Question

James Polk Hospital has currently unused space in its lobby. In three years, the space will be required for a planned expansion, but the hospital is considering uses of the space until then. The hospital has decided that it wants to purchase at least one and maybe two fast food franchises, to take advantage of the high volume of patients and visitors that walk through the lobby all day long. The hospital plans to purchase the franchise(s), operate them for three years, and then close them down. The hospital has narrowed its selection down to two choices: What should the hospital consider when choosing between the two fast food franchises?

1) The popularity of the fast food franchises in the local area
2) The financial stability and success of the fast food franchises
3) The menu options and pricing of the fast food franchises
4) The potential impact on the hospital's reputation and image

Answer 1

When choosing between two fast food franchises, James Polk Hospital should consider the popularity of the franchises in the local area, the financial stability and success of the franchises, and the potential impact on the hospital's reputation and image.

Step-by-step explanation:

When choosing between the two fast food franchises, James Polk Hospital should consider several factors:

1. The popularity of the fast food franchises in the local area: The hospital should evaluate the demand for each franchise in the community surrounding the hospital. This can be assessed by conducting market research, analyzing customer reviews and feedback, and observing the foot traffic in existing locations of the franchises.
2. The financial stability and success of the fast food franchises: The hospital needs to choose a franchise that is financially stable and has a proven track record of success. The hospital should review the financial statements, profitability, and growth prospects of each franchise.
3. The potential impact on the hospital's reputation and image: The hospital should consider how the presence of a fast food franchise may affect its reputation and image. If the franchise aligns with the hospital's values and promotes healthy eating, it may have a positive impact. However, if the franchise is known for unhealthy food or has a negative public perception, it could potentially harm the hospital's reputation.