Final Global Business Paper
MGT 448

Abstract
Businesses across the globe are constantly reviewing their potential options through international operations. They must ensure their visions for new ventures are conducive to their long-term goals in addition to the goals and direction of the regions they are interested. Conducting various analyses will allow companies to solidify their position and direction for the future. In addition, the conduction and review of risk analysis involving various critical factors aid any business when determining the feasibility of any new organization venture. Every business must scrutinize every aspect of their prospect operations to ensure they have covered every single component to ensure maximum success going forward. Once companies have gathered the necessary information through their research, they can properly assess the feasibility of their vision and make an appropriate decision.
Comprehensive Analysis
The fast food industry is continuing to grow and expand throughout the world, and each company is contemplating their role and position within this competitive environment. Chick-fil-A is no exception to this movement and is currently the number one fast food chicken venue in the United States. Despite their regional popularity, they do not have a significant presence in the international market for fast food. As Europe specifically the UK continues to add more fast food chains, Chick-fil-A has set their sights upon this market to expand their global presence. Before they begin organizing and planning their new vision, a high level of market research is necessary including a crucial analysis involving regional, country, and product.
Region Analysis
Regional Alliances and Economic Integration
The UK is the third largest economy in Europe after Germany and France. Sixty percent of food produce is by UK’s agriculture, and made by European standards. UK has a considerable amount of coal but is running low on natural gas and oil resources. UK became a net importer of energy in 2005. Import partners include Germany, USA, France, Netherlands, Belgium, and Italy. UK’s export partners include USA, Germany, France, Netherlands, Ireland, Belgium, Spain, and Italy. The European market has standardized regulatory systems and free movement of people, good, services, and capital (“Amb Country Risk Report," 2013).
Physical Environment and Its Affect on Trade
The UK is in the northwestern part of Europe. Most of the Great European Plain lies below 152 meters (500 feet) in elevation. It is home to many navigable rivers, including the Rhine, Weser, Elbe, Oder, and Vistula (National Geographic, 2014). The land’s features allow travel, communication, and agricultural development. The climate of the UK is temperate because of the result of altitude and distance from the coast. The UK is significantly warmer than some other locations at similar latitude. Trade is possible by the use of the North Sea. The sea is a popular destination for recreation and tourism in bordering countries and more recently has developed into a vibrant source of energy resources including fossil fuels, wind and early efforts in wave power (New World Encyclopedia, 2009).
Political Stability
Political stability of the country is imperative for foreign business to enter into the country. The Conservative, Labour, Liberal Democrat, and minor parties are political parties of the UK. Europe has been one of the most unstable regions in the world. The past sixty five years represent the longest period of peace in European history. When looking beyond economic benefits, there is a strong case that membership to the union brings political stability to each member and to Europe as a whole. Their goals are to avoid war and increase economic growth.
Economic Conditions
The economic conditions in the UK are the strongest rate since 2007. According to Office for National Statistics (2014), “The UK economy grew by 1.9% in 2013.” The growth in gross domestic product (GDP) for the fourth quarter slipped to 0.7%, down from 0.8% in the previous quarter (BBC News, 2014). The strength of the UK economy varies from country to country and from region to region. England has the highest gross value added. Scotland estimated approximately £24 000 per capital in 2009 (Office for National Statistics, 2014).
Finance Options Available
UK's financial industry is in the City of London and Canary Wharf. The administrative operations and back office are around south of England. The World City refers to London because it is one of the world's great financial centers. Leeds is also a significant legal and e-business industry. It is UK's largest center for business, legal services, and financial services outside London. In 2011, the financial services industry added gross value of £116,363 million to the UK economy (Office for National Statistics, 2014).
Social, Health, and Environmental Conditions
The United Kingdom has social, health, and environmental conditions that differ from those of the United States. In recent studies concerning the social well-being of United Kingdom residents only 2.8% said they experienced sever housing deprivation (Randall, 2012). The majority of residents reported a medium/high level of satisfaction with the social structure of the UK. Health is for resident’s is good overall with no alarming amounts of disease or chronic illness. Environmental conditions in the United Kingdom have been improving since the early 1990’s when the government passed the Environmental Protection Act of 1990. This act, similar to the ones in the U.S., regulates the amount of industrial pollution and helps provide clean air, water, and land.
Terrorism Threat
The United Kingdom does not pose any threats of terrorism, especially in the trade industry. In the past, the UK did face a continuing threat from extremists who believed they could advance their aims by committing acts of terrorism in the UK and against the citizens and interests abroad (“Countering international terrorism: the United Kingdom's strategy,” 2006). The response to this threat was a counter-terrorism strategy that was developed by the Government. A long-term anti-terrorism strategy has been in place since early 2003 and it has significantly reduced the risk from international terrorism, so that people can go about their daily lives freely and with confidence (“Countering international terrorism: the United Kingdom's strategy,” 2006).
Country Analysis
The following section will be a breakdown of the United Kingdom’s Analysis in regards to allowing the Chick-fil-A restaurant chain to open in its’ major cities. The United Kingdom is considered a CRT-1 (country risk tier, level 1), which means: it is Predictable and transparent legal environment, the legal system and business infrastructure; sophisticated financial system regulation with deep capital markets; mature insurance industry framework (Amb Country Risk Report, 2013).
Political Stability Political stability of the United Kingdom is very high and the risk involved with moving a restaurant franchise in would be minimal. According to AMB Country Risk Report the United Kingdom opted out from the Maastricht Treaty and were able to keep the pound as their form of currency. They also implied a new banking regulation that has increased the power of the Bank of England to oversee financial stability, phasing out the FSA (Amb Country Risk Report, 2013). This system focused on changes to include a banking tax, limiting bonuses, and cubing high risk behavior, which has helped keep the United Kingdom a politically stable nation.
Economic Conditions The United Kingdom has a sound economy and would not be considered a risk in an analysis of the country. The country again ranks in the very low category because the inflation has been contained, allowing the Bank of England to maintain low interest rates. The bank is also developing a lending scheme that encourages growth of small businesses, this may pose a small threat to the introduction of Chick fil A but the economy’s growth can easily support this upcoming development.
Finance Options Available United Kingdom is widely seen as a major center for international insurance and reinsurance and is home to the London Market, a wholesale market that writes risk around the world (Amb Country Risk Report, 2013). Opening an international restaurant chain in the United Kingdom will be a wise choice based on these facts. The financial sector of this country is stabilized but there are still financial challenges in regards to capital and growth.
Cultural Considerations In regards to cultural considerations, Britain’s ethical consumption standards are considered astonishing when compared to those in the United States. Britain, aside from Europe, is a leading country persuading supermarkets to stock fairly traded, free GMO items for the better of public health. For example, the majority of chickens and eggs purchased at a supermarket in Britain, are those that are “free-range.” Meaning, chickens and eggs that have been produced in a “free” environment, rather than in a confined space like a cage. This is important, for a successful venture in Britain, since the British take ethics into consideration when voting with their money during their next meal.
Social Health and Environmental Conditions Given the high and strong concern for ethical consumption that the British take into account, many religious activists have taken upon their duty to extend ethics to food choices. For example, Rowan Williams, the Archbishop of Canterbury, was one of the first Christian leaders to spread this gospel. Under his leadership, he advocated and recommended that the U.K was sustainable in their consumption. This by all means is to take care of the environment, and treat animals ethically alike. Moreover, in his own words, that it was the duty of every Christian to “care for every part of God’s creation.” Embedded into the residents of the U.K’s beliefs and ideology, catering and offering “free range” chickens, again, is critical to the success of Chick dil A in the U.K.
Physical Environment The demand for sustainability provides opportunities for economic growth, wealth, and health creation. For example, organic products, in this case, “free range” chickens. The demand in the U.K for organic products and its hard, ethical choices of consumption offer the opportunity to open the doors to new markets, countries, and economies that have a comparative advantage for this type of supply. This not only prints a positive image to Chick fil A branding, it helps the U.K in its efforts to offer better products to the public, while taking responsibility of the environment.
Organization and Product/Service Analysis
Chick fil A has been a crowning jewel in the fast food industry, despite having a smaller number of restaurants and market share compared with other competitors in the fast food industry. However, they are actually the second largest chicken fast food distributor. In addition, every single store is closed every Sunday due to religious reasons. This is a highly unique approach for a fast food restaurant considering the popularity of 24/7 hours becoming more popular to bring in sales. Even though they are closed one day a week in every store, their company is highly profitable increasing their sales by 12% in the past year. Now that they have solidified their position within the states they are continuing to look at additional opportunities in foreign markets. The UK has recently had a surge in fast food restaurant appeal. Chick fil A has researched their needs for a chicken focused fast food chain there and has discovered while there are competitors such as Southern Fried Chicken and some homegrown franchises, the market still appears to be wide open and there is a growing desire from the consumers for quality fast food regarding poultry. Despite their inability to operate on Sundays, the business model still works with the business structure in the UK while offering a successful competitor to the market with unique and proven products and friendly service. In addition to the standard focus on fried chicken, the UK menu will also feature some new items such as a permanent fried fish sandwich. Competitors’ menus are solely focused on chicken with their own take on spice. Chick fil A is known for the original crispy chicken sandwich, ranging from mild to spicy and signatures pickles for a distinctive taste. In addition with the new health initiatives recently implemented in the UK, the company has chosen to eliminate any unnatural chemical additives to their foods which should satisfy future consumers of the product. A combination of superb customer service, unique and distinctive products, and the introduction of new specialized items just for the UK market will surely allow Chick fil A to settle into the environment far easier.
Chick-fil-A Launch into UK
As Chick-fil-A launches its expansion into the UK, the company must analyze the country risks and the strategic plan. The following paper will analyze the risks of entering the UK market and the strategic plan Chick-fil-A will follow for a higher chance of success. Political, Legal, and Regulatory Risks Being aware of a foreign country's politics, laws, and regulatory policies are crucial to the success of a business outside its realm. It is important to note that the UK operates under a constitutional monarchy, which is a form of democratic government that operates within the boundaries of its constitution, whether written or unwritten. Laws in the UK are common law and traditional rights. The monarch, Queen Elizabeth II, and the head of government, Prime Minister, David Cameron, exercise this power. However, the executive power rests under Queen Elizabeth II, but moreover on the cabinet ministers side, which would be the Parliament. The Parliament makes and passes laws for the entire nation. In this case, laws for business are rather welcoming. The UK ranks at 16th for freest economy, providing business and economic freedom to both businesses, and consumers alike.

Exchange and Repatriation of Funds Risks Chick-fil-A runs a risk of making less revenue in the UK because of the exchange rates. The value of foreign currency may decrease during the reporting period of business. The currency for 1.00 pound sterling in the UK is 1.70 US dollars but may change. Repatriation is the process of converting foreign currency of one’s own country (Investopedia, 2004). The amount that the investor will receive depends on the exchange rate between the two currencies being traded at the settlement time (Investopedia, 2004). Many factors such as tourism, mergers, international trade, and speculation create the demand for currency.
Competitive Risk Assessment A competitive risk assessment is needed to determine all the competitors in the fast food industry in the UK. McDonald’s is the leading player in the UK foodservice market accounting for over one-third of value sales in 2012, while ranking third in terms of outlets with a share of 13%, behind Greggs, the leader with an outlet share of 18%, and Subway 16% (Euromonitor International, 2013). McDonald’s offers less expensive food, convenient operation hours, jobs in the UK, respects the environment, and has charities such as the Ronald McDonald House. Chick-fil-A does not offer a dollar menu, is closed on Sundays and at 10:00pm, but they can provide jobs in the UK. Chick-fil-A gives back to youth, education, local communities, leadership, and family enrichment programs.
Taxation and Double Taxation Risks The number one goal for the majority of companies is to maximize profits. That is, holding on to as much as the profits you make without paying so many taxes. High taxes is one risk that companies take into priority when selecting a foreign country to run a new venture, which can be inviting or discouraging. In the case of Chick-fil-A, headquartered in the U.S., and now venturing into the U.K., double taxation treaties have been adapted in agreement by both countries. Double taxation treaties are agreements between two states or countries designed to protect from double taxation if the same income is taxable in both locations, to provide certainty for cross-border trade and investment, and to prevent excessive international taxation. On a positive note, the UK has the largest network of treaties that cover 120 countries with the United States included. These treaties leave an open invitation for Chick-fil-A to do business in the U.K., because the country encourages and maintains an international consensus on international economic activity, promotes global trade, and investments.
Market Risk/4 Ps
The 4 Ps are product, place, price, and promotion. Chick-fil- A must provide the correct products, at the right location, with the correct price, and have a strategy for promoting the products. There are questions Chick-fil-A can answer to help with the risk of failing.
Four P’s Chart for Chick-fil-A Product | Place | Price | Promotion | What does the customer want from the product/service? | What do you competitors do? | Will decreasing or increasing prices gain extra profits? | Where and when can we get across our marketing messages to our target market? | What is the name of the products or products? | Where is the product going to be sold? | Are there established price points for products or services in this area? | How do our competitors do their promotions? How will it influence our choice of promotional activity? | What needs does it satisfy? | How can you access the right distribution channels? | How will your price compare with your competitors? | When is the best time to promote? | How is the product different to competitors? | How can we learn from competitors’ place of sale? | What is the value of the product or service to the buyer? | How will we advertise our products? |

Distribution and Supply Chain Risks Supply chain risks Chick-fil-A may have are loss of goods, delayed deliveries, loss of vehicle, and injured personnel. Most of these risk are internally and can be decreased by taking a plan of action. Loss of goods can occur by employees making mistakes, refrigeration going out, and expiring products. Loss of vehicle may occur externally because of weather conditions, other drivers, and distractions. Delayed deliveries happen all the time. It can affect customer products availability and reputation. Injured personnel on the job can happen because of careless mistakes, and personnel are not being trained and certified.
Distribution risks may occur in products going to the customers. The products may be under cook or over cook, expired, or made incorrectly. Sometimes the wrong orders go to the customer. There can also be a risk of taking too long and not having huge orders ready on time. It can hurt a company’s reputation and have a negative effect on customers.
Physical and Environmental Challenges Chick-fil-A will likely encounter a variety of physical and environmental challenges as they attempt to penetrate into the UK market with their new European vision geared towards Britain and its surrounding countries. These challenges will include seeking out appropriate real estate in target areas in addition to ensuring their global operations as a new business in the market has authorization and documentation to begin. Authorization and documentation are extremely crucial because they allows for the company to enter the country and essentially begin operating in a legal manner. In addition, after they researched the requirements, Chick-fil-A understands they must adhere to all of the laws regarding business operations and labor laws within the UK to avoid any disruption or potential shutdown. Legal and obligatory requirements of company operations are not the only challenges Chick-fil-A faces with expansion to the UK. They conducted a competitive analysis in the environment they were looking to operate within and evaluated the other fast food chicken competition. Nando’s Chickenland will likely be a top competitor for Chick-fil-A as they have controlled the fried chicken market in the UK and own and operate over 300 stores (“Nandos: Our Restaurants”,2014). Chick-fil-A must not only distinguish themselves from their peers but ensure their product; marketing and connection is as strong if not stronger than their greatest threat to have a chance within this market.
Social and Cultural Risks Citizens of the UK do not widely accept the American fast food culture, and the emerging trends in Europe focus on socially responsible and healthier alternatives. While Chick-fil-A may be considered a fried food established by some, they have recently adjusted their approach in food preparation and additives in their food. Chick-fil-A no longer uses questionable additives in their meat and ensures their foods are displayed with nutritional information, even providing healthier options on the menu to those who are seeking a lighter fare. Chick-fil-A is aligned with the UK approach and consumer demand for food chains, and will work diligently to promote and market their ways of operating, making a new name for American fast food. In addition, the United Kingdom is focused on businesses that are also socially responsible and care for the environment as well, which should be taken into consideration by the company and their current business structure and plan to operate. Failure to properly assimilate their business into the culture and social environment or bringing their own unique approach while catering to the culture will ultimately result in a disconnect and potential failure.
Cyber and Technology
Chick-fil-A is focuses on delivering the fastest food chain service since emergence into the market and their concern to ensure their reputation and current systems would complement their new market. The restaurant’s initial assessment involved the ability for the resources in their new environment to support their information technology approach focused on their SmartTechnology program. This program focuses on installing new operations seamlessly through a properly structured system which is integrated appropriately for maximum efficiency (“Cybera Inc.”,2014). The current resources including AT&T and the Cisco network are already prominent operations within the UK and are utilized by Chick-fil-A as well for general information technology needs. Chick-fil-A will also continue their social media initiative as it is increasingly popular in their new region. The analysis showed the penetration into the market would be successful in regard to the cyber and technology aspect.
Risk Management
Risks come with every corporate business decision. As Chick-fil-A launches their franchise into the United Kingdom, they will face these possible risks and must come up with ways to manage them. Chick-fil-A should identify what can go wrong, evaluate risks that should be dealt with, and implement strategies that will minimize the risks. If Chick-fil-A identifies risks from the beginning, it will help the company develop more cost effective strategies. One way Chick-fil-A can deal with the risks associated with doing business in the United Kingdom is to create a disaster recovery plan; preparing Chick-fil-A for any failures in the launch into the United Kingdom. The disaster recovery plan will also include back up ideas that can help Chick-fil-A be more successful in the United Kingdom market.
Mission and Objectives Chick-fil-A will focus on successful entry into the European market, namely the United Kingdom. In addition to bringing their widely successful chicken-focused fast food chain to a new international environment, they want to ensure their vision aligns with the target market. Their goals and mission are to bring their product and superb service while implementing new cuisine catered to the UK and their specific interests in dining and cultural preferences. The completion of extensive research involving their mission and objectives has allowed this to be a viable venture for the company. Their initial setup will include one to two stores per year based on performance while providing the communities with employment opportunities and a chance to experience and embrace the Chick-fil-A philosophy.

SWOTT Analysis Strengths | Weaknesses | * Strong Economy * Willingness to work with Foreign Investors. * Offering a healthier kind of fast food option * Potential to offer employment to many local citizens and franchise out to more cities. | * Product not being well received. * No other product like this in the UK market. * Traditional culture may not be inclined to eat at this restaurant. * Company name not well known in this country |

Opportunities | Threats | * Introducing a new product unlike any in this particular region * Opening Company profit by supplying to a whole new market * Selling to a Country who accepts international marketing * Chance to improve relations between United States and the UK | * Cultural differences * Social Barriers * Business practices differ from country to country * Human rights issues | Strategy Selection Chick-fil-A has developed a strategy for success using five pillars. These pillars incorporate creating a specific culture of servers, building a distinct brand, running an excellent restaurant, increase in restaurant profits, and accelerating their quality of restaurants. By using these key factors and keeping the company’s mission statement as their guide, they are sure to be a success in the UK.
Mode of Entry The mode of entry for Chick-fil-A into the UK is going to involve licensing because it is a franchise. Franchising involves the organization (franchiser) providing branding, concepts, expertise, and in fact, most facets that are needed to operate in an overseas market, to the franchisee (Friesner, 2014).

Control and Evaluation
Control and evaluation is an essential part of the management process at Chick-fil-A. Having developed a contingency plan that promotes sustainability and requires ethical choices, this final stage helps the management team establish how effective our business strategy has been. The management team will evaluate and control the quality of agriculture products we receive from our partners, but most importantly, the chicken. In addition, we will make improvements as we continue our progress in the U.K by learning the likes and dislikes of our menu. Also, to see if we can introduce new products to the menu to enhance growth and increase profits. Last, is the external conditions that relate to our business in the UK. Chick-fil-A will conduct surveys with customers for feedback about product, service, and experience, and use their opinions/comments/suggestions to help the restaurant improve.

Devised Contingency Plan As we have learned, the British consumer demands ethical products and chooses to consume ethically, which changes the plans and business practices of Chick-fil-A. In this case, from the beginning to when the consumer receives the end product, focusing on sustainability is key to being successful in the UK. This begins with partnering with farmers and poultry businesses that raise and produce "free range" chickens, which will allow us to promote our product and advertise our ethical responsibility. Furthermore, the materials we use to wrap and present our products will also come from businesses that produce, for example, boxes, bags, and wrapping paper, with a low-impact to the environment, which will show our commitment to sustainable business practices and partnerships. In short, entail, demonstrate, and meet the demands of the ethical British consumer.
Summary of Findings
The fast food industry is continuing to grow and expand throughout the world and each company is contemplating their role and position within this competitive environment. Chick-fil-A is no exception to this movement and is currently the number one fast food chicken venue in the United States. Despite their regional popularity they do not have a significant presence in the international market for fast food, namely chicken. As Europe, specifically the UK, continues to add more fast food chains Chick-fil-A has set their sights upon this market to expand their global presence. Chick-fil-A has recently completed a comprehensive analysis and risk analysis for their new global opportunity. In addition to standard planning and reviewing the analysis results to ensure they are prepared to begin their venture, they will work together to create an appropriate marketing mix catered to their target market as well as an effective marketing plan to address a variety of critical needs to be successful. Chick-fil-A must ensure their finances are in order when completing their tasks to ensure they are fully prepared with an organized budget addressing all of their needs in the United Kingdom. Chick-fil-A will also create specific strategies involving a proper chain of command in operations in the vicinity, contingency plans, and possible exit approaches which may be necessary. Once the complete review has been fully scrutinized and planned accordingly, Chick-fil-A will determine whether or not the venture is feasible in each aspect in order to move forward.
Chick-fil-A has gathered an extensive amount of research in regard to their venture into the United Kingdom’s Market. They have uncovered the market trends and demands regarding their industry and approach as an American Fast Food business. They have analyzed the results focusing on the various stabilities of the region itself and the critical areas of interest such as political, economic, geographical, environmental, and regional. In addition, they have carefully evaluated the financial aspect to solidify their reasoning expand globally. The financial component is extremely important because it can singlehandedly determine whether or not operational expansion makes sense or will allow for substantial growth for the company in the long-term; a look at exchange rates and financing options are highly crucial for this portion.to Chick-fil-A’s assessment has identified areas of strengths and weaknesses associated with their venture which has resulted in a carefully constructed business plan which addresses each of these aspects and potential concerns while providing valuable feedback pertinent for forecasting. The results gathered and thorough research has allowed Chick-fil-A to be in a strong and unique position to move forward while preparing for any situation which may arise based on multiple variables. Despite the research suggesting their operations will be supported, the company also understands the importance of developing contingency plans and alternate strategies to put into place by specific groups of people to protect their company as a whole.
Rationale for Selecting Target Country Chick-fil-A began their research involving international operations focused on the United Kingdom based on a variety of reasons dealing with market desire and ability to work well within the chosen environment. The United Kingdom has a specific mix of cultural, political, economic and unique physical environment to support the operations of Chick-fil-A within their region. It is vital to understand this background and evaluate how it will benefit the company in the long-term based on organizational goals. The results of the risk analysis further aided the company in determining the rationale for the final selection of expanding global operations and increasing their market position on an international level. The research also involves the competitive environment, technological resources, the social aspect and ethical trends will drive the future progression within the region.
Marketing Mix
The marketing plan for product modification consist of taking off items on menu that do not sell. We will review volume sold after six months of launching the opening of Chick-fil-A. As mentioned above pricing for burgers will range from $2.99 to $5.00 depending on the item. The combo meals will be $6.99 plus tax. The breakfast menu will have prices range from $1.99 to $4.99. The promotional programs available consist of loyal customer card. The loyal customer card will allow customers to receive a free burger after six purchases. Happy Hour Monday through Friday 5Pm-7PM half price drinks.
Chick -Fil-A will use a direct channel for distribution of their products. Direct channel will allow employees to focus on product quality and customer service to customers. A customer may purchase at location or place an order on the internet for catering services. E-business tools that will be used are online communications, online training for staff, video conferencing, website marketing, inventory records, and ordering supplies.
Financial Overview
Creating a budget is complicated for a global venture. Understanding the needs of a nation and how to gain the intended result require understanding of many concepts. Comparative advantage, the basis for international trade, free trade, and trade restrictions are just some of the main elements to take into consideration. Creating a budget consists of three basic activities to help understand a company’s general financial standing (Weygandt, 2008). With accurate accounting it is possible to make assumptions and predictions that can keep an economy growing and running efficiently. The cost of capital, labor, advertising, manufacturing, servicing, and shipping is included in the budget.
Marginal benefits and marginal costs are related but different. Marginal benefit is the benefit a customer will receive from a particular item. The marginal benefit is usually determined by the consumers’ willingness to pay for an item. Marginal cost is the minimal cost of an item (Weygandt, 2008). The Chick-fil-A must create an appropriate price strategy for the UK branch of their franchise. Choosing a pricing tactic for new item is critical because price is the most extremely observable element of profit. Appropriate pricing is significant when creating a budget. Price value indication is a visible case that influence’s customers buying behavior. To price merchandise appropriately, the budget has to consider overhead and profit by determining the breakeven price, revenue, and unit sales. This will help Chick-fil-A understand how to launch the break-even price, returns, and element sold from a cost standpoint. Although break-even revenue and part-sold are calculated for brand financial and organization decisions, break-even pricing is determined to assist in helping sell the merchandise. An accomplished understanding of producing costs, revenue objectives, consumers, competitor, and other market data helps Chick-fi-A shape the pricing tactic that better fits their products and organization in the UK. With this data, Chick-fil-A knows the right price for their Franchise to break even, and the higher price they can charge based on an approximate of consumers request. Competitors and revenue objectives will then influence the price charged for food at the UK Chick-fil-A.
Chick-fil-A will be sold overseas, so the foreign exchange rate must be considered. The foreign exchange rate is determined by the foreign markets. The foreign markets control the federal currency exchange, creating the exchange rate. The foreign exchange rate is affected by numerous factors. A major driving force is the supply and demand for goods. If there is a higher exchange rate, U.S. good become more expensive and the quantity of the dollar demanded to by the goods is reduced (Mankiw, 2007). Another factor that affects the exchange rate is budget deficits. Budget deficits occur when the country spends more money than they take in. The exchange rates usually decrease if the value of a country’s currency is decreased. Inflation can also cause a change in the exchange rate. Inflation is the rise of the cost of goods over time. To help mitigate the risk, Chick-fil-A can enter a forward contract. The contract could require the amount borrowed to be set at a predetermined rate. This will prevent a higher rate if the market fluctuates.
Sources of Financing
Chick-fil-A has created a general budget in which the firm can figure out the company’s domestic and international financing sources and options for expanding their franchise to the UK. The first objective as Chick-fil-A enters the UK, is the planning, what resources are to be used, and how the launch will be financed into a foreign country. Resources are to include all stakeholders, banks, agents, networking, suppliers, and anyone else involved with the expansion of the franchise to the UK. Domestically, the finance options and resources are different from financing options in the UK. The UK banking system is different from that of the US because all the money is controlled by the Queen and government. Obtaining knowledge of the UK’s banking system is will endure Chick-fil-A’s venture in the new target market.
The first option Chick-fil-A has in financing the new global venture is from the World Bank Group located in Washington, D.C. The World Bank is a fundamental finance option and technical assistance to developing countries around the world with more than 10,000 employees and 100 offices worldwide (The World Bank Group, 2011). The World Bank offers low interest loans, interest free credits, and grants, especially if a company is entering a developing country or a poor country. The World Bank ensures that companies have the best expertise knowledge of resources and options when entering a global undertaking. If Chick-fil-A decides to finance with World Bank, it can help build the firm’s reputation because of the World Bank’s own status in assisting developing countries.
The second option is to finance in the UK through the country’s banking system. UK banks are not operated the same as banks in the United States, but financing through them can assist the launch of Chick-fil-A and show support of the launch through the financing. UK is very supportive of new markets entering their country and helping the country stay profitable so they will assist Chick-fil-A as much as possible in the expansion.

Organization Operations
Chick-fil-A’s operations management will consist of a mixture of how it does business in the United States. For starters, we will continue to market ourselves through our customers, which nothing works better than word-of-mouth. During the launch and opening of the new restaurants, Chick-fil-A will continue its tradition of inviting customers for a free dinner, and handing out coupons for free meals to share with anyone unfamiliar with the restaurant. In addition, we will evaluate our service through surveys and customer focus groups to improve on our business. We will also be closed on Sundays given that the UK’s most followed religion happens to be Christian. In addition, the individuals hired must exhibit humility, passion for service, and genuineness. This reflects back to the principles of Chick-fil-A, that reflect on the philosophy of running a business. Given that, the same goes for the leaders of the staff, which falls on the idea of “servant leadership,” were the leaders serve the staff. The leaders treat the employees how they want the employees to treat customers. Furthermore, Chick-fil-A will continue its franchising strategy that it uses in the United States in the U.K. This process allows for Chick-fil-A to expand its operations by inviting investors to take part in the business, while still owning the individual restaurants 100%. This allows Chick-fil-A to be choosy about who runs the restaurants. Also, if the individual is successful they will be rewarded. On the other hand, if they fail as a company, we can get rid of them. One thing that will change is the chicken used in our menu at the UK locations, this chicken is locally raised. Since the British show a concern, and demand ethical and environmentally friendly food products, Chick-fil-A will be using “free-range” chickens. Meaning these chickens before being slaughtered and processed, are able to roam freely in the field, rather than the tradition living condition of those in the United States that are locked up in a cage for their entire life. This will propose new challenges for us as a business since we will have to find new suppliers that provide this type of chicken. In all, following our successful operations strategy in our restaurants that make more money than bigger chains like McDonalds but offer ethically produced chickens will also be successful in the UK.
Exit Strategies
(Anna)
Summary of Rationale
These specific reasons and the general direction of Chick-fil-A, as an organization, have allowed this venture to be a viable solution to the growing needs of the United Kingdom and the international expansion of Chick-fil-A. In addition, the risk analysis involving these suggests the ability for Chick-fil-A to overcome some of the challenges that come up. We evaluated and resolved the risks involving competition and exchange rates in addition to potential financing issues with viable solutions that will allow Chick-fil-A to move forward and plan accordingly. The current fast food fried chicken market will have a new competitor keen on bringing the touch of the United States and its hormone and chemical free chicken to the region while introducing new and unique cuisine catered to the United Kingdom. The combination of the physical environment, stability of the economy, general demands of the fast food culture, political stability and growing industry showcase the viability of expanding into the United Kingdom’s market.

Feasibility of Global Venture
After careful consideration, extensive research covering multiple facets and encouraging data, Chick fil A has determined the overall feasibility of their new global venture in the United Kingdom’s global market will be successful. Chick fil A will enter a market which currently has a strong economic environment, attractive atmosphere involving financing options critical to the operations of the business, a strong consumer demand for increasing fast food chains, and powerful influence regarding their unique approach for business. Various risks have been outlined and evaluated to ensure there is a feasible plan in place to address each of them. A review of the culture of Chick fil A and the growing needs of the consumer regarding more ethical fast food businesses and a new fried chicken venue with an American culture and superb customer service. The United Kingdom has been working through a wave of new fast food organizations and despite some local competition, Chick fil A is moving into a market that is wide open and seeking something new and unique. Chick fil A has carefully evaluated the economic conditions, market demand, products, and services of the United Kingdom. While continued growth in Britain has given the company a confident attitude towards development and expansion into their region. The company notes risks based on an analysis involving market competition. It includes fragile global economic state, and exchange rates for the country involving potential loss. The company has evaluated the benefits over the risks and established the demand and support for its operations. Chick fil A has also carefully constructed their financial strategy to ensure they have sound financing options and the ability to work with the exchange rates and plan for volatility if and when it occurs. Chick fil A will strive to become a new household name focused on delivering great food, unique experiences, and superb customer service geared towards its new regional setting. They have worked diligently to ensure their position in the new market is protected and sound because they have a full understanding of the potential risks or changes which may occur, so they are prepared for them appropriately.

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