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Mcdonald's External Business Environment

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Introduction

The fast food industry that has seen growth year after year is slowing down due its consumer shift of appetite towards a healthier diet. This has affected various fast food chains, one being, McDonald’s, which is one of the world’s largest fast food company.
The purpose of this report is to provide a brief recent history, structure of the company as well as objectives of McDonald’s with the aim of examining each element of the external business environment that has great potential on the organization through a PESTEL analysis.
Recent History
In 1940, McDonald’s was a barbeque restaurant that later in 1948 was recognized as a business that specialized in hamburgers. McDonald’s was found in 1955 by Ray Kroc in Illinois, United …show more content…

People are now more conscious of what they consume aiming for good health and better quality of food. This has been detrimental to McDonalds. In return, McDonald’s introduced healthier options as opposed to burgers and French fries. The list of ingredients as well as Nutrition and Supplement facts are now visible on all their products such as burgers, fries, nuggets, etc. For a healthier option, salads have been incorporated into their menu. One can see that McDonald’s is trying to stay on point with the demands of the consumer and wishes to continue staying relevant in the …show more content…

While the Environmental factor is important and a heated discussion in modern day culture, one has to pay attention to the socio-cultural ‘health’ aspect of the fast-food restaurants that are globally available. It is common knowledge that nowadays the average consumer is becoming more aware of the nutritional facts that are behind the items served. McDonald’s along other fast-food restaurants are daily facing challenges in terms of health regulations specifically the products. McDonald’s can use these challenges as a benchmark on how to they can tackle issues such as obesity and heart diseases, by turning these impediments into ‘business opportunities’. It is advisable that they conduct a PESTEL analysis themselves along with a SWOT analysis to come up with a strategy that can allow them to overcome these

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