PESTEL analysis of McDonalds
SUBMITTED TO: SUBMITTED BY: MS. JASCHETAN DEEP KAUR HIMANK GUPTA RQ1101B28 MBA (HONS) Introduction
McDonalds is a leader in convenient foods and beverages, with revenues of about $23 billion and over 1.6 million employees serving the customer’s world -wide. The company consists of the snack business of Beverages and Foods. PepsiCo brands are available in nearly 115 countries having more than 24,500restaurants in the world providing 24 hour service. McDonalds’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. McDonalds is continuing to expand and introduce new alternative beverages in the market. Approximately 85% of McDonald’s restaurant businesses world-wide are owned and operated by franchisees. All franchisees are independent, full-time operators. McDonald’s was named Entrepreneur’s Number-one franchise for 1997. Their mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. They seek to produce healthy financial rewards to investors as the company provide opportunities for growth and enrichment to its employees, business partners and the communities in which it operates. Greater variety and quality choices surprise and delight customers with the food and beverage they desire. McDonald’s corp. is currently one of the most successful consumer products company in the world with annual revenues exceeding $23 million and has more than 1.6 million employees. McDonald’s products are recognized and are most respected all around the globe. Currently, its divisions operate in all over the world in beverages, snack foods, and restaurants. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. McDonald’s believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity. PESTEL ANALYSIS
Pestel is an analysis of the external macro and micro environment in which a business operates. Pestel stands for political, economical, social, technological, environmental and legal factors. POLITICAL FACTORS
The international operations of McDonald’s are highly influenced by the individual country’s policies enforced by each government. For instance, there are certain groups in India, Europe and the United States that clamour for state actions pertaining to the health implications of eating fast food. They have indicated that harmful elements like cholesterol and adverse effects like obesity are attributable to consuming fast food products. On the other hand, the company is controlled by the individual policies and regulations of operations. Specific markets focus on different areas of concern such as that of health, worker protection, and environment. All these elements are seen in the government control of the licensing of the restaurants in the respective states of the country. For instance, there is an impending legal dispute in the McDonald’s franchise in India where certain infringement of rights and violation of religious laws pertaining to the contents of the food. The existence of meat in their menus in India is apparently offensive to the Hindu religion in the said market. There are also other studies those points to the infringement of McDonald’s Stores with reference to the existing employment laws in the target market. Like any business venture, these McDonald’s stores have to contend with the issues of employment procedures as well as their tax obligations so as to succeed in the foreign market like India....