The PESTLE analysis is used to analyse the external macro-economic environment of McDonald’s that presents its opportunities and threats in the short and long term. In the global fast food restaurants industry, McDonald’s focused particularly on the cultural factors that were pertinent to India, which influenced its standardisation and localisation practices to effectively deal with all the different factors and conditions in the Indian market. Political factors are external factors that affect the company and are beyond its control, such as the governmental policies in a foreign market. Several key political factors that affected McDonald’s include the India-U.S. free trade agreement and evolving public health policies. The improved trade agreement allowed increased imports from the US and was an opportunity for McDonald’s to tap on to better its global distribution and supply chains and make its food available to many parts of the country. However, public health policies increasingly discouraged consumers from eating fast food such as from McDonald’s, with links to high cholesterol and obesity problems as seen from its country-of-origin, the US. Nonetheless, this threat can be an opportunity for McDonald’s to improve the healthfulness of its food and tap on the huge potential market. Economic changes around the world affect McDonald’s industry and environment given its transnational nature. McDonald’s largest market, the American economy, experienced stable but slow
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Research show that lots of fast food restaurants are industrial food chain and it is almost everywhere you go. “Fast food joints are notorious for supplying factory farmed meat at a low price, as well as other portions of the meal infused with excess sugar derived from industrially-farmed crops” (Study.com). All local fast food restaurants are selling cheap meat which causes everyone to buy because it’s so cheap and cheap is always better for business because you are saving money so it is so easy to get from anywhere. According to a study of the Economist, Mcdonald’s has “35,000 restaurants in 107 countries” (Economist.com). McDonald’s are all over the country and many people like Mcdonald's causing them to buy even more food from that fast food
The documentary, Food Inc., takes a deeper look at the food industry and how it has changed over the years. The McDonald brothers played a huge part in changing the food industry forever. The brothers began to run their restaurant in a factory style. Each worker only had one specific job to do. Because the workers were assigned simple tasks, they were all paid a low wage and were easily replaced.
The first two cafes drinks were more caloric, double the price and took longer than the third café. Given that, Freedman thanks McDonalds. Eminent voices in the food culture convince people that McDonalds is unhealthy. Most processed foods are considered unhealthy because of the artificial flavoring, and preservatives. That being the case, whole-some foods are considered healthy because it doesn’t sit on the shelf for a month.
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
In “How Junk Food Can End Obesity” David Freedman argues that ending processed food is not going to help solve obesity problems. He knows that “Junk food is bad for you because it’s full of fats and problems carb” (Freedman 515). Freedman believe that we should use technology to improve fast-food by taking out the unhealthy products in it, instead of getting rid of fast-food entirely. He also talks about his experiences with food between wholesome food and McDonald’s. He discusses how McDonald’s smoothies have the lowest calories and are cheapest out of all other smoothies he had.
Junk food is responsible for the growing rate of obesity. This is outlined by David freedman in his article of “How junk food can end obesity.” David Freedman has credited the “health-food” motion, and followers of it along with Michel Pollan. Freedman claims that if the America desires to stop the obesity epidemic, or at least reduce its effects, they must shift to the fast meals and processed meals enterprise for assist, now not the “health-food” movement.
Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.
As people have issues about Mcdonalds’ low food quality toward people’s health. However, there is another important area that we have to consider seriously about is how its system, so-called “Mcdonaldization”has influenced and continuously effecting our society. From the article “McJobs: Mcdonaldization and the Workplace” by George Ritzer, he distributes the idea of how Mcdonaldized system has changed our society into scripted and “programmized” places (Ritzer 1998:140). He has specifically analyzed the McJobs’( job that has been Mcdonaldized) into four elements,which is its efficiency, calculation, prediction and control. As the nature of the world is made of a full of colors, diverse opinions of people naturally exist toward the term
Pestle Analysis Political Factor Eataly operates in global environment with their operation spread all around the globe; the operation of the company is influenced strongly by political situation of the country where they are doing business. As Eataly have flexible policies to adjust in an unstable economy (Reijers & Mansar, 2005). Economic Factors The entire planet has witnessed the economic decline and hence the characteristic of purchasing products has been greatly affected all companies without exception Eataly. In addition, the income level of Europe is relatively uneven which makes some people fail to pay for products offered by the company (Chaffey, 2009).
Part A. The primary externals influences to Starbucks PESTEL describes a framework of macro-environmental factors used in the environmental factors component of strategic management. PESTEL analysis includes some several factors: political, economic, social, technological, legal and environmental factors. This report analyzes the factors which have main impact on Starbucks. 1.
Introduction Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Question 1:
PESTLE Analysis Political : Political factors internationally have effect on Starbucks businesses and their profits . Taxes to business environment is affected by politics, but the main political factor is about sourcing the raw materials and so it has gathered a lot of attention from politicians from the source countries. For the reason company wants to obey the social and environmental standards also there is a deep link between political and economic stability. More the politically stable the nation is the more economic environment. They also have tax policies and regulatory pressure on them.
. STUDY OF ENVIRONMENTAL FACTORS a. PEST Analysis: i. Political: L 'Oreal faced issues in the dermatology branch led by Galderma due to new legislations governing drugs. The EU law affects L 'Oreal and restricts their use of certain kinds of carcinogenic chemicals, such as Phthalates. L 'Oreal is obligated to produce safe products that do not contain any harmful substances.
PESTLE ANALYSIS OF INDIA-BHP BILLITON (IRON ORE, COAL, COPPER AND URANIUM COMPANY) A PESTLE analysis is basically a framework that categorizes environmental influences as Political, fiscal, Social and Technological forces. The analysis examines the impact of each of these explanations (and their interplay with every different) on the business. Philip Kotler claims that PESTLE evaluation is a useful strategic tool for understanding market progress or decline, business position, advantage and path for operations. Political causes affecting trade specially revolve round taxes, import and export tariffs, environmental and labor legal guidelines, abilities subsidies, and the steadiness of a given operational area.
PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.