Pestel analysis of mcdonalds food industry pest example

Such adaptation is essential to the long-term survival and growth of the business, especially amid aggressive competition.

Pestel analysis of mcdonalds food industry pest example

The trend of eating fast food is not new and it started in the late s. The fast food is basically the food sold in restaurants with the precooked or preheated ingredients. The food menu is served to predefined customers in the form of take away.

Although people are becoming more and more conscious about health, still the growth of fast food industry has not been affected.

Pestel analysis of mcdonalds food industry pest example

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

The restaurants are offering healthy menus consisting of low calorie dishes. Fast food is a global industry generating billions of profit. However this sector has also faced challenges from changing trends and laws. These trends may range from innovation to marketing and customer service.

There are other political, economic, technological and legal factors that affect the industry too. Political Factors Politically balanced atmosphere and environment has a great importance in the decisive or productive fast food business.

These factors vary from one country to another. The political regulations as hygiene, food quality and wages require the fast food companies to comply with the standards. The high or labor costs determine the wage rates in various countries.

The government may change packaging regulations and addition of healthier items in menus anytime. The performance of business is therefore affected by the attitude of government towards that business. Economic Factors While economic recession has affected many businesses at global level, it has brought significant influence to fast food industry as well.

Due to increased spending per consumer the restaurants have focused on improved customer service and cheap menu options. Customer love junk food for its deliciousness but health consciousness among people has affected the sales. Now brands have to provide more convenient and cheap food items for attracting and retaining customers.

The successful industry can only be satisfied if the fast food services are operational, systematic and dynamic in nature. Economic surrounding is main concern of any system. The increased variety of products on the food chain menu has also been done to adjust with recession in a more effective manner.

The economic conditions in any market have always influenced the individual spending on fast food. Social Factors Customers have shown complex behaviors regarding international and local market. The dynamic or modern behavior of fast food chains is easily adopted or accepted by customers.

Lifestyle and health trends put a major influence to fast food industry. Now people are thinking before eating. Social media has played major role in creating and increasing the health awareness among people.

Before it was thought that fast food industry is destroying young children health. People are avoiding junk food for high calories.

These trends have put the industry sales at risk. Now the brands are offering menus with described ingredients nutritional content and caloric measurements.

Cultural values also play important role since many cultures do not adopt the consumption of fast food. Technological Factors Like many other industries, fast food industry is also influenced by changing technological trends and innovation.

These factors have greatly affected the ways and methods the brands are using for attracting and engaging the customers.

Economical Factors

Online order placement and social media sites have played major role in changing the ways of customer service provision.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 helps us to understand the overall picture of the operation of an industry. A. Political Factors The operations of any organisation are heavily influenced by the individual state policies enforced by each government and McDonald’s is no exception.

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. In our PEST analysis example for the food industry we’re examining how the industry is affected by political, economical, social and technological factors.

PESTEL Analysis of McDonalds – Food Industry PEST Example. This essay will examine the current business environment McDonald’s operates in through a PESTEL analysis, to examine the general external business analysis of the business’ intrinsic strengths and weaknesses through a SWOT analysis.

Political. The fast food industry is. Through a PESTEL/PESTLE analysis of McDonald’s Corporation, management decisions can focus on the most significant trends that influence the food service business and its industry.

McDonald’s PESTEL/PESTLE Analysis & Recommendations - Panmore Institute