International Business Expansion: A Case Study of Casa Pastor in UAE-Dubai

This report discusses the expansion of Casa Pastor's business in the international market, specifically in UAE-Dubai. It includes the rationale for going international, market entry strategies, barriers in international expansion, and implementation approach for internationalization.

INTERNATIONAL
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Let's discuss the rationale of a business to go in international market:.......................................3
UAE- DUBAI TO START OF INTERNATIONAL BUSINESS:..............................................4
MARKET ENTRY STRATEGIES FOR THE CASA PASTOR:...............................................5
Barriers in international expansion..............................................................................................7
Implementation approach for internationalization.......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
CASA PASTOR:
This a Mexican, Latin and vegetarian friendly restaurant functioning in the Coal Drops Yard
Unit 25-27, London N1C 4DQ England. This restaurant is a bigger and bolder sibling restaurant
of El-pastor restaurant functioning in the borough market. And this is famous for its tortillas
made of Mexican corns and a sea food specialist. In the further report it is discussed the
expansion of the CASA PASTOR'S business in the international market and the report also
includes the which country the restaurant is expanding its business and what all entry strategies
would be adopted by the business to function in the international markets of “UAE” as it is a
developed and well-organized country to start the business in with a restaurant line up(Aguilera,
et.al 2020). It will be discussed under that how moving in international market will be helping
the restaurant to grow out its reach in the international market and what all advantages and dis
advantages would be faced by the business in new working environment. The report will also be
including the barriers being faced by the organization in expanding internationally and further
the implementation approach for the internationalization process analysis for the specified
targeted market will be given in the further report.
MAIN BODY
Let's discuss the rationale of a business to go in international market:
1. New markets opportunities: As of the opportunity to grow the business outside the
local territories it generates the benefits of conquering the new business territories and in
increasing the number of consumers and these provide the benefit to the business of
CASA PASTOR by expanding its business in DUBAI.
2. Diversification: The thought of going international of the CASA PASTOR will be
providing the number of benefits to the business in diversified ways including
diversification of their assets. By going international it will help the business to maintain
its healthy and positive revenue generation.
3. Accessibility to talent: Going into the global market conditions and the country like
UAE provide the top prioritized benefits to the business by bring in new talent which will

be having the new talents and in so much cases the international employees can provide
the numbers of benefits like increasing productivity, diversified educational background,
etc.
4. Competitive advantages: The business of the CASA PASTOR by moving to the
“Dubai, UAE” it will be having the first mover advantage over its local competitive
firms. It will be helping the restaurant to build over the strong brand image locally and
internationally as well. It will also help in acquiring the new tech and imdustrial
ecosystem.
5. Opportunities for foreign investment: The shift of business in the international market
can have an extravagant opportunity of foreign investment in to the business and can help
in developing the new resources and the CASA PASTOR can grow its connection by
operating in the global markets. The CASA PASTOR can also have benefits of lucrative
opportunities which are not present in its present home country.
UAE- DUBAI TO START OF INTERNATIONAL BUSINESS:
Let's discuss critically why this market is beneficial to start internationally:
1. Ease of business set up: As of the environment in Dubai is evolved with technology and
have the co-operative government, this thing makes starting of business in Dubai an easy
step but the rules and regulation over there is very tough one to cope up.
2. Recruitment of expatriate employees: Dubai is one of the most popular business hub
due to increased popularity in the fields of tourism, logistics, hospitality, etc. and as this
step for setting up the business in the Arabian nation will help the CASA PASTOR to
reap off number of profits.
3. No taxation: One of the most prior benefit of starting a business in Dubai is the Dubai's
no taxation policy(Califano, and Spinks, 2021). As it offers complete exemptions on the
taxes, though in some cases it is availed up 5% of VAT on some business activities
performed in their boundaries.
4. More numbers of free zones: The chance is given to start the business to the outsiders
like CASA PASTOR in either main lands or in the free zones offered by the country of
UAE in the DUBAI. Selection of mainland can provide plenty of benefits to dine
business of CASA PASTOR as compared to operate in free zones.

5. Technological advancements: Being the most advanced in the digitalization facilities
the capital city of UAE is on another advancement levels, these technological measures
would be benefiting the firm CASA PASTOR to make its business more innovative and
taking it to the technological advance level for conducting the business(Wong, et.al
2022).
6. Beneficial geographical territory: By connecting to all the geographical boundaries of
east west north and south Dubai makes up the natural bridge for its producers,
manufacturers and suppliers. This will make the import and export of all required
resources easy for the restaurant business of CASA PASTOR.
7. Top-notch infrastructure: With the evolved and still developing infrastructure it is
known to the world that Dubai have a huge developing infrastructure rates which will
help the business restaurant business to grow on rapid pace as the great facilities are
provided in their indulging the good public transport, great telecommunication facilities,
etc.
8. Qualitative and comfortable lifestyle: Having diverse community, cultures, and
religion related people help the environment of Dubai to be the place where people are
interested in the prime shopping and services. These factors will benefit the CASA
PASTOR to develop the good brand name in there but it will take time to print the brand
image in such diversified conditions.
9. Visa obtaining process: As the CASA PASTOR will move to dubai for expansion of
business the visa should be obtained by them to set up the business in there and the visa
can be easily obtained in UAE based on employment purpose or residential purpose but
the main concern is about to find the place to start the business.
10. Government support: The beneficial policies implemented by the government of Dubai
keeps amending rules and the regulation for ensuring the quality promised by the
business operator to deliver to the customers. These factors also the organization by
increasing the business opportunities.
MARKET ENTRY STRATEGIES FOR THE CASA PASTOR:
1. Exporting: Exporting is said to be one of the easiest way to enter the international
markets as it includes the exportation of the products either by using the direct trade
method or by indirect methods as agent. By using this method of entry to the market the

CASA PASTOR would enjoy some beneficial advantages like fast entry in the market
and low risk factors by adopting the factor of exporting the product in to the local
language of the country.
2. Licensing and franchising: This factor of market entry is a specialized mode of entry
into the international market where this term refers to the agreement in between
franchisor and the franchisee where the latter is enjoyed by the franchisor and not the
franchisee as of fee paid to control the process and licensing is just for the products and
goods(Lee, et.al , 2018). The firm will be experiencing the fast entry at low cost with low
risk but it would have a disadvantage as the licensee can become the competitor and
control can be loosened.
3. Partnership: The term partnership means association of peoples indulging themselves
into the activity(Cho, et.al 2018). The way to enter the market of UAE with a local
partner can help in numerous way and can provide the advantages by reducing the cost of
investment needed and firm can be seen as local entity but it has disadvantage as it
requires high costs to invest-in.
4. Acquisition: The term acquisition is defined as a transaction between companies where
holding company purchases the part of the subsidiary company's shares. Acquisition is
seen as the good entry strategy when the scale is in need(Mun,et.al 2021). As when the
CASA PASTOR enters the competitive market of UAE under its developed infrastructure
it will have a known established operation advantage but can face high integration issues
with home office which leads to the disadvantage factor for the firm.
As for the business of THE CASA PASTOR the franchising strategy for entering the new market
conditions of the UAE would be more beneficial as compared to the different marketing
strategies like: exporting, partnership, and acquisition. As the business in the food chain and f&b
markets works well under the franchising model. Franchising provides the different types of
benefits as stated under:
 Brand recognition
 Buying power
 Lowered failure rates
 Profitability
 Low risks

 Built in customer's base
 Business assistance
The reason behind not choosing the other strategies for the business expansion of THE CASA
PASTOR in the markets of UAE-DUBAI are stated below:
 Lack of relativity in the regulation.
 Unlimited liabilities.
 Low productivity.
 Damage to brand value.
 Clash in between the objective and the company.
 Higher rates of up-front costs.
 Product adaptations.
 Multi-currency payments.
So, the franchising for the business model of THE CASA PASTOR will be more beneficial to
move the market in the international market of the UAE-DUBAI in comparison to the other entry
strategies like exporting, partnership, and acquisitions which will be including more risk(Jung,
et.al 2018).
Barriers in international expansion
Barriers basically refer to obstacles or hindrances that make entering a given new market
for a firm difficult (Kahiya., 2018). These barriers might arise naturally due to the market
characteristics, or they may be imposed by the existing firms in the market by artificial means.
For firms that desire or plan to operate on an international level, it is necessary for them to
analyse and examine all the market conditions present in the market of the country they want to
expand their business to. There are a wide range of barriers that affect the entry and existence of
the companies in the new market. Some major barriers that will impact Casa Pastor while
entering the market of UAE are discussed further:
Cultural differences
Culture refers to each and every way of life such as beliefs, institutions, arts, needs,
demands, values, etc. of the population which are usually passed down from generations. Every
country has its own set of cultures that it has been following, these give a notion of respect and
pride for the country (Protsyk., 2021). When a company plans on expanding its operational bases

to different countries, exploring and evaluating the cultures followed by the particular countries
the company is planning to expand to is a very essential aspect that has to be considered.
The UAE is a Muslim country that is deeply and extremely religious. The country
therefore has a set of strict rules and regulations that the companies have to follow regarding
particular types of ethics and behaviours. These can be like, eating in a public place during
Ramadan, immodest dressing of women, etc. can attract the government's attention. Companies
that are inclined towards navigating and embracing these cultural differences are welcomed in
the UAE with open arms. Cultural differences may hinder the working of the company if not
tackled and evaluated in an efficient manner.
Language barriers
Language refers to the way through which people communicate with each other. Each
country has its own unique language, which is the most popular and used language in the country
(Kadede. Ouma. and Pavlyuk., 2021). When a company crosses its domestic boundaries and
enters the international market it has to have knowledge regarding the languages used in the
countries it is planning its expansion to. English is a universally accepted language, and used in
mostly every country around the world. But rather than that a company should have knowledge
regarding the domestic languages of the countries too.
Due to change in languages it gets difficult for companies to communicate with its
customers in a way that the customer understands and feels connected to the company. Also, the
employees of the company based in different nations will not be able to communicate their
problems and understand the decisions or guidelines passed by the management. For example, in
the case of UAE, Arabic is the native language, but because it is a base for companies from
different regions of the world, people generally use English too. But it is a good option to invest
in interpreters and employees who know the native language and the common language to have a
better and remarkable impact on the customers, local employees and the government of the
country.
Tax environment
Tax environment refers to the legal rule and regulations that are used to determine the
percentage, amounts and types of taxes that are specified in the laws that are applicable and the
payment and imposition of the same (Nikolai. and Berberov., 2021). The tax structure of every
company is different, similarly the tax structure of every country is different, which means that a

company has to pay different amounts and different types of taxes in accordance to the country it
is operating in. This has to evaluated before the company enters the market so that the company
is aware about the taxes and the policies. Due to change in regulations and tax rates it becomes
tough for companies to expand in other countries, but through effective evaluation of the market
the companies can do so more effectively and easily.
UAE is known to be a country that is mostly tax-free, but the country introduced VAT in
the year 2018 for the very fist time. The VAT rate has not impacted the business cost on a huge
level by being very low. The VAT rates might be low but if the businesses do not pay that on
time, the respective companies will have to pay penalties and other fines too.
Work permits and visas
To travel to a different country it is necessary to have a visa of the particular country. But
when the travelling or shifting is work related, the individuals require to have a work visa
necessarily (Valenta. and et.al., 2020). Work permit or work visa is basically an official and legal
document which provides permission to the individual to work in a particular country.
Sometimes, the proficient employees of the company require travelling to the new location, but
due to lack of issuance of the work permits at times, they are not able to do so. Also, issuing
these can be a time-consuming and expensive procedure.
UAE being a young country, has a strict rule of requiring a work permit and a resident permit for
the foreign workers, also their renewal has to be done on time too.
Implementation approach for internationalization
Internationalization refers to the process which focuses on designing the products for
precisely meeting the needs of the users from the countries where a particular business has done
its expansion (Aguilera. And et.al., 2020). Through internationalization the companies are able to
achieve a true sense of independence from the domestic markets, can focus on broader market
areas and it also supports in growth of the company's image and reputation within domestic and
international markets.
Internationalization basically has three approaches which means it is categorized into
three subdivisions; these categories are, compile time internationalization, run time
internationalization and link time internationalization (Mikić. Primorac. and Kozina., 2016). The
approaches are chosen in accordance to the target market and the decided place chosen for
expansion of business. In this case study of Casa Pastor, the restaurant has decided to expand its

boundaries to the UAE, which means its target market has totally changed and after the
expansion its target market is basically the people who reside in UAE and work according the
cultures of the United Arab Emirates in most cases.
Therefore, in this case the most suitable approach for internationalization is the link time
internationalization approach or technique. Unlike other approaches of internationalization the
main motive or goal of the link time internationalization is extraction of each and every
information related or regarding the language and culture of the country the business is
expanding to. It basically means that the business should first internationalize, and then localize,
which means that the business that is doing expansion should first expand to the particular
countries that are desired, and then localize according to the place they have expanded their
business to.
The cultures of UAE and UK are very different regarding language, beliefs, values, food
preferences, etc. hence it is very important for the company to first examine or evaluate the
cultures and languages of the United Arab Emirates, also, for the people of UAE culture is a very
important aspect of their lives, as it is a very religious country. Therefore, it is very necessary for
any company that expands to the UAE to analyse every essential aspect of the country's culture
and link time internationalization approach supports this procedure. This is the reason why Casa
Pastor, needs to adopt this approach of internationalization at the time of expansion to the UAE.
CONCLUSION
Any organization needs to expand in order to succeed. The expansion should not only be
within the country but also cross the boundaries of the country and become international. The
above discussion provides information about a company named Casa Pastor which is based in
London, UK but wants to expand its operational base in the UAE too. The discussion precisely
gives brief introduction about the company and the reasons due to which it is planning to become
international. Further the description of the country it is planning to expand to which is UAE is
given above, also the reasons why the company chose to do expansion in the United Arab
Emirates and its impact are also discussed. Also, the problems and barriers that are faced while
international expansion are discussed above. Lastly, the process of internationalization and the
most suitable approaches according to the company's target market in UAE are discussed above.

REFERENCES
Books and Journals
Aguilera, R.V. And et.al., 2020. Business groups and internationalization: Effective
identification and future agenda. Journal of World Business, 55(4), p.101050.
Aguilera, R.V.,et.al 2020. Business groups and internationalization: Effective identification and
future agenda. Journal of World Business. 55(4). p.101050.
Califano, G. and Spinks, D., 2021. United Arab Emirates (Dubai). In Adopting Agile Across
Borders. (pp. 217-222). Apress, Berkeley, CA.
Cho, M., et.al 2018. Partnership strength and diversity with suppliers: Effects upon independent
restaurant product innovation and performance. International Journal of Contemporary
Hospitality Management.
Jung, S.,et.al 2018. Internationalization as a determinant of systematic risk: the role of restaurant
type. International Journal of Contemporary Hospitality Management.
Kadede, E.A., Ouma, V.J. and Pavlyuk, E.S., 2021. LANGUAGE RELATED BARRIERS IN
INTERNATIONAL BUSINESS.
Kahiya, E.T., 2018. Five decades of research on export barriers: Review and future
directions. International Business Review. 27(6). pp.1172-1188.
Lee, W.S. et.al , 2018. The upper echelon effect on restaurant franchising: the moderating role of
internationalization. International Journal of Culture, Tourism and Hospitality
Research.
Mikić, M., Primorac, D. and Kozina, G., 2016. Determining the link between internationalization
and business performance of SMEs. Tehnički vjesnik. 23(4). pp.1201-1206.
Mun, S.G.,et.al 2021. Which Type of M&A Makes an Acquiring Restaurant Firm a Star? Profit-
Driven Versus Growth-Driven M&A. Cornell Hospitality Quarterly.
p.1938965520979174.
Nikolai, M. and Berberov, A., 2021. Challenges of international business taxation in the context
of digitalization (No. ppaper-2021-1138).
Protsyk, V., 2021. Cultural barriers in international business negotiation.
Valenta, M. and et.al., 2020. Temporary labour–migration system and long–term residence
strategies in the United Arab Emirates. International Migration. 58(1). pp.182-197.
Wong, I.A.,et.al 2022. Smart dining, smart restaurant, and smart service quality (SSQ).
International Journal of Contemporary Hospitality Management.