Pest Essay

Hong Kong is politically stable, at that place would rarely be any political factors that will interrupt and slow down the accompanys growth. Hong Kong doesnt have goods and services tax so this allows McDonalds to have lower expenses and they can maximize their profit. The world(prenominal) operations of Mcdonalds are highly influenced by the individual state policies enforced by apiece government. Economic- The economic collapse has caused Hong Kong to enter the recession stage in the economic cycle.Therefore the demands for low toll food increase tremendously and this benefited McDonald, since the foods are cheap and the quality is guaranteed. Inflation has caused McDonald to raise meal price, in long term, as inflation raised to a point that it will be too overpriced and McDonald will lose its large customer base. But still Mcdonalds is still a merchandise leader and it got a very (high)large target market. low cost more incomes. The rate at which the economic system of that particular state grows determines the purchasing power of the consumers in that country.Social- McDonald is a unfluctuating food restaurant company so they can perform their services in a briefly period of time and this fits with the fast paced lifestyle in Hong Kong. In the past few years Hong Kong people are more aware(predicate) of healthy eating, so they stay away from high calories and high cholesterol food. McDonald tries to prevent the loss of customer by adding healthier food in the menu such as salads sweet corn. Working inside many social groups. Increase employments. Technology- Hong Kong has a well developed transportation system, especially the airport that has airlines that connects to several(predicate) part of the world.Their food supplies can be delivered from all around the world in a short period. Computers and smart cashiers are used by the employees so they would not get confused and they are provided with customized database anxiety system. They also have Wifi provide in every McDonalds also, its very convenient for people that is employ laptop. Quality packing and standards. Advanced technology development. Local manufacture using foreign supplies. Strength industrial-strength brand name, image and reputation- Clean environment and play areas for children (bday party provided)- 24 hours- Customer intimacy-Product innovation- supplier integration Weaknesses High staff turnover (food going to waste)- Unhealthy food image- Low depth and breadth of product- Unbalanced meals (mostly meat, amount of fruit or vegetable not much) Opportunities Expand into gradation 2 and Tier 3 cities- Growth of the fast-food assiduity- Worldwide deregulation- Low cost menu that will attract the customers- Freebies and discounts- Can rotate up online service for customers Growing health trend (fresh burger or healthy dessert) Threats Increase competition from local anaesthetic fast food outlets- Mcdonalds competitors threatened market sh are of the company both internationally and domestically- health issues Health professionals and consumer activities accuse Mcdonalds of contributing to the countrys health issue of high cholesterol, heart attacks, diabetes and obesity- Lack of choices (customers will change their taste anyday)- Global recession and fluctuating foreign currencies- Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues