Pestel analysis of mcdonalds food industry pest example

Employment law regarding issues such as minimum wage, holiday and sick pay may increase the costs for a business, but may also reduce recruitment costs if staff feel that they are receiving the correct rate of pay and other benefits.

If their brand is tech savvy, has a catchy website, interactive and social on social media websites, then consumers tended to have a positive view of them.

If they impose taxes on the consumer items, then restaurants will have to enhance the rate of the food items. Trade agreements can make it easier or harder for organisations to undertake business activities in certain areas, such as when there are differences in food standards between markets within which the organisation is operating, for example, the USA and Europe McDonalds a.

The simple restaurant is best for single people or for the tourists, who look for the food at the reasonable price. The firm has used acquisitions as a major expansion strategy.

The political factors affecting fast food industry can vary from country to country. Legal Factors The specific legal environment is highly dependent in every country.

The atmospheres that future managers are throwing into this design set up is eat-in and go type. Communication of the ACM, 49 7 July, pp.

They have to follow all these rules so that they can create the lawful atmosphere in the specific area. In UK there are restrictions on the amount of salt to be used in food. Food quality and nutritive value are the major areas affected by law.

Now people want to stay in shape so they are avoiding junk food but the industry has responded and catered to customer needs effectively.

McDonald’s PESTEL/PESTLE Analysis & Recommendations

In countries where wage rates are high, the labor costs are high. Other important things need to be considered by fast food brands are hygiene, compliance and sustainability.

The system of the restaurant is different from country to country as the eating habits of the people are changed. Despite the changing trends, fast food industry has showed healthy growth based on some important factors.

Also, the company can further diversify its supply chain to address the threat of changes in climate conditions in some regions. Hygiene, sustainability and compliance are on the top of the list. Fast food is a global industry generating billions of profit.

The TV channel is costly so they develop their website and give the detail of their food products and mention their specialty, if any, to grab the attention of their customers.

The use of digital displays and kiosks affected ordering and the costs of labor.

McDonald’s PESTEL/PESTLE Analysis & Recommendations

All these factors acquire a special importance for businesses operating in a global environment. There are political economic, cultural and other factors too that impact the fast food industry.

They included more and more low calorie options. Competition in the industry is heavy. The political factors affecting fast food industry can vary from country to country. This is also a reason that technology has become important for fast food brands. The recession influenced the fast food industry to some extent.

Increasing emphasis on healthy lifestyles opportunity Increasing cultural diversity opportunity Increasing wealth gap threat Whole Foods Market has the opportunity to grow based on high quality organic products that satisfy the healthy lifestyles trend.

In it is expected that the market will be expecting something really quick and fast food is one of the options to move forward. To benchmark with organisations that have succeeded as a result of change and innovation and replicate their success JohnKotter, First, it is the competition between the brands.

They added to the variety of products on the menu. McDonalds innovated its approach to recycling and waste management. In US alone, more thanrestaurants feed more than 50 million people daily. Competition has increased to highest level when it comes to the ways of engaging customers.

The assumption in this study is that bythe population will rise by 6 million and in order to meet the demand, the organisation needs more space, quick service and value added service Menu:. McDonalds PESTEL analysis.

December 25, By Abhijeet Pratap Filed Under: Marketing, pestel.

PESTEL Analysis of McDonalds

0. SHARES. Share Tweet. A PESTEL Analysis of the Fast Food Brand McDonalds. McDonalds has made a great comeback after having performed poorly for the last several years.

For the last several years its financial performance had been below expectations. Fast Food Industry PESTEL Analysis The popularity of fast food does not cease to increase. Despite the rising health consciousness in society, the industry has shown healthy growth.

Behind it is the consumers' love for fast food. McDonalds PESTEL Analysis Political This PESTLE analysis will examine the political, economic, socio-cultural, technological, legal and environmental factors of McDonald's external environment (Johnson et al ; Angwin et al ).

This is true for our PEST analysis example for the food industry. Political Factors. Trends affect the food industry. Fast food restaurants are adding “healthier options” on their menus as public health policies are pushing for foods with lower sodium and sugar intakes.

In our PEST analysis example for the food industry we’re examining how the industry is affected by political, economical, social and technological factors. This dimension of the PESTEL/PESTLE analysis model reflects governmental influence on business and industry. In Whole Foods Market’s case, the following are the most significant political external factors in the remote/macro-environment.

Pestel analysis of mcdonalds food industry pest example
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Fast Food Industry PESTEL Analysis - Cheshnotes