MCDONALD PESTLE ANALYSIS CASE STUDY
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McDonalds is an american fast food company which was founded in 1940. It is one of the world’s largest restaurant chain by revenue with a reach over 100 countries. McDonald’s restaurants mainly serve hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes and desserts. They also have options such as salads, apples, milk, and snack wraps on the menu. The largest amount of McDonalds food is sold in the US, and Europe forms its second largest market in the world. They operate their restaurants either directly by McDonalds or by a franchise. In the latter case, the business is owned and operated by someone else according to the standards set by the McDonalds. McDonalds provides a central source of supply for food items and a menu which is standardised.
The first McDonald’s restaurant was opened by Richard and Maurice (Mac) McDonald in 1940. It was located on Route 66 in San Bernardino, California. The McDonald brothers later sold their company to Ray Kroc in Des Plaines, Illinois.
What is Pestle Analysis?
A PESTLE analysis is also known as PEST analysis. It is basically a concept in the marketing principles. Companies use this analysis as a tool to track the environment they are operating in, or to launch a new project, product, service etc. In PESTLE, P stands for political, E stands for economic, S stands for social, T stands for technological, L stands for legal, and the last E stands for environmental. It is a way through which a company can have a glimpse at once over the different aspects of the business environment they are operating in, which a company might want to take into consideration if it is working on a certain idea or a plan. There are many significant questions which a company should ask while conducting this PESTLE analysis.
These questions include :-
- What are the prevalent economic conditions?
- What is the current political situation of the country? How is it going to affect the business?
- What technological innovations might come up and affect the structure of the market?
- What are the environmental concerns for the company?
- What is the importance of culture in the market? What are its determinants?
The given above aspects are extremely crucial for a company to understand the market. More than that, it is a framework which represents the specimen of strategic management that defines what a company should do. It also helps in accounting for an organisation’s goals.
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