btec level 3 business unit 3 p4 NOTES
The main reason McDonald’s use both SWOT and PESTLE analysis is because it allows McDonald’s to see what they can do to improve themselves in the future. SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats. PESTLE has wider coverage of business and external issues, including political, economic, social, technological, legal and environmental factors.
A SWOT analysis allows McDonald’s to consider advantages that may help tell the differences between them and their competitors. Analysing weaknesses shows what McDonald’s can do to improve their business in order to gain more customers. Opportunities and threats analysis help McDonald’s determine the current and future viability of their business plan. With PESTLE, it allows McDonald’s to consider the external factors that may positively or negatively affect the development of their business. For instance, some companies thrive during a tough economy, while many struggle because of more budget-conscious customers.
These strategies allow McDonald’s to look at external things too for e.g. using PESTLE can ensure that McDonald’s stay current with any legal issues, such as industry regulations. They can also avoid major mistakes by engaging in business activities in the current social and environmental situations.
Conclusion
McDonalds has undergone several changes since its start in California. The fast food chain has taken over the US and it now focusing on the rest of the world. McDonalds, along with this trend, continues to strive towards customer satisfaction while still enhancing its international market position. The company is doing very well and keeps trying in Africa, China, and the Middle East, which will be a continued source of revenue for many coming years. If McDonalds can overcome all of its challenges, makes use of advantages and has right strategies, it will win the market again and hold fast to first position in fast food industry.
A SWOT analysis allows McDonald’s to consider advantages that may help tell the differences between them and their competitors. Analysing weaknesses shows what McDonald’s can do to improve their business in order to gain more customers. Opportunities and threats analysis help McDonald’s determine the current and future viability of their business plan. With PESTLE, it allows McDonald’s to consider the external factors that may positively or negatively affect the development of their business. For instance, some companies thrive during a tough economy, while many struggle because of more budget-conscious customers.
These strategies allow McDonald’s to look at external things too for e.g. using PESTLE can ensure that McDonald’s stay current with any legal issues, such as industry regulations. They can also avoid major mistakes by engaging in business activities in the current social and environmental situations.
Conclusion
McDonalds has undergone several changes since its start in California. The fast food chain has taken over the US and it now focusing on the rest of the world. McDonalds, along with this trend, continues to strive towards customer satisfaction while still enhancing its international market position. The company is doing very well and keeps trying in Africa, China, and the Middle East, which will be a continued source of revenue for many coming years. If McDonalds can overcome all of its challenges, makes use of advantages and has right strategies, it will win the market again and hold fast to first position in fast food industry.