PESTEL Analysis McDonald's, fastfood, takeaway, KFC Kentucky Fried Chicken, Subway, hamburger, cheeseburger, potato chips, French fries, Chicken Nuggets, Egg McMuffins, McFlurry
In 1940 brothers Dick and Mac McDonald opened their first McDonald's Bar-B-Q restaurant in California. Featuring a typical drive-in-style menu and offering a carhop service. In 1948 the brothers closed briefly to make some alterations when they opened in December of that same year, they launched their self-service drive-in restaurant. They had reduced their previously extensive menu to feature just nine items: the staple 15c Hamburger, cheeseburger, potato chips, a slice of pie and beverages which you could choose a soft drink or milk. By 1949 the menu had slightly evolved to replace the potato chips with French fries and they introduced the Triple Thick Milkshakes. Their idea was to offer a limited menu which meant they could focus on ensuring that the food was the best possible quality and that their service was fast and efficient.
[...] McDonald's can use this information to employ a set of strategies for maximising the benefits of opportunities in its industry environment and address external factors as well as factors around the competitors in the same industry. II. PESTEL Analysis - McDonald's A. Political In the food-service industry, the most important regulations that must be complied with are the health and hygiene regulations as well as all food and health laws which may differ in various countries. McDonald's needs to ensure that both they and their employees abide by these codes, as set out in the over 100 countries in which they operate, failure to do so could lead to the closure of the offending establishment. [...]
[...] It employs more than 210,000 and serves 69 million people every day. Their estimated brand value stands at around 130.37 billion USD and the company is ranked ninth among the leading global brands such as Apple, Amazon, etc. The only other food service to get anywhere near their achievement would be Starbucks, valued at a significantly lower amount of around 46 million U.S. million. The global fast-food market was valued at US$ 647.7 billion in 2019. It is estimated that the industry will see a CAGR rate of between 2020 and 2027, this will see it grow to more than US$ 931.7 billion by the year 2027. [...]
[...] Kroc saw this as a great opportunity and by 1955 he had founded McDonald's System, Inc. He employed the skills of architect Stanley Meston and so the iconic red and white tiled buildings with the Golden Arches was born. Just six years later, he had formed the McDonald's Corporation and bought the rights to the McDonald's name and operating system for US$ 2.7 million. The business was growing at a rapid rate and by 1958 they had sold their 100 millionth hamburger. [...]
[...] Environmental This is one of the most challenging areas for McDonald's as a corporation, from the nature of their product i.e. food to the way it is served i.e. take away packaging; overall they pose a significant environmental risk. To overcome this risk the company needs to be very aware of the areas in which they can counter these challenges. The company has committed to responsible purchasing it terms their beef, probably their main ingredient, which is sourced from sustainable sources that do not contribute to the deforestation of tropical forests. [...]
[...] For example, McDonald's introduced a halal meat option in Muslim countries and offers only fish and chicken on its non-vegetarian menu in India, where cows are considered sacred. D. Technological In 2016 McDonald's introduced their “Experience of the Future's strategy, this strategy trialled an array of different technologies, designed to increase customer satisfaction and profitability of the company, across hundreds of establishments in the United States. The most effective technologies which could be used on mobile phones were selected and have now become permanent fixtures. [...]
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