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About the company, McDonald -
McDonald is one of the largest fast-food restaurant chains in the world. It is estimated that there may be some 35,000 McDonald food stores present across 119 countries. All the restaurants jointly serve at around 68 million customers all round the year. Each restaurant of McDonald is either a part of a franchise, or is a division of the main great McDonald Corporation in itself.
A study has shown that in the UK, about 65% of McDonald restaurants run as a part of franchise, and the rest 35% run by the corporation themselves. The brand of McDonald is one of the most recognized one in the world generating instant trust in people worldwide.
A case study or PESTEL analysis that is done on McDonald only highlights the basic peripheral business setting as well as the precise factors that may affect the business. All this is a great way to prepare a student for performing well in their future endeavors.
PESTEL analysis inspects the peripheral environment of a business through 6 main areas such as –
1) Economic factor – Economic recession is highly troublesome for industries but some businesses like McDonald sail through it with ease. It is a great lesson to learn for a student.
2) Political factor – The fast food industry is frequently a target of the government initiatives in an aim to improve health and reduce obesity. A fast food giant like McDonald is no exception.
3) Environmental factor – When faced with false accusation of animal cruelty, false advertisement, etc. the executives of McDonald came up with the idea of participating in Earth Hour, seeking out biodegradable packaging, taking an active role in care and management of animals. This initiative has made them win over their public opinion.
4) Technological factor – Ask McDonald is a great example of it. In the year 2012, the company launched this online campaign and answered 20,000 product related question. By this simple process they not only won over more loyal customers made their image more positive.
5) Sociological factor – McDonald has their share of negative reviews and to counter it they have efficiently listed healthier food options like salad, smoothies, etc. It is a thing to learn for future executives so that when they have to deal with such a crisis.
6) Legal factor - McDonald adheres to the legal standards the areas like employee facilities and breaks, payroll and tax requirements, business registration, accountancy standards of profit and loss. The skill inserted in the area is a thing to learn and master for future use.
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