McDonald’s – The Pledges of Swift Food: An Analysis Essay Example

to globalization. We have chosen McDonald's restaurants as a case model for global business, as it is a well-established and successful company. We are also examining both the internal and external environments of McDonald's corporation, considering ethical, social, and environmental factors. Primary data for this qualitative research is being obtained through surveys conducted among manual workers, management, staff, owners, and local authorities.

The information was gathered from various sources including books, diaries, websites, studies, and conferences. The MS Office package (MS Word, MS Excel, MS Access, MS Power point) on a computer was used to prepare and analyze this data.

Ethical issues

• During the survey, ethical concerns were encountered by the surveyors:
• Efforts were made to ensure the privacy and confidentiality of personal information of interviewees in order to prevent any harm.
• The benefits of the research were also explained to them.
• Interviewees had the option to withdraw from the research at any stage if they wished.

Discuss McDonalds' environmental factors with a focus on key drivers.
Pestel Analysis
The macro environment or external environment consists of controllable factors within an organization's environment that can impose constraints if not properly addressed.

Political factors:

These factors, also known as PESTEL factors, encompass Political, Economical, Sociocultural, Technological, Environmental, and Legal aspects. Here we will specifically discuss the political factors.
The business regulations, consumer spending power, and actions of governments and other companies are significantly influenced by the political landscape. The legislation and regulation implemented by the government can have adverse effects on businesses.

Understanding the government's role in the marketplace, whether as a regulator or participant, is crucial for organizations. This includes entities such as the EU, national government, local government, regulatory bodies, and trade associations.

Political factors that impact organizations

include political ideology, the government's role as a regulator or participant, the rate at which political direction changes, legislative effects on organizational structure and behavior, profit repatriation, and political strategy over time.

Economic factors: Sellers need to consider the state of the trading economy in both the short and long term. This is particularly important for international marketing but also crucial for domestic marketing. The economic and competitive environment encompasses macro and microeconomic conditions that affect competition structure in a market, as well as the cost and availability of funds for marketing investments in stock and new products.

and the economic conditions impacting a client's prosperity to purchase. The Global recession of the last twosome of old ages, for case, caused a important addition in unemployment at all societal degrees, and therefore affected consumers' willingness and ability to purchase many sorts of merchandises.

Economic factors that need to be considered within the environment are:

• Gross domestic merchandises
• Government policies- financial and pecuniary
• Income - current, growing and distribution
• Industrial - construction, growing and labor markets
• Wealth - distribution, consequence on the purchasing power
• Employment - construction, FT/PT, male/female, regional disparity
• Trading axis
• Tax
• Interest rates

Sociocultural factors: The societal and cultural influences on concern vary from state to state. The sociocultural environment is of peculiar concern to sellers as it has a direct consequence on their apprehension of clients and what drives them.Not only does it analyze the demographic structure of markets, but it also examines how attitudes and opinions are being

shaped and evolving. For instance, an increase in health consciousness has resulted in the introduction of a wide variety of products that have low levels of fat and sugar, fewer artificial ingredients, and no additives. The most challenging aspect to comprehend is the connection between products and quality because it involves human behavior.

It is essential to consider the following factors:

• Cultural/subcultural group - characteristics, growth, decline
• Natural segments - features, distinctions, growth/decline/change
• Demographics - socioeconomic groupings, home ownership, geography, family structure, family life cycle, usage rate, etc.
• Social trends - changes in personal value system societal structure ethics and moral positions belief systems
• Psychographics - preferences benefits attitudes and belief systems
• Current issues

Technological factor:

Technology plays a crucial role in gaining a competitive advantage and serves as a significant driver for globalization. Technological innovation and advancement have profoundly impacted all aspects of marketing.

Computer engineering has had a significant impact on various areas such as merchandise design, quality control, materials and inventory management, advertising and promotion, as well as customer information management and analysis. The availability of inexpensive and powerful computerised database management has greatly contributed to the growth of direct selling as a communication technique. Additionally, technology plays a role in the development of new processes and materials, as well as the creation of entirely new products or applications. For example, the multimedia home PC with a DVD-ROM drive and the development of low-calorie sweeteners like Zero Cokes and Diet Cokes have brought about revolutionary changes in the dieting market. It is also worthwhile to consider the effects of information technology, including computer usage and cybernations, on the increasing cost

of IT machinery.

Factors to be considered to acquire technological advantages are:

• Merchandises
• Materials/components
• Procedures
• Distribution
• Marketing/administration
• Universal handiness of engineering - rate race of technological age
• Administrations able to maintain up with clients credence
• Rate of technological alteration
• Research and development - cost of puting, control
• Production engineering - versus cost nest eggs, internal accomplishment base
• Protection of engineering - patents, transcript rights etc

Environmental factors:
Environmental issues include climate change; planetary heating, waste management, and ISR (Intelligent System Resupply) have been of major concern in recent years. Changes in temperature can impact many industries, including agriculture, tourism, and insurance. With major climate changes happening due to global warming and with greater environmental consciousness, this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries, such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars), and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities.This country has made consumers think more carefully about the origins, content, and manufacturing processes of the products they purchase. For example, consumers are now considering

Consumers are showing a growing interest in products made with minimal pollution and from renewable resources, whenever possible.

A notable example of this trend is the increasing availability of paper products that explicitly state they come from responsibly managed forests, which undergo replanting after harvesting.

In addition, consumers are advocating for a decrease in unnecessary packaging and the use of recyclable materials.

This concern for animal welfare is closely connected to environmental issues and is demonstrated through various approaches.

Opposition to animal testing in product

creation has led to an increase in cruelty-free cosmetic and personal care items. Although some of these products may have previously undergone animal testing for their ingredients, they are currently formulated without any animal testing. The Body Shop, a cosmetics retailer, exemplifies this growing trend.

The company has taken a proactive stance on the issue, assuring worried customers about its own products and condemning excessive animal testing. Another area of animal welfare that has gained significant attention is intensive farming practices. The public outcry against battery egg production, for example, has created new market opportunities for free-range eggs as consumers seek alternatives and are willing to pay for them. Likewise, supermarkets are now starting to offer outdoor-reared pork and organic beef.

Pressure groups are utilizing advertising and promotional tactics more effectively to sway public opinion. The notion of being conscious of one's well-being has had a significant impact on consumer markets. The tobacco industry, in particular, has suffered due to heightened awareness surrounding the hazards of smoking. Consequently, health advocates and the general public have imposed stricter regulations. Similarly, concerns about health have led to a reevaluation of food items, resulting in a demand for natural ingredients, reduced use of artificial additives, less salt content, and decreased sugar levels. Additionally, there has been an expansion in the market for low-calorie products that cater to individuals desiring flavorful meals while simultaneously pursuing weight loss or maintaining a healthy diet.

For instance, Princes considered itself a winner when a survey discovered that its cured beef contained vitamin B3 and Zinc, both of which are associated with male fertility (The Grocer, 2000). Heinz, known for its history in nutrition, made the

decision a few years ago to prioritize health by reducing salt content in its baked beans by 20% and actively seeking to reduce salt in its other products. By reemphasizing the importance of wholesomeness and nutritional value in its advertising, introducing new chilled and healthy products, and implementing a more detailed labeling system, Heinz aimed to demonstrate its commitment to promoting healthy eating. Perhaps this can be summed up as 'Greenz Meanz Heinz'! (Harrison, E. 2004) The growing concern for health also led to an increase in fitness-related products and services.

The fittingness roar has resulted in benefits for health nines, aerobic exercises categories, yoga, exercising picture, athletic wear of all sorts, and trainers.

Legal factors:

These refer to government regulations, state regulations, legal issues, and international law. They pertain to the legal context in which organizations operate. In the UK, there have been significant legal changes in recent years that impact organizations' actions. Examples of relatively recent laws that affect an organization's actions include the introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage, and greater requirements for organizations to recycle.

The costs and demand of a house can be affected by legal changes, including the development of new systems and processes or the impact of laws on customer behavior. Various types of laws that can have an influence include consumer laws, competition laws, employment laws, and health and safety legislation. These laws aim to protect consumers from unfair practices, support small businesses against larger competitors, ensure employee rights, and promote workplace safety.

Using the PESTEL model allows us to analyze various factors in a house's macro environment. Certain issues can fall into multiple

categories. For example, the creation of the independent Monetary Policy Committee in 1997 by the Labour government had both political implications and economic consequences as it granted authority to set interest rates.

In addition, economic policies implemented by authorities can affect investment in engineering through increased taxes and tax credits. If a factor falls into multiple categories, directors must determine which category they believe it aligns best with.

However, it is important not to simply list PESTEL factors because this does not provide directors with much information. What directors need to do is determine which factors are most likely to change and which ones will have the greatest impact on them, i.e. each company must identify the key factors in their own environment. For some, such as pharmaceutical companies, government regulation may be critical; for others, such as heavily indebted companies, changes in interest rates may be a huge issue. Directors must decide on the relative importance of various factors, and one way to do this is to rank or assess the likelihood of a change occurring and also evaluate the impact if it did.

The significance of this factor in the planning of a house increases with the likelihood and impact of any alteration. When analyzing companies like McDonalds, Sony, Chrysler, Coca Cola, BP, and Disney using PESTEL analysis, it is crucial to remember that they have various divisions and trade names. Although considering the entire business may be beneficial in highlighting important factors, managers may prefer to focus on a specific part of the business when utilizing PESTEL.

One possible and unification of the text could be:

A specific division of Sony may find it more

useful to focus on factors relevant to that particular part of the business. It may also be beneficial to differentiate between local, national, and global factors. This version of PESTEL analysis, called LoNGPESTEL, includes:
- Local factors
- National factors
- Global factors
- Political factors, such as provision of services by local council and UK government policy on subsidies
- Economic factors, including local income, UK interest rates, and overseas economic growth
- Social factors, such as local population growth, demographic changes (such as an aging population), and migration flows
- Technological factors, including improvements in local technologies (such as availability of digital television), UK broadband technology (such as UK online services), and international technological discoveries.In cyberspace, there are various factors that impact McDonald's. These factors can be categorized into environmental and legal aspects. Environmental factors include local waste issues, UK conditions, and global climate alteration. On the other hand, legal factors involve local licences and planning permission, UK jurisprudence, and international understandings on human rights or environmental policy.

Analyzing these PESTEL factors is crucial in developing an effective strategy for McDonald's. This analysis helps the organization align its global objectives with the external environment.

From a political standpoint, McDonald's does not typically make contributions to political parties, candidates, or organizations. However, the company acknowledges that public policy issues can affect its business, employees, franchisees, and the communities where its restaurants operate. Therefore, in certain cases, McDonald's may leverage its resources to make political contributions if it is in the company's best interests.

As a result, McDonald's Corporation Board of Directors has implemented this Political Contributions Policy to ensure that such contributions are made in a manner

consistent with the Company's core values and to safeguard and/or enhance shareholder value. McDonald's is often criticized for its menu, expansion, and business practices, illustrating the rapid globalization of the American fast food industry. In 2001, Eric Schlosser's book Fast Food Nation included criticism of McDonald's business practices. Allegations were made that McDonald's (along with other companies in the fast food industry) uses its political influence to boost profits at the expense of people's health and the social conditions of its workers.

The book also examined McDonald's advertising techniques, particularly its targeting of children. Although the book mentioned other fast-food chains, it primarily focused on McDonald's. In 1999, French anti-globalisation activist Jose Bove protested against the introduction of fast food in the region by vandalizing a half-built McDonald's.

Economic-wise, McDonald's offers a cheaper menu that is affordable for consumers. It is also easy for the company to enter new markets, including poorer countries. McDonald's restaurants can be found in 119 countries and serve approximately 47 million customers daily.

McDonald's is a global company with over 31,000 restaurants and a workforce of over 1.5 million people. Along with its main brand, McDonald's also operates other restaurant chains including Piles Cafe. The company has the financial strength to expand anywhere in the world. In order to focus on its core brand, McDonald's began selling off other chains it had acquired in the 1990s. One such chain was Chipotle Mexican Grill, in which McDonald's had a majority stake until October 2006 when it completely divested through a stock exchange.

Until December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners. Meanwhile, competitors like

Burger King's market share among fast service sandwich chains dropped by 10.95% in 2006, Krispy Kreme Doughnuts possibly facing bankruptcy. However, with increased expansion of traditional rivals, Yum brands are the leading fast service chains in China. McDonald's Europe sales dropped by 1.9%, but Burger King's sales growth is estimated to be 18.2% compared to McDonald's 11.2%. Yum brands offer a wide variety and range of prices for selections. Wendy Frescata product line increased sales by 3.2%, while the average menu price increased by 3.2% (National Restaurant Association NRA) are the important factors that we need to carefully consider.

Sociocultural: McDonald's always understands societal values, culture, and responsibilities.

Try to establish a closer connection with the local community to ensure the satisfaction of customers and create a strong bond with the restaurants. This can be achieved through engaging in various social activities such as organizing charity fundraisers, providing playgrounds for children, supporting local schools and charities, and more. Figure 3 illustrates the community support model. Additionally, there are global factors to consider, including the increasing population in China, the growing popularity of drive-throughs as car ownership rises rapidly, a 6% increase in social shopping areas like malls and homes, a recent 14% rise in the Latino population in the USA, implementing a "healthy lifestyle" program to attract health-conscious customers, greater public awareness of the negative effects of fast food on health, a decline in beef consumption in France, catering to halal food preferences in Islamic countries, and offering menu options tailored for Asian countries.

Technological:

McDonald's mission is to become the best fast-service restaurant globally by delivering excellence to customers at all their locations and achieving profitable growth through

innovation and technology. In 2006, they unveiled their "Forever Young" brand by revamping all their restaurants, marking the first significant redesign since the 1970s.

The design of the McDonald's restaurants includes the traditional yellow and red colors, but the red has been changed to a muted terra cotta color. The yellow has been transformed to a golden hue for a more cheerful appearance, and olive and sage green colors have been added. To create a warmer atmosphere, the restaurants now have less plastic and more brick and wood. Modern hanging lights contribute to a softer ambience. The walls are adorned with contemporary art or framed photographs.

• The exterior of the restaurants features golden umbrellas and a "classy front" instead of the traditional double-slanted mansard roof.
• The restaurants have different areas:
• The "linger" zone offers armchairs, sofas, and free Wi-Fi connections. Since 2010, Wi-Fi access has been free.
• The "grab and go" zone has tall counters with bar stools for customers who eat alone. Plasma TVs provide news and weather reports.
• The "flexible" zone is designed for families and has booths with fabric cushions featuring colorful patterns. The seating is adjustable.

Different music is played in each zone.

In the United Kingdom, branches of McDonald's have a more modern look with a deep British racing green color replacing the traditional red. This gives the shops a more casual feel, similar to a Starbucks branch. Similarly, branches in Germany have also been redesigned with a modern style and green exterior. Additionally, in Germany, the iconic "golden arches" logo is being changed from red to green.

McDonald's takes its responsibility to the environment seriously and established the Global Environmental Commitment in 1990. Since then, they have been

focused on making incremental improvements to improve environmental performance, both in their supply chain and restaurants.

At the restaurant level, McDonald's globally focuses on three main fronts: environmental responsibility, energy efficiency, and sustainable packaging and waste management. They strive to increase energy efficiency in their restaurants to save money and reduce environmental impact. They also research ways to reduce the environmental impact of consumer packaging and waste in their operations. Furthermore, they aim to enhance their current building standards to incorporate further opportunities for efficiency and innovation in restaurant design and construction.

Legal: They must adhere to all legal requirements as applicable. For example,

In Europe, compliance with regulations is necessary from both National and Local authorities as well as EU regulations. In the UK, adherence to specific laws such as Sunday trading, bank holidays, and minimum wage are required. Regulations can vary in stringency from one country to another. McDonald's has faced several legal issues and lawsuits, mostly regarding trademark disputes. The company has threatened legal action against numerous food businesses unless they remove the prefix "Mc" or "Mac" from their trade name. An interesting case is when McDonald's sued a cafe owner named McDonald in Scotland, despite the fact that the disputed business had been established for over a century (Sheriff Court Glasgow and Strathkelvin, November 21, 1952).

On September 8, 2009, McDonald's Malayan operations lost a case to prevent another restaurant from naming itself McCurry. This occurred after McDonald's appealed to Malaysia's highest court, the Federal Court. McDonald's has also faced legal challenges related to workers' rights. In 2001, the company was fined ?12,400 by British magistrates for illegally using and over-working child

labor in one of its London eateries. This fine is considered one of the largest penalties imposed on a company for breaking child labor laws (R v 2002 EWCA Crim 1094). In April 2007, in Perth, Western Australia, McDonald's admitted guilt to five charges pertaining to the employment of children under 15 at one of its establishments and was fined AU $8,000.

Decision After analyzing the McDonald's case study, we have learned the importance of conducting PESTEL and SWOT analysis for a company before expanding globally. Many companies strive to establish a global presence, but not all of them succeed. When analyzing these situations, factors such as PESTEL and SWOT come into play.

These are the main factors contributing to McDonald's global success. McDonald's, as a global business organization, strives to achieve the best possible outcomes. They focus on maintaining quality, service, and products, understanding the local culture, supporting the environment, engaging in social activities, ensuring employee satisfaction, and being driven by profits.

Recommendation

The external environment is highly complex and dynamic. If you divert your attention even for a moment, you may discover a significant change in the competitive landscape.

This is why it is crucial to regularly undertake PESTEL analysis. However, even so, it does not guarantee the identification of every significant change. Have you ever been waiting to meet someone in a crowded place and not noticed that they were there until they were almost directly in front of you? You were too busy looking at someone else or for something else (you were certain they would be wearing a specific coat, for example). The same can happen to managers examining

the external environment - there is a lot going on in many different places, and it is entirely possible that they might overlook changes that later turn out to be incredibly important. This is especially likely when people have already made up their minds about what should be happening. They "know" their friend will be coming from a specific direction, so that's the only place they look.

This is acceptable if the friend comes from this direction, but not ideal if they choose another route. When using PESTEL analysis, directors need to be ready to consider their surroundings and question their assumptions!