PESTEL Analysis
Burger King PESTEL/PESTLE Analysis
Burger King strives to become the top player in the quick service/fast
food restaurant industry. To do so, the company must strategically
address the main issues highlighted in this PESTEL/PESTLE analysis.
The PESTEL/PESTLE analysis framework identifies the most
significant factors in the firm’s remote or macro-environment. In Burger
King’s case, these external factors include the influences of
governmental and nongovernmental organizations, as well as trends or
changes in technologies, among others. Effectiveness in addressing these
issues raised in the PESTEL/PESTLE analysis helps optimize Burger
King’s global business performance in the long-term.
Political Factors Affecting Burger King’s Business
In Egypt, it is a Muslim country follow sheria laws,. So, burger king has
special issues in regarding food etc. As burger king is very popular in
other countries, they have to pay corporation tax as a foreign
corporation. Besides this, government has made a qouta of country
nationals as employees in the burger king. According to government
policy, they have to provide 100% halal meat and fresh supplies of
vegetarian foods. So burger king is considering all these major issues
and performing well.
Political conditions are determinants of business performance. This part
of the PESTEL/PESTLE analysis identifies governmental influence on
firms’ remote or macro-environment. In Burger King’s case, the
following are the main political external factors:
1. Government stability and likely changes
2. Bureaucracy
3. Corruption
4. Tax policy (rates and incentives )
5. Trade control
6. Tariffs
7. employment law
8. Health and safety laws
9. Education law
10. Anti trust law
11. Consumer protection and e-commerce
12. Governmental support for globalization (opportunity)
13. Political stability in major markets (opportunity)
14. Governmental support for e-commerce (opportunity)
Governments continually support globalization. Burger King can take
advantage of this condition through global expansion. Also, the external
factor of political stability helps reduce challenges to the company’s
growth and expansion. In addition, Burger King can improve its e-
commerce capabilities. In this part of the PESTEL/PESTLE analysis, the
external factors present significant opportunities for Burger King to
grow and expand internationally.
Legal Factors
Burger King must comply with legal requirements. The effects of legal
systems on firms and their remote or macro-environment are considered
in this part of the PESTEL/PESTLE analysis. The major legal external
factors influencing Burger King are as follows:
1. Import and export regulation (opportunity)
2. Environmental protection laws (opportunity)
Burger King has the opportunity to grow based on import and export
regulations that support new international trade agreements. Also, the
company can enhance its sustainability performance to exceed
expectations and requirements based on environmental protection laws.
Economic Factors Important to Burger King