Mcdonalds Pestel Analysis
McDonald’s Pestel analysis
Political-
* There is currently legislation being brought in to prevent fast food companies from advertising at certain times of the day, this is due to the large number of obese children currently in our country. It will see a large change in how the companies can advertise as they feel many kids are being targeted from a young age by fast food companies. * All products need to have full nutritional value on them so consumers can be made aware of the health risks of some of these products, for example in McDonald’s they show on their chips the levels of salt, fat , carbohydrates etc. and how each portion measures in terms of the recommended daily human intake of these products * The government hold to right on the final say of who is approved to open a franchise, this takes this power out of McDonalds hands
Economical-
* As a business entity, McDonalds need to face a lot of economic variables outside its company or its macro environment. When looking for a supplier internationally for some of their products McDonalds should be aware on the global supply and currencies exchange. Although McDonalds use larger amounts of Irish beef than previously not all of their products are produced here so any changes in exchange rates may have a massive effect on what they pay on their imports. * McDonalds must face government regulations on tax of profit where it gains from the operation. They also face other costs such as for advertisements and for certain entertainment (such as in store music). Each country may have different scale or types of tax available and McDonalds should follow the regulation if it wants to continue the operation. As most of their branches are a franchise McDonalds will have to cecum to paying certain percentage of the revenue to the parent company in United States.
Social-
* There is a great need for McDonalds to cater for the different types of customers in different regions, For example in India
Political-
* There is currently legislation being brought in to prevent fast food companies from advertising at certain times of the day, this is due to the large number of obese children currently in our country. It will see a large change in how the companies can advertise as they feel many kids are being targeted from a young age by fast food companies. * All products need to have full nutritional value on them so consumers can be made aware of the health risks of some of these products, for example in McDonald’s they show on their chips the levels of salt, fat , carbohydrates etc. and how each portion measures in terms of the recommended daily human intake of these products * The government hold to right on the final say of who is approved to open a franchise, this takes this power out of McDonalds hands
Economical-
* As a business entity, McDonalds need to face a lot of economic variables outside its company or its macro environment. When looking for a supplier internationally for some of their products McDonalds should be aware on the global supply and currencies exchange. Although McDonalds use larger amounts of Irish beef than previously not all of their products are produced here so any changes in exchange rates may have a massive effect on what they pay on their imports. * McDonalds must face government regulations on tax of profit where it gains from the operation. They also face other costs such as for advertisements and for certain entertainment (such as in store music). Each country may have different scale or types of tax available and McDonalds should follow the regulation if it wants to continue the operation. As most of their branches are a franchise McDonalds will have to cecum to paying certain percentage of the revenue to the parent company in United States.
Social-
* There is a great need for McDonalds to cater for the different types of customers in different regions, For example in India