Name: Unit 1 - Assignment 2
DISCLAIMER: If you’re going to copy and paste my work, I suggest you get a
paraphrasing tool to re-word so that you don’t get caught with plagiarism
and also shift the paragraph so it doesn’t look identical to mine and also do
not share this specific work with another classmate.
Introduction
In this assignment I will be researching and investigating what business
markets are and what the business environments are as well. I will do this by
using a business as an example.
External Environment
The External Environment are all the possible factors that will affect the
business externally. These factors are made of Political, Economic, Social,
Technological, legal and Environmental. The Political Factors relates to having
government support, the Economic factor relates to economic growth and
exchange rates, the social factor relates to how people spend their money on
due to trends, the technological factors relates to the latest technology being
available which means there will be improved communications, the legal
factors relates to all sorts of business legislation and government departments
and the environmental factors relates to the way the environment will be
affected such as carbon emissions, pollution, waste and also recycling.
PESTLE Analysis - McDonalds
Political - They must respond to political laws and influences in over a hundred
countries. Like any other restaurant, they must comply with health and
hygiene regulations. If their food doesn’t abide by a certain code, they would
be shut down. Their employees must also adhere to all food and health laws
while working in any given location. McDonalds has the opportunity to be able
to expand its business because of improved international trade and this will
enhance global supply chains. The governmental guidelines for diet and health
can be a threat but also an opportunity for McDonalds. The reason why it can
be a threat is because it puts a lot of pressure on McDonalds as they have been
criticized in terms of the effects of their products on customer’s health. The
reason why it can become an opportunity is because they can then try to
improve the products so that it is suitable for customers.
Economic - In 2008, McDonald’s took a financial hit from the economic
recession. Disposable income was at an all-time low while people scrambled to
,Name: Unit 1 - Assignment 2
find new jobs. Since then, McDonald’s brand image has taken a hit due to an
increase in health consciousness among consumers. Many fast food
restaurants are adding healthy options to their menu while trying to shed their
“junk food” image. But it’s hard — and expensive — to change the opinions of
the public. The slow, however stable economic growth of developed countries
is an opportunity for McDonalds to be able to grow and increase the stability
of their restaurant chain business. The business has the opportunity to be able
to grow through expansion in high growth developing markets such as Asia.
Social - Consumers obsessively scrutinize what they’re putting into their
bodies. There is a rise in low-carb and low-sugar diets. With busy lifestyles in
more urban places means there will be more people likely coming to the store
to buy food and drinks. McDonalds has the opportunity to be able to grow
based on the increasing demand of customers to buy fast food rather than
cooking at home. This tendency is also linked to busy lifestyles in urban
environments. These types of lifestyles will increase customers' likelihood of
dining in restaurants such as McDonalds rather than cooking at home.
McDonalds has the opportunity to increase their flexibility in product design to
be able to satisfy the customers preferences in different markets around the
world. However, the healthy lifestyle trend can be a huge threat for a fast food
business like McDonalds, the reason why is because they have received
criticisms about the adverse health effects of many of the business products.
Therefore, McDonalds has the opportunity to be able to increase the
healthfulness of it’s menu items.
Technological - McDonald’s has recently upgraded their menus with flashy
television screens hanging from the ceiling behind their cashiers. They also use
their website to showcase nutritional information and other accessories such
as careers and where they are located. In some locations, you can order your
food online, allowing you to stroll in and grab your meal without waiting in
line. McDonalds has the opportunity to be able to increase their research and
development investments to improve the business effectiveness and efficiency.
McDonalds can also apply more automation to maximize productivity, such
automation requires changes in McDonald’s operations management and
productivity approaches. Furthermore, McDonalds can also improve its mobile
services to be able to reach more customers such as its mobile apps.
Legal – The legal factor for McDonalds is that increasing the health regulations
in workplaces and schools means that there has to be frequent health and
safety checks being made majority of the time. Animal Welfare regulations are
classified as a threat and also an opportunity for McDonalds. The reason why it
, Name: Unit 1 - Assignment 2
can be a threat is because these regulations will increase the costs in
McDonalds supply chain. The reason why it creates an opportunity is because
it can improve the business by implementing a more comprehensive animal
welfare policy which therefore attracts more customers who are interested in
Animal Welfare.
Environmental – The Environmental factors that McDonalds have mainly
focused on sustainability, environmentally friendly and sustainable supply
chains. It is not only McDonalds but also large brands as well as they all have a
well-developed CSR Policy to handle their environment concerns. For example
McDonalds have been using harmful resources such as non-biodegradable
substances for their drink’s glasses, along with Styrofoam containers are also
being used in McDonalds for their food. McDonald's corporation can improve
its environmental programs and sustainability to strengthen their brand and
also business performance. The aim of these endeavours is to address the
opportunities associated with the rising interest for corporate environmental
programs as well as the increasing emphasis on sustainable business practices.
How Knowledge of the External Environment can support the success of
McDonalds
The way the external environment supports business is because it is cost
effective as well as providing a deeper understanding of the business, being
very alerted to potential threats along with being a reliable method to exploit
opportunities.
With McDonalds having upgraded their menus by displaying them on large
television screens form the ceiling behind the cashiers, the reason why they
did this is because they want to make their stores more modernised by having
the latest technology available on them as therefore the process is very quick
and easy such as paying contactless.
With very busy lifestyles due to people having work in more urban places this
means there will be more people likely coming to the store to buy food and
drinks which will lead to McDonalds making their sales and revenue and being
able to satisfy customers and this will lead to McDonalds having a good
reputation and a strong brand which will lead to them being a successful
business.
McDonalds have mainly focused on sustainability, environmentally friendly and
sustainable supply chains, the reason why they are focusing on these aspects is
DISCLAIMER: If you’re going to copy and paste my work, I suggest you get a
paraphrasing tool to re-word so that you don’t get caught with plagiarism
and also shift the paragraph so it doesn’t look identical to mine and also do
not share this specific work with another classmate.
Introduction
In this assignment I will be researching and investigating what business
markets are and what the business environments are as well. I will do this by
using a business as an example.
External Environment
The External Environment are all the possible factors that will affect the
business externally. These factors are made of Political, Economic, Social,
Technological, legal and Environmental. The Political Factors relates to having
government support, the Economic factor relates to economic growth and
exchange rates, the social factor relates to how people spend their money on
due to trends, the technological factors relates to the latest technology being
available which means there will be improved communications, the legal
factors relates to all sorts of business legislation and government departments
and the environmental factors relates to the way the environment will be
affected such as carbon emissions, pollution, waste and also recycling.
PESTLE Analysis - McDonalds
Political - They must respond to political laws and influences in over a hundred
countries. Like any other restaurant, they must comply with health and
hygiene regulations. If their food doesn’t abide by a certain code, they would
be shut down. Their employees must also adhere to all food and health laws
while working in any given location. McDonalds has the opportunity to be able
to expand its business because of improved international trade and this will
enhance global supply chains. The governmental guidelines for diet and health
can be a threat but also an opportunity for McDonalds. The reason why it can
be a threat is because it puts a lot of pressure on McDonalds as they have been
criticized in terms of the effects of their products on customer’s health. The
reason why it can become an opportunity is because they can then try to
improve the products so that it is suitable for customers.
Economic - In 2008, McDonald’s took a financial hit from the economic
recession. Disposable income was at an all-time low while people scrambled to
,Name: Unit 1 - Assignment 2
find new jobs. Since then, McDonald’s brand image has taken a hit due to an
increase in health consciousness among consumers. Many fast food
restaurants are adding healthy options to their menu while trying to shed their
“junk food” image. But it’s hard — and expensive — to change the opinions of
the public. The slow, however stable economic growth of developed countries
is an opportunity for McDonalds to be able to grow and increase the stability
of their restaurant chain business. The business has the opportunity to be able
to grow through expansion in high growth developing markets such as Asia.
Social - Consumers obsessively scrutinize what they’re putting into their
bodies. There is a rise in low-carb and low-sugar diets. With busy lifestyles in
more urban places means there will be more people likely coming to the store
to buy food and drinks. McDonalds has the opportunity to be able to grow
based on the increasing demand of customers to buy fast food rather than
cooking at home. This tendency is also linked to busy lifestyles in urban
environments. These types of lifestyles will increase customers' likelihood of
dining in restaurants such as McDonalds rather than cooking at home.
McDonalds has the opportunity to increase their flexibility in product design to
be able to satisfy the customers preferences in different markets around the
world. However, the healthy lifestyle trend can be a huge threat for a fast food
business like McDonalds, the reason why is because they have received
criticisms about the adverse health effects of many of the business products.
Therefore, McDonalds has the opportunity to be able to increase the
healthfulness of it’s menu items.
Technological - McDonald’s has recently upgraded their menus with flashy
television screens hanging from the ceiling behind their cashiers. They also use
their website to showcase nutritional information and other accessories such
as careers and where they are located. In some locations, you can order your
food online, allowing you to stroll in and grab your meal without waiting in
line. McDonalds has the opportunity to be able to increase their research and
development investments to improve the business effectiveness and efficiency.
McDonalds can also apply more automation to maximize productivity, such
automation requires changes in McDonald’s operations management and
productivity approaches. Furthermore, McDonalds can also improve its mobile
services to be able to reach more customers such as its mobile apps.
Legal – The legal factor for McDonalds is that increasing the health regulations
in workplaces and schools means that there has to be frequent health and
safety checks being made majority of the time. Animal Welfare regulations are
classified as a threat and also an opportunity for McDonalds. The reason why it
, Name: Unit 1 - Assignment 2
can be a threat is because these regulations will increase the costs in
McDonalds supply chain. The reason why it creates an opportunity is because
it can improve the business by implementing a more comprehensive animal
welfare policy which therefore attracts more customers who are interested in
Animal Welfare.
Environmental – The Environmental factors that McDonalds have mainly
focused on sustainability, environmentally friendly and sustainable supply
chains. It is not only McDonalds but also large brands as well as they all have a
well-developed CSR Policy to handle their environment concerns. For example
McDonalds have been using harmful resources such as non-biodegradable
substances for their drink’s glasses, along with Styrofoam containers are also
being used in McDonalds for their food. McDonald's corporation can improve
its environmental programs and sustainability to strengthen their brand and
also business performance. The aim of these endeavours is to address the
opportunities associated with the rising interest for corporate environmental
programs as well as the increasing emphasis on sustainable business practices.
How Knowledge of the External Environment can support the success of
McDonalds
The way the external environment supports business is because it is cost
effective as well as providing a deeper understanding of the business, being
very alerted to potential threats along with being a reliable method to exploit
opportunities.
With McDonalds having upgraded their menus by displaying them on large
television screens form the ceiling behind the cashiers, the reason why they
did this is because they want to make their stores more modernised by having
the latest technology available on them as therefore the process is very quick
and easy such as paying contactless.
With very busy lifestyles due to people having work in more urban places this
means there will be more people likely coming to the store to buy food and
drinks which will lead to McDonalds making their sales and revenue and being
able to satisfy customers and this will lead to McDonalds having a good
reputation and a strong brand which will lead to them being a successful
business.
McDonalds have mainly focused on sustainability, environmentally friendly and
sustainable supply chains, the reason why they are focusing on these aspects is
