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Mcdonald’S Corporation - Pest Analysis

On this report, I will analyse the main forces of the external environment that affect and influence McDonald’s stakeholders and therefore their objectives, performance and their immediate surroundings.

Established in 1955, the McDonald's Corporation is the world's largest and best-known fast food service retailing chain mainly operated by franchises. The company has a leading share in global brand recognition and its products are sold in over 30,000 restaurants in over 121 countries, it also employs approximately 465,000 people. The company operates under the McDonald’s brand name but also uses 'The Boston Market' and Donatos Pizzeria. It has a small ownership in Prét A Manger, which collectively generate approximately $1 billion in annual sales (McDonald’s Corporation, 2007). The company’s net profit was $3,544.2 million in fiscal year 2006, an increase of 36.2% over 2005 (Marketline, 2007).

A stakeholder is anyone who has interest in McDonald’s and can affect its business performance or objectives. They can be shareholders that stop investing in the company, driving down the value of the stock or customers who take their money in and buy McDonald’s meals. The management team who wants to reduce costs and increase net profit, and employees who want to get paid as much as possible. Also, stakeholders can be health care professionals, especially nutritionists, as their analysis of fast food effect can influence public perceptions, therefore affecting sales.

I will examine how McDonald’s has responded to or anticipated future events that have impacted its market and stakeholders using the PEST analysis as a tool.

The analysis consists of situational and uncontrollable Political, Economic, Social and Technological forces within the macro environment as a means of indentifying the opportunities and threats that will affect the organisation plans and outcomes (Brassington & Pettitt, 2005).


Political

The Political environment has a huge influence...