J- Kungfu Fast Food Chains
Export Business Plan (J- Kungfu Fast Food Chains Ltda.)

A final report submitted in partial fulfillment of the requirements for the course of Intercultural Communication in Business

Collaborated by Group Seven Candidate, 08 Class C、B、H Business Communication，06 Class A Translation 梁景衡08319296 赵必进08319290 邓天添08319321 张玉梨08319446 陈一楠08319328 陈阳 06320032 徐昱 08319287 张韵 08319398

Instructor: 向蔓

School of International Studies Sun Yat-sen University

December 2009 Contents

Executive Summary 1.1 Objectives 1.2 Mission 1.3 Keys to Success
Company Summary 2.1 Company Ownership 2.2 Company History 2.3 Company Locations and Facilities
Products
3.1Product Description 3.2 Competitive Comparison 3.3 Sourcing
Market Analysis Summary 4.1 Market research 4.2 Clientele 4.3 Competitors
Strategy and Implementation Summary 5.1 Marketing Strategy 5.1.1 Promotion Strategy 5.1.2 Pricing Strategy 5.2 Sales Strategy 5.2.1 Strategy forecast 5.2.2 Sales program 5.3 Milestones
Management Summary 6.1 Organizational Structure 6.2 Management Team 6.3 Management Team Gaps 6.4 Personnel Plan
Domestic Policies of Export of Service

Executive Summary

J-Kungfu fast food brand seeks triumphs in marching into New York by excellent services and delicate nutritious steamed food.

We predict an expansion of the brand’s scale in the first year with profits exceeding expectations. And in the next two years, we will try to increase the number of our branch studios in America according to market demand.

1.1 Objectives

The objectives of J-Kungfu fast food brand

• To make J-Kungfu fast food brand one of the top food brands in New York in the first year.

• To eventually promote all kinds of steamed food in New York in the second full year of operation .

• To achieve a 30% market share on the American market .

• To achieve a 40% profit margin by year three.

1.2 Mission

J-Kungfu fast food brand offers nutritious steamed food in the United States - initially in New York. The restaurant will build its image as a authentic Chinese food restaurant first, and then will begin to compete with KFC and McDonald’s, and finally takes up a large market share to spread Chinese flavor. We value our relationships with current and future customers and hope to communicate our appreciation to them through our outstanding, guaranteed service quality. Besides exploiting the overseas market, we have another lofty mission that is to promoting culture understanding and exchange between China and U.S. by preaching one of the essences of Chinese culture.

1.3 Keys to Success

To succeed must:

• Design and offer high quality services.

• Achieve 100% customer satisfaction and effectively communicating to current and potential customers.

• Build brand image and brand equity through marketing.

Company Summary

Unlike western food brand KFC and McDonald’s, J-Kungfu puts high premium on real Chinese flavor, mainly on steamed food which will be the weapon to march into American market initiatively through New York.

2.1 Company Ownership

J-Kungfu is a private-owned Chinese fast-food chain established in April, 1994 by Dabiao Cai and Yuhai Xu. Originated in Dongguan, China, J-Kungfu owns 335 direct-branches in China according to the latest statistics released on November 11th 2009[1]. It is now making effort to march into New York as a basic step to sweep through America.

2.2 Company History

In April 14th, 1994, Dabiao Cai and Yuhai Xu opened a passing-drivers-positioned restaurant named 168 implicating more wealth ahead, alongside the road of Dongguan, China . Sooner it became famous for its low price and delicious steamed food. People specially made their way to 168 in an attempt to test the delicacy. Cai and Xu opened another restaurant after half a year and earned more profit. Due to the shortage of cooking standards, they stopped opening the third restaurant but to think about the modernization of cooking like McDonald’s. In 1997, they brought in a steaming machine created by professors in South China University of Technology thus realizing the goal of “one flavor in thousands of set menus” as KFC and McDonald’s. At the same time, they opened a new restaurant named Double Seed. In 1999, breaking the limit of Dongguan, Double Seed entered Guangzhou and Shenzhen but met difficulties that few people stepped into it. After a comprehensive research on the market, the board changed the name Double Seed to J-Kungfu with a logo Lee Bruce as a symbol of real Chinese food. What’s more, it raised the prices as high as those in McDonald’s and KFC, which, in another way, pulled its food to the same level as the latter two western fast-food chain. It ran better and better since then. Until November 10th 2009, J-Kungfu owned 335 direct-restaurants all over China and was regarded as the McDonald’s in China.

2.3 Company Locations and Facilities
J-Kungfu has direct-restaurants in most of cities in China such as Dongguan, Shenzhen, Guangzhou, Beijing, etc.. It has brought in a large number of steaming machines that can automatically control the whole cooking process. J-Kungfu plans to settle the new restaurant in 18 Kent St Avenue that is facing the Broadway fillmore in New York, which will win a big profit since it is a place of shopping malls and theatre

Products
3.1 Product Description
J-Kungfu restaurants, a Chinese-style fast food restaurants chain, offers nutritious steamed Chinese food. The prices are reasonable and competitive.
Product Features • Steaming is regarded as a healthy cooking technique. Overcooking or burning food is easily avoided when steaming it. J-Kungfu prefers steaming to other cooking methods which require oil. So its steamed food has much lower fat content. Steaming also results in a more nutritious food than boiling because fewer nutrients are leached away into the water which is usually discarded. J-Kungfu’s dishes not only retain their original taste and flavor, but also are healthy and nutritious. J-Kungfu provide steamed rice casseroles, steamed soup in casserole, nutrition breakfast, rice noodles, beverage, confections, vegetables and snacks.

3.2 Competitive Comparison
J-Kungfu restaurant has the following sustainable competitive advantages: • Delicious and healthy: J-Kungfu’s steamed food is very unique in western countries. American people usually have food with much fats and oil. This is due to their colonial history. Grilled meats and spit roast, for example, are particular American favorites. However, eating too much of those foods is definitely unhealthy. Obesity in the United States has been increasingly cited as a major health issue in recent decades. Obesity rates in the United States are among the highest in the world with 64% of adults being overweight or obese, and 26% are obese. J-Kungfu’s steamed dishes, on the other hand, can solve this problem. According to scientific research, steamed food not only retains their original taste and flavor, but also is healthy and nutritious. J-Kungfu’s steamed food will cause a revolution in American diets. • Fast: As China's first chain restaurant to achieve the Chinese Fast Food Standardization certificate, J-Kungfu restaurant has adhered to international standards on quality, service and sanitation. The advanced pre-programmed automatic control system in the restaurants has greatly enhanced its working efficiency. Customers don’t have to wait a long time for hot and fresh dishes. • Brands effect: J-Kungfu has positioned the name and imagery to capture the western market. Huge Bruce Lee pictures abound and his iconic image appears on everything from the signs, cups, and bowls to the tray mats. Nowadays, western people are increasingly fascinated with Chinese Kungfu. Its special brand name and Bruce Lee imagery will be bound to attract many customers. J-Kungfu’s final goal is to preach the essence of Chinese culture,

3.3 Sourcing • The Kungfu restaurants have a stable supply of high-quality food products and superior services. American Lorain Corporation has started cooperating with Kungfu Catering Management Co. Ltd. Under the cooperation agreement with Kungfu, American Lorain will distribute beef products, mixed vegetables, and frozen chestnut kernels. J-Kungfu have been cooperating with many corporations that are of good reputation to ensure consistent quality in food and services.

Market Analysis

4.1 Market Research
About New York:
New York is the most populous city in the United States, and the center of the New York metropolitan area, which is one of the most populous urban areas in the world. A leading global city, New York exerts a powerful influence over worldwide commerce, finance, culture, fashion and entertainment. As host of the United Nations headquarters, it is also an important center for international affairs.

Geography:
New York City is located in the Northeastern United States, in southeastern New York State. Much of New York is built on the three islands of Manhattan, Staten Island, and Long Island, making land scarce and encouraging a high population density.

Tourism:
Tourism is important to New York City, with about 47 million foreign and American tourists visiting each year. Major destinations include the Empire State Building, Ellis Island, Broadway theatre productions, museums such as the Metropolitan Museum of Art, and other tourist attractions including Central Park, Washington Square Park, Rockefeller Center, Times Square, the Bronx Zoo, New York Botanical Garden, luxury shopping along Fifth and Madison Avenues, and events such as the Halloween Parade in Greenwich Village, the Tribeca Film Festival, and free performances in Central Park at Summer stage. The Statue of Liberty is a major tourist attraction and one of the most recognizable icons of the United States. Many of the city's ethnic enclaves, such as Jackson Heights, Flushing, and Brighton Beach are major shopping destinations for first and second generation Americans up and down the East Coast.

Cuisine:
New York's food culture, influenced by the city's immigrants and large number of dining patrons, is diverse. Eastern European and Italian immigrants have made the city famous for bagels, cheesecake, and New York-style pizza. Some 4,000 mobile food vendors licensed by the city, many immigrant-owned, have made Middle Eastern foods such as falafels and kebabs standbys of contemporary New York street food, although hot dogs and pretzels are still the main street fare. The city is also home to many of the finest haute cuisine restaurants in the United States. New York City's variety of World cuisines is also diverse. Examples could include Italian, French, Spanish, German, Russian, English, Greek, Moroccan, Chinese, Indian, and Japanese cuisines, as well as the diverse indigenous sort.

Economy:
The economy of New York City is the largest regional economy in the United States and the second largest city economy in the world after Tokyo. Along with London, New York City is a leading financial center of the world and a premier headquarters location for leading global financial services companies. New York is distinctive for its high concentrations of advanced service sector firms in fields such as law, accountancy, banking and management consultancy.

Demographic:
New York is the most populous city in the United States, with an estimated 2008 population of 8,363,710 (up from 7.3 million in 1990). This amounts to about 40.0% of New York State's population and a similar percentage of the metropolitan regional population. Over the last decade the city's population has been increasing and demographers estimate New York's population will reach between 9.2 and 9.5 million by 2030. New York's two key demographic features are its population density and cultural diversity. The city's population density of 26,403 people per square mile (10,194/km²) makes it the most densely populated American municipality with a population above 100,000. Manhattan's population density is 66,940 people per square mile (25,846/km²), highest of any county in the United States. New York City is exceptionally diverse. Throughout its history the city has been a major point of entry for immigrants; the term melting pot was first coined to describe densely populated immigrant neighborhoods on the Lower East Side. Today, 36.7% of the city's population is foreign-born and another 3.9% were born in Puerto Rico, U.S. Island areas, or born abroad to American parents. Among American cities, this proportion is exceeded only by Los Angeles and Miami. While the immigrant communities in those cities are dominated by a few nationalities, in New York no single country or region of origin dominates. The ten largest countries of origin for modern immigration are the Dominican Republic, China, Jamaica, Guyana, Mexico, Ecuador, Haiti, Trinidad and Tobago, Colombia, and Russia. About 170 languages are spoken in the city. The New York metropolitan area is home to the largest Jewish community outside Israel; Tel Aviv proper (non-metro and within municipal limits) has a smaller population than the Jewish population of New York City proper, making New York the largest Jewish community in the world. About 12% of New Yorkers are Jewish or of Jewish descent and roots. It is also home to the largest Indian American population, nearly a quarter of the nation's, and the largest African American community of any city in the United States. The New York metropolitan area also contains the largest ethnic Chinese population of any metropolitan area outside of Asia, comprising 619,427 individuals as of the 2007 American Community Survey Census data, as well as including at least 6 Chinatowns. The five largest ethnic groups as of the 2005 census estimates are: Puerto Ricans, Italians, West Indians, Dominicans and Chinese. The Puerto Rican population of New York City is the largest outside of Puerto Rico. Italians emigrated to the city in large numbers in the early twentieth century. The Irish, the sixth largest ethnic group, also have a notable presence; one in 50 New Yorkers of European origin carry a distinctive genetic signature on their Y chromosomes inherited from Niall of the Nine Hostages, an Irish high king of the fifth century A.D. As of the 2005–2007 American Community Survey conducted by the U.S. Census Bureau, White Americans made up 44.1% of New York City's population; of which 35.1% were non-Hispanic whites. Blacks or African Americans made up 25.2% of New York City's population; of which 23.7% were non-Hispanic blacks. American Indians made up 0.4% of the city's population; of which 0.2% were non-Hispanic. Asian Americans made up 11.6% of the city's population; of which 11.5% were non-Hispanic. Pacific Islander Americans made up less than 0.1% of the city's population. Individuals from some other race made up 16.8% of the city's population; of which 1.0% were non-Hispanic. Individuals from two or more races made up 1.9% of the city's population; of which 1.0% were non-Hispanic. In addition, Hispanics and Latinos made up 27.4% of New York City's population.
New York City has a high degree of income disparity. In 2005 the median household income in the wealthiest census tract was $188,697, while in the poorest it was $9,320. The disparity is driven by wage growth in high income brackets, while wages have stagnated for middle and lower income brackets. In 2006 the average weekly wage in Manhattan was $1,453, the highest and fastest growing among the largest counties in the United States. The borough is also experiencing a baby boom that is unique among American cities. Since 2000, the number of children under age 5 living in Manhattan grew by more than 32%. Rental vacancy is usually between 3% and 4.5%, well below the 5% threshold defined to be a housing emergency and used to justify the continuation of rent control and rent stabilization. About 33% of rental units are rent-stabilized. Finding housing, particularly affordable housing, in New York City can be more than challenging.

4.2 Clientele
Chinese immigrants, Chinese American
American (Especially those busy businessmen or businesswomen
International immigrants
Jewish

4.3 Competitors:
American Chinese food

American Chinese food typically treats vegetables as garnish while cuisines of China emphasize vegetables. This can be seen in the use of carrots and tomatoes. Native Chinese cuisine makes frequent use of Asian leafy vegetables like bok choy and kai-lan and puts a greater emphasis on fresh meat and seafood. As a result, American Chinese food is usually less pungent than authentic cuisine.
American Chinese food tends to be cooked very quickly with a great deal of oil and salt. Many dishes are quickly and easily prepared, and require inexpensive ingredients. Stir-frying, pan-frying, and deep-frying tend to be the most common cooking techniques which are all easily done using a wok. The food also has a reputation for high levels of MSG to enhance the flavor. The symptoms of a so-called Chinese restaurant syndrome or "Chinese food syndrome" have been attributed to a glutamate sensitivity, but carefully controlled scientific studies have not demonstrated such negative effects of glutamate. Market forces and customer demand have encouraged many restaurants to offer "MSG Free" or "No MSG" menus.
According to the magazine Chinese Restaurant News, there are nearly 41,000 Chinese restaurants in the United States, three times the number of McDonalds franchise units (and at $17 billion in annual sales, at a par with the gargantuan hamburger chain). Chinese food has long been available in a form that suits American tastes (sometimes called Chinese-American food), as well as in varieties that more closely resemble the various cuisines actually served in China and in Chinese communities around the world. In restaurants in large cities like New York and San Francisco, both types of food may be available, sometimes in the same restaurant.
Most Chinese restaurants in the United States are individually or family owned, there are a number of restaurant chains offering Chinese food to American tastes. One of the largest fancy dinner chains is the comfortable P.F. Chang China Bistro, whose owners also operate the trendy Pei Wei Asian Diner chain. Panda Express is a large, nationwide Chinese fast-food chain with more than 800 locations. Over the past few decades, the all-you-can eat Chinese buffet has become a popular concept.
Unlike other popular ethnic cuisines like Italian and Mexican, authentic Chinese food is not prepared in the American home on a regular basis, though home cooks may use the Chinese wok pan for simple stir-fry dishes. Authentic Chinese cuisine usually calls for a level of heat unknown in Western cooking. The quick flash fry, on a high-BTU restaurant stove, seals in flavors in a way almost impossible to match in a non-professional kitchen.
McDonald’s and KFC
McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare.
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine.
Deliveried pizza
Pizza is a world-popular dish of Neapolitan origin, made with an oven-baked, flat, generally round bread that is often covered with tomatoes or a tomato-based sauce and cheese.

Our advantages:

1. Many people in USA like to eat Chinese food.

2. Our Steaming food is new in the field of Chinese American cuisine.

Disadvantages:

1. Too many Chinese restaurants in USA

Strategy and Implementation Summary

5.1 Marketing Strategy

In order to launch J- Kungfu Fast Food Chains Ltda. in the American market successfully and become one of the top martial clubs in New York City, J- Kungfu will set up a series of effective market strategy, in which the use of different kinds of advertisement and making contact with the local government, related companies, and agricultural organizations will be involved. Besides, J- Kungfu will strengthen the existing relationship with some schools and companies, to whom J- Kungfu can recommend their foods and drinks—Kung fu specials series. The main goal of the company is to consolidate the company’s position in the competitive American market, raise the popularity to attract more potential customers and develop several subsidiaries in the long term. Most importantly, it’s also the company’s aim to achieve the cultural transmission of the extensive and profound tradition from the aspect of Chinese food.

5.1.1 Promotion Strategy

As the American media has once reported that the Chinese food is extremely popular in some American cities such as New York, Los Angeles, San Francisco, etc.. With the growing influence of the Chinese food on both Europe and America, there is no denying the fact that the power of influence has become the greatest oversea assets of our company. As a result, J- Kungfu will attach a lot of importance to the propaganda, arousing the public’s attention and interest on Chinese food and the company. All the specific promotion acticities are as follows:

• Advertising

On TV: Instead of inviting famous action movie stars like Jackie Chan or Li Lianjie, which cost too much money, J- Kungfu will invite some domestic Kung fu actors like Chen Kun or Shi Xiaolong as our image prolocutor to promote our company, stressing on the high quality of the food and service and making the company more heated.

On websites: J- Kungfu will produce a new web site of the company, in which all the history, structure and ideals will be introduced in detail. J- Kungfu will pay attention to the language that it use and try its best to translate the cuisine aptly.

Furthermore,the company’s websites will contain some American cultural elements. The images and music that the company adopt on the website will relate to American culture and society, which makes the service get more closed to the customers,

Additionally, cooperation with some agricultural organizations in the central or western United States and famous local shopping malls (the biggest business district of foreign citizen of Chinese origin in New York---Flushing, Rockefeller Center as well as Odette) is quite necessary. That’s because J- Kungfu can put the website’s hyperlink on theirs, making the company known by more different clients.

On local radio: J- Kungfu can also invest on ads on radio, attacting more clients, like employees driving on their way to office and taxi or bus drivers listening to radio when waiting for the lights.

Posters and leaflets: In order to have a wider range of propaganda, the company intend to hand out some leaflets and paste some posters some days before or after the opening ceremony of our brach office in New York. The list of price, shown in the following passage, will be comprised in these sheets.

• Indoor decorations

All the decorations in the restaurants of J- Kungfu are likely to relate to the theme of Kung fu. In the recent years, the heat of Chinese Kung fu has already landed on the European Continent as well as the Amercian Continent. In the restaurants, the company is going to play some Kung fu movies, such as Kung fu Panda, The King of Kung fu, Crouching.Tiger,Hidden.Dragon, etc..

In addition, J- Kungfu intends to give children some models of Kung fu Panda or Li Xiaolong when they have meal specials in the restaurants.

Lastly, the decorations will combine with some local festivals or current events. For example, when it is an election year, J- Kungfu will creat the cartoon versions of two candidates arguing or even fighting against each other.

• Distrubuting quarterly magazine—Chopsticks Kung Fu

This magazine will contain a brief introduction of the company and the prizes it has got nationally and internationally. Columns include Introductions of Chinese Food, Methods of Keeping Health, “Cooking Course”, Expertises Q and A, Surveys, ect, aiming at those housewives, elderlies and overweights.

Holding numbers of marketing activities

These marketing activities include

“Epicures face to face”: The activity, held in a big shopping mall, will allow the public to counsult the epicures how to eat in a health way, It aims to let peole from all walks of life to design their heal diets. The well-acknowledged epicures of J- Kungfu will also tell the audience how to choose different diets in differet seasons.

Hold the Chinese Food Cooking competition: “Sweet, Sour, Spicy. Show your cooking ability!”. Make both the competitors and audiences follow this program with great interest and J- Kungfu will be better known.

Invite famous action movie stars at the Opening Ceremony: Invite one or two local action movie stars, or some well-known epicures to attend the opening ceremony of the first restaurant in New York, which can promote the company’s core course---Chiese Kung fu as well as Chinese Food.

Throw a “Chinese Foods and Drinks” party: J- Kungfu will invite some celebrity and managers of some famous companies to present the party, in which J- Kungfu will serve them with some Chinese foods and drinks of J- Kungfu restaurants. It’s a good way to show the friendliness and benefical to start co-operations with them in the future.

Invest on producing our own TV/Radio programme( in the future ): Invite famous expertises and epicures to host the progrmme and invite some actors and actresses, or singers in this show. The programme should be put on during the lunch time or the supper time, in order to have a better influence.

• Sign projects with local primary schools

To invole the children to the Chinese food heat, J- Kungfu intend to cooperate with some local primary scools. The company will provide Chinese food as their lunch to the sixth graders 2-3 days a weeks. J- Kungfu will get feedback from the kids by interviews so that the company can decide whether to expand to market to the teenagers.

5.1.2 Pricing Strategy

According to the research, in 2004 the GDP in New York was 1,133 billion dollars, ranking first among all the cities in America. And the per capita income of New York in 2004 reached 42,922 dollars, which was also the best in America. It can be safely concluded that the life standard in New York is quite high. Therefore, the company will adjust its pricing in accordance with the local consumption and income level, and the price of the courses will be slightly higher ( approximately 20% ) than the market average in China.

● VIP Card: J- Kungfu will also carry out a VIP institution for those who love Chinese food and regularly consume in the restaurants. Customers with VIP cards can have their meals in discount( approximately 10% ).

Foods and Drinks Price:

|Cuisine |Cost |Cost (VIP) |Cuisine Briefing |
|Recommend |$4.50-$5.50 |$4.15-$5.00 |According to seasons |
|Meal Specials |$5.20-$6.50 |$5.25-$6.15 |Rice, Roast Duck, winter mushroom, hamburger |
|Steamed Rice Casseroles |$5.50-$7.00 |$5.15-$6.75 |Rice , chop, steamed chicken, boiled fish, boiled |
| | | |beef |
|Steamed Soup in Casserole |$6.50-$7.50 |$6.00-$5.50 |Dried vegetables and pig bones soup, American |
| | | |ginseng and chicken soup |
|Breakfast Specials |$3.50-$4.50 |$2.85-$4.25 |Sticky rice in lotus leaf , mixed vegetables,frozen|
| | | |chestnut kernels |
|Rice Noodles |$4.00-$5.00 |$4.15-$4.75 |Noodles with beef, chicken, pork, etc. |
|Beverages and Desserts |$3.50-$4.50 |$3.25-$4.25 |Henry tuber pie, soybean milk, coke, Red bean cake |
|Vegetables and Snacks |$4.50-$5.50 |$4.25-$5.05 |Broccoli, lettuce, dried vegetables, egg custard |

● Food Delivery: J-Kungfu is ready to apply for a trotline, which should be easily remembered, in order to develop our business. Residents nearby can order their meals whenever they want. There will be no extra fee for the delivery.

5.2.1 Strategy forecast

The following chart and table show J-Kungfu’s present sales forecast. J-Kungfu project healthy growth in sales in 2010, a stable increase will follow in the next two years.

| |2010 |2011 |2012 |
|Sales |￥11260000 |￥20425000 |￥36521000 |
|Cost |￥9835000 |￥13652000 |￥28320000 |
|Profits |￥1425000 |￥6773000 |￥8201000 |

[pic]

This forecast is based on the price strategy, and the mumber of members the company estimates. Since J-Kungfu just lands on the market, it needs time to adjust to the market, so the profit won’t be so high in the first two years. However, in these three years, by strong promotion, J-Kungfu will greatly raise the recognition and strenghten the advantages in compitition. And inside the company, J-Kungfu will improve our system according to the demand of the customers and the market to ensure effective deployment and service quality.

5.2.2 Sales programme

In the first place, in order to attract more members, branding extends and enriches product values is necessary. J-Kungfu should recognize Chinese brands must be developed to widen the influence of Chinese culture. For example, J-Kungfu can create a cartoon characters not only display the kung fu culture, but also share the concept of “Chinese elements, international production; Chinese stories, international expression”. Since Kung fu movies are so popular in America, J-Kungfu will also coorperate with some movie companies to make some Kung fu movies whose actors are our cartoon characters.

Then, J-Kungfu must be different and stand out from the competition . J-Kungfu will do some researches to know about American customers’ need ,concerns and habits, trying to create a comfortable, friendly serving condition. So J-Kungfu will promote a new type of fast food restaurant in America. It will attempt to localize by offering specialized American dishes and decorating with an American theme, while offering typical Chinese service and Chinese food.

In addition, J-Kungfu will put a shopping cart on its website. Online sales are still growing at a dramatic pace. This is coming from people who want to save time, avoid crowded stores, convenience, and the ability to shop outside of store hours. J-Kungfu can set up their own shopping cart system on its website. Customers just pay a proportion based on the cost of the item which J-Kungfu is trying to sell online or some food service orderings.

Finally, J-Kungfu will use pay-per-click .Since classified advertising is not an effective use of the marketing dollars. Pay-per-click advertising is an easier and cheaper way to reach a larger market. It will insure the company receives top visibility on websites driving more customers to the doors.

5.3 Milestones

There are three mains milestones J-Kungfu is going to achieve.Please refer to the items below.

5.3.1 Market share and sale

In 2015, the goal is to open 20 chain stores in New York City.
In 2020, the goal is to open 50 chain stores in America.
In 2030, the goal is to open 150 chain stores in America and become the top ten restaurant in the world.

5.3.2 Sales
In 2015,the sales in New York reach ￥213000000 .
In 2020,the sales in New York reach ￥1800000000 growing 745% compared with the end of 2015.
In 2030, the company achieves turn-over around of ￥2500000000.

5.3.3 Philanthropy

In 2030, J-Kungfu is going to establish a charitable fund aiming at helping people to improve their quality of food.

Management Summary

6.1 Organizational Struture
J-Kungfu overseas also serves as a chain, including 1 CEO, 2 vice presidents and several managers for each chain store.

6.2 Management Team
CEO: he decides the business strategies of the Kungfu overseas, decides everything concerning the enterprise, he has the equal right with the CEO of Kungfu Chinese, a Chinese American may be the best choice, because it is a position need both knowledge in Chinese food and American culture. Vice-president ①: taking charge of the Marketing Department(including marketing, publicity and feedback) and major responsibility is to make marketing strategies, how and where to publicize the brand, where to locate the chain restaurants, collecting how customers feel about the restaurants’ service and food, any decision making, how to react to customers’ feedback.. And also, he is also charging of the purchase of the food material choosing where to purchase the material and whether to open a farm of its own for providing food material.
Vice-president ②: he takes charge of the Personnel Resources. The employees can be hired locally. For Kungfu restaurants are Chinese fast food restaurants, no highly educated employees are needed. Only the operation workers are needed( like KFC or Mc). And also he provides the training course, Kungfu does not need only operation workers but employees who devote themselves in. he is also in charge of guarding.
Managers of each chain restaurant: their duty is to look after the restaurant, check the attendance and solve the problems needed, they are also need to collect customers’ advises and hand in to the vice president. Decoration of the restaurant to a unique one is also needed if any one is abled.

6.3 Management Team Gaps

As J-Kungfu is a famous Chinese brand, it is very likely to have Chinese people to be the management team of J-Kungfu overseas. It is no benefit in settling down in America. So it is proper to have several Americans in the management team.
To avoid the gaps, the company establishes a series of systems,such as establishing and improving the examination and approval, track-down and feedback systems.Additionally,the company reduces the the communication of hierarchy to convey information faster and accurater.

6.4 Personnel Plans

Employees can be hired where there is a chain store and the company accept part-time job of college students and full-time jobs contracts for 2 years.

Domestic Policies of Export

According to the Eighth Overseas Investment Strategy Forum For Chinese Enterprises, Chinese enterprises are encouraged to export.

The government encourages service exporting enterprises in the practice of authentication work and provides convenience for the transaction of passport, visa , other travel papers and insurance support .What’s more , the government also simplifys the procedures.

According to the Ministry of Finance’s policies, it encourages and support the export of products with Chinese characteristics.

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[1] 真功夫百度百科，2009. http://baike.baidu.com/view/387775.html?wtp=tt