Tips to write McDonalds Pestle Analysis Case Study

Tips to write McDonalds Pestle Analysis Case Study


McDonalds is a highly popular fast food chain. It has its presence in 119 countries across the globe, serving thousands of customers every day. The stores are operated either directly by McDonalds or through franchisees. Superior quality of food has played a major role in building trust and confidence among millions of regular customers of McDonalds. Obtaining the franchise of this food chain is an achievement in itself. A company has to qualify a number of requirements and obtain rigorous training in order to become a member of this highly coveted food chain. PESTEL analysis is the study of a variety of external factors that affect the business of an organization. Often it is not possible for a single firm to remedy the effects of such forces. However, big business groups such as McDonalds can take necessary measures such as political lobbying to counter the external factors sabotaging its business. Here is a case study of McDonalds Pestle analysis from Assignment Help Melbourne.


1. Political – government initiatives and NGOs often target fast food chains for their unhealthy products. These voices damage the brand image of company. Scientific Advisory Committee on Nutrition (SACN) conducted a study in 2003 to find out the relation between salt intake and heart diseases. UK government acting on its recommendations, directed several fast food companies to reduce their salt content in food items. McDonalds was also targeted and as a result, it lowered the content of salt by 14 percent in 2005.

2. Economical – during the recent economic crises, many industries suffered considerable losses. With the income of people decreasing, fast food restaurants appeal to people more than traditional restaurants. Such factors also contributed in the revenue generation of McDonalds. In UK the demand of McDonalds increased by nearly 4 percent.

3. Sociological – although McDonalds being a powerful market leader has successfully worked its way out of health regulations, nevertheless its popularity has declined because of it. In developed nations, people are becoming conscious about the consumption of high fat fast foods and carbonated drinks. They contribute a lot to obesity and heart ailments. As a result McDonalds has entirely eliminated the super-size meal from its menu in US and added a number of healthy alternatives such as milkshakes, smoothies etc. The sales figures have not dropped but it had to spend millions over marketing of new products.

4. Technological – with the advent of social media, all the companies seem to be on a spree to secure their online presence. It is also a great platform for cheap and effective marketing. McDonalds created its Facebook page and Twitter account in 2009. Apart from that, it has also conducted several online campaigns that have all been received positively by people. However, fake news on social media spreads like wild fire and McDonalds need to work on it to keep its image neat and clean.

5. Environmental – issues relating to environmental awareness have been a cause of concern for industries lately. As a result, companies have to obtain certifications confirming that their production facilities are eco friendly. McDonalds also participates in environment-friendly initiatives to show its support to green production methods. It has taken steps to reduce paper, water and electricity consumption. Rearing of poultry animals is also taken care of to avoid inhumane conditions. It supports the global event “Earth hour” which requires businesses to shut down their electricity for an hour. These activities are necessary to popularize the brand.

6. Legal – McDonalds simultaneously operates in hundreds of legal environments on a regular basis. It needs to confirm to the health regulations fixed by different countries. McDonalds regularly conducts 70 checks on the quality of chicken and beef. Its quality check method has even been adopted as a benchmark in several countries. Case study assignments based on PESTEL and SWOT are regularly given to university students.

If you need strategic assignment help, you can visit our portal. We provide the best assignment help services in Australia.