman
PEST ANALYSIS ON TARGET CANADA BY GRACE NWACHUKWU. October, 2014 Business News Daily, 2013 explained PEST Analysis (Political, Economic, Social and Technological Analysis) as how those external factors can affect a business’s activities and performance… The article further explained that aside the fact that some organizations already have factors affecting their performance, there are some factors outside the organization that can determine the positive result of business. For those organizations to determine how those factors outside the organization can be of positive impact, they decide to conduct a PEST Analysis.
PEST is an acronym used for companies with in the political, economic, social and technological views. PEST allows companies to view and observe certain areas that might have been overlooked. The company I will be discussing the PEST analysis is Target. Target is a large scale company and is constantly changing in the industry. The political views of Target is that they must have an unbreakable bond with China due to majority of its products coming from that country. They must be aware and stray away from any conflicts because it can create a negative affect in the operation of Target. Also the company is altered by taxation, tariffs, cost, and trade restrictions especially when they're trying to broden outside the United States. The economic
Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.
Because McDonalds is such a known-worldwide corporation, you have to wonder what kind of man was brilliant enough to come up with the idea. Ray Kroc is the man behind the yellow arches. Ray Kroc was born in 1902 and was known for having various jobs until 1954 when he visited a San Bernardino, CA restaurant and was impressed by how effective and organized the operation of the restaurant was (Ray). He admired their “limited menu… which allowed them to focus on quality and quick service” (Ray). So in 1955, Kroc presented his idea of building McDonald’s restaurants across the country and founded McDonald’s System, Inc. (Ray). Kroc was very successful even from the beginning seeing that as of 1958, the 100 millionth burger had been sold by McDonald’s (Ray). Since then McDonalds has expanded considerably and has caused Americans to affiliate their yellow arches with hamburgers and quick
When it comes to fast food everybody thinks that you can’t have a healthy meal at the run. With Americans spending over $100 billion dollars a year on fast food, a lot of the companies had to find ways to add healthy meals to their menus. McDonalds founded in May of 1940 serving over 58 million people worldwide on a daily basis. With facing competitors like Subway with healthy meals. McDonalds had to find a way to add healthy meals to their menu to bring in those customers who were going to places like subway.
McDonald’s began as a barbeque, and the brothers strictly offered burgers, fries, and pop. Ray Kroc heard about McDonald’s one day and went to visit the restaurant. Kroc was surprised by their efficiency and the quality of the food. Kroc liked the fact that the brothers could focus on the quality of food, due to the limited menu items. Subsequently Kroc realized their success could amount to much more and shared his vision. Kroc told the McDonald brothers that McDonald’s could be a national business serving people across the country. (At this point, Kroc did not even think about being international). Dick and Mac were thrilled with what they heard, so in 1955 Kroc founded the McDonald’s Corporation and opened the first McDonald’s in Des Plaines, Illinois. By 1960 Kroc had bought exclusive rights to McDonald’s. In 1961, Kroc developed Hamburger University where new employees were trained on how to run a successful McDonald's. Kroc wanted to develop the most efficient methods to store, cook, and sell food, so he had a laboratory built at Hamburger University where students' test different ways to make McDonald's more productive. Hamburger University is still in use today in the search for ways to better McDonald’s. McDonald’s had their first sit-down restaurant in 1962, and then in 1975, McDonald’s had opened their first drive-thru restaurant in Arizona. The first drive-thru restaurant was
McDonald's has had a global impact on the food industry. McDonald's developed a revolutionary idea known today as fast-food. This impact began in 1930 when Maurice and Richard McDonald left New Hampshire seeking to make a fortune in Hollywood, started up a drive-in restaurant in San Bernardino. Unlike so many other food-service operations at the time, McDonald's came up with new ideas that turned the usual slow paced dinner into a finely tuned engine.
McDonald’s development from its first drive-in restaurant in San Bernardino, California, to the famous fast
McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its
McDonald's is one of the famous brands that have existed over the last 52 years. The company started in 1955 by Roy Croc and the first restaurant was opened in Des Plaines, US. This restaurant is no longer running and has been turned into a museum. The company is committed to improving their
This organization began in 1940, by the brothers Richard and Maurice McDonald, in San Bernardino California. McDonald Corporation today dates its founding to the opening of a franchise restaurant by Ray Kroc, in Des Plaines Illinois, in 1955. The system of “speedy service System” in 1948 established the principals of modern fast – food restaurant.