Mcdonald's SWOT Analysis
McDonald’s cooperation’s decided to enter the hotel industry in 2000. This was part of the diversification strategy implemented by McDonald’s. Diversification strategies involve widening an organizations scope across different products and market sectors. It is high risk, as it requires an organization to take on a new experience and knowledge outside its existing market products. (Online, 2014)
One of the key factors in McDonald’s taking such high risk was the influence of the company’s Switzerland chairman Mr. Urs Hammer. He hoped the spirit of McDonald’s hospitality philosophy would continue with the hotels. Jack Greenbers CEO of McDonald’s ,viewed Hammers concept as the way to move forward, for the company. (Michael, 2005)
McDonald’s
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The SWOT analysis, made up of an assessment of strengths, weaknesses, external opportunities and threats from competition and provides an outline for strategic decision making (Colbert, 2002)
Strengths
One of the main strengths of the golden arch hotel is its location. Situated in the Swiss town of Rumlong, close to Zurich Kloten airport. (Michael, 2005). This helps the hotel accommodate many of the people that fly to and from the Zurich airport. It is a big advantage for the hotel as it is easily accessible for their target market. It has 211 rooms and four stars ranking making it attractive to the guests.
Another strength for McDonald’s hotels is its brand name. The hotel provided fast and friendly services just as the name promised. The hotel consisted of permanent employees only that would help get the organizational culture across and provide consistent services. The hotel provided self check in and check out services at the airport itself, using new and innovative technology McDonald’s hotels was providing their guests with the fast and friendly service the name
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A four star hotel in Switzerland means luxury and McDonald’s didn’t cater to those standards. The hotel was isolated from other restaurants so the guest was left with eating at McDonald’s only. Luxury did not match the image McDonald’s had created for all these years and so failed to achieve these standards.
Guest satisfaction at the hotel was very low as many guests complained about the design and service of the hotel. Nancy Stephens a professor who stayed in the hotel in 2011 says, “The bar downstairs behind the lobby was cold and unwelcoming. It feels like a lounge in a small city airport.” The scenery outside the bar was that of trees and grass which made customers feel like they were having a picnic rather than having a drink at the bar. (Chintham et al, 2003)
Opportunities
There were many opportunities McDonald’s could use to exploit further growth. As mentioned in the weaknesses the hotel needs to ensure guest satisfaction and improve the quality of service. There have been too many negative reviews bringing down the reputation of the hotel. Primarily the hotel needs to address these comments and see what they can do to improve these
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