Chapter 2 Analyzing International Opportunities - International Investigation of Prospective Business Opportunities for Secret Recipe Restaurant
Chapter 2 Analyzing international opportunities
2.0 Introduction
This session discusses the important issues involved in the international investigation of prospective business opportunities for secret recipe restaurant. The screening practice for prospective markets and sites consists of four steps. Initially, companies need to classify the basic appeal of this location. This is proper whether the basis for shaping requires for food and beverages menu or else determines the accessibility of basic resources necessary to take out local activities. Next, companies need to evaluate the country's business environment. This refers to the powers that examine the cultural, political, legal, economic and financial. Third, companies should determine the market or prospective sites, which necessitate the compilation of data as possible. Fourth, companies are obliged to choose the single greatest market or websites, which frequently involve field trips. Firms may face some problems while performing international study:
(1) Problems through the data;
(2) Problems related to the comparative data
(3) The problems caused by cultural dissimilarities between home and target countries.
The secondary International data sources, from international organizations, government agencies, industries, trade associations, service organizations, and internet. The methodology used in carry out the research, including major international trade fairs, trade missions, interviews, focus groups, surveys, and environmental scanning.
2.1 Screening prospective market and sites
The management anxiety problems when examining prospective markets and sites: Keeping costs down search, and check for any prospective markets or locations. The screening progression has four steps:
2.1.1 Identify basic appeal
The first step in determining the prospective market appeal is the basis for estimating the demand for the secret recipe menu. Related determine standard appeal involves assessing the prospective resources needed.
1. Determine the demand base
a. The first step means finding out if there is demand for the secret recipe menu. Suitability national climate is important in determining demand.
2. Determine the Availability of Resources
a. Raw materials to serve food must be found either in the country or imported. Imports may have high tariffs, quotas, or other government restrictions imposed.
b. Availability of labor is essential for the operation of any country.
c. Financing can be a driving force for the restaurant operation abroad
d. Market and does not qualify aborted site.
2.1.2 Assess the national business environment
If culture, politics, law, and economics all countries are the same, to make decision where to market or produce will be easier. International managers of secret recipe need to understand these differences and combine it into a market perception and sitting decisions.
1. Cultural Forces
Countries are different in language, attitude to operation, religious beliefs, ethnicity, and traditions. Culture manipulate the outcome of the site selection process, companies sometimes detect the menu on the domestic market when changes need to be made to the physical characteristics of restaurant menu for reasons of culture. Cultural elements such as work ethics, educational attainment, or level of management skills locals influence site selection decision.
2. Political and Legal Forces
Political forces in addition to the law too played a function in the market and site selection.
- Government Regulation
Nations be different in their position in the direction of trade and investment based on culture, their history, and present actions. A government's approach towards trade and investment is be a sign of in the amount and types of limitations it puts on imports. Government rules can promptly get rid of the market or from more reflection. They make barriers to investment to make sure local organize of the company or industry by imposing the regulations on the ownership of the investment business.
- Government Bureaucracy
A bureaucracy lean with smooth operation can push investment whereas the ineffective, complicated, or corruption be able to promote it. Companies resolve last bureaucracy is ineffective if the profit outweigh the costs inefficiency.
- Political Stability
International companies need to examine political actions that pressure upcoming operations and earnings. Political risk might pressure the actions of any type of international business activities. The key factor of political risk is an unforeseen political change. Companies can obtain information on the political risks independent agencies-risk political and international associations’ scholars, political leaders, union leaders, journalists, consultants, and banks.