Case Study and PESTEL Analysis of MacDonald’s Corporations

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PESTEL Analysis of MacDonald’s Corporations
McDonald’s operates both at the national and international levels, and as a result, it is subject to various environmental influences such as political, economic, social, technological, legal and ecological factors as discussed below.
Political factors
Under the political factors, one of the critical points to consider is the globalized nature of Macdonald’s Corporation. Currently, several countries have stepped up their efforts in the fight against lifestyle diseases, particularly the ones resulting from fast food (Rothaermel and Arthaud-Day 5). In some countries, the authorities are tightly controlling the issuance of licenses to fast food franchises.
Economic influences
Since MacDonald is an international company, it is subject to economic changes both in the United States and other nations. Since the economic recession in 2007/2009 fiscal year, the US economy has experienced a recovery period (Rothaermel and Arthaud-Day 1). As a result, the rate of unemployment has massively reduced, and more people can afford to purchase food at McDonald. This phenomenon could also have a negative impact on the firm because a considerable number of people may manage to pay for foods in other restaurants. Also, the dollar has been strengthening, and this has had drastic effects on the operations of the McDonalds in foreign countries (Rothaermel and Arthaud-Day 1).
Social factors
Some social factors such as a change in lifestyle and culture may have a direct impact on the operation of a business. Most of the African and Asian countries have adopted western culture and individuals in these countries are now purchasing fast foods in large quantities. However, some cultures prohibit consumption of some food such as pork products (Salisbury). Also, people have become more conscious about their health and fight against some lifestyle diseases such as obesity has intensified (Harvard Business 4). This phenomenon may pose a threat to the company since it sells beef and foods with higher levels of calories.
Technological Factors
Technology is one of the essential aspects of daily activities at MacDonald, and it has tremendously improved the operations of the company. For example, ...