8/8/2019 CS Home Group Assignment - PESTEL

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Subject: Corporate Strategy

Submitted on: 14 Oct, 2010

Home Group Assignment: McDonald’s Restaurant

Member list

Chan Wing Sze, ADA (DMU Student No.: P09014337) 

Fung Ka Yee, Kristy (DMU Student No.: P09014843)

Lau Kin Wai, Ken (DMU Student No.: P09015039)

Li Ka Ho, Ivan (DMU Student No.: P09015147)

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We are top management of the McDonald’s Restaurant on its headquarters. Presently,

we need to select an optimal location (City) to construct the 3rd food testing &

development center in Asia Pacific After our discussion we think Hong Kong is the best

lactation to construct our 3rd testing & development center.

PESTEL Analysis is the that effective tools for us to make decisions, which is including

the political factors, economical factors, Social factors, technological factors,

environmental factors and legal factors. We will use these terms to analysis the Hong

Kong city.

Political factors: these refer to government policy that influences/support the dining

market. In Hong Kong, the government policy is stable and it hasn’t impact the market,

 providing the society freedom and this locate providing good education people of the

workforce and low tax compare with other country/city.

Hong Kong has developed and maintained a constructive working relationship between

the HKSAR Government and the Central People's Government. Also HKSAR 

Government support and work hand in hand with our community in building HongKong into a world-class metropolis renowned for its food safety and public hygiene.

Economical factors: Hong Kong dollars has fixed the exchange rate with US dollars,

and Hong Kong couldn’t the foreign currency restrain and provide low taxation charge,

inflation rates is a stable. Ensure the investment costs will not high increase in the

coming future. On the other hands, Hong Kong economic growth is mature. Therefore,

many foreign and national companies like to invest in Hong Kong and to be setting the

Asian developing center.

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Social factors: Hong Kong is an international city with the unique culture and society

aspects, most of Hong Kong people can use English and Chinese to communication,

therefore. In the meantime, racialism is not a problem in Hong Kong, therefore there is

suitable for the global corporation like us – McDonalds to development and our 

foreigners staff will easy to accommodate. Also, Hong Kong is renowned as the

culinary capital of Asia; Hong Kong people are happy to try the various meals, therefore

we believe we can recruit a group of effective food tester and give us the useful and

 positive comments on our new products. Not only that, the average education level of 

Hong Kong people is higher that college, and many professional people even from

foreign countries also stay in Hong Kong for development, we can find different types

of talent in Hong Kong.

Technological factors:

Hong Kong has the such as the airport is achieved the international level which is

 providing flight services to inbound and outbound. Also, the port of Hong Kong is a

major hub port in global, its convenience for our equipment transit to Hong Kong from

the country of origin. Based on the traffic network, Hong Kong is supreme that other 

Asia Pacific countries. In the meantime, the development of information technology is

also taking serious in Hong Kong, it will be leading us to achieve the positive result in

R&D of our products.

Environmental factors: Mean include the weather and climate change. In Hong Kong,

the weather and climate is a stable, which is suitable for many industries developments.

Legal factors: When country has been many significant legal changes that have affected

the firm’s behavior. Hong Kong,  The legal system constructs entire which

can attract companies invest in HK. Legal system is one of the concerns for the

investor as the legal system will affect their decision of the investment

According our PESTEL analysis, we think Hong Kong city good choose construct the

3rd food testing & development center.