IntroductionMcDonalds is being deliberated as one of the biggest food chains across the globe. Around 375,000 employees are currently being employed in approximately thirty seven thousand outlets in over hundred nations, where they reported to collectively serve more than sixty nine million customers, annually. All the outlets of McDonalds are either being operated as a “franchise” or by the organisation itself. In the settings of United Kingdom, around sixty five percent of McDonald’s outlets are being operated as franchise, while the organisation operate itself the remaining proportion. The procedure of being submitted as the franchise of corporation is comparatively inflexible, as some of the requirements have already been listed by McDonalds. These requirements are inclusive of; high integrity or reliability, experience of business, “experience within the food industry”, the capability and durability to accomplish the franchise training of at least 09 months, a long-term assurance to the prospects, higher amount of investment. This sort of assurance to guarantee the potential and the assurance from the franchise to add value to brand that has already been accepted as the globally recognised and well-established name, specifically in the market segment of fast food retail (Moskowitz, 2014).The existing environment of the business is being assessed in this precise essay, which is concisely based on the environmental operations with the help of PESTEL evaluation, in order to explore the macro environment along with the particular factors of industry which possibly will influence the business operations. The results of the PESTEL analysis can be utilised to underline the weaknesses and potentials of the organisation by means of SWOT analysis in the “business model of McDonalds”, along with the potential threats and opportunities. These evaluations are meant to identify the “best strategic directions” for the  corporation in the future periods.PESTEL Analysis:The corporate strategies of McDonalds are supposed to deal with the subjected areas, determined in this evaluation. This evaluation model identifies several of aspects from the external environment which presents risk or prospects to the organisation. In the market segment of “fast food restaurants” worldwide, the focus of McDonald’s is the social and economic factors. However, the success of the organisation signifies the potential tactics that are being utilised to face all of these factors from the external environment. It is deliberated to be essential for McDonalds to make certain or suitable adaptations in its strategies in relation with the existing condition of the market, being the largest “fast food restaurant chain” across the globe. Political Aspects affecting the Business of McDonaldsAin the political scenario, McDonalds has an opportunity to more enhance or magnify the business operations on the basis of developed activity of trade at international level that can improve the network of supply chain across the globe. Without the breach or negligence of regulations, the organisation has the prospect to reduce the effect of taxes on the performance of business through the reorganisation of practices and restructuring the strategies. Regardless of the constructive impacts, the policies of public health are progressively mean to restrain individuals from the consumption of “fast foods”. On the contrary, McDonalds still have the opportunity deal with that external aspect through refining the quality of products while improving the healthy factors in them. In this manner, it can be deliberated that the political aspects portray more opportunities for Mcdonalds, which overshadow the presented threats. Economic aspects of significant for Mcdonalds The variations in the global economy impact the environment of fast food industry, deliberating its global operations. The most prominent aspects of economy which affects the operation of McDonalds, are; gradual but constant growth of American economy, which is deemed as an opportunity; constant though threatening economies of Europe and the decline of the economy of China are being considered as the threat for the corporation. Though the American market is being considered to have the biggest share in the growth of McDonald’s across the globe, which strengthen the stability of organisation. Considering that, the analysis present that the aspects of economy threaten the organisation more, relative to offer opportunity. Social aspects impacting the environment of the organisation McDonalds has more prospects to develop since the target market of organisation promptly covers the families having low and medium income scales, as observed while considering the external aspects of a broad gap in wealth. In addition to that, the organisation also has the prospect to enhance the quality of product in order to fulfil the demands of a relatively “diverse target market”. Though, the trend to adopt healthy lifestyle is deliberate as a threat, since numerous of products have frequently been condemned to have adverse effects on  health. However, McDonalds still have the opportunity to enhance the healthy factors of its products. In the light of above analysis, it has deemed that the sociocultural factors portray more opportunities for the improvement of business performance. Technological Aspects affecting the Business ModelThe recent advancement in technology presents some opportunities for McDonalds to amplify its investments in “research and development” in order to enhance the value and competence of business. In addition to that, McDonalds have the capability to relate more mechanisation in order to maximise efficiency, comprised of the aspects from external environment utilised for the development of business. Moreover, the corporation can enhance its online services in order to attract more customers through its mobile application and official website. While considering the technological factors, McDonalds seems to have key prospects to grow in the market. Environmental Aspects influencing the Organisational Performance:Environmental factors are basically anticipated to influence the target market of the organisation which definitely affect the performance of business and so does it applies to McDonalds. That influencing factors of environment indicates that the organisation have related concerns in the market segment. In order to achieve the higher level of performance to address the environmental issues, McDonalds has the potential develop its CSR strategies. Though the change in climate endures a risk since it has adverse influence on the farms, and so does on the supply chain network of McDonalds. Considering that the environmental aspects underline the opportunities suitable for CSR, whereas McDonalds also require to differentiate its supply chain more, in order to deal with the possible consequences of change in climate.Legal aspects The macro environment or the environmental settings of the markets are forced to follow the legitimate obligations defined by the different host countries along with the home country. Therefore, it is essential for McDonalds to follow the obligations imposed by the legal settings. In doing so, the organisation deals with the challenge of “higher minimum wages” that drives towards the increase in “costs and prices”. In addition to that, local regulations for public health influencing the facility of food in workspace and institutions have the potential to decrease the revenues of corporation from such areas. Whereas, McDonalds needs to consider the impact of “animal welfare regulatory” over the supply chain network. As an instance, the corporation can execute new strategies in order to assure the “animal welfare among meat producers”. In the legislative aspect, McDonalds face more threats or challenges in the external environment. Role played by the key operations of the organisation:Marketing Mix The marketing mix of McDonalds includes diversified attitudes which deal with the business concerns in multiple markets across the globe. The tactics and policies utilised by a corporation to obtain the access to target market, are defined by the marketing mix. The organisational principles of McDonalds are being implemented worldwide, regarding marketing mix. The corporation also utilises some variants of its “marketing mix” in order to make the local market conditions suitable. As an instance, the promotional operation of McDonalds emphases on “print media” in nations where marketing is more reliable and feasible through that. The effectiveness of corporation in employing its “marketing mix” subsidies to the principal performance of the business and brand at the international platform of “fast food restaurant”.    ProductBurgers of McDonalds are the one for which the brand is highly recognised. Though the organisation diversified its “product mix” by the passage of time. Recently, consumers can easily buy other famous products, such as; “chicken and fish, desserts, and breakfast meals”. This aspects of the “marketing mix of McDonalds” signifies that the corporation updates new products in order to fascinate more and new clients.   Place The restaurants of McDonalds are where the corporation makes a huge proportion of its revenues or sales. In order to sell a small variety of products, like; deserts, some of the franchises also organise kiosks. As per the conception, kiosks are anticipated to be utilised on the “seasonal, professional and sports events or competitions”, their setup or arrangement is temporary. Besides that, clients are capable to place their order by means of “Postmates website and mobile application”. PromotionThe advertisements of McDonalds are the most observable and prominent in between all the promotional strategies of the organisation. The corporation utilises television, print media, radio and the networks of social media for its “advertisements”. In addition to that, McDonald’s utilises promotions to attract new clients to its outlets. As an instance, the organisation provides “discount coupons” and giveaways with specific products or on specific occasions. Price “The pricing strategy of McDonalds includes price bundling combined with psychological pricing”. The organisation provides meals with the bundles of other products on a specific discount, known as “price bundling”. McDonalds utilises prices which seem to be adequately “more affordable”, in spite of round them off to the nearest $, is known as “psychological pricing”. It anticipate to underline the significance of “price bundling” in order to attract more and new clients or the existing ones to make more purchase. Human resource Effective organisations are anticipated to employ individuals by time for the principle tasks and “management responsibilities”. As an organisation progresses, it possibly can make a department of “human resources” which is accountable for the “management of employees and their well-being”. Recruiting In an aspects through which the HR department influence corporations is that they arrange the recruitment of employees that identifies which employees are supposed to get hire.The procedure of recruitment usually includes these operations while evaluating the resumes,”attending job fairs and conducting multiple interviews”.Training In the settings of advanced or progressive economy, corporations are required to consistently grow in order to gain benefit of “new opportunities and technologies”. A ratio of such progression is ensuring that employees have precise understanding and capabilities that are exceptionally well for the growth and reputation of the organisation.  ConclusionThis evaluation model identifies several of aspects from the external environment which presents risk or prospects to the organisation. In the market segment of “fast food restaurants” worldwide, the focus of McDonald’s is the social and economic factors. However, the success of the organisation signifies the potential tactics that are being utilised to face all of these factors from the external environment. It is deliberated to be essential for McDonalds to make certain or suitable adaptations in its strategies in relation with the existing condition of the market, being the largest “fast food restaurant chain” across the globe. Though, the trend to adopt healthy lifestyle is deliberate as a threat, since numerous of products have frequently been condemned to have adverse effects on health. However, McDonalds still have the opportunity to enhance the healthy factors of its products. In the light of above analysis, it has deemed that the sociocultural factors portray more opportunities for the improvement of business performance.In order to achieve the higher level of performance to address the environmental issues, McDonalds has the potential develop its CSR strategies. Though the change in climate endures a risk since it has adverse influence on the farms, and so does on the supply chain network of McDonalds. In addition to that, local regulations for public health influencing the facility of food in workspace and institutions have the potential to decrease the revenues of corporation from such areas. Reference Corporate.mcdonald’s.com. (2018). Ambition & Corporate Mission – McDonald’s: McDonald’s. Online Available at: http://corporate.mcdonalds.com/mcd/our_company/our-ambition.htmlAccessed 12 Jan. 2018Dudovskiy, J. (2018). McDonald’s Business Strategy and Competitive Advantage – Research Methodology. Online Research Methodology. Available at: https://research-methodology.net/mcdonalds-business-strategyAccessed 12 Jan. 2018.Greenspan, R. (2018). McDonald’s PESTEL/PESTLE Analysis & Recommendations – Panmore Institute. Online Panmore Institute. Available at: http://panmore.com/mcdonalds-pestel-pestle-analysis-recommendations Accessed 12 Jan. 2018.McDonald, D., & Puxty, A. G. (1979). An inducement-contribution approach to corporate financial reporting. Accounting, Organizations and Society, 4(1-2), 53-65.McDonald’s UK. (2018). Fast Facts. Online Available at: http://www.mcdonalds.co.uk/ukhome/Aboutus/Newsroom/facts_and_stats0/fast_facts.html Accessed 12 Jan. 2018.Meyer, P. (2018). McDonald’s Marketing Mix (4Ps) Analysis – Panmore Institute. Online Panmore Institute. Available at: http://panmore.com/mcdonalds-marketing-mix-4ps-analysis Accessed 12 Jan. 2018.Money. (2018). 5 Problems That’ll Challenge McDonald’s No Matter Who’s CEO. Online Available at: http://time.com/money/3687899/mcdonalds-problems-new-ceo/ Accessed 12 Jan. 2018.Slideshare.net. (2018). McDonald presentation. Online Available at:https://www.slideshare.net/phamkhoa52/mcdonald-presentation Accessed 12 Jan. 2018.Smallbusiness.chron.com. (2018). How Does a HR Department Affect an Organization?. Online Available at: http://smallbusiness.chron.com/hr-department-affect-organization-38105.html Accessed 12 Jan. 2018.

Post Author: admin

x

Hi!
I'm Eileen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out