Esteria: Globalization's Opportunities and Challenges for Expansion

This report examines Esteria, a small Australian restaurant, and its potential for global expansion. It begins with an executive summary and introduction, followed by an explanation of globalization and its impact on businesses. The report explores how Esteria can market its services globally, emphasizing the importance of online media and advertising. It highlights the benefits of hiring local people and promoting employee diversity and training. The analysis identifies opportunities such as expanded ingredient options, marketing potential, and increased revenue. Challenges including increased risk, changing customer preferences, and higher expenses are also discussed. The report concludes with recommendations, including adding new menu items and focusing on developing countries. The report leverages concepts of globalization to determine strategies for business expansion, including marketing and operational insights.

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Esteria

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Executive Summary
The report will discuss about a small business named as Esteria in Australia. The report will
provide a brief explanation of globalization. Along with this, it will also explain how
restaurant can promote its services in different countries, importance of hiring local people in
the business and the concept of employee diversity and training.

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Table of Contents
Executive Summary...............................................................................................................................1
Introduction...........................................................................................................................................5
Globalization..........................................................................................................................................5
Marketing at Global level..................................................................................................................6
Advertisement...............................................................................................................................6
Online Media.................................................................................................................................6
Hiring Local people............................................................................................................................7
Employ Diversity and Training...........................................................................................................7
Increased Cultural Diversity...........................................................................................................7
Employee Training.........................................................................................................................7
Opportunities of Globalization for Esteria.........................................................................................7
More Options................................................................................................................................7
Marketing Potential.......................................................................................................................8
Add new menu..............................................................................................................................8
Think Local.....................................................................................................................................8
Increase revenue...........................................................................................................................9
Positive relation.............................................................................................................................9
Challenges of Globalization for Esteria..............................................................................................9
Increased Risk................................................................................................................................9
Changes in the Preferences and taste...........................................................................................9
Increase expenses........................................................................................................................10
Recommendations...............................................................................................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

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Introduction
The report is about a new start-up named as Esteria which deals in the sector of food and
beverages with a limited number of outlets in the Australia region. It is a small business with
limited outlets but it is gaining good response from the customers and has good scope of
profitability and growth. The report will suggest the business how they can improve with the
help of a contextual factor i.e. Globalization. It will briefly explain the concept of
globalization along with the opportunities and challenges that business will face due to the
globalization and recommendations as per the analysis.
Globalization
The process of integration and interaction between companies, people and government of
different countries are known as Globalization (Steger, 2017). It is a process determined by
the international investment and trade and assisted by the information technology (Levin,
2016). The globalization process has effects on the culture, economic development, and well-
being of human in society, environment, prosperity and political system around the world
(Lechner, 2009). Globalization is also considered as a free movement of people, services, and
goods across the world in an integrated and unified manner. Globalization results in opening
the gates of the global economy and the can be thought of to be the result of the opening up
of the global economy and increase in the trade between different countries (Vaidya, 2006).
In other words, countries start operating foreign trade and foreign investments help in
opening their economies (Management Study Guide, 2018).
Globalization provides free trade opportunities to different sectors of business including food
and beverages sector. Esteria can go global and open their restaurants in different markets
such as Asian countries, European countries and Middle East countries. People of these

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countries prefer different type and taste of foods or snacks. Therefore, it will help them in
increasing their market share and revenue.
Globalization offers restaurants a broader collection of selections. Ingredients once difficult
to find can reach in some hours by just doing mouse clicks or a phone call. Item can be
transported out to out of the country’s customers just as quickly (Black, 2016). Along with
the opportunities and benefits globalization brings some challenges or risks as well.
Marketing at Global level
Globalization is very important for expanding and increasing the length of the business and to
earn more profit and revenue. As Esteria Restaurant is thinking to expand its business, it is
very important to aware the people of the host country where business is thinking to expand.
Therefore, it can be done by promoting the services and goods of the business. Esteria
Restaurant can promote its services by adopting various channels of advertisement such as
Advertisement- Advertisement is said to be a way of communicating with the customers
who use the services and products. These are key messages for which a company pay in order
to inform people who receive it (The Economic Times, 2018). Esteria can promote its
offering through different mediums such as pamphlets, Television advertisements, hoardings,
magazines, etc.
Online Media- Esteria Restaurant should also promote its services through an online medium
which also includes social media in order to reach a maximum number of people. Online
media is an effective tool for promotion of services and products as the use of internet, social
media, and another online site has increased from last few years. People are nowadays using
Facebook, Instagram, Twitter, etc. for their entertainment. Along with this, the maximum

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number of people makes use of online media in order to check the reviews for the services
provided by the restaurants.
Hiring Local people
Esteria Restaurant should hire local people of the host country where they are expanding their
business; this will help them in understanding the market of the country easily. The local
people of the host country are aware of the language culture, values and taste of the people;
therefore it will be beneficial for the restaurant to hire local people (Greathouse, 2018). Along
with this, the restaurant will be able to manage the cost of outsourcing the labor.
Employ Diversity and Training
Increased Cultural Diversity- Globalization has become more dominant, Esteria restaurant
has to deal with the cultural diversity of the workers. These variations need makes all the
businesses to learn the ways of dealing with the diversity and should adopt guidelines and
policies and guidelines for workers.
Employee Training- The ethnic, religious and cultural diversity of the business represents a
necessity of employee training. In order to safeguard their new employees and company from
discrimination, management has to develop policies and should provide training to current
employees so that everyone can work together (McFarlin, 2018). Therefore, Esteria restaurant
has to provide training to the employees of different culture, language, etc.
Opportunities of Globalization for Esteria
More Options- One of the major opportunity that globalization will provide Esteria that it
will make easier for the restaurant to search for the ingredients in order to prepare their dishes
for serving their customers. The restaurant will not be seasonally bounded; they can serve

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anything anytime wherever they are located. Along with this, the restaurant can also add
seafood to their menu, because they will get all the ingredients to prepare this kind of food
even if they are located in the landlocked area (Berman, 2018). For example, the restaurant
can get fresh fish anywhere very quickly. Besides, this number of probable vendors has been
increased due to globalization for various restaurants. It also helps in decreasing the suppliers
bargaining power and supporting the bottom line (Hanks, 2017). Restaurants now have more
options in terms of farms; they don’t need to stick with only one local farm. Now they can get
their vegetables flown or trucked anywhere and anytime. If a freeze gets damages then it
cannot damage the dishes of restaurant’s menu- it is very easy for the restaurant to get same
vegetables from anywhere else.
Marketing Potential - Globalization offers many restaurants an opportunity to sell their
special and different dishes around the world. For Example- If the restaurant cooks a very
tasty and unique barbecue sauce then globalization will encourage and allow you to sell it
overseas (World commission on the social dimension of global, 2006). The same applies to
those restaurants with logos and names that give themselves to designs of the t-shirt. A well
organized and framed website with crisp marketing crop will help Esteria restaurant to
convert into a global brand.
Add new menu- Esteria will get a good opportunity due to globalization is that they can
learn new dishes of that local country where they are operating and can add those dishes into
their menu according to the preference and taste of the local people of that country. This will
help them in increasing the number of local customers who prefer local dishes.
Think Local- Many restaurants are obtaining their ingredients internationally; a restaurant
providing to local people can have a big advantage in marketing. If the restaurant is making
use of local ingredients then it can be good for the environment, because it escapes the

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process of shipping. The money will remain in the local community if local ingredients are
used by the restaurant, which helps in maintaining good public relations. The local people of
the country are expecting from last many generations, that the business which is operating in
their country should make use of only local ingredients and suppliers. This is because it can
reflect business’s commitment towards becoming a good citizen of the country. But it is now
possible due to arise of globalization and made the way to stand out as well.
Increase revenue- Globalization will help Esteria restaurant to increase their revenue and
profit by opening their outlets in different countries.
Positive relation- Globalization also helps the country where the business has its origin in
maintaining good relations with the host country.
Challenges of Globalization for Esteria
Increased Risk - When the ingredients are imported from different countries in order to
prepare the dish and maybe made extra stops in the handling and storage stages. The
restaurant has less control over the ingredients they have ordered because they don’t know
what has happened or happening with them and consequently takes more risk (Bouchet,
2015). For example: If spinach got some bacteria which the restaurant had imported from
South Africa may cause damage to the health of the restaurant’s customers and which may
result in winding up the restaurant because the customers or the government of the host
country will not spare the management of the restaurant. If the restaurant import any beef
from another country which gets suddenly hosted by a scandal where the meat of the horse or
other impurities gets added to the packages, then the restaurant will be accountable.
Changes in the Preferences and taste- The market of the business gets broader due to
globalization which also results in changes in the taste and preferences of the customers. The

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existence of the restaurant business is just because of understanding and delivering the food
according to the demand and preference of the customers (Zhou & Piramuthu, 2016).
Therefore, it is a challenge for Esteria restaurant because they have to switch the taste of their
dishes according to the taste of the host country people. Along with this, they need to change
some dishes and add new dishes according to the demand and preference of the local people.
Increase expenses- In the developed countries most of the restaurants have to bear high
expenses such as labor and operational expenses. The labor of the developed country is
skilled therefore they ask for the higher wages which ultimately results in increasing the
expenses of the company or restaurant (Schaadt, 2013). If Experia restaurant will think to
expand the business in developed countries then they have to pay a huge amount as expenses
for that they need to procure the financial resources.
Recommendations
 The Exteria restaurant can add some seafood dishes in their menu because the
ingredients which are required for preparing the seafood will be available at anyplace
wherever the outlet of the restaurant is located.
 The Experia restaurant can open its outlet in the developing country in order to avoid
high expenses that are indulged in human and land resources.
 The restaurant can add new and famous dishes of different countries in their menu in
order to attract the customers.
 The Esperia can make its attractive online website which can add an option for home
delivery. This will give the customer an opportunity to order the food or snacks at
home or office who cannot visit the restaurant. For this, the management of the hotel
can hire a web designing company to create restaurant's website.

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Conclusion
In the conclusion, it can be said that globalization is a good option for Esteria restaurant in
order to expand its business globally. It will help the restaurant to increase their market share
and revenue by operating in different countries and adopting the rules and regulations of the
host country. The globalization will provide various opportunities to the business such as
increase of market share, more option of ingredients, marketing potential, etc. Along with the
opportunities, the above report has explained some challenges that the restaurant can face due
to the globalization of their business such as increase of risk, changes in the taste and
preferences, and an increase of business expenses. Further, the report has also suggested
some recommendations that will help Esteria restaurant in increasing their business and
enhancing their activities.