Business Environment Scan
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Business Environment Scan


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McDonalds, the name itself prompts its glorious leader position it holds in the fast food industry.But it has been identified that it is not away from controversies.Also when analysed geographically it has been identified that it does not hold the leader position in US, the resturant hub and Australia.This brings in concern to identify the environment and external factors that could be a reason of not attaining the leader position. The environmental scan and external factor analysis identifies it to be loss of brand image that attributes to its losing the leader position. 

The report analyses the Australian fast-food market market by use of various frameworks and models  like Porters, PESTLE,External Factor Analysis.It also brings out the SWOT analysis fro McDonalds, to rightly gauge the capability of McDonalds to manage its competitiveness in the market.

As per recommendation, it has been identified that if air-fried and healthy products are added t the existing menu, it can bring about drastic imapct in upgrading the brand image and hence the brand value of McDonald. An assessment of Subway, its closest competitor in Australia has been considered as part of the report to identify competitor's marketing strategy, that can be considered when reformulating McDonalds strategy for attainment of its objectives.


Executive Summary

McDonalds, the fast-food leader, amidst its glory has been surrounded by controversies in regard to the unhealthy servings, and its disregard in managing environmental concerns. This had prompted a requirement to analyse the business environmental challenges it is exposed to in Australia, the location where it has even lost its leader status. The findings prompted several challenges and as a resolution the concept of 'air-fried' products were agreed upon. Based on identification of the rectifying measure, a further scan was required to closely assess the challenges it would face in implementation of the measure. The present report is an effort against the same.

Based on detailed PESTLE and Porter's analysis and also consideration of the previous report created in this regard, it has been identified that the Australian market is a hot spot for growing in the fast-food market, as the country has witnessed benefits heavily and hence the government is extending support in promoting the industry. Alongside, the political and economic stability assures success in the long-run. The social factors depict an increase in old age population. This condition should be targeted as a benefit aspect by employing them, as a measure to avail government support, and promoting low-priced healthy meals, as a measure of enhancement of brand image and value. Environmental concerns, which has again been a cause of controversies for McDonalds should promote its stances by means of advertising.

The report has identified the three priority decision-making factors to be considered namely the health benefits of its products, the 'value for money aspect' and the accessibility factor. All the three factors find a consideration in the new offering where air-fried products are expected to manage nutritional aspect, the low-priced meals the 'value for money aspect' and 'McDonalds on Wheels' the accessibility aspect. These would not only address these challenges but also help in promoting its lost brand value and image.



McDonalds, the global fast-food leader, has seen several ups and downs in its journey of prosperity. But never has it refrained itself because of the setbacks coming in its way. Australia has been depicting a very stable business environment along with healthy political and economic conditions. A dynamic growth has been recognised in the fast- food industry over the last decade, making Australia, a very favourable location to diversify business and expend more in the market. Lately, McDonald has shifted to the second position, in terms of brand value in Australia, with the new competitor Subway taking away McDonald's leader positon. This has come up as a huge concern looking at the prosperity of the Australian fast-food market and McDonalds losing its brand image in such a huge market. The report undergoes a business-environmental scan, based on theoretical frameworks, that can help McDonald gain back its leader position globally, without an exception of Australia.  The report will exclusively consider the challenges identified for McDonalds in the previous report.

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