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Cultural dimensions of doing business internationally
Cultural dimensions of doing business internationally
Cultural dimensions of doing business internationally
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One of Baskin-Robbins’ largest divisions is in Japan according to their 2014 annual report. Baskin Robbins’ key markets a mainly in Asia and the Middle East region. In Japan, there are 1,170 restaurants that has been last accounted for in 2014. The restaurants in Japan has a total sales report of 20%. Baskin-Robbins does business in Japan through a 4.3% ownership in a Baskin Robbins brand joint venture. Before describing the benefits of having a comparative advantage in Japan, understanding the meaning can help explain it in further detail. Comparative advantage is what is known as the “foundation concept of international trade”, it refers to the superior features and unique benefits it has in global competition. Japan was one of the first …show more content…
With the knowledge base of the Japanese managers, which helps the business continue to grow and the local responsiveness that Baskin Robbins incorporates in their entry to market process it proves that Baskin Robbins has a competitive edge in their market space. Another factor that shows that Baskin Robbins has a competitive edge is because they are strategic thinkers. When they first entered Japan 37 years ago they merged with a local company called “Fujiya” which made it easier to enter the Japanese market base. Baskin Robbins thought of different ways to appeal to the customer base and kept in mind that in different countries there are many different techniques. In Japan, Baskin Robbins also has to compete with the local companies so they have to make sure they capture the essence of …show more content…
The Asia Pacific Economic Cooperation made it more affordable for Baskin Robbins to continue business in Japan. Since the United States is apart of this treaty it makes it a lot simpler for United States companies to do business in foreign countries. Since the treaty incorporates free trade benefits and the past business done with the United States, Baskin Robbins is able to conduct business. The culture of Baskin Robbins as stated before is following the culture of the country they are in, so they do not take away from the tradition in the country they start doing business in. Regional or multinational treaties has its perks for the countries that are within the treaty. If Japan and the United States were not apart of this treaty the foundation to start and enter Japan would be expensive and a longer process than it is currently. Having the benefit of free trade helps reduce the cost for United States based companies, in this case Baskin
Wal-Mart follows the everyday low prices “EDLP” strategy, which proved to be one of the most successful pricing strategies. Wal-Mart achieves that through an efficient supply chain management that tracks all goods from manufacturers to suppliers to end customers. LU, C. (2014)
Strengths Quality name brand products at low prices. This is the cornerstone of the Costco business model and one of the biggest drivers of its success. Costco has built an identity based on this strength. Fast inventory turnover and High sales volume This is a key strength that directly relates back to the first strength. Fast turnover means they are collecting on their purchases often before payment is due, cutting borrowing costs and further reducing prices.
Whole Foods Market Inc. is a service provider in the grocery industry, which report in the US economy under the North American Industry Classification System NAICS 42441, General-line groceries merchants wholesalers, by the time the company started operations in 1980 supermarkets had a history of 51 years. Supermarkets unlike other type of retail is considered truly American in origin, self service grocery stores are traced back to 1912 in Memphis Tennessee, and it was in 1930 when Michael Cullen opened the first store of the King Kullen supermarket chain, it was around that time after the big depression that the independent stores which at that time only offered dry groceries started to transition to the supermarket model, including groceries, produce, and
Control systems – Costco has an Enterprise Facility Information management system, each Costco is connected to corporate, the EFIM provides real-time information, management of control systems (like energy), and an inventory management system that allows suppliers to monitor their own stock levels at any Costco. The EFIM reduces costs related to energy consumption, maintenance, and contracted services
This paper explores the business strategies Chipotle is using for operations. Analyzing financial and operations data to discuss areas of concern as well as areas where Chipotle Mexican Grill is doing well. Discussions will include the importance of Chipotle’s menu preparation strategy and menu integrity. The marketing strategies Chipotle is using to increase operations and strategies used to compete against rivals in the competitive environment. Concluding with an overall evaluation of Chipotle’s business portfolio.
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
Wendy’s is one of the world’s third largest hamburger companies that is quick service. There are over 6,500 company and franchise restaurants worldwide. Wendy’s mission is to stand for honest food, higher quality, fresh wholesome food, prepared when you order it, prepared by Wendy’s kind of people, do it Dave’s Way, we don’t cut corners. This company believes in fresh and non-frozen products so the customers are satisfied and now they bought from an honest restaurant. The foundation believes in long term success that include there core values in every production. The core values are “Quality is our Recipe” “Do the Right Thing” and “Give Back”. Wendy’s focuses on the responsibility that the stakeholders are also the key to success.
1) Baskin Robins in Japan is the biggest ice cream chain in Japan. Also the Thirty-one
Fernandez, John P. and Barr, Mary, (1993). The Diversity Advantage: How American Business Can Out-Perform Japanese and European Companies in the Global Marketplace.
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 ...
Despite the fact that Krispy Kreme’s same-store sales are increasing every quarter, the company is not in control of the specialty foods industry. Starbucks Coffee, Krispy Kreme’s leading competitor, has been experiencing astonishing sales that surpass even Krisp...
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...
Business Environment – The firm is considered a coffee giant company that is a big brand in the business being able to expand aggressively in the market worldwide before it entered in New Zealand. But the business environment of this country is quite unimaginable for a US based company for it to venture without having a thorough marketing analysis covering all the risks in the venture considering the distance and the traditions which differs a lot in many countries thus making it very unique and incomparable. It is only when the company is able to come up with the correct strategy in entering the business that will make it thriving. Starbucks New Zealand entered the Kiwi market by way of franchise and joint ventures. They partnered with a very stable local business partner called The Restaurant Brands New Zealand Ltd. In this case, the company is able to hurdle the market barriers including business laws, taxation, physical set up, traditional and cultural differences that may come along the way. (Starbucks, 2012)
Still, there is some problem with this advantage. Many times the content on the web page may be interpreted in a way that is unintended. Consumption habits are very important factors in international marketing strategy for fast food chains. Culture is also involved here again, though these days’ customers are always looking forward to something new in the service and products. Then again, the taste of customers is changing as they are transforming towards dining if the image of fast food is not healthy.
If and when Krispy Kreme decides to go global they will enter a whole new world of adaptation to different markets. They will no longer be able to offer their staple hot fresh plain glazed doughnuts and expect them to sell in every market. France for instance has built a world reputation on fresh baked goods; therefore their key branding technique would not be as effective in such a culture. However the hot fresh plain doughnuts strategy works very effectively across the United States with two exceptions. First is the growing number of obese Americans. With growing media attention turned towards sliming up American quick service restaurants, Krispy Kreme has come into the crosshairs of mainstream media. The other hindrance on Krispy Kreme's complete success is the all in one convenience attitude. Demonstrated by Wal-Marts success, giving