Gold Arches Case

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3. The SWOT analysis is useful in creating a strategy that helps a business distinguish itself from its competitors. Why did the McDonald’s company decided to enter the hotel industry? Were they able to do this? Why? – By Trang Duong Marketing analysis is well known as one of the most important parts of every business organizations. It describes and points out significant factors that effect to your organization inside and out. Hence, whether corporates or small firms both need it to built a good plan for its business strategies. There are a number of different tools used within marketing analysis process, one of which is SWOT analysis. SWOT analysis, which analyses two main areas, the environment (external) and organization (internal) within marketing environment (Macmillan 2005, p105). Hence, from colleting all relevant background data, the organization is able to find out its abilities and limitation (Strengths and Weakness) in order to develop and minimize external factors in the market place (Opportunities and Threat). (Macmillan 2005, p106) In the case study, McDonald’s company planned to open a couple of four stars under the name “Golden Arch” in Switzerland. One was located near Zurich Airport and other was in a small town Lully (Michel, 2005). As many other new businesses in a different market, McDonald’s company had utilized SWOT tool to research, analyze and collect relevant information and issue that affect in which it operates. However, McDonald’s company did not delivery the expected results, as their new extending products did not meet customer’s need. a. Why they decided to enter the new hotel venture According the case study, McDonald’s company in US has almost reached the saturation point between November 1999 and February 2000, as every new opening McDonald’s restaurant was a threat upon the profits of the existing McDonald’s
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