McDonald's Singapore Pestel

1.0 INTRODUCTION

        This paper aims to provide an external environment analysis for McDonald’s Singapore in 3 steps.

        First, it presents a brief overview of McDonald’s history. Second, using Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) structure, and Porter’s Five (5) Forces to evaluate McDonald’s position in the Food and Beverage industry in Singapore. And lastly, to provide strategic recommendations to enhance McDonald’s Singapore strategy.

        In 1954, a successful restaurant ran by Dick and Mac McDonald was discovered by Ray Kroc. Serving a limited menu including burger, fries, and beverages, the restaurant was able to focus its operation on quick service and quality. Ray Kroc pitched to Dick and Mac his vision in creating McDonald’s restaurants a chain of restaurants all over the United States.

        Ray Kroc founded in 1955 the McDonald’s System, Inc. that focuses on quality, service, cleanliness, and value; a system which aims to provide consistently high quality food and a uniform method of preparation. This system has become the cornerstone of the company up to this day.

        McDonald’s Corporation has expanded its operations to more than 118 countries with over 34,000 restaurants. McDonald’s serves about fifty (50) million people daily on average.

        In October 1979, the first McDonald’s restaurant in Singapore opened at Liat Towers. Today, McDonald’s has over 120 restaurants in Singapore catering to 1.2 million customers weekly (The McDonald’s, 2015).

2.0 PESTEL ANALYSIS

2.1 POLITICAL

Singapore’s People’s Action Party (PAP) was established in 1954 with the purpose of bringing peace, progress and prosperity to the country (PEOPLE’S ACTION PARTY, 2015). PAP’s political culture is authoritarian, rational and legalistic, and pragmatic; where power is centralized and characterized by top-down style. Singapore government upholds an image of clean and corruption-free governance under the administration of politicians who gained power through skill, performance, and loyalty to the nation and its policies. PAP’s style of leadership is collective and decisions are made by consensus (Guide Me Singapore, 2008).

In terms of security, the Government of Singapore does not tolerate any form of support for any form of terrorism and takes resolute action against persons who engages in any movement or activity in support of terrorism. Singapore’s government will take action against anyone who purvey extremist views, especially those who denigrate other’s beliefs or those who advocate violence (Ministry of Home Affairs Singapore, 2016). With these, McDonald’s will enjoy stability from a political standpoint.

2.2 ECONOMIC