Pestle Analysis Of Mcdonalds

1628 WordsSep 27, 20177 Pages
PESTLE analysis PESTLE is the analysis of the factors that could affect a business on a macro level. McDonalds franchise strategizes issues identified in this PESTLE analysis. The PESTLE analysis model determines the different external factors that offers opportunities or threats to the business based on its macro-environment. In the global fast food restaurant market, McDonalds is focused on economic and sociocultural factors. Nonetheless, the company’s success is indicative of its effective strategies to deal with all of such external factors. As the largest fast food restaurant chain in the world, McDonalds must keep modifying its approaches based on the circumstances of its industry environment. The PESTLE analysis of McDonalds…show more content…
McDonald’s success partially relies on technological applications. This aspect of the PESTLE analysis relates to the impact of technologies and related trends on the macro-environment of businesses. McDonald’s must addresses the following technological external factors: • Moderate R&D activity in the industry (opportunity) • Increasing business automation (opportunity) • Increasing sales through mobile devices (opportunity) Legal: These factors have both external and internal sides. There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves. Environmental: These factors include all those that influence or are determined by the surrounding environment. Advantages: Like SWOT, the concept of PESTLE is easily understood and can be replicated by diverse people. It (just like SWOT) helps to reduce the possibility of an external threat approaching the business. In addition, this it enables the business to assess implications of entering new markets both nationally and globally. Disadvantages: As stated above PESTLE mainly looks
Open Document