International Business Research 2022

International Business; First Food Industry 1
INTERNATIONAL BUSINESS; FIRST FOOD INDUSTRY
By (Student’s name)
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International Business; First Food Industry 2
INTERNATIONAL BUSINESS; FIRST FOOD INDUSTRY
Selected article: Quick service restaurant
https://www.thestar.com.my/metro/community/2017/08/28/restaurant-expands-its-presence-
internationally
Introduction
Due to the increasing globalization of business entities, the study of international
business is essential to understand the various mechanisms, strategies, or modes of business
sustainability exploited by various businesses. Firstly, international business is a diverse
approach to understanding international business activities; for instance, it involves the exchange
of goods and services, technology, capital, labour, and economic resources across national
jurisdictions (Morschett, Dirk, Hanna Schramm-Klein, and Joachim Zentes 2015. Along the
course of international business, the significant trends that have happened can be mainly
categorized into two.
The first trend is associated with the continued elimination of barriers in the international
markets. Market barriers have always posed a set back to the development of international
business; therefore, the elimination of barriers has aimed at maximizing the smooth flow of
international trade activities. Another trend in international business has been the continuous
development of technology. Notably, this technology has had significant impacts on marketing
and advertising, information processing, smoothening of operation procedures, and establishment
of multiple business solutions (Cravino and Levchenko 2017).
It is also profound that the international market exhibits challenges as well; to curb the
challenges, the business also exploits various modes of market entry to uphold profits and cost

International Business; First Food Industry 3
minimization. Some of these modes include exporting, turnkey projects, licensing, and
franchising, among others. In this analysis, we understand these concepts of IB using a case
scenario of Malaysia’s Marry brown
Background of the company
Marry brown is a fast-food venture that was initiated in 1981. In its over 350 chains of
stores globally, the company has mostly offered dishes ranging from; Malaysian local dishes like
seafood, nasi lamek, finger foods, burgers, and desserts (Neelankavil 2015). Moreover, the
company was founded by a Chinese couple. The organizational headquarters of the fast-food
company is in Dewani industrial park, Johor Bahru. Some of the organization's core values
entailed in the mission of the restaurant include; product quality, continuous development, and
innovativeness, and exceptional customer service.
A summary outline of the company and its global host countries is indicated below;
Origin Malaysia, Johor Bahru
Year of establishment 1981 (38 Years ago)
Market industry Fast foods
Other Outlets Globally YEAR
Malaysia 1981
Singapore 1990,2015
Brunei 1990,2014
China 1992
India 1999
Sri Lanka 1999
Bahrain 2000

International Business; First Food Industry 4
Kuwait 2000
Qatar 2000
Saudi Arabia 2000
United Arab emirates 2000
Iran 2005
Syria 2005
Azerbaijan 2009
Maldives 2011
Indonesia 2012
Myanmar 2013
Thailand 2015
Tanzania 2008
Central African republic 2016
Notably, there is a cross-cutting factor in the expansion plan of the restaurant; mainly, it
targets Muslim territories with a single test and desire for the western halal dishes. Some of the
organizational achievements besides the upward trend in its revenue include being a winner of
multiple local and global franchise industry awards; in addition, it is among the world's most
know halal QSR ventures.
Before we evaluate the various modes used by the company in international business, a
prior understanding of the several conventional modes of international business is vital for
instance, these modes include; direct exporting which involves direct exports of the company

International Business; First Food Industry 5
products to oversee markets, joint ventures which primarily require company's seeking to expand
oversees to merge with local venture. Moreover, strategic acquisition involved control of
particular interests or a factor of production in a company oversees. Foreign direct investment is
also a mode that involved direct injection of capital investment into owning a business venture in
another country. Lastly, franchising, which is the most adopted mode by Marry brown
restaurants, involves granting rights for a local venture to operate under the brand (Meyer and
Peng 2016).
Research on the business environment of Malaysia
Malaysia is a country in the Asian continent with an approximate population index of 32
million people with a 51 to 48 male to female ratio according to the UN statistics. The country is
also an upper-middle-income economy with a nominal GDP of $354 billion. The country also
boasts of a skilled workforce, mainly in the service industry. Some of the most exploited
industries in the economy include; electronics, automotive industry, finance and petroleum
sectors, semi-conductors and rubber manufacturing, pharmaceuticals, and medical equipment,
among others.
As of 2016, the country had remarkable market reconciliation strategies. Objectively, to
improve the business environment in the country as a motivator of foreign investment and
international business activities. Regarding this business enhancement strategies, Malaysia was
ranked 29th worldwide in terms of economic freedom. Basing on the implemented strategies, the
significant areas of improvement to streamline the business market and activities simultaneously
entailed applicability and suitability of business laws and market regulatory policies, enhancing
the freedom of market activities and also government spending (Rashid, Rani, Yusuf, and Shaari
2015). Nevertheless, to assure the feasibility of the country’s objective as one of the most

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dynamic, robust, and resilient economies globally, Malaysia has also unceasingly addressed
some of the common challenges in its business, market environments, and even the government
system. For instance, some of these challenges include corruption and reduced access to business
funding.
Besides, being in the Southeast Asian continent, Malaysia is ranked among the fastest
emerging markets among other countries in different continents, Furthermore, its market
economy is made suitable for international business because of various reasons; prudently, the
cost of operation in terms of business expenses and overheads is low, this, therefore, makes the
country a low-cost alternative for investors. Also, most investors in the country reveal there is
ease of doing business in Malaysia due to better business laws and positive market trends.
Malaysia is also a competitive market according to the World Economic Forum which
ranks the country at position 25 out of 138 globally, the competitiveness of the market in the
country can also be attributed to both the economic development and growth. This development
is indicated in the strength of various growth indicators in the country, including; strong
institutions, enhanced infrastructural development, enhanced macroeconomic prospects, and
social welfare institutions like healthcare and education (Ho, Ahmad, and Ramayah 2016).
Furthermore, another reason that justifies the suitability of the Malaysian market is the
existence of business promoting institutions like MIDA, whose primary objective is to ensure a
sufficient investment environment. Therefore, MIDA streamlines this investment environment
by regulating aspects that pose barriers to the globalization of market and business activities.
Such prospects include; harmonization of the tax incentives and enhancing accessibility to
government business loans and grants for foreign investors as wells. Moreover, MIDA also notes
that there are several transformations in Malaysia that are aimed at attaining the anticipated

International Business; First Food Industry 7
market diversity and strength as of the year 2020. Besides the anticipation of the spread of such a
market revolution mechanism all over the economic pillars of Malaysia, so far these changes are
notable in some domains of the country’s economic wellbeing for example; political
administration, management of the public sector and support for Malaysian small, medium and
multinational businesses.
Research on the business environment in China
China is undeniably one of the most developed economies in the world, since undergoing
market rehabilitation procedure in the 1970s. The Chinese grow rate since then has been steady
up to 6.6% in 2018. This economic power is owed to various factors that significantly impact the
behaviour of the Chinese markets. Some of the factors primarily include the Vast and diverse
Chinese market, the stability in multiple industry's existing in the country, the harmonized
market regulations that have influenced massive foreign investment in China. Some minor
challenges that exhibit operation in the Chinese market, the market is considered to be among
one of the most preferable by investors globally. Therefore, this makes china a significant centre
and market in international business.
Notably, China has a population of up to 1.4 billion people instantly; this provides a
massive consumer market whose demand generates much revenue. The purchasing power of the
population is also demonstrated in the high per capita income of the population, For instance,
china’s per capita income is $8,738, and this is also a vital indicator of the market superiority in
the economy, another reason for increased foreign investments (Kirkby 2018).
Besides the country having a having savings rate more than any other country, the
Chinese economic strength can be significantly epitomized in various sectors of the economy.
Some of the significant industries that dominate include the banking industry. For instance,

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several Chinese banks are regarded among top business entities globally by Forbes. The
industries are mining, manufacturing, automobile, constructions, and power, among others.
Notably, the manufacturing industry in China contributes up to 40% of the gross
domestic product in China. This market diversity, among other factors like; market
competitiveness, stability, and suitability of regulatory laws, makes china an excellent
destination for world investment. These factors also indicate why to Marry brown bhd choose to
exploit the markets as well (Shobande and Shodipe 2019).
Some of the significant issues that have affected the Chinese economy and the wellbeing
of international business in china are the trade wars. For instance, the tit for tat nature of trade
tariffs imposed by both the US and Chinese governments has influenced in revenues. Notably,
recent reports indicate that the trade wars have cost the US $110 Billion, whereas the same
setting backs China $250 billion in revenues. The most affected in these tariffs are mostly
multinational corporations affiliated to China and the USA that exploit markets in both countries.
This was a case apple Inc. for instance; the US-based company attributed profit downfall to the
trade wars (Zander, McDougall-Covin and Rose 2018).
Research analysis on the Quick services and fast foods industry in Malaysia
The fast-food industry in Malaysia is quite vast. Moreover, the market is also exploited
by various fast food brands, both domestically and from foreign countries. Furthermore, there are
also various factors that have impacted the growth of the industry for decades. Besides, the
presence and growth of the industry in the company have contributed to the economic state of
Malaysia positively with brands like McDonald’s, Malaysia still working on more stores by the
year 2025. Therefore, endless opportunities seem to emerge in the industry with the growing
economic, social, and technological dimensions of the country. Furthermore, this will also utilize

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the labour market in the country. The fast-food revenues in 2018 in Malaysia rose up to $261
million
Various reasons have also impacted the strong presence and growth of the fast-food
industry in Malaysia. Notably, they include; the increased adoption of English language in
business activities across the country, multiculturalism of the country whereby 6 out 10 people
are Muslims in Malaysia which makes the demand for Halal dishes individual, the young and
urban population that form a better portion of the market in the country, this young populations
which is mostly city dwellers under 30 years also exhibit a reasonably stable purchasing power,
in addition, widespread reception of global brands that have exploited the consumers,
Furthermore, most people in the country also have tendency of relying on fast foods, research in
Malaysia indicates that 87 % of the population uses the services of fast foods at least every week.
This percentage is in comparison to the 74% determined globally (Quoquab, Sadom, and
Mohammad 2019).
Out of the top 25 chain store in Malaysia, 14 are wholly Malaysian, 10 are American and
one is south African Some of the notable brands in the Malaysian fast food industry include;
QSR brands, KFC, McDonald's, Pizza Hut, Nando’s, Burger King, Subway, Domino’s, Heavens
park, Marry brown among others. These brands mostly deal with fast foods and beverages. The
market stability of the industry has boosted the choice of Malaysia as a fast-food investment
destination.
Conclusion
In conclusion, international business is broad in scope; diversity is also portrayed in the
difference in business environments across the globe. Globalization strategies like coming up

International Business; First Food Industry 10
with international accounting standards have also been exploited in the global market; however,
besides the quest to finding a long term solution to cohesiveness in the international markets, this
existing diversity and varying costs of operation in the business environments globally has also
influenced foreign investments. As indicated in the paper, the sustainability methods
incorporated in the practices of international business also vary according to the organizational
business model and objectives; however, with the use of available modes of market entry,
businesses across the globe have enhanced their worth through globalization as indicated in the
case research involving Mary brown.
References
Cravino, J. and Levchenko, A.A., 2017. Multinational firms and international business cycle
transmission. The Quarterly Journal of Economics, 132(2), pp.921-962
Ho, T.C., Ahmad, N.H. and Ramayah, T., 2016. Competitive capabilities and business
performance among manufacturing SMEs: Evidence from an emerging economy,
Malaysia. Journal of Asia-Pacific Business, 17(1), pp.37-58.
Kirkby, R.J., 2018. Urbanization in China: town and country in a developing economy 1949-
2000 AD. Routledge.
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning
Morschett, Dirk, Hanna Schramm-Klein, and Joachim Zentes., 2015.. Strategic international
management. Springer,

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Neelankavil, J.P., 2015. International business research. Rout ledge.
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Shobande, O.A. And Shodipe, O.T., 2019. Mechanics of Investment Drivers in Chinese
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