Explain Increased Online Food Delivery and its Implications for McDonald's Canada.
It is a well-known fact that each one of us are in the never before seen times. COVID 19 has changed almost everything around us, and food is no expectation to it. Food has been at heart for all of us and COVID has not been able to change it. But one thing that COVID has changed is that now most of us do not prefer to go out and eat. But what is preferred is that we order food at the comfort of our homes. While the capacity of the restaurants has decreased by around 70 percent in the corona times while the online orders for food has increased by four items. On an overall level, the demand of the food from the restaurants have increased (Food Delivery App Market, 2021).
While there can be multiple implications of this trend, there are two main implications of this trend which are significantly important for Mc Donalds's Strategic Management in Canada. The first implications are that Mc Donald may need to expand its food delivery services; it may include not just the quantity of the food but the agents who could deliver the food to the customers.
The next implication is that its sitting space may go unutilized. Hence, it may have to look for an alternative on how it is going to use that space. While the first implications are positive for the Mc Donalds Canada, the second implication is negative, and the company may want to look into to optimize in a better way.
The political factors which may change due to due this external change:
-Government may have to alter the petrol prices as now a lot of drivers will be commuting from one place to the other to deliver the food. Either the government can increase the prices to make up for the lost taxes due to Corona or give relaxation to boost the delivery of the food.
-The next factor is the taxes levied on the rent. Rent is the income of the owner, and the owner has to pay taxes on it. If the government decides to reduce the taxes on the property, then in turn the owner can reduce the actual rent. This help Mc Donalds as their space is going unutilized due to Corona situation.
The economic factors which may change due to due this external change:
The technological factors which may change due to this external change:
The legal factors which may be impacted due to this change are:
The environmental factors which may be impacted due to this change are: :
Keeping in mind the current trend, the following are the recommendations:
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Food Delivery App Market [Sector Profile]. Business of Apps. October 29, 2020. Retrieved January 4, 2021.
McDonald's The Leading Global Food Service Retailer:: AboutMcDonalds.com. Retrieved May 8, 2018.
Tan, J.; Chua, Wen Ling; Chow, C.; Chong, M.; Chew, B. C.; Melaka, Malaysia; Jaya, Hang Tuah (2012). PESTLE Analysis on Food Industry. undefined. S2CID 110872826. Retrieved 2021-03-24.
Nandonde, Felix Adamu (2019). A PESTLE analysis of international food community. Global Business and Organizational Excellence. 38 (4): 54:61. doi:10.1002/JOE.21935. ISSN 1932-2054. Wikidata Q98854703.
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