Pestel Analysis Of McDonald's

POLITICAL

The political Spanish framework has recently changed. Spain is a democratic country, and since the 20th of November of 2011 is leaded by the right Spanish party, PP, chaired by Mariano Rajoy. As the political representation of the country has change, companies like Mcdonald’s need to be aware of any new implementation or change they decide to make. For example, measures regarding labor market have been changed in BOE of February 2012.

The Spanish policies in relation with private food-serving companies have some policies as health care implementation, country of origin labeling, refrigeration, transportation, industry issues, supplemental nutrition assistance programs, and loads more of policies that affect the carrying on of the business.

ECONOMICAL

The Spanish current economical situation is not the best as we are going through an economic crisis since 2008. This crisis of course affects to McDonald’s as a firm and to their costumers.

In the economical sector we can analize the unemployment rate, the GDP, the consumer price index or the interest rates.

- Unemployment:

Although unemployment is a widespread problem in all countries, the level of unemployment in Spain is particularly high for the countries of the region and of the same economic level. At the beginning of XXI century became the largest Spanish society worry beating terrorism. To measure it we use two systems: the Labour Force Survey (EPA) that every term made by the National Statistics Institute, and registered unemployment, which is the number of persons registered at the offices of SEPE.

The unemployment rate in 2011 was close to 23%, at the same time in European Union the rate was 22,85%. The young unemployment was almost 50%. On April 27, the INE released the Labour Force Survey (EPA) for the first term of 2012 according to which the total number of unemployed has risen by 365,900 people between January and March, which has left the 5,639,500 total unemployed, a new record, and what the unemployment rate stands at 24.44%.

Furthermore the International Monetary Fund believes that in the Spanish labor market there is a duality that is the source of intergenerational insolidarity. This duality has produced negative effects on productivity since in these temporary contracts, employer and employee have had no incentive to work and training in the process of negotiation of wage increases has made the adjustment of the crisis was made basically dismissal of those hired via temporary hurt job creation.

PUBLIC AND PRIVATE EMPLOYMENT

- GDP

The GDP is The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.

As the FMI list the GDP of 2012 in Spain was: 1.059.980,56. While in the US was: 11.772.833,1. And in the EU was: 11.932.397.

McDonald’s is one of the companies in Spain that generates more employment. McDonald's Spain is a company committed to quality employment, which offers its employees great opportunities. Our value proposition to employees focuses on three principles:

- Family & Friendly (welcoming work environment). For us it is a constant objective the welfare of our employees in their work environment.

- Flexibility (Flexibility). A part-time job is the easiest way to balance your professional and personal life.

- Future (Future). Career development in the company is a constant in McDonald's. A goal that is reflected in the prioritization of internal promotion and talent acquisition system.

McDonald’s also gives each employee the opportunity to train for growth is a priority for our company. In this spirit created the Department of Education of Spain from McDonald's to develop different tools and training programs to prepare and train each employee to develop their professional.

SOCIOCULTURAL

In the social factors we have to take into account the lifestyles and culture of each country in which McDonald's operates; because that allows us knowing how people act and what do they want. The key thing is to offer something different and qualificated so that people would prefer McDonald's rather than any other restaurant of different or same characteristics.

For example, here in Spanish culture, young people choose McDonald's because of its low cost food: they can relax in an informal environment, with their friends, they do not like waiting for their food to be prepared and for that McDonald's is perfect.

In case of kids that ask their parent to go, it is because for them is funny eating there (Happy Meal), and it is different from what they usually have for lunch or dinner or even afternoon break. For kids McDonald's is something special.

Finally, when parents or mature people think of having lunch in McDonald's is because is a way of having a break-day of not cooking or washing dishes and of course is something different for them too so they can exit for a few hours their routine.

We can add that they should be aware of religious and cultural matters in country they sell because for example in India, selling meat, seems to be offensive; in Muslim countries, they don’t eat pork, and moreover they only eat meat if it is cut in a specific way so their meat suppliers must have cows intended to be cut as Muslims need to sell it there.

In the social environment we also have to talk about the collaboration of McDonald's with kids by the creation of Ronald McDonald children foundation. The commitment of this foundation is to be integrated in society and be responsible in relation with family values. It was born in 1997, and it is a charity institution,

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