The purpose of McDonald's is to serve quality food that their customers can love and trust. They sell a variety of fast foods and offer a waiting service to those who want to eat at the restaurant. McDonald's started as a restaurant in San Bernardino, California in the United States it then expanded further nationally then internationally. The main aim of McDonald's as a business is to serve good food in a friendly and fun environment, to be a socially responsible company, and to provide good returns to its shareholders. The structure type of McDonald's is hierarchical. As they have several layers of management throughout the business globally.
The external business environment is the various factors that impact McDonald's actions and operations from outside of the business. PESTLE is used to analyze all the factors of external environmental impacts. The 'P' in PESTLE stands for Political which is things government policies, wage legislation, political stability, Tax, and trade agreements or restrictions this will have the most impact on McDonald's financial stability. The first 'E' stands for Economical which is factors such as exchange rates, inflation, interest rates, cost of living, labor costs, consumers' spending habits, and the growth or decline of the economy this will affect the amount of profit McDonald's makes. The 'S' stands for social which is factors such as consumer trends, fashions, buying habits, lifestyle factors, online shopping, work-life balance, social trends, and demographics that will affect what McDonald's sells. The 'T' stands for Technological which is factors such as Automation, innovation, upgrades, robotics and manufacturing processes, artificial intelligence, security, competitor activity, marketing, and employee processes this will affect how McDonald's may run its business and how affective it runs. The 'L' stands for legal this is factors such as Health and safety laws, employment laws, copyright, discrimination, and recruitment laws. This will affect how McDonald's is allowed to run their business. The second 'E' stands for environmental factors such as environmental restrictions imposed by governments, sustainable resources, corporate social responsibilities, use of plastics, waste concerns, fairtrade and ethical sourcing, food sources, transportation, supply chain management, and pandemics This may affect what they choose to do as social responsibility.
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Corporate culture
The corporate culture of a business is especially important to building a good relationship between employees and the company. The business conducts its business to try to have high standards of fairness, honesty, and integrity. As a business, their values are 'we place the customer experience at the core of all we do, we are committed to our people, we believe in the McDonald's system, we operate our business ethically, we give back to our communities, we grow our business profitably, and we strive continually to improve.' Mcdonald's has the vision to be the best employer in each community and the world although there have been various complaints from the employees about low pay and insecure shifts. This may affect the employees' lives and cause them to have issues with living costs.
Corporate social responsibility
As a business CSR is very important for how they are viewed externally as a business. They need to show that as a business they care about more than just making a profit and they are expected to take action on issues that come about in the world such as plastic pollution. Mcdonald's has had many issues with their packaging not being recyclable in the past and it is a massive issue globally. So, they took social responsibility and changed their packaging to be 100% recyclable. Another example is that McDonald's has closed its stores temporarily in Russia to show social responsibility and that they do not believe in the actions that Russia has taken against Ukraine.
What is McDonald's corporate social responsibility (CSR) policy?
We take our social responsibilities very seriously. For example, we're always looking for ways to reduce, reuse, and recycle in our restaurants and across our whole business. For example, we use low-energy LED light bulbs, energy-saving equipment, and waterless urinals, and recycle used cooking oil into biodiesel to fuel more than half of our delivery trucks. We also recycle the cardboard boxes used in more than 89% of our restaurants, and more than 85% of our packaging is made from renewable resources. We know that every little bit helps.'
The advantages of this are that they will attract more positive attention and more people may want to buy shares in the business if they see it doing well. This in turn will put more money back into the business. The disadvantages are that if they get bad press, it can affect how well the business does and their profit margins.
Competitive environment
Competitors are those who work within the same market as another, and they compete for customer loyalty and to be the biggest business in that market. McDonalds' competitors are other fast-food restaurants. They compete with different businesses on different scales, international, national, and local. Their main competitors on an international level are Burger King, Subway, KFC, Wendy's, and on a national level Jack in the Box. Competitive advantage is what separates businesses apart from each other in competition. Their advantage over their competitors is that their advertising campaigns are bigger than a lot of their competitors, they adapt their menus and business to the different countries of each restaurant, and they make sure the quality of the food is consistent across the company. The low cost of McDonald's food attracts more people as with a lot of the businesses like them they get similar quality but varying prices. As well as this, differentiating the products and adapting to what the customers want and need means that they may have an advantage over competitors as they will gain more customers.
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