Pestel Analysis of Mcdonalds

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PESTEL Analysis of MaCdonalds
1. OVERVIEW

McDonald's Corporation  is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion 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.

2. PESTEL Analysis of MacDonald’s India
* Political
McDonald’s entered India in the year 1996 when the fast food retail market in India was at a nascent stage. Encountered with several challenges in the beginning in terms of adapting to the tastes, preferences and culture of the local customers, changing the perception of Indian consumers towards American food habits, obstruction from political parties, issues with distribution, designing a proper supply chain to training the employees on McDonald’s standards. McDonald's has it different policies rules and regulations, and because of that it has its own license of restaurants which is controlled by the government for health, workers protection, and environment. Even then there was some quarrel in the McDonald's franchise in India. There where some violation of religious laws pertaining to the contents of food. According to them the meat used by them in their foods was completely hateful to the Hindu religion in the said market. And also same situation were faced in for using ham and pork in there foods because using this content are not accepted by the peoples as it is in opposition to Muslim religion. So, this is also one type of political factor faced by McDonald's. 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 * Economical

Organisations in the fast food industry are not excused from any disputes and troubles. Specifically, they do have their individual concerns involving economic factors. Branches and franchises of fast food chain like McDonald's has to face many problems due to economic factors such as inflation, exchange rates, recessions, income and interest rates. The customers consequently are faced with a stalemate of going over their individual budgets whether or not they should use up more on these foreign fast food chains like McDonalds. Hence, these chains may have to put up with the issues of the effects of the economic environment. McDonald’s import much of their raw materials into a specific country’s territories if there is a dearth of supply. Exchange rate fluctuations will also play a...
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