Pest

PEST ANALYSIS
Political- Hong Kong is politically stable, there would rarely be any political factors that will interrupt and slow down the company’s growth. Hong Kong doesn’t have goods and services tax so this allows McDonalds to have lower expenses and they can maximize their profit.
The international operations of Mcdonald’s are highly influenced by the individual state policies enforced by each government.
Economic- The economic collapse has caused Hong Kong to enter the recession stage in the economic cycle. Therefore the demands for low price food increase tremendously and this benefited McDonald, since the foods are cheap and the quality is guaranteed. Inflation has caused McDonald to raise meal price, in long term, as inflation raised to a point that it will be too expensive and McDonald will lose its large customer base.
But still Mcdonald’s is still a market leader and it got a very (high)large target market.low cost more incomes. The rate at which the economy of that particular state grows determines the purchasing power of the consumers in that country.
Social- McDonald is a fast food restaurant company so they can perform their services in a short period of time and this fits with the fast paced lifestyle in Hong Kong. In the past few years Hong Kong people are more aware of healthy eating, so they stay away from high calories and high cholesterol food. McDonald tries to prevent the loss of customer by adding healthier food in the menu such as salads sweet corn.
Working within many social groups. Increase employments.
Technology- Hong Kong has a well developed transportation system, especially the airport that has airlines that connects to different part of the world. Their food supplies can be delivered from all around the world in a short period. Computers and smart cashiers are used by the employees so they would not get confused and they are provided with customized database management system. They also have Wifi provide in every McDonalds also, its very convenient for people that is using laptop.
Quality packing and standards. Advanced technology development. Local manufacture using foreign supplies. | | Strength | - Strong brand name, image and reputation- Clean environment and play areas for children (bday party provided)- 24 hours- Customer intimacy- Product innovation- Supplier integration | Weaknesses | - High staff turnover (food going to waste)- Unhealthy food image- Low depth and width of product- Unbalanced meals (mostly meat, amount of fruit or vegetable not much) | Opportunities | - Expand into Tier 2 and Tier 3 cities- Growth of the fast-food industry- Worldwide deregulation- Low cost menu that will attract the customers- Freebies and discounts- Can open up online service for customers - Growing health trend (fresh burger or healthy dessert) | Threats | - Increase competition from local fast food outlets- Mcdonald’s competitors threatened market share of the company both internationally and domestically- Health issues – Health professionals and consumer activities accuse Mcdonald’s of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes and obesity- Lack of choices (customers will change their taste anyday)- Global recession and fluctuating foreign currencies- Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues |