In the late 1990s McDonalds headquarters in Chicago decided to launch a diversification strategy to foster new

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In the late 1990s McDonald’s headquarters in Chicago decided to launch a ‘‘diversification’’ strategy to foster new ideas and concepts worldwide. One of the initiatives came from McDonald’s Swiss branch. Urs Hammer, the then head of McDonald’s Switzerland, proposed extending the brand into the hotel business by leveraging McDonald’s image of cleanliness and fast, friendly service. With McDonald’s strong global brand recognition, Hammer was convinced the project would be a success. In 2001 McDonald’s opened two hotels, one in Zurich and one in Lully, under the name ‘‘Golden Arch Hotel’’ with room rates slightly about $100 a night. The hotels were positioned as four-star accommodations with cutting-edge in room technology and unique, modern interior design. The hotels offered high-speed Internet access and an online booking system with special Internet rates. Beds featured distinctive arch-shaped headboards. The target markets encompassed business travelers during weekdays and young adults on weekends. What is your view about the selection of Switzerland as the first market for the Golden Arch Hotel concept? Do you see potential to extend the concept to other countries and if so which ones?

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Essentials Of Business Research Methods

ISBN: 9780367196189

4th Edition

Authors: Joe F. Hair, Michael Page, Niek Brunsveld

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