Sunday, November 3, 2019


MC DONALDS ADVENTURE IN THE HOTEL INDUSTRY - Essay Example anged but as the hotel was under the umbrella of McDonalds, therefore it is quite expected that the brand image will be the same as that of the McDonalds. It refers that the brand should be associated with cleanliness, hospitability and convenience but the fact was that the hotel management was unable to satisfy the expectations of the customers. Golden Arch should prepare different marketing missions and should promote those accordingly. Therefore, it can be concluded that Golden Arch did not have much success in the branding strategy. After deciding about the diversification of the business, McDonalds had entered into the markets of Switzerland with the hotel business. The pros and cons of this entry strategy can be analyzed as below. Pros: Switzerland is an attractive tourist destination and most targeted place for the hotel business. The country is economically sound and possesses a stable political background. The city that has been chosen for operating the hotel business is the political capital of Switzerland which comprises of 35 million populations. Also, 10 years ago there was not as much competition prevalent like today and therefore it was a good decision. Cons: McDonalds needed to have a market analysis before entering into the hotel industry in Switzerland. The related industries such as travel and construction should also be evaluated. Due to the booming construction industry, four and five star hotel can be built quickly. Another important aspect is the availability of the human resource. Switzerland ranks number two with respect to the productivity of the labor sources but there the availability of cooks and chefs are inadequate and that had definitely interrupted the flow of the work. From the above analysis it can be said that the entry strategy was not bad at that point of time but with the passage of time, scenario has changed as competition has increased and Golden Arch needs to strategize accordingly. Strategy was not the issue, rather

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