Analysis of Arby's International Business Expansion in European Market

This report provides an executive summary and detailed analysis of Arby's international business expansion, specifically focusing on its potential entry into the European market, with a primary focus on London. The report examines the application of Porter's Five Forces model to assess market opportunities and threats, emphasizing the importance of understanding customer behavior, supplier relationships, competitive pressures, and the impacts of new entrants and substitute products. It also addresses the challenges of navigating institutional and cultural differences within Europe, highlighting the importance of adapting to local food preferences, ethical considerations, and legal restrictions. Furthermore, the report evaluates various market entry modes, recommending a joint venture strategy for Arby's, and discusses the application of the marketing mix 4Ps (Product, Price, Promotion, Place) to effectively position Arby's in the European market. The report also covers corporate social responsibility issues and concludes with recommendations for successful international business expansion.

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International business
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Date
Name
Lecture’s Name

International business
Executive summary
This report is based on the international business expansion of Arby's which is a famous
restaurant in USA. In addition, how Arby's select proper location and implement the
international strategy for business expansion in Europe will also be evaluated in this report.
Moreover, different types of theory and business models will be discussed to justify the
significance of international marketing.
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Table of Contents
Task 1.....................................................................................................................................................4
Introduction............................................................................................................................................4
An Advice on which European country should be selected for entry.....................................................5
Advice on dealing with institutional and cultural differences in Europe................................................6
Advice on the entry mode that your company will use...........................................................................8
Advice on the best organisational structures and control strategies for subsidiaries to help to attain the
major objectives of the parent company.................................................................................................9
Managing corporate responsibility issues identified by your company..............................................9
Conclusion...........................................................................................................................................11
Task 2...................................................................................................................................................12
Reflective Account...............................................................................................................................12
References............................................................................................................................................13
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Task 1
Introduction
In order to expand the business in the foreign international market, the management of an
organization needs to focus on different types marketing planning to analyze potential threats
and opportunities. On the other hand, in this report, Arby's international business expansion
process will be discussed through proper arguments and justification. Besides that, Arby's is
USA based restaurant chain which provides good quality food and service to their customers.
In addition, they also have branches in Canada, Turkey, and UAE which clearly indicate that
they have successfully implement the international business strategy to earn the profit in
foreign countries. According to the report, the management of Arby's is focusing on the
European restaurant industry for initialization of the business (Hill and Hult, 2010).
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An Advice on which European country should be selected for entry
The demand and supply chain management is one of the critical segment of the international
business expansion process. According to the case scenario, Arby's had selected London as a
European country for getting entrants in the restaurant industry of the UK. On the other hand,
in order to get successful entrance in the European restaurant industry, the management of
Arby's needs to focus on Porter's five force theory which determines potential threats for
initialization business expansion process.
Apart from that Porter's five force model includes five different forces such as bargaining
power of the customers, bargaining power of suppliers, threats of new entrants, threats of
substitute and threats of existing rivals. Each and every force included its significance and
discussed below:
Bargaining power of customers: the customers are one of the significant stakeholders of the
organization. Without the support and cooperation of the customers, an organization cannot
meet desired goals and objectives. Besides that, only the customers can influence the
profitability of the organization by purchasing company's product or service. Besides that,
most of the customers want good quality service or product in low price. On the other hand,
Arby's can successfully attract the customers of London by approaching low price strategy.
Besides that, the bargaining power of the London's customers also affect the business
structure of Arby's. Moreover, Arby's can satisfy the customers of London through their
quality food and service (Hill and Hult, 2010).
Bargaining power of suppliers: the suppliers mainly influence the production process by
providing raw materials. In the section of restaurant industry of London, there are many
suppliers available, and they have unprecedented demand. Moreover, Arby's can select more
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suitable suppliers who have the low rate and high-quality vegetable and flesh for delicious
food item process.
Threats of the substitute: the threats of substitute is one of the significant risk assessment for
an organization. Besides that, Arby's has a chance to draw the attention of the customers to
minimize the impact of threats of substitute in London. Moreover, the customers of London
cannot get regular service like Arby's from other substitutes.
Threats of new entrants: the threats of new entrants can seriously affect the organizational
performance. Most of the newly developed companies offer low price products to attract the
customers. Besides that, London is the very busy country which includes lots of small
restaurants and fast food centers which can reduce the profit level of Arby's (Hill and Hult,
2010).
Threats of existing rival companies: there are many famous and popular restaurants available
in the restaurant market of the UK such as KFC, McDonald and Burger point. In order to
attract most of the customers, Arby's needs to apply low price strategy in London. As a result,
they can determine the requirements of the customers of London.
Moreover, according to Porter's five force model, Arby's should target London in order to
expand their business in the international market of the UK. Thus, London is the heart of the
Europe, be that as it may, Arby's can only grab the whole fast food industry of the Europe by
entering in the London(Sen, 2008).
Advice on dealing with institutional and cultural differences in Europe
Arby's might face some institutional and cultural difference in Europe while expanding the
business in the London. On the other hand, food is the most emotional factor according to the
individual. Besides that, the vegetarian customer strongly avoids the meat and flesh related
items, on the other side, the non-vegetarian customers do not prefer to eat vegetarian food.
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Along with that, the cultural diversity is playing an essential role in the food selection process
of the individual. In addition, the customers mainly prefer their value added food items, and
they do not want to make any compromise with it. Apart from that, the management of Arby's
needs to focus on the requirements of theirs customers in order to expand the business
properly in the foreign market (Geringer et al., 2012). Thus, the due to the cultural diversity,
Arby's and the employees might get conflict situation, for example, customers ordered the veg
burger, and an employee, unfortunately, served a chicken burger to that customers. As a
result, the customers got angry, and the employee or waiter of the organization can be insulted
by the customers. Moreover, the management of Arby's needs to provide food items
according to the order of the customers to avoid any cultural difference in London. Thus, only
applying customer satisfaction techniques, the management of Arby's can reduce the impact
of the cultural difference in London.
Besides that, the institutional difference is one of the critical aspects of the business expansion
in the European market which clearly indicates the value of the institution. Most of the
European institutions have a serious objection to selling beer and other beverages in front of
schools, colleges, and universities.Thus, Arby's should not sell beverages to any students of
any institution because it is the illegal offense which leads to serious punishment. On the
other hand, the national legislations also influence the restaurant's working procedure (Wild,
Wild and Ball, 2007).
Moreover, in order to successfully deal with these types of institutional and cultural
differences, the management of Arby's needs to maintain their service quality and ethical
consideration. In other words, the management of Arby's can increase the productivity and
performance of the organization by providing excellent quality service to the customers.
Along with that, the management of Arby's should also focus on ethical consideration factor
which influences the institutional difference. In other words, a student of school should not
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purchase beer from Arby's which is not ethically correct. Moreover, in order to reduce the
impact of institutional difference, the management of Arby's should not sell any beverages to
any students of schools, colleges or institutions.
Advice on the entry mode that your company will use
There are various types of market entry process has been obtained in numerous studies such
as the wholly owned subsidiary, a joint venture, and acquisition or a merger. Each and every
type of market entry process includes a specific significance which determines the prospects
of an organization (Griffin and Pustay, 2015). In the process of wholly owned subsidiary, an
organization includes sole ownership which states that no other third party will interfere in the
decision-making process of the organization. Besides that, the division and distribution of
profit also have different significance, for instance, the annual profit will be distributed to the
employees, managers, and shareholders. Thus, the wholly owned subsidiary has some
disadvantages which can seriously affect the organizational reputation and profitability. In
other words, in the case of the international business expansion process, the host company has
not any clear conception of the current market and economic status of the selected country. Be
that as it may, the organization can lead to a great failure due to lack of marketing knowledge
of targeted place for business expansion (Wild, Wild and Ball, 2007).
Apart from that, a joint venture is one of the effective and beneficial market entry processes
which has been applied by many organizations. With the help of joint ventures process, the
ownership of the business is divided into partners. In addition, if one partner of the business
belongs from target business location, the market opportunities can be more easily recognized
by the host company. In other words, the management of Arby's needs to conduct a joint
venture with a state-owned organization to analyze the institutional and cultural difference of
London. Moreover, a joint venture process will be the most suitable market entry plan of
Arby's to expand the business in the London (Griffin and Pustay, 2015).
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Advice on the best organisational structures and control strategies for subsidiaries to help to
attain the major objectives of the parent company
In order to analyse current market opportunities and objectives, the management of Arby's
needs to focus on marketing mix 4Ps which includes four aspects such as product, price,
promotion, and place. In addition, Arby's can implement proper marketing strategies by
optimizing the factors of marketing mix which is discussed below:
Product: Arby's has special food items which can draw the mind of the customers. In addition,
they also offer premium wine and other beverages to the customers. So, in order to grab the
European food market, the management of Arby's needs to focus on the quality of products
and service.
Price: in order to increase the sales, the price of products is playing an essential role. Thus, the
management of Arby's should implement low price strategy in order to draw the attention of
the customers. Thus, low price of products can also increase their competitive advantages in
the restaurant industry of the UK (Moore, 2012).
Promotion: with the help of various types of promotional activities, Arby's can accommodate
aware their potential customers as much as possible which can be done through television,
radio, newspaper and the internet. In addition, online marketing is one of the latest and
effective media of marketing which has been implemented by thousands of companies.
Moreover, through online promotion, Arby's can provide home delivery facility to those
customers who ordered via the website.
Managing corporate responsibility issues identified by your company
Arby's can successfully recognize current business objectives through the marketing mix 4Ps
model. Along with that, Arby's needs to management corporate social responsibility in order
to maintain a good relationship with other European companies. With the help of CSR, Arby's
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will not create any problems for other companies which is also included in the ethical
consideration sector. Moreover, by applying joint venture strategy, Arby's can successfully
obtain the CSR rules and regulation is European market (Moore, 2012).
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Conclusion
As early mentioned, Arby's is a famous restaurant chain in USA, and they want to expand
their business in the European market. With the help of quality service, Arby's can blow the
mind of the London-based customers. Thus, Arby's selected the London as their target place
to expand the business. The management of Arby's needs to follow this types of institutional
difference in order to expand their business in a European market. In order to expand the
business in the European market, the management of Arby's needs to follow and obey the
administrative rules and legislation. Moreover, Porter’s five force theory, cultural and
instututional diference are analyzed to suggest suitable market entry for Arby’s.
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Task 2
Reflective Account
In this report, various types of strategies for initialization the business have been suggested.
With the help of this report, I learned that marketing planning is essential for international
business expansion process. In addition, I also learned various types of management
structures, and I gained a little amount of knowledge about economic factor. I additionally
learned why customer satisfaction is important for a business and how customers directly
influence the profitability of an organization. In this report, Arby's selected London as their
target place for business expansion, and I strongly support their decision because London has
all favorable opportunities for developing a fast food industry (Miller, 2012). Moreover,
Arby's different types of marketing techniques are analyzed in this report through Porter's five
force theory and marketing mix 7Ps model for business expansion in London (Lawfer, 2004).
Moreover, I also determineed that joint ventures is required for business expaniosn and a joint
venture is one of the effective and beneficial market entry processes which has been applied
by many organizations. Thus I strongly feel that, the ownership of the business is divided into
partners with the help of joint ventures process and Arby’s shoudl conduct joint venture. Thus
I relaised that Arby's can successfully recognize current business objectives through the
marketing mix 4Ps model. Therefore, this report also helps me to understand that he
management of Arby's can increase the productivity and performance by providing excellent
quality service to the customers. This reflective paper explains my internal understanding and
knowledge about business opportunities.
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References
Czinkota, M., Ronkainen, I. and Moffett, M. (2011). International business. 1st ed. Hoboken
(N.J.): Wiley.
Geringer, J., Ball, D., Minor, M. and McNett, J. (2012). International business. 1st ed.
Griffin, R. and Pustay, M. (2015). International business. 1st ed. Harlow: Pearson Education
Limited.
Hill, C. and Hult, G. (2010). International business. 1st ed.
Lawfer, M. (2004). Why customers come back. 1st ed. Franklin Lakes, NJ: Career Press.
Miller, J. (2012). [Customer satisfaction]. 1st ed. [Austin, Tex.]: The Dept., Internal Audit
Division.
Moore, S. (2012). Individual interests and organisational structures. 1st ed.
Sen, M. (2008). Business management. 1st ed. Jaipur, India: Oxford Book Co.
Wild, J., Wild, K. and Ball, A. (2007). International business. 1st ed.
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