porters and pestel for mcdonalds

Topics: Fast food restaurant, Fast food, Hamburger Pages: 4 (1164 words) Published: July 7, 2014


Ali Shaafy,
Zomin Yazeed &
Azima Ahmed
Situational Analysis

PESTEL Analysis:
Political Factor: Generally, McDonalds are affected by government policy on the regulations of Fast Food Company such as health and hygiene policy. Government realized health problem have been a big concern for everyone, people are having diseases such as cardiovascular and cholesterol because they are eating too much fast food. Furthermore, hygiene policy also is a big concern for a fast food company. Good relationship with government will bring McDonald on a better position to service in this industry. Economic Factor: McDonalds have to consider the effect of economic. Organizational performance is usually affected economic factors such as tax rate, exchange rate and unemployment rate. Running a Business in local market, a company must be facing government regulation on tax or profit. Especially McDonald is an international company, and its business is successfully running over the world. Every country also has its own regulation on tax or other else that affect the business. Moreover, McDonald needs to import food and drink in local market, which mean the exchange rate and people living standard also affect the cost of running a business and productivity. Social Factor: The changing lifestyle will affect the sales performance of McDonalds. Nowadays, people are willing to eat more expensively. They want to have quality services and food more than fast food. Moreover, different country has different eating behavior. In western country such as USA, people are willing to eat potato and hamburger. But in China, people prefer rice more than hamburger and potato. Few years ago, McDonald promoted rice burger, and now is promoting rice for dinner. For my point of view, it is really strange and hardly to say it is delicious. Technological Factor: In Fast food industry, technology seems not affect so much to the company. However, high...
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