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Gap Analysis Questions
Gap Analysis Questions
Spring 2013
1. The management at McDonalds (EU) received the following information from the company headquarters
for the planning period 2008-2011:
The EU market for fast food products would continue to increase by 2% a year.
The new “Extra Bigger” menu specially promoted for those with larger appetites would increase the sales by
€2bl.
A joint campaign with the Odeon to give the message; “The taste of movies” would reconfirm McDonalds’
image in the entertainment sector increasing usage with extra €1.5bl in sales.
Expenses were to be maintained at €2.0bl per annum where cost of sales ratio would go up by 5% in 2008
from a 70% during the planning period. Average total assets employed would stay the same.
The current ROI is at 5%, where the net profit figure was €0.75bl and average total assets were €15.0bl
The headquarters were expecting a generation of €5.0bl in sales, in EU over the forecasted figure. The
expected sales were to increase by $2.bl a year over the 2008 figure of 5bl.
The new travel pack would appeal to top executives and generate a €0.5bl in each year of the planning period.
a. Draw and fully illustrate a gap analysis graph for McDonalds (EU) in response to the above.
b. Work out the company’s total, operations and strategy gaps for the period.
c. What is the total objective of the company from a new product, existing market strategy?
d. Work out the ROI of the company in the year 2011 and formulate a full corporate objective statement
based on your calculation.
e. Comment on the expected market performance of the company.
1. a. Draw and illustrate a gap analysis graph for Mistral Ltd for the given planning period.
b. Work out the total, operations and strategy gaps.
c. Will the company reach its objective? If not, what would you suggest?
d. Formulate the marketing objective of the company in a statement.
e. Formulate the productivity objective of the company in a statement.
2. Use tables to illustrate, compare and discuss the financial and marketing performances of the company.