The Perspective View of Pestel Analysis for Mcdonald’s

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TABLE OF CONTENT
EXECUTIVE SUMMARY .........………………………………………………………3 1.0 INTRODUCTION
2.1 The History of McDonalds ………………………...…………….……4 2.2 Industry Overview ………………………………………………….....4 2.3 The challenges…………………………………………………...….…5-6

2.0 PESTEL Analysis
3.4 Political ………………………………………………....………...…. 7 3.5 Economical ……………………………………………………….…...7 3.6 Social………………………………………………………….....…….8 3.7 Technological……………………………………………….……..…..8 3.8 Environmental……………………………………………..…….….…9 3.9 Law………………………………………………………..…….…..…9

3.0 Recommendations………………………………………………….…….…..10-11

4.0 Conclusion ……………………………………………………………...……12 5.0 Bibliography ……………………………………………………………..…..13-14

Executive Summary
McDonald’s considered one of the pioneers in the fast food industry, is clearly got many aspects to discuss about which is related to functioning of their business. In this study, PESTEL Analysis was conducted to understand various factors surrounding the environment. The factors are namely Political, Economic, Social, Technology, Environmental and Law. This paper is organized as follows: In the first section, will give an introduction to the History of McDonald’s, Industry Overview and The challenges faced by the industry. In the second section, PESTEL Analysis is used to study some of the various factors that have been happening around McDonald’s. Here we get to see factors faced by the organization on a global basis to have a better insight, and to an extent see how the factors involved with one country may differ with those in other countries. Finally, we see the recommendation that is found based on the analysis and the conclusion gathered. The objective of this paper is to have a detailed study of the various factors affecting McDonald’s, and in what ways the organization can improve to increase their performance with the various environmental factors.

1.0 Introduction
1.1 The History of McDonalds
McDonald’s first opened in 1940 at San Bernardino, California. It started off as a drive-in restaurant with a wide range of menu and car hop service. Raymond Kroc, learnt that McDonald’s was intending on going for franchising all over the country. In 1955, Kroc opened his first McDonald’s outlet at Des Plaines, Illinois and McDonald’s Corporation was then created. Later in 1961, for $2.7 million, Raymond Croc bought the concept of McDonald’s from the McDonald’s brothers. McDonald’s is functioning in more than 34000 locations around the world, serving around 69 million customers daily in 119 every day (McDonald’s, 2012). 1.2 Industry Overview

The fast food restaurants sector is just one of the many components of the wide food services list. The total estimated revenue from this sector is about $1.86 trillion (US dollars) during the year 2012. Around $706.7 billion is the estimated revenue in 2012. This contributes to around 38% of the food service sub-sector of the world. The revenue from the industry is expected to increase at an estimate of 3.2% in 2012. On a global level, the fast food industry plunged down because the global recession arose and unemployment rate hit high in the United States and many other countries. To maintain the market position and to keep up the image, some of the fast food operators put up promotional activities to interest the customers and also shut down some of the underperforming stores (Smith, 2012).
Figure 1: Market Share in the Fast Food Restaurants Industry Source: IBISWORLD, 2012
1.3 The challenges
One of the problems that the fast food industry is facing is the criticism about the product, for being high in fat content, increase in body mass index (BMI) and putting on weight. A number of books and documentaries have increased awareness among the public about the harmful consequences on one’s health. The various articles make the health conscious consumers sceptical towards fast food...
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