STRATEGIC MANAGMENT

1. McDonald’s
Pestel Analysis

2. ABOUT
The America-based fast food chain is recognized worldwide and has a
strong brand image. They serve more than 69 million customers worldwide,
leading them to become one of the largest restaurant chains in terms of
revenue. A detailed PESTEL Analysis of McDonald's can show how multiple
external factors have contributed to its present status. It will also give an
insight into their future growth and threats

4. SOCIO-CULTURAL

5. SOCIO-CULTURE
IMPACT
• Existence of different
age groups(6-70)
• Establishment in
different countries
with different culture
• Health concerns
• Food safety
STRATEGY
• Introduced breakfast
range targeting adults
audience
• Welcoming setting for
students
• Celebration of special
occasions such as
birthdays
• Happy meal and
complimentary toy
• Adoption to halal concept
• Introduction of fish and
chicken instead of beef.
• Offering a range of salad
and vegetarian burgers
DEMOGRAPHICS

6. SOCIO-CULTURE
IMPACT
• Most of the customers
are from a middle-
class background
• Different economic
conditions around the
globe
• Customers usually
come with their
families
STRATEGY
• McDonald's uses a
value-based pricing
strategy and strives to
provide value to its
customers across the
menu, and also offers a
$1-3 menu. In essence,
their goal is to keep
prices as low as
possible
• Align the pricing
strategy according to
the country
• Offer various deals
INCOME-DISTRIBUTION

7. SOCIO-CULTURE
IMPACT
• Removed Barriers to
employment.
• Youth employment-
job readiness to young
people with less job
opportunities
• Fight against social
injustice
STRATEGY
• Youth employment
opportunity to support
many young women and
men, especially in
disadvantaged areas
• AMPLYFING BLACK
VOICES
SOCIAL MOBILITY

8. SOCIO-CULTURE
IMPACT
• flexibility in product
design to optimally
satisfy diverse
consumer preferences
which attracts
consumers everyday.
• Increasing Use of
technology resulting in
more sales
STRATEGY
• Developing different type
of recipes that are going to
be suitable at the current
time and the area where it
is being sell.
• People centricity as a core
value
• Apps and website for
online delivery available
LIFE-STYLE
TRENDS

9. SOCIO-CULTURE
IMPACT
• Organization culture
supports organization
learning
• Diversity of employees
• Chance of promotion
STRATEGY
• through policies, programs
and meetings that encourage
employee feedback and
knowledge sharing.
• McDonald’s organizational
culture encourages
employees, suppliers,
franchisees, and customers to
give their feedback and
engage in meaningful
conversations to improve the
business.
• McDonald’s provides its
employee a clear career path
to promise their future.
(linear career path) crew to
manager
ATTITUDE TO
WORK

10. SOCIO-CULTURE
IMPACT
• Overall, McDonald's has
embraced consumerism by
investing in branding and
marketing, innovating its
menu, emphasizing
convenience, expanding its
global reach, and
addressing social and
environmental issues.
These strategies have
helped to make McDonald's
one of the most successful
and recognizable brands in
the world.
STRATEGY
• Branding and marketing
• Menu innovation
• Convenience
• Globalization
• Social responsibility
CONSUMERISM

11. SOCIO-CULTURE
IMPACT
• Overall, McDonald's
provides education and
training opportunities for
employees at all levels, from
on-the-job training to
college tuition assistance
and leadership
development. These
programs help to improve
employee skills, advance
careers, and contribute to
the overall success of the
company.
STRATEGY
• On the job training
• Apprenticeships
• Management
training
• College tuition
assistance
• Leadership
development
LEVEL OF
EDUCATION

12. POLITICAL

13. POLITICAL
IMPACT
• Overall, these political
strategies enable
McDonald's to navigate
political challenges and
opportunities to ensure
that its business interests
are represented and
protected.
STRATEGY
• Lobbying
• Political donations
• Public relations
• International
expansions
• CSR
GOVERNMENT
STABILITY

14. POLITICAL
IMPACT
• Overall, McDonald's tax
policy aims to comply with
tax laws and regulations
while being transparent
and responsible. The
company recognizes the
• importance of paying its
fair share of taxes and
contributing to the
communities where it
operates.
STRATEGY
• Compliance
• Transparency
• Responsibility
TAXATION
POLICY

15. POLITICAL
IMPACT
• McDonald's has a
dedicated team of experts
who monitor changes in
regulations The company
also works closely with
local authorities and
industry groups to stay up
to date on regulatory
changes and to advocate
for policies that support
its business interests.
STRATEGY
• Tariffs
• Import and export
restrictions
• Customs
regulations
• Food safety
regulations
• Labour regulations
FOREIGN
TRADE
REGULATION

16. POLITICAL
IMPACT
• Environmental
sustainability
• Improved health
• Employee
satisfaction
STRATEGY
• Environmental
responsibility
• Health initiatives
• Employees
benefits
SOCIAL
WELFARE
POLICIES

17. TECHNOLOGICAL

18. TECHNOLOGICAL
IMPACT STRATEGY
• The company has dedicated
R&D facilities and teams that
focus on developing new menu
items, enhancing the customer
experience, and improving
operational efficiency.
• One of McDonald's key R&D
initiatives is digital technology,
as the company aims to use
technology to improve the
customer experience,
streamline operations, and
differentiate itself from
competitors.
• McDonald's also invests in
product innovation R&D
SPENDING ON
R&D
• Overall, McDonald's
R&D efforts are an
essential aspect of the
company's business
strategy, enabling it to
stay ahead of
competitors, enhance
customer experience,
and address
sustainability
concerns.

19. TECHNOLOGICAL
IMPACT STRATEGY
• Standardization of food
production:
• Impact on health:
• Impact on
environment:
• Brand recognition
INDUSTRY
FOCUS
• Overall, the industry
focus of McDonald's
has had significant
impacts on the fast-
food industry and on
society as a whole, and
the company has
employed a range of
strategies to maintain
its position as a leading
fast-food brand

20. TECHNOLOGICAL
IMPACT STRATEGY
• maximize marketing by
committing to core
• Double Down on the 3
D's
NEW
DISCOVERIES
• culturally relevant
approaches
• leveraging competitive
strengths and building
a powerful digital
experience growth
engine

21. TECHNOLOGICAL
IMPACT STRATEGY
• Self-Ordering Kiosks
and Digital Menu
Boards:
• Mobile Ordering and
Payment
• Kitchen Automation
SPEED OF
TECH
TRANSFER
• helps to reduce order
errors and speed up
service
• This technology can
improve convenience
for customers and help
to reduce wait times.
• These technologies can
help to reduce cooking
times, improve
consistency, and
increase throughput.

22. TECHNOLOGICAL
IMPACT STRATEGY
• menu innovation
• Sustainability
initiatives
• Digital transformation
• McDonald's deals with
the rate of
obsolescence by
staying innovative,
embracing digital
transformation,
partnering with other
brands, focusing on
sustainability, and
listening to its
customers.
RATES OF
OBSOLESCENCE

23. Thankyou!