Conduct a PESTEL analysis to identify the primary trends in McDonald’s external environment; identify which trends are likely to have the greatest impact on the company’s ability to sustain a competitive advantage.

3 Pages

The facts, evidence, and recommendations in your case analysis should be based only on the information provided in the case, rather than your knowledge of the company and its activities “in real life”. That is, for the purpose of this analysis, I am not interested in what a company actually did, how successful a particular decision turned out to be for a company, etc., as my intent here is to see how you evaluate and work through a particular challenge given the knowledge you develop in the course.

For this week’s case, please focus only on answering the following questions in your written reply.

1. Conduct a PESTEL analysis to identify the primary trends in McDonald’s external environment; identify which trends are likely to have the greatest impact on the company’s ability to sustain a competitive advantage.

2. How is McDonald’s positioned vis-à-vis its major competitors; comment on relevant factors you identify such as company size, menu variety and menu health qualities?

3. Consider whether McDonalds is pursuing a strategy as a differentiator or as a cost leader. Describe which approach McDonalds is employing and comment on its effectiveness.

4. Consider whether McDonalds is using a global brand integration/standardization approach to international efforts or whether its attempting to be responsive to local conditions. Describe the international strategy McDonalds employees and comment on its effectiveness.

5. Consider the problems faced in the US with obesity and other health related issues that are often linked to diet. Comment on the need for McDonalds to factor societal concerns on health matters relating to its customers in formulating its strategic planning efforts.