For this project you will first need to choose one of the following fictional U.S. based restaurant/food service companies considering international expansion:
- Carl’s Coffee– Similar to Starbuck’s, Caribou, Peet’s, etc., Carl’s offers coffee beverages and related food items at higher quality and price points than fast food restaurants. The average check is about $5 per person. Like similar chains, Carl’s is considered an affordable luxury by many of its customers. Many make Carl’s a daily habit. The stores and company image have a friendly American vibe that also celebrates the countries where their coffee is grown.
- Pete’s Pizza– Pete’s is a premium product offered at a premium price and does not compete directly with Domino’s, Pizza Hut, Papa John’s, etc. Their pizza is based on Neapolitan pizza (a style of pizza enjoyed in Naples, Italy.) They also offer high quality salads, side dishes and beverages. The average check is about $16 per person. Most customers eat at Pete’s between once and four times per month. Their stores do not deliver or permit customers to call ahead. Orders are taken at a central counter and then pizza is delivered to the customer’s table or boxed and handed to take out customers. Waits are short because they use very hot wood ovens that can bake a pizza in just a couple of minutes – just like restaurants in Naples.
- Kate’s Fried Chicken– This chain has been successful positioned as a fast casual restaurant specializing in fried chicken and a related menu items in the fast casual restaurant category in the U.S., as opposed to the fast food category where KFC, Popeye’s, etc. compete. Its prices are definitely higher than KFC or Popeye’s, with typical dine-in checks averaging about $11 per person.
- Betty’s Burgers– This chain specializes in gourmet hamburgers in a comfortable atmosphere, along with high quality French fires, sweet potato fries and onion rings. Most stores offer beverages ranging from beer to milk shakes. They offer takeout, but most of their business is dine-in. The average check is about $15 per person.
All four companies sell directly to consumers from their stores located throughout the U.S. Customers of all four chains skew above average in income, but there are also many customers of more modest means. All of the firms also appeal to a wide age range, from students to seniors. Each company has about 500 stores in the U.S., with a mix of about 90% franchised and 10% company owned locations. All of the companies are doing well in the U.S., but want to start international expansion before they run out of places to expand within the U.S.
Your job is to research and analyze potential countries for international expansion of your chosen company. Use the CIA World Fact Book available online athttps://www.cia.gov/library/publications/the-world-factbook/geos/xx.html(Links to an external site.)and possibly other sources for basic data and general information on each country considered. Supplement those data with information from business and general news sources about competitors and consumer dining habits in various countries, as well as cultural issues, changing consumer preferences, etc. You may also find some secondary market research available online.
Your paper must reflect the 4-step analysis process illustrated on pages 298 through 210 of the text. Use the results you obtain to recommend the first 5 markets (countries) where your company should focus its initial expansion efforts. Be sure to discuss all 4 steps of the analysis process as they apply to your chosen firm, and explain why you settled on the 5 markets for expansion. In addition, recommend the entry mode (see Chapter 13 in text) your firm should use to enter the selected markets, and explain why that entry mode should be used.
Your analysis should be fact based, logical and well explained. Saying something like “I think France is best” is not acceptable. You will have to say why it is one of your 5 recommended markets and back up your recommendation with high quality information source(s) cited in your paper. High quality information sources do not include Wikipedia, random bloggers, etc. They generally would include articles from major trade publications related to the industry, general business publications, reports from major consulting firms (McKinsey, Deloitte, etc.), annual reports of publicly traded competitors, etc.
The paper should be between 1,200 and 1,500 words. It should include maps, tables and graphs as needed to convey the information used to develop your recommendations. Be sure to use APA style for spacing, page formatting, section headings, tables, figures, citations and reference list. You donotneed to include a title page, abstract, or other APA style conventions useful for longer papers.