Pest Analysis:
Ø Political and Legal Environment:
o In general policies of Indian government do not affect McDonalds but there are cases when government changes and come up with new rules, regulations and new policies. McDonalds has to followed legal regulations such as tax requirement, laws, environmental certification, etc.
Ø Technological Environment:
o For making fast food machines are considered to be the best option as they are fast as well as more hygienic. Technology is the sector which is on a continuous development and McDonalds as a top brand has to update its all machinery and equipments on a regular bases. McDonalds should also look forward to competitor’s innovation and try to improve itself in terms of managing the operations.
Ø Economical Environment :
o McDonalds believes in low cost and more incomes concept. But it face lot of economic variables outside its company or macro environment such as dealing with international sourcing for the raw materials which should be globally similar and currencies exchange. There are Tax regulations of India which McDonalds had to follow to carry out its business.
Ø Social- cultural Environment:
o McDonalds has respect Indian culture by offering products which are acceptable in Indian market and excluding products like Beef and pork. But now due to changing life style of India due to developing Indian economy where people habits and power of spending money on Fast food is increasing, now they have higher expectations.
Customer expectation:
In a fast food industry main target customers of different players are young children’s. Because of the large number of food retail and tendency of consumers to switch from one product to another there is low level of customer commitment. In earlier time, people used to cook their food at home but today time has changed a lot and now Indian people prefer eating in restaurants because of improvement and up gradation of technology in food sector. A customer now wants quick delivery, taste, healthy food with variety. This is due to the changing life style of people of India.
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