PEST Analysis of McDonalds

Political & Legal

The foreign operations of the company have an extensive amount of influence by individual state policies imposed by each government.

Changes in these regulations, newly imposed laws as well as new law enforcements under the Obama administration may have impact on trade, product safety, employment /labor, tax, privacy as well as financial conditions of the organization.

Economic

McDonalds’ experiences difficulties in situations where the economy of a certain state is hit by recession and changes in the exchange rate.

Market leadership in the industry

Very high target market

Cost is low and income is high

The economic growth rate of a specific state decides the purchasing power of the consumers in the country.

Social

The organization works within a diverse social group

It increase the employments

Technological

Development of advanced technology

Higher quality standards

Environmental

Foreign supplies are used by the local manufacturers

Packaging is of high quality

Legal

Products are subject to legislation

The logo is sustainable