External Analysis

Kimberly Foulkes

Lindsay Cohen

Heather Gibson Joey Paolini

PESTLE

Assessment

PoliticalThe fast food industry is often a target for government initiatives aimed at improving health and reducing obesity

Economic

The Fast food industry is seen to provide “value for money” and an alternative to more traditional restaurants

Social-Cultural

McDonald’s is a part of our culture, as a restaurant that offers good food, for a good price

Technology

McDonald’s effectively uses technological advances for supply chain management, and marketing opportunities

Legal

Health and Safety laws as well as employment laws are the most important to McDonald’s

Environmental

McDonald’s has initiated a number of Corporate Social Responsibility policies centered on reducing the environmental impact of the business

Porter’s Five Forces

Rivalry among Existing Firms (High)

New products are constantly being introduced by the industries key players

Threat of New Entrants (Low)

To make it in the fast food industry, you need A LOT of Capital

Threat of Substitutes (High)

Fast food is easily substituted by things like cooking at home, dine in restaurants, or delivery

Bargaining Power of Customers (Moderate)

Customers can not directly influence price

Bargaining Power of Suppliers (Moderate)

Suppliers give nice discounts on large quantity orders for existing customers

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