Pestle Analysis Of Mcdonalds: Causes And Political Factors In South Africa

Pestle analysis:

 Political:

Political factors are the issues that affect the country and the businesses running in it. Possible political factors are corruption in the South African economy. This can affect the money coming in the country and in terms of losing investors because they are not confident in the country and want to put their money somewhere else.

Tax is affected in this factor. McDonald’s has a chance to reduce the impact tax has on the business by refining practices and strategies.

The McCafe strikes also impact this factor because it reduces productivity and profits. McDonald’s can ensure that strikes do not happen by listening to their employees and compromising so that everyone is happy in the workplace.

 Environmental:

HIV/Aids and poverty are big problems in the country. McDonald’s will need to test all their employees for HIV/Aids in order to make sure that everyone is healthy and is getting the right care. Employees with HIV/Aids can affect the productivity of the business because they would not be performing to their full potential because they will need to take care of themselves first, therefore if the business tests this in advance and sets up the right training and medical faculties for their employees they will be able to prevent the decline in

• It differentiates management roles and responsibilities.

• It gives the business a perspective on its role in the broader economy.

 Types of Business Strategies:

The purpose of a business strategy is to put the business in a competitive advantage. The strategies should be aligned with the business’s vision and mission.

 Informal Strategies:

These are short-term strategies that are based on instinct. Examples:

• Have regular staff meetings to ensure that every employee knows what is expected of them and the business’s performance.

• Train staff in particular areas such as customer service.

• Have team building events to better the relationship between employees. This will increase morale in the business.

• Have incentives to get employees to perform well.

• Educate your employees on the legislation acts.

• Ensure equality and transparency in the work place. Good corporate governance characteristics fall into play here.

• The business can use loyalty cards to keep customers interested. Example: Purchase five big mac meals and get a free McFlurry on your fifth purchase. Stamp your card with a unique McDonald’s stamp every time you purchase the meal.

 Formal