PESTEL Analysis - McDonald's

Extract

[...] McDonald's can use this information to employ a set of strategies for maximising the benefits of opportunities in its industry environment and address external factors as well as factors around the competitors in the same industry. II. PESTEL Analysis - McDonald's A. Political In the food-service industry, the most important regulations that must be complied with are the health and hygiene regulations as well as all food and health laws which may differ in various countries. McDonald's needs to ensure that both they and their employees abide by these codes, as set out in the over 100 countries in which they operate, failure to do so could lead to the closure of the offending establishment. [...]

[...] Environmental This is one of the most challenging areas for McDonald's as a corporation, from the nature of their product i.e. food to the way it is served i.e. take away packaging; overall they pose a significant environmental risk. To overcome this risk the company needs to be very aware of the areas in which they can counter these challenges. The company has committed to responsible purchasing it terms their beef, probably their main ingredient, which is sourced from sustainable sources that do not contribute to the deforestation of tropical forests. [...]

[...] • Average order value how long customers have to wait for their order • how accurate are the meals which are delivered? • staff costs C. Social and cultural Again on the social and cultural front were heading out to McDonald's for a meal or getting the family favourite takeaway was traditionally a weekly treat, these days across the planet people are becoming much more health- conscious and steering clear of fast food, which traditionally gets a bad rap on the health front. [...]

[...] It employs more than 210,000 and serves 69 million people every day. Their estimated brand value stands at around 130.37 billion USD and the company is ranked ninth among the leading global brands such as Apple, Amazon, etc. The only other food service to get anywhere near their achievement would be Starbucks, valued at a significantly lower amount of around 46 million U.S. million. The global fast-food market was valued at US$ 647.7 billion in 2019. It is estimated that the industry will see a CAGR rate of between 2020 and 2027, this will see it grow to more than US$ 931.7 billion by the year 2027. [...]

[...] It started as a sit- down burger joints but has expanded to include its drive-through or McDrive option, McCafé and McDonald's Play Place. Although the company has an extensive presence in its home market in the United States, its largest country of growth is China. McDonald's first opened in the Asian country over two decades ago and now has over 3,383 restaurants which employ more than 60,000 people. As long as they stick to their so-far successful business philosophy of consistency, innovation, efficient processes and procedures and listening to their customers the company should enjoy an ever-growing success in the global market. [...]