PESTLE Analysis and McDonald's Case Study

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What is PESTLE Analysis?

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PESTLE Analysis is a strategic management tool used by businesses to assess and understand external factors that may impact how the business runs.

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What does PESTLE stand for?

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Political, Economic, Social, Technological, Legal, and Environmental.

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Why is PESTLE Analysis important for businesses?

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It helps businesses adapt their strategies to capitalize on opportunities and mitigate risks by understanding external factors.

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How does the Political factor affect businesses?

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Political decisions, often beyond a business's control, can significantly affect operations through government policies, taxation, regulation, and trade agreements.

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How did McDonald's respond to Brexit?

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McDonald's focused on agility and adaptation by adjusting supply chains, increasing local sourcing within the UK, and reducing reliance on EU imports.

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What are Economic factors in PESTLE?

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Economic factors include inflation, interest rates, and the overall economic outlook of a country, affecting consumer demand and business strategies.

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How might McDonald's strategy change during economic growth?

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McDonald's may focus on premium food items, like signature burgers and specialty desserts, to capitalize on increased consumer spending.

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What are Social factors in PESTLE?

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Social factors include demographics, culture, and societal trends that influence consumer behavior, preferences, and attitudes.

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How does McDonald's adapt to different social environments?

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McDonald's customizes its menu, marketing, and store design to fit regional preferences, such as offering vegetarian options in India.

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What are Technological factors in PESTLE?

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Technological factors involve keeping up with tech trends like AI, automation, and big data to stay competitive and meet customer needs.