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Cultural differences in international business
Cultural differences in international business
Cultural differences in international business
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Based on the international market that Papa john’s has most recently emerged into there are some challenges that have unveiled themselves. The most prevalent of these issues have come from labor forces that want better pay in a market that has traditionally been very lucrative to a corporation where they can benefit from low cost labor. But as countries emerge from third world status, they tend to want higher wages to follow the emergence of a better standard of living. In order to stay abreast of this changing work force labor must be compensated fairly so that they can keep up their international reputation and image. Other issues that need to be looked into is the supply chain that international stores will need, logistic issues are very prevalent in third world markets and can cause production delays in outlying regional locations. …show more content…
In the text, the author explains that strategic planning should embrace challenges like this very carefully as issues can easily stall intended strategic plans as defined in the scope of an operation (Parnell, 2014).
Other issues that can cause their strategic outreach to change is the loss of control over their management team that is spread out across the globe. Separated by thousands of miles in distance and situated in a time difference these foreign managers are disposed within cultures that fight with US models of business. It is not unusual for international business to be barraged by flagrant forces of corruption to conduct daily business processes. With this in mind I think that Papa John’s will have to face a change in strategy as these international norms change with the emergence of societies and country norms. In the article, “Quick Service Hits China” one of these change mechanisms are already in place as Papa John’s Chinese model “To suit local tastes in Shanghai, the company has added pizza toppings such as crab, corn, green peas, shrimp, and pickles” that facilitate their local Chinese customer
base.
Little Caesars SWOT Analysis consists of strengths, weaknesses, opportunities, and threats. Strengths for Little Caesars Pizza Inc. is the company is the largest carry out pizza chain in the world. Hot-N-Ready pizzas which are already made when customers come in the door. Little Caesars name has been strong for over 50 years. Weaknesses Little Caesars have came across is different franchises management can result as a problem, profits of Little Caesars declined in the 1990’s due to the company’s attempts to offer free delivery leading a number of franchisee to shut down.
Now lets look at some of the other key factors that have led to success at this point. Papa Johns is known for their excellent customer service and have really blown their competition in area. They need to remind their customers that they are the best at making pizza lovers happy. The price point of a product tends to be the first thing noticed by the consumer but if they are not happy with what they get they being to think twice about their decision. In today's
Workforce Challenges: Unlike the competitors TP did not try to make pizza delivery as easy as possible. In order to cope with a high employee replacement, TP instead sought to upgrade both its entry-level employees and the responsibilities they handled. Together with performance measurement systems, employees could be evaluated.
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
Domino’s pizza is known as one of the largest pizza food chains in the world. Domino’s competitors are comprised of stores like Pizza Hut, Papa Johns, and Cici’s. Domino’s has over ten thousand stores in more than seventy different countries. This company prides their self on having great tasting pizza and fast delivery times. Domino’s started in the 1960’s and grew their company fast throughout the years opening franchises in different states and continents. They tried to keep up with competition by making a bigger menu, having faster delivery, and by having online ordering. Although Domino’s is known worldwide, their reputation has not always been the best. Between 2008 and 2010 the Domino’s brand was crumbling from bad social media and horrible tasting pizza. The company started to focus solely on the pizza stores they competed with and neglected the broader view of the entire quick-service category. Between 2008 and 2010 Domino’s hired Russell Weiner s Chief Marketing Officer to transform the company. The company created a sense of urgency and got employees and leaders on board to reinvent their brand. The company worked as a team to come up with solutions to make their company both profitable for Domino’s and enjoyable to consumers. According to Robert Hooijberg and Dan Denison (2012) in “Leading Culture Change in Global Organizations” Domino’s started to focus on developing its capabilities, coordination and integration, customer focus and organizational learning (p. 3). By using these tools Domino’s was able to create a successful change initiative. Domino’s reinvented their brand by creating a new pizza and flavor, utilized social media, created a new campaign, offered convenient ordering options, and added a wider variet...
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand. A modest growth in stores in the US, and Europe (2%), while increasing efforts to expand by 10% a year in China, Thailand, and India while offering new menu items in the stores we currently have in place is projected to increase our revenues from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect labor force, by adding select marketing teams, commodity managers, and a VP of construction.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Domino’s Pizza is one of the world leaders in pizza delivery. It establishes in 1960 in the United States and operating with company-owned and franchise owned stores in International markets (Dominobiz, 2013). In this essay we will look through the operation management of Domino’s Pizza which in the core operation. Then, I will analyse the 4V model of attribute of demand for the service, the performance objective of the organisation, provide input-transformation-output diagram and supply network of the organisation. Lastly, provide improvement suggestion for Domino’s Pizza core operation.
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
"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.
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic. Although he was born in the United States, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. He knows the people and the culture. In this paper, I will analyze the cross-cultural differences between the United States and Czech Republic, determine comparative advantages in this country, and recommend ways to minimize the risks of establishing a franchise overseas.
Three HR management implications for Angelo 's Pizza vision statement: to expand the number of stores and eventual franchise, while focusing on serving high quality fresh ingredients:
UK Morepeth facility, the company’s ability to integrate over seas businesses and ramp up of
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.