...Analysis As Whole Foods Market, we pride ourselves on providing fresh organic food to our consumers. One of our major strengths is that we have a large emphasis on perishable fresh food, which provides a competitive advantage over some other popular grocery chains, such as Kroger and Wegmans2, whose primary focus is on prepackaged products1. Another strength for our company is that we have the highest sales per square foot in the supermarket industry3, while still keeping our prices competitive. We continue to attract a variety of people, trying to reach different market segments. However with all the success our company has had we do have several weaknesses. One major weakness for Whole Foods Market is that we have a very small international presence at the moment, with only seven stores in Canada and Six in the UK1. The sales from Whole Foods stores outside the United States only contribute 3% to the total revenue on our comapany1. Since we do no have much experience with opening stores internationally this could potentially be a problem when we plan to expand to China. In order to understand the Chinese market Whole Foods Market has analyzed the external factors of the environment. We discovered three opportunities for Whole Foods Market in China. One major opportunity is that there is a growing concern for food safety in China (Appendix Brynn). The standards for food safety vary greatly between provinces; and there have been many recent recalls on food in this country...
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... February 23, 2013 1 1. What is Burger King’s core competency? How does it relate to its chosen strategy? Burger King's core competency is the fact that they are the world's largest flamed-broiled fast food restaurant hands down. Simply put, Burger King's core competency means that they are more competent than their competitors when it comes to producing that type of goods and services. In addition, Burger King stands firm on its core competency of being the best at what it does when it comes to producing hamburgers and flame-broiled fast food. As a result of this strategetic move, it has positioned itself in becoming one of the markets leaders in the fast food restaurant industry. Further, it core competency is based upon its desire to set itself apart their competitors by way of differentiating their products. The differentiation of Burger Kings products are accomplished in two ways as it relates their competitors. First thing to consider is the manner in which the hamburgers are prepared, which is the flamed-broiled method. Secondly, is the various options that is afforded to the customers on how they would like to have their hamburgers prepared. The process has been the means that has allowed Burger King to become one of the market leaders in the industry. 2. How would you explain how Burger King has decided to configure and coordinate its value chain? Which of Burger King’s value chain activities create the most value for the company? The simplest...
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... Jing Li-30131749 Sahil Verma-30115653 Table of Contents EXECUTIVE SUMMARY:- 3 INTRODUCTION:- 4 HOW TO OPERATE SUCCESFULLY IN NEW MARKETS:- 5 COLES GOING INTERNATIONAL:- 6 CHOOSING THE LOCATION:- 7 ENTRY MODE FOR INDIAN MARKET:- 8 DECIDING THE STRATEGY:- 11 ACTION PLAN:- 13 CONCLUSION:- 15 EXECUTIVE SUMMARY:- Every company whether it is small or big would want to expand in the world. The company which we have chosen is Coles which is from Australia. We have taken a strategy of expanding Coles in India. Coles is one of the biggest supermarkets in Australia. Coles should perform a SWOT (Strength, Weaknesses, Opportunities and Threats) analyses before entering in India. Coles has to ask for advice from their marketing consultants for their business growth. After planning the expansion Coles has started to think about location; after considering many factors of the target country like: - political & social climate, tax & regulatory environment, legal system, infrastructure, local workforce, cultural compatibility etc. Coles has decided to go in India. The entry mode which Coles has opted is via joint venture with Reliance Retail limited a well reputed Indian market. It has noticed some cultural and ethical differences with the target country and would have to make some adjustments. In end, we have made an effective action plan for Coles to enter...
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...International Business School Hanze University of Applied Sciences Dutch Food Company Pursuing the Chinese Market Research paper Authors: Nicole Elze, Gediminas Gargasas, Weili Gu, Francia Solórzano Class: MIBM Group A, 2015 - 2016 Group name: SEHCH Date: 11 January 2016 Place: Groningen 0 Abstract The consumer demand for high quality healthy food in East China is increasing and is thus attractive for businesses in the food industry. This paper assessed the Chinese food market from a perspective of a Dutch food company, which is willing to export. Four aspects of international business were covered, namely the involvement in international markets, value chain, dynamic capabilities and marketing. Both perspectives, current theoretical body of knowledge and most recent market information, have been combined to provide a complete and current situation of the food market in China. In the current literature, little is found regarding the Chinese consumer behavior especially towards foreign high quality food. The paper presents the most relevant information on four aspects of international business with an additional focus on marketing and potential clients and distributors in order to lay a foundation for any food exporter willing to export to China. 1 Table of contents 1. Introduction ................................................................................................................................... 3 2. Methodology .....
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...It is necessary for most companies in the world who wish to broaden their business to expand to foreign markets. Thus, companies expanding internationally must consider the environment in their new country. There is no better way to explore said environment than by conducting marketing research in the area so as to formulate the most appropriate marketing strategies. Nevertheless, companies entering a new market still encounter difficulties even if they employ a marketing strategy because they make several critical mistakes in their marketing. Be it cultural misunderstandings, systemic political differences, or a poor understanding of the market conditions in a given country, marketing mistakes damage a company’s ability to enter (Ghauri and Cateora, 2010). While political differences or a poor understanding of the market strongly impact success in a foreign market, the slightly larger issue that multinational corporations encounter are due to cultural misunderstandings. However, the impact that cultural misunderstandings have on success in a foreign market is dependent on the industry in question. In some industries, international marketing mistakes can often be rooted in the lack of understanding of different cultures such as the aspects buying behavior and product preference. Take the retail industry for example, since the purchasing behavior of customers varies by region, foreign retailers might usually make marketing mistakes due to insufficient knowledge of a given region’s...
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...RESEARCH on SUCCESS and MANAGEMENT of ‘JOLLIBEE FOODS CORPORATION’ and its SUBSIDARIES Prepared By: Date: May 3, 2012 Table of Contents 1. INTRODUCTION 3 2. ANALYSIS OF THE COMPANY’S STRATEGIES and MANAGEMENT 4 a. The Financial Statistics 4 b. The Problems and Challenges 5 3. EVALUATION & CONCLUSION 8 WORKS CITED 10 1. INTRODUCTION Jollibee Food Company was established after the oil crisis hit the ice-cream prices since the family company was mainly based on ice-cream production and sales. After Jollibee, one member of the family, decided to diversify into sandwiches; the product started to gain popularity. “The Tans’ hamburger, made to a home-style Philippine recipe developed by Tony’s chef father, quickly became a customer favorite. A year later, with five stores in metropolitan Manila, the family incorporated as Jollibee Foods Corporation.” (Bartlett, 2001) The rapid increase in the number of stores after such a short period indicated how successful Jollibee’s decision has been. In three years, the number stores were doubled and Jollibee had 11 stores. However, together with this success, the problems also started to arise. The entrance of McDonalds into Philippines market was one of the main problems that Jollibee had to deal with. In 1986, when this battle was finally over, Jollibee had reached the number of 31 stores indicating the success of the company’s strategy. After the success of company in the country was proved...
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...Case Analysis: Euro Disney There are many environmental issues that affect businesses when entering a foreign market, the main environmental factors that will be discussed is as follows: technological, economic, social, political, and demographic. Each factor will impact the business different and cause various degrees of impacts on the company and its decision to enter a foreign market. Euro Disney, a foreign division of Walt Disney Company; is located France and opened in 1992 to service the people of France. Researchers had discovered that like the many people in the United States, foreigners also were attracted to the whole them park idea. When Disney decided to launch Euro Disney, many issues were bough up and many environmental issues were faced; in this paper these issues will be briefly discussed. First off the cultural differences that existed between the US and France had to be discussed and worked out, for example the weather in France was an issue when determining rather the park would be a success or not along with the staff who would ultimately become family to the Disney Corporation. Fist off the economic factors, which are usually income, expenses, and resources; that Disney faced when deciding to build Euro Disney were easily noticed and overcame. Issues such as attraction and income it generated played a huge part in the economic factors, in the beginning Euro Disney estimated that during the first year it would attract 11 million visitors achieving...
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...Culture 1. Introduction to Culture 2. How culture affects managerial approaches 3. Trompenaar’s Cultural Dimensions 4. Geert Hofstede’s Cultural Dimensions 5. Cultural challenges when entering a new market 6. Pros and Cons of entering a new market with an adapted/standardized product 7. Characteristics of culture 8. Conclusion 9. Values in Culture 10. Value Similarities and Differences across cultures Introduction to Culture There is no doubt that the international marketing process do face a large set of variables as it take place over different countries and it does act in different environments. One of the most determinant environments to the success of the international marketing process is Culture, which hold the reason for many human acts and behavior. Reaching to that point international marketer should study deeply culture treaties of a country the company is planning to act in. so that special amendments in the organization overall plans and actions is made to act in accordance with the new market variables The role of culture in international business and marketing Culture is a distinctive element of international marketing. While factors besides culture are present, culture could be a key determinant of most overseas relationships. Researchers agree that exchange processes within business networks can only be understood by conducting studies in different countries and cultures. For example, studies...
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...estimated at over £135 million for 1995. Cadbury considers its success is based on three factors: quality, value for money and good advertising. Issue Cadbury Schweppes already has manufacturing plants in 25 countries and sales in further 165 countries. Recently, it is planning to enter the French market with its Dairy Milk product with either of these two methods – 1. As a subsidiary product Cadbury already has production facilities in France in the form of its subsidiary, Chocolate Poulain. The company can use this subsidiary to produce Dairy Milk as well. However, Chocolate Poulain is already producing at near full capacity and changes in production due to Dairy Milk’s introduction will not only affect the sales of Chocolate Poulain, but the whole machines need to be recalibrated. 2. By exporting the product Exporting Dairy Milk to France is also an option since the French market is very close to UK and Cadbury already exports Cadbury Fingers to France. However, the French chocolate industry is dominated by multinational foreign owned groups such as Nestle Rowntree, Lindt and Sprungli, Kraft and General foods, and Mars Alimentraire SA, which all are subsidiaries of foreign groups. Simply exporting Dairy Milk may be insufficient to tackle competition from these leading enterprises....
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...attracted lots of foreign and local hypermarket brand in the market. MYDIN has emerged as one of the local dominant player in wholesale supermarket industry of Malaysia having significant market share over other local and foreign competitors. MYDIN has decided to become multinational because of highly saturated Malaysian market where a lot of competitors are operating. MYDIN has decided to invest in the small south Asian economies where consumerism is increasing at a rapid pace. Market selected is Sri Lanka which is a south Asian peninsula with the population of more than 20 million. External environment analysis of Sri Lanka has been conducted to analyze the driving and restricting forces of doing business in Sri lanka. Sri Lankan economy shows positive and favorable political, economical, social and technological trend which serve as opportunity for foreign investors to invest in the host country. Sri Lankan supermarket and retail industry is still immature and have a lot of potential to growth with the increasing trend of consumerism in Sri Lanka. Despite having a lot of competitors there is no large scale hypermarket mall concept in Sri Lanka providing service quality attributes to Sri Lanaka consumers. The statistics by Nelson on FMCG trend in south Asian market shows positive trend and great potential for consumerism in Sri Lanka. Lewin’s force field analysis has been conducted to analyze the driving and restraining forces of entering Sri Lankan market. By considering all...
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...Introduction Burger King is the world’s largest flame broiled fast food restaurant chain. As of 2011, Burger King operates restaurants in 12,300 locations serving over 11 million guests daily in 76 countries and territories worldwide (Burger King , 2011). Burger King’s core competency is its unique flame-broiled burgers. This process is difficult to imitate and helps differentiates Burger King from other fast food chains that fry their burgers instead. So much so in fact, no other fast food provider flame broils their burgers. In addition, Burger King allows and encourages consumers to customize the unique flame-broiled burgers with options to their liking. This creates a win-win situation for both Burger King and the consumer. Burger King has the benefit of offering a different product and the consumer benefits by having numerous burger options. Although Burger King has expanded its menu selections, they have remained true to their original flame-broiled burgers. This product gives them an advantage over other fast food chains. Facing intense competition and limited growth opportunities domestically, Burger King hopes strengthen their competitive stance through international expansion. By mid 2009, Burger King was not in any of the following countries: France, India, Nigeria, Pakistan and South Africa. Compare these countries as possible future locations for Burger King. In looking for new countries to enter, Burger King needs to identify countries that fit its ideal demographic...
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...| International Business Strategy Report | Mac’s in South Africa | | 4/2/2012 | | Introduction Mac’s Convenience Store Inc. is the largest operator in all of Canada. They offer popular food products and are operated by Couche-Tard. After dominating the Canadian market, Couche-Tard decided to further their market expansion into the United States market and became the second largest convenience chain in North America. Mac’s is such a successful operator simply because they are able to tailor their products and services to the local tastes and needs of the market. Also, Mac’s strong financial position and ability to create value for its shareholders, has increased its feasibility of expanding into the global market. International expansion into South Africa is a promising opportunity for Mac’s. However, South Africa has encountered numerous political barriers from the development of the Apartheid System in 1948 to1994, where non-white inhabitants were stripped of their rights. This unstable environment inhibited their ability to remain competitive and attractive on a global scale. A revolution occurred, as South Africans currently reside in a democracy, and business affairs are expanding through the current development of the Grand Free Trade Area (seeking to improve trade relations). International business can be conducted in a similar manner to Canadian business exchanges due to the newly established legal system, minimized corruption, and strictly regulated...
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...fundamental. Nevertheless, the company grew and after suffering declines in sales and profits the implementation of strategic planning, which was introduced by Michael Miles in late 1975, seemed to be an adequate measure to solve the problems. By 1979, the various programs of the strategic planning progress were beginning to show results. Anyhow, some foreign subsidiaries resisted and didn’t want to adopt these measurements. PROBLEM STATEMENT One of the main problems KFC was facing, was that foreign subsidiaries were not willing to adapt standards – like strategic planning - imposed by the headquarter. Especially KFC-J has been strongly resisting the implementation of administrative operational controls and systems. Should the headquarters be prepared to accept operational variations? Moreover, it had to be clarified what was an appropriate level of performance expectations for overseas units. Even though it was obvious that KFC had to maintain its drive for aggressive growth, there was incertitude about how to ensure the continuance of such growth. Additionally, there was the issue of how to expand into new markets and countries successfully. KFC had very limited positions in Korea, Thailand, Taiwan and Hong Kong, four countries with high potential. They had been under the responsibility of Loy Weston for the past four years, what were the reasons for the slowly progress. Moreover, Mayer was questioning himself what he should do concerning Weston. What would be the right...
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...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,...
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...activities that a company undertakes with regards to its relations with foreign markets. * Internationalization can take many forms, such as investing in a foreign country (foreign direct investment), forming partnerships with foreign companies, subcontracting foreign experts, taking part in international networks, and many more. * Why consider going international? * To increase overall customer base * To offset seasonal fluctuations in local markets * To minimize risk of losing market share to clients who themselves use internet to find goods\ services in overseas markets * To offset increasing costs of doing business at home * To gain prestige with customers at home * Why STARBUCKS? In a globalized world where every company has the opportunity to explore the world in search of other profitable markets, there are different challenges and opportunities faced. I would like to explain this by focusing on Starbucks, one of the world’s leading coffee chains. Starbucks has come a long way from a coffee bean retailer to one of the world’s most recognized coffee houses. All throughout the years, Starbucks have expanded both domestically and internationally. In this answer, I would like to explain about the process of internationalization that Starbucks employed and continues to employ. The aim is to analyze the strategies of Starbucks in entering new markets and expanding internationally. For this answer, instead of choosing an...
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