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International expansion analysis
International expansion advantages
International expansion analysis
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The objective of this report is to determine the best location for the Cheesecake FactoryⓇ to globalize to. The two options for the company to internationalize is Columbia and Chile. To determine which country the company will expand to, each country will be analyzed based on several factors including, economy, culture, geography, political standing, risk, expenses, and many more. One of the most important factors to be taken into consideration is social and cultural qualities of the region. As tastes and preferences will differ in the specialized market of foods and customer service. Along with the culture and social differences, taking a look further will be most beneficial in analyzing the decision to do business. Surrounding countries can be highly influential on the population of the particular state. With this being said, how often and likely are other consumers likely to transport to the country? Is the are a tourist attraction or a place a lot of business takes place? These are only a few external ideas of this report. …show more content…
The company generally operates in the United States and has the majority of its restaurants in the home country. With a total of 199 full-service dining locations under the name Cheesecake FactoryⓇ, Puerto Rico, Canada, and the United States are familiar with the company’s menu. The company also has two other business lines licensed under The Grand Lux CafeⓇ and RockSugar Southeast Asian KitchenⓇ. There is a total of 13 Grand Lux CafesⓇ and 21 licensed Cheesecake FactoryⓇ internationally. In figure 1, the global map shows locations where the company has globalized internationally and the two countries with opportunities to globalize
Ruth’s Chris house has been a successful franchise in all the four restaurants existing outside US, and in this regard, the company seeks a breakthrough into other new international markets. The best business ground worth considering presents Brazil as the next destination for Ruth’s Chris as far as international expansion is concerned. A look into the prospects of Sao Paulo in Brazil as the next target requires a SWOT analysis of the new ground that would aid in the assessment of the finer details of the prospects that await Ruth’s Chris as a franchise.
Maple Leaf Foods Inc. is well known as a leading packaged food provider in Canada with over 100 years sustainable working. Its head quarter is in Toronto, but it operates across the North of America, the United Kingdom, Mexico and Asia, as well. Since its foundation, this company has expanded primarily by merger and acquisition activities. It owned 90 percent of Canada Bread Company, Limited, found in 1911. It was created by the merger of Maple Leaf Mills Limited and Canada Packers Inc. in 1991, and these companies consisted of subsidiaries. By providing the highest quality, nutritious and innovative products to excess customers’ needs, Maple Leaf Foods is pursuing its vision to become globally admired food processing firm. It was gotten honor awards such as “Product of the Year 2011”; “Canada’s 10 most admired corporate culture”; “Best New Product Award”; “Canadian Family 2010 Food Awards”. Its total asset of 2013 was $ 3,599,092, compared with $ 3,243,696 in 2012. Net earnings of this enterprise were $ 512,163 in 2013, compared with $ 96,562 in 2012. Although, the company faced challenges caused by the increased price of raw materials and effects of macroeconomic issues; it still keep its values and be willing to change for sustainable achievement in the future. As a result of changes, Maple Leaf Foods Inc. is making an agreement to sell Canada Bread Company for Mexico's Grupo Bimbo with the price of $1.83 billion in cash in order to focus on its meat products business in 2014. The company financial report indicates its focus in 2014 with five main points. First, pricing actions to address higher ...
It has stores all over the world and is the largest smoothie chain in the southern hemisphere. It has over 350 stores internationally and is located on 5 continents - South America, Asia, Europe, Africa and Australia.
Born of the idea to preserve authentic Italian cuisine, Academia Barilla has faced strategic issues to increase profitability and growth. Offering not only high quality food products, but an education on Italian gastronomy, Academia relies on a differentiated marketing message of authenticity, with the quality to prove it. While striving to teach buyers of the difference between imitation and true Italian cuisine, Academia must continue to seek new strategies to reach a broader customer base. By studying the firm’s core competencies, and performing analysis on the industry, Academia has the tools necessary to meet their objectives.
Ice cream in Russia is a very profitable business. Profit margins range between 15 and 20 %. This profit can be even greater when creating a premium product. Ice-Fili’s product value lies within raw material acquisition. Since the content of fat applied in the creation of ice cream is higher in Russian ice cream, the product is of better taste quality and unique flavor. With the Russian public placing more alarm on preservatives in edibles rather than fat content, this gives Ice-Fili an advantage over foreign competitors. In fact, Ice-Fili was the only ice cream producer awarded at the 2002 Moscow World Food exhibition for its brand Eralash. To market such prestige could help increase brand loyalty amongst customers. Ice-Fili also enjoys rather favorable brand recognition. The Lakomka brand is hailed as one of three most recognized ice cream brands in Russia....
The Cheesecake Factory has now three licensing agreements in place for the Middle East, Latin America, and Asia. The Middle East agreement accommodates the advancement of restaurants in the United Arab Emirates, Kuwait, Bahrain, Qatar, the Kingdom of Saudi Arabia and Lebanon with the chance to grow the consent to incorporate different markets in the Middle East and North Africa, Central and Eastern Europe, Russia and Turkey. The Latin America agreement accommodates the improvement of restaurants all through Mexico and Chile with the possibility to extend the consent to four different nations, Argentina, Brazil, Colombia, and Peru. The Asia agreement accommodates the improvement of restaurants in Hong Kong, Macau, Taiwan and the People’s Republic of China, with the chance to extend to Japan, South Korea, Malaysia, Singapore, and Thailand. Overall, The Cheesecake Factory is specifically checking on chances to permit our image to exceptionally experienced, settled organizations for venture into worldwide
A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers. It has become a well known icon that has played a huge part in globalization, with chains located in many different countries… transforming the meaning of fast-food all around the world.
ice would seem to be a good company to use as an example of the appropriate way to approach marketing in foreign countries. Gallo Rice has been aided in their international expansion by the fact that they have kept an eye on consumer interests in the respective countries they have chosen to operate in. Rather then releasing a single homogeneous product line throughout the world, they have done a good job of adapting to the wants of needs of local consumers. Gallo has also done a good job of keeping track of the individual actions of their major competitors in the respective markets in which they operate.
"Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
Dairy Farm has done so by understanding the behaviour of Asian consumers, in a way that Asian consumers tend to shop more frequently, hence, they do not always search for substantially the largest stores with a wide range of products. Instead, Asian consumers prefer to shop at stores that are nearer to their homes. Therefore, it has stores that are not only centrally located within a country but all around the country. Dairy Farm also understands that the Asian market is looking at fresh goods and their quality and so, it aims to provide these at their respective stores.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
The first innovative strategy of KFC China is localizing the menu. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to implement for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating. “One of the lessons I take away from this case is that to do China, you have to do China”, says Shelman. KFC localizes their offerings and adapts their existing products to appeal to the Chinese customers’ needs. The menu features Chinese local food like egg and vegetables soup. Examples of innovative products are the Dragon Twister (chicken roll of old Beijing) and the glass jelly milk tea (Zhou...
Current political events perhaps raise the question for the durability of the improvement at the bottom end of the scale. Overall demand for yoghurt in Egypt is expected to increase at a faster rate than that of dairy in the coming years. Business-to-business (B2B) accounts for 10% of the firm’s dairy product sales. B2B customers include hotels, airlines, restaurants and fast food, Exports account for 17% of the segment’s revenue, of which 85% is from milk, in which Libya and the Middle East are the largest export markets 5.
It plans to make its foray into the world’s second-largest economy China in December, where it will open a restaurant in the capital of Beijing. It has also unveiled its ambitions to open a further 76 restaurants in markets such as Kazakhstan, Qatar and Oman.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.