McDonald Hotels and Resorts: A Case Study in Hospitality Management

Hospitality Management1
Hospitality Management
Name
Course
Instructor
Date

Hospitality Management2
Hospitality Management
Primarily, this hospitality management activity will Discuss McDonald Hotels and
Resorts as the identified company towards the achievement of the study objectives. To start with,
McDonald Hotels and Resorts is a Scotland-based hotel resort with branches in England and
Spain. The hotel company is renowned for its dishes such as fries, chicken, fast food, and
hamburgers among others. McDonald’s headquarters are in West Lothian, Scotland. However,
some of its branches are in Spain and England. The company began in 2003 under the flagship of
its buyers that got it from the predecessor shareholders. The management met the buyout clause
and the purchase facilitated by the Scotland Bank. At that time, the transaction was valued at
about £6000 million. Later, the company rapidly expanded after purchasing "Forte Heritage
Hotels" from the renowned Forte Hotels Company. Later, the company claimed Granada plc
after which it sold about 25 hotels to one “Moorfield Real Estate Fund”. Afterwards, McDonald
Hotels and Resorts firm bid for Management Contract to be given the mandate to run the sold
restaurants and hotels but was defeated by AccorHotels.
To ensure increased success and effective operations in line with hoteling, McDonald
applies a simple efficient format. The format is effective enough to produce huge food quantities
at subsidized prices. For instance, hamburger is sold at only 8 bucks, that is half the price that
competitive restaurants sold the same product at. In addition, the hotel offers self-service
operations that eliminated the need for attendants. Therefore, customers get their foods quickly
since food is also prepared ahead of time, packaged, and warmed (Kroeber, Et al., 2015).
On product mix, since McDonald’s is a food store, its product mix is mainly heavy meals and
food products. The product mix of a company also determines its marketing mix that covers a

Hospitality Management3
number of corporations outputs provided to the targeted markets. The product lines of
McDonald’s therefore, are sandwiches and hamburgers; fish and chicken; salads; sides and
snacks; beverages; shakes and desserts; breakfast (All-day); and McCafé (Louis, 2017).
Concerning marketing’s 4Ps, the most important element is products. The product determines the
corporate image and the brand of the food store. For instance, the store is renowned for its
traditional burgers. Apart from that, customers also have access to other products like desserts,
chicken and fish, as well as breakfast meals (McKenna, 2012). The intensive and generic growth
strategies of McDonald’s largely influence its line of production. Therefore, the company
diversified its production to ensure that marketing demands are met while improving its
revenues. The mix deduces that the store has been keen on introducing new innovative products
while attracting more buyers and improving the stability of business organizations (Schein,
2004).
On the distribution of products, McDonald’s mainly sells its products to restaurants. Therefore,
the places that McDonald’s distributes its products to include kiosks, restaurants, mobile apps,
and postmates website among others. However, the restaurants of McDonald’s generate most of
the store’s sales revenue. On the contrary, as highlighted above, the company also uses mobile
apps to distribute its products. The apps provide virtual venues where the store can sell,
customers accessing the information regarding such products, then buying them. On product
promotion, McDonald’s focuses on effective communication with targeted customers (Mello,
2015). It, therefore, means that the food store would provide new information time after time, to
coax customers to purchase their products. Some of the ways that McDonald’s use to influence
purchase include sales promotion, advertising, direct marketing, and public relations among
others (Louis, 2017). On pricing and pricing strategies, the strategies of pricing employed by