International Fast Food Franchises
This is an excerpt from the paper...
Recent innovations in communications and technology have made it possible for companies located in one country to easily conduct business in another country. Traditionally, international expansion has been the focus of manufacturing companies who export or produce products overseas for sale in foreign countries. Services are more difficult to export because of the difference in culture and language. One industry which straddles the definition of service and manufacturer is the fast food industry, which is an American invention and which has changed the way Americans eat and interact. Successful franchise operations such as McDonald's and Kentucky Fried Chicken (KFC) have made inroads in countries as diverse as China, India and Estonia (Lawrence, 1994, p. 46; Gordon, 1995, p. 0403CL040; Connolly, 1995, p. 510CL013). This research examines the reasons for international expansion, and considers the advantages and disadvantages for expanding fast food operations into foreign markets.General Factors to Consider in International Expansion The primary reason that fast food operators expand into the overseas market is the saturation of the American market and the large potential that the foreign market holds. The number of international units operated by American chains grew 39 percent during the late 1980s, and significant expansion continued through the early and mid-1990s. The top 100 restaurant chains increased their international unit count by 11 percent
. . .
ons with the result that the expansion can be made without significant changes to the operation.
ZuZu, a Mexican food operation, took advantage of the tunnel connecting England and France to successfully obtain the right to market its products in Europe. By gaining the Chunnel concession in a much larger (4,000 square foot) facility than it typically uses, the company has gained an impressive foothold in Europe where Spanish and Mexican foods have already been introduced (Ruggless, 1995, p. 3).
However, ZuZu will have to face problems in Western Europe that plague other American companies both in fast food and in other industries. The labor force is unstable, real estate prices are high, and the economy is only now recovering from an earlier recession. The increased emphasis on the European Community is also putting American companies and operations in a highly defensive position as they try to sell their wares without appearing to be trying to co-opt European cultures. The result is that companies expanding into Western Europe are highly sensitive to factors that can influence their success or failure, such as high prices or menus that do not cater to local tastes.
Advantages of International Operations
The biggest advant
. . .
Some common words found in the essay are:
International Expansion, KFC Japan, Operations Besides, International Operations, West Midwest, Europe United, Fried Chicken, Regional Considerations, Introduction Recent, WB3 American, fast food, american companies, international expansion, international operations, american fast food, american fast, fast food operations, international market, food operations, lawrence 1994, local suppliers, food operators, fast food operators, increase market share, lawrence 1994 46,
Approximate Word count = 2035
Approximate Pages = 8 (250 words per page)
More Essays on International Fast Food Franchises
|
Customer Service
to Over
32,000 Professionally Written Papers!!!
