Unit 1 the Business Environment
For this assignment I will be writing a report describing how PESTLE which will include the
political, economic, social and legal factors impact upon business activities for an
organisation like McDonalds and their stakeholders.
PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental
factors, which is a crucial for all industry a business may be in. Also it’s vital as it helps to
plan ahead and give the business a competitive edge against its competitors.
Political factors are that determine the extent to how a government may influences the
economy and different business. For example the government mainly focuses on the
political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
Economic factors are that determined by business progress as it affects the way in which a
business operates and make’s key decisions. For example a rise in inflation in the economy
would affect the way business price their product or services. Economic factors also include
economic growth, interest rates and exchange rates.
Social factors help a business know the social environment of the market by determine the
customer’s demographics, cultural limitations, lifestyle attitude, and education .Business do
this to help understand their customers’ needs and what brings the customers to
marketplace to purchase.
Legal factors are the rules and regulations that are given by the government and that apply
to every business. These are certain laws that mainly effect business environment in a
certain country, which mainly focus on the consumer laws, safety standards, labor laws,
health and safety act and etc.
Political factors impact McDonalds as an organisation by the government policies on the
regulations of fast food operation. The government is currently controlling the marketing of
fast food restaurant because of health problems like cholesterol and obesity issues among
the young people in the country. Governments also control the license given for open the
fast food restaurant and other business regulation need to follow such as for a franchise
business. McDonalds then need to have a good relationship with government by giving
benefits such as employment and tax. This in results helps them set up more McDonalds in
that country. It’s also a must for big business to succeed in the foreign market, big business
like McDonalds. McDonald is also pressurized by china because they are disrupting the
culture by having unhealthy fried food like chips and burgers in their menu. This then in
results affects the McDonalds by having the customers from China who are McDonalds
second priority when it comes down to stakeholders. Not wanting to buy products from
McDonalds as they don't have healthy opinion and the customers from China rather want
rice as the food is more traditionally eaten their as part of their culture. This resulted in
McDonalds having rice in their menu for all their branches in China. This is one of the ways
1|Page
For this assignment I will be writing a report describing how PESTLE which will include the
political, economic, social and legal factors impact upon business activities for an
organisation like McDonalds and their stakeholders.
PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental
factors, which is a crucial for all industry a business may be in. Also it’s vital as it helps to
plan ahead and give the business a competitive edge against its competitors.
Political factors are that determine the extent to how a government may influences the
economy and different business. For example the government mainly focuses on the
political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
Economic factors are that determined by business progress as it affects the way in which a
business operates and make’s key decisions. For example a rise in inflation in the economy
would affect the way business price their product or services. Economic factors also include
economic growth, interest rates and exchange rates.
Social factors help a business know the social environment of the market by determine the
customer’s demographics, cultural limitations, lifestyle attitude, and education .Business do
this to help understand their customers’ needs and what brings the customers to
marketplace to purchase.
Legal factors are the rules and regulations that are given by the government and that apply
to every business. These are certain laws that mainly effect business environment in a
certain country, which mainly focus on the consumer laws, safety standards, labor laws,
health and safety act and etc.
Political factors impact McDonalds as an organisation by the government policies on the
regulations of fast food operation. The government is currently controlling the marketing of
fast food restaurant because of health problems like cholesterol and obesity issues among
the young people in the country. Governments also control the license given for open the
fast food restaurant and other business regulation need to follow such as for a franchise
business. McDonalds then need to have a good relationship with government by giving
benefits such as employment and tax. This in results helps them set up more McDonalds in
that country. It’s also a must for big business to succeed in the foreign market, big business
like McDonalds. McDonald is also pressurized by china because they are disrupting the
culture by having unhealthy fried food like chips and burgers in their menu. This then in
results affects the McDonalds by having the customers from China who are McDonalds
second priority when it comes down to stakeholders. Not wanting to buy products from
McDonalds as they don't have healthy opinion and the customers from China rather want
rice as the food is more traditionally eaten their as part of their culture. This resulted in
McDonalds having rice in their menu for all their branches in China. This is one of the ways
1|Page
