MCD external analysis
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Transcript of MCD external analysis
![Page 1: MCD external analysis](https://reader031.fdocuments.in/reader031/viewer/2022021500/58a1984c1a28ab97118b5fcd/html5/thumbnails/1.jpg)
External Analysis
Kimberly Foulkes
Lindsay Cohen
Heather Gibson Joey Paolini
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PESTLE
Assessment
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PoliticalThe fast food industry is often a target for government initiatives aimed at improving health and reducing obesity
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Economic
The Fast food industry is seen to provide “value for money” and an alternative to more traditional restaurants
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Social-Cultural
McDonald’s is a part of our culture, as a restaurant that offers good food, for a good price
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Technology
McDonald’s effectively uses technological advances for supply chain management, and marketing opportunities
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Legal
Health and Safety laws as well as employment laws are the most important to McDonald’s
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Environmental
McDonald’s has initiated a number of Corporate Social Responsibility policies centered on reducing the environmental impact of the business
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Porter’s Five Forces
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Rivalry among Existing Firms (High)
New products are constantly being introduced by the industries key players
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Threat of New Entrants (Low)
To make it in the fast food industry, you need A LOT of Capital
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Threat of Substitutes (High)
Fast food is easily substituted by things like cooking at home, dine in restaurants, or delivery
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Bargaining Power of Customers (Moderate)
Customers can not directly influence price
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Bargaining Power of Suppliers (Moderate)
Suppliers give nice discounts on large quantity orders for existing customers
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Who’s Ready to Invest?