Mcdonald Business Environment
Introduction
McDonald Corporation is the world’s largest chain of hamburger fast food restaurant. There are over 30,000 McDonald’s restaurants in more than 100 countries and served an average of 50 million customer daily. A McDonald restaurant is operated by either a franchisee or by the corporation itself. The very first McDonald was open in Singapore in 1979 and today there are over 120 McDonald restaurants across the island which served 1.2 million customers weekly. McDonald employs around 9,000 employees to keep their restaurant running across the island. (McDonald’s Company Profile, 2012) PEST ANALYSIS Pest analysis is a scan of external marco-environment in which a business operates and can be describe in terms of Political, Economic, Social and Technological. (QuickMBA Strategic Management, 1999-2010) Political Factors Operations of McDonalds in Singapore are controlled by certain policies and regulations by the government. Under the Singapore fiscal policy, 17% corporate tax and 7% Goods and Services tax will be taken into consideration for McDonald to further expand their restaurant in Singapore. (Ministry of Finance: Corporate Income Tax, 2012) The Singapore government has been increasing more programs and activities to promote and support healthy living and eating campaigns. This may make people to consume less fast food because fast food is concerned as junk food. (Health Promotion Board: Food for Health, 2012) Economic Factors Singapore is currently experiencing low economic growth and high inflation rate due to the Europe debt crisis and the slowdown of the United States economic. All this results to people tends to spend lesser and more careful on their spending. Corporate companies here in Singapore are tightening their budgets; hence there will be less company event will in term result to an opportunity loss for the food and event industries. This will definitely impact the business of the fast food company like McDonalds. Exchange
McDonald Corporation is the world’s largest chain of hamburger fast food restaurant. There are over 30,000 McDonald’s restaurants in more than 100 countries and served an average of 50 million customer daily. A McDonald restaurant is operated by either a franchisee or by the corporation itself. The very first McDonald was open in Singapore in 1979 and today there are over 120 McDonald restaurants across the island which served 1.2 million customers weekly. McDonald employs around 9,000 employees to keep their restaurant running across the island. (McDonald’s Company Profile, 2012) PEST ANALYSIS Pest analysis is a scan of external marco-environment in which a business operates and can be describe in terms of Political, Economic, Social and Technological. (QuickMBA Strategic Management, 1999-2010) Political Factors Operations of McDonalds in Singapore are controlled by certain policies and regulations by the government. Under the Singapore fiscal policy, 17% corporate tax and 7% Goods and Services tax will be taken into consideration for McDonald to further expand their restaurant in Singapore. (Ministry of Finance: Corporate Income Tax, 2012) The Singapore government has been increasing more programs and activities to promote and support healthy living and eating campaigns. This may make people to consume less fast food because fast food is concerned as junk food. (Health Promotion Board: Food for Health, 2012) Economic Factors Singapore is currently experiencing low economic growth and high inflation rate due to the Europe debt crisis and the slowdown of the United States economic. All this results to people tends to spend lesser and more careful on their spending. Corporate companies here in Singapore are tightening their budgets; hence there will be less company event will in term result to an opportunity loss for the food and event industries. This will definitely impact the business of the fast food company like McDonalds. Exchange
References: McDonald’s The Company Profile (2012). Retrieved on 1st December 2012 from http://www.mcdonalds.com.sg/companyinfo_profile.html QuickMBA Strategic Management: PEST Analysis (1999-2010). Retrieved on 1st December 2012 from http://www.quickmba.com/strategy/pest/ Ministry of Finance: Corporate Income Tax (2012). Retrieved on 1st December 2012 from http://app.mof.gov.sg/corporate_income_tax.aspx Health Promotion Board: Food for Health (2012). Retrieved on 1st December 2012 from http://www.hpb.gov.sg/HOPPortal/healthtopic Department of Statistics Singapore: Resident Population Profile (2012). Retrieved on 1st December 2012 from http://www.singstat.gov.sg/stats/keyind.html