Business Analysis of Mcd

Topics: McDonald's, Fast food, Hamburger Pages: 13 (4478 words) Published: August 14, 2010
Table of Contents
McDonald History3
PESTLE Analysis3
Industry Analysis based on Porter’s Five Forces16
Rivalry among existing Industry Firms16
The Threat of New Entrants16
Threats from Substitute Products17
Bargaining Power of Suppliers17
Bargaining Power of Buyers17
Online resources19

Globalization has made the world significantly smaller. States positions have turned into almost a barrier separating certain county of an enormous unitary society. Businesses are the one will be vastly affected by this incidence. The fundamental understanding of circumstances has made commerce and trade an international occurrence. Simultaneously these advances, the importance of business are equally taken into account. The circumstances neighboring McDonald’s will be concerned. McDonald History

The modest establishment of McDonald’s in Illinois has become the foremost brand names in the international scene and is widely-accepted the fast-food concept. “McDonald’s is the leading global foodservice retailer with more than 32,000 local restaurant serving more than 60 million people in 117 countries each day”. (McDonald Corp. nd) The product of the company are mainly western in character, later it also expended its operation into the Asian region. “1st McDonald’s Restaurants which offered customers the very first American Big Mac Meal in Hong Kong was located at Paterson Street, Causeway Bay in 1975”. (McDonald Corp. nd) In the rest of the globe, it operates thousands of store franchises that functions autonomously. PESTLE Analysis

“Originally designed as a business environmental scan, the PESTLE analysis is an analysis of the external macro environment in which a business operates”. (Morrison, 2009)It consists of Political, Economic, Social, Technological, Legal and Environmental factors. “These are often factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning”. (Morrison, 2009)

All organization will be affected to a certain level by the varied political scheme in the environments. “The political environment includes all laws, government agencies and lobbying groups that influence or restrict individuals or organizations in the society.” (AllBusiness, 2000) McDonalds is heavily exaggerated by political factors in the many countries in which it operates, such as barriers to entry or attitude of different government towards multinational organizations. Political are imperative role in the feasibility and effectiveness of McDonald’s entry into provincial markets. Examples of McDonald being affected by the political environment are the concern in Australia where they push a greater regulation in marketing of “junk food” to children, because it uses advertising that mostly target children, where Australia try to stop all McDonald’s advertisement via “Pull The Plug on Junk Food Advertisement”. (Anonymous, 2009) Moreover, certain groups in Europe and U.S also concerned the health implication of eating fast food. Health issues is the main threats for McDonald where it indicate harmful elements like cholesterol and high in Trans fat that leads to obesity. As the mounting pressure from food industry McDonald change its marketing practices. In 6th January 2004, “McDonald’s restaurants in New York, New Jersey, and Connecticut launched McDonald’s “Real Life Choices”, a program to help consumers stick to their diets while eating fast foods.” (Anonymous, 2010)This program educates consumers how to select food items based on the content of calorie, fat and carbohydrate. For instance, “Egg McMuffin” for breakfast, is prepared without any butter or margarine and is less than 300 calories, with a snack-size fruit and yogurt that contain no more than 8 grams...
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