Business Strategy: International Market Analysis for Fast Food Chain

This report presents a comprehensive analysis of potential international locations for a new fast-food chain, focusing on Canada, India, Vietnam, Thailand, and Jamaica. The analysis employs the PEST-C framework to assess political, economic, socio-cultural, technological, and cultural factors in each country. Key success factors, including ease of entry, government regulations, market size, and competitive rivalry, are evaluated to determine the most favorable location. The report also includes a detailed discussion of Canada as the preferred location, highlighting its flexible political and economic conditions, diverse multi-ethnic society, and technological advancements. The study uses both qualitative and quantitative methods, providing valuable insights for strategic decision-making. The report concludes with a thorough examination of the Canadian market, identifying its potential for long-term growth and the importance of adapting to local consumer preferences.

Running head: BUSINESS STRATEGY 1
Table of Contents
PEST- C Analysis......................................................................................................................3
PEST- C Analysis of India.........................................................................................................3
Cultural Factors..................................................................................................................4
PEST- C Analysis of Canada.....................................................................................................4
Socio-Cultural Factors.......................................................................................................5
Cultural Factors..................................................................................................................5
PEST- C Analysis of Vietnam...................................................................................................5
Socio-Cultural Factors.......................................................................................................5
PEST- C Analysis of Thailand...................................................................................................6
Socio-Cultural Factors.......................................................................................................6
PEST- C Analysis of Jamaica................................................................................................7
Political..................................................................................................................................7
Socio-Cultural....................................................................................................................7
Cultural...............................................................................................................................7
Key Success Factors to Open Fast Food Chain in Canada........................................................8
Ease of Entry..........................................................................................................................8
Government Regulations........................................................................................................8
Market Size............................................................................................................................8
Opportunity for long term growth rate...................................................................................9
Competitive Rivalry...............................................................................................................9
Technology and Innovation....................................................................................................9

BUSINESS STRATEGY 2
Reasons for Selecting Canada as the Country for Conducting Business Operations and for
Launching the New Fast Food Business................................................................................9
Flexible Political and Economic Conditions..........................................................................9
Diverse Multi-Ethnic Society with High Purchasing Power................................................10
Technological Advances and Substantive Market Size.......................................................10
References................................................................................................................................12
Appendix A..............................................................................................................................15
Appendix B..............................................................................................................................16

BUSINESS STRATEGY 3
Factor Assessment for Fast Food Chains
This assignment aims at conducting the preliminary analysis of five countries that are
potential targets for location of the business venture. The countries chosen for the purpose are
Canada,India,Vietnam, Jamaica and Thailand. This paper will analyse the qualitative and the
quantitative methods that are used while selecting the potential countries. The PEST-C
analysis is conducted on the selected countries to assess the geographic, economic, socio
cultural and political and legal factors that affect business opportunities to open the fast food
chain.
PEST- C Analysis
The countries of India, Canada, Vietnam, Thailand and Jamaica have been selected for
market entry because of the high demand for fast food in all of the mentioned countries.
PEST- C Analysis of India
Political Factors
India is the largest democracy in the world with a developed system of taxation and
auditing in place. The government encourages privatization as foreign direct investment.
Plenty of encouragement likely therefore from the government for launch of global new fast
food business (Bose & Jalal, 2017).
Economic Factors

BUSINESS STRATEGY 4
GPD in India is growing at a slow and steady pace over the last 4 years. The average
Indian has the purchasing power needed to procure global fast food products over the short
and long term (Bose & Jalal, 2017).
Socio-Cultural Factors
The Society in India is multi-ethnic and cosmopolitan.A favourable attitude is
displayed towards fast food enterprises in India among all segments of the society (Sonntag,
2016).
Technological Factors
Technology in India is growing at a rapid pace. Mobile Apps are the most common
platform for ordering food in India today. New business can take advantage of apps and
social media to offer its products to target audience in India (Sonntag, 2016).
Cultural Factors
Cultural values are deemed important in India. Eating certain meats like beef and pork is not
encouraged in India and many people are vegetarian (Bose & Jalal, 2017).
PEST- C Analysis of Canada
Political Factors
Liberal government in power under the leadership of Justin Trudeau and an organized
system of taxation that allows for the growth of global businesses in the country (Cornell &
Jorgensen, 2019).
Economic Factors
Canada is one of the most prosperous nations in the whole world. Canada carries out
most of its trading activities with the USA. Economy is stable enough to allow for the
running of a new fast food business (Cornell & Jorgensen, 2019).

BUSINESS STRATEGY 5
Socio-Cultural Factors
Canadian society is diverse and multi-ethnic. The average Canadian is well-educated
and has the purchasing power necessary for fast food consumption (Cornell & Jorgensen,
2019).
Technological Factors
Technology is widely used in Canada, for the running of educational programs, public
administration and business. The new business can offer its products via apps and via its
website in order to cater to wide sections of the target population in Canada (Cornell &
Jorgensen, 2019).
Cultural Factors
A global culture prevails in Canada. People are opening to consuming all types of
food. There are no strict culture variants to adhere to for fast food production here (Cornell &
Jorgensen, 2019).
PEST- C Analysis of Vietnam
Political Factors
Vietnam is a socialist republic. A one party system of governance is followed in the
country. Foreign direct investment and privatization are encouraged in Vietnam, allowing
global fast food chains to flourish.
Economic Factors
A mixed economy is what the country of Vietnam is. Economic growth is high and
stable and therefore ideal for launch of new international fast food business.
Socio-Cultural Factors
Society in Vietnam is characterized by great diversity. Most people attain basic
education and have the purchasing power needed for fast food purchase.
Technological Factors

BUSINESS STRATEGY 6
Internet is widely used in Vietnam. The new business can sell fast food online via apps and
web based services to cater to the demand for fast food in the country.
Cultural Factors
Vietnamese culture shows a preference for spicy food. New fast food business should
come up with fast food that is spicy and delectable.
PEST- C Analysis of Thailand
Political Factors
Thailand is a constitutional monarchy.Government is fairly liberal in its approach to
foreign business, with tourism being the largest industry. New global fast food chain can
function well in the country’s climate of political stability (Laothamatas, 2019).
Economic Factors
Economic growth is slow in Thailand with revenue mainly being derived from tourist
activities. However, the economy is stable enough to allow for running of global businesses
(Laothamatas, 2019).
Socio-Cultural Factors
A patriarchal system is seen to prevail in Thailand. Unemployment is high as is drug
addiction and abuse. Yet the average Thai has the purchasing power needed for procurement
of fast food (Laothamatas, 2019).
Technological Factors
The large scale use of internet is prevalent in Thailand. New fast food business can use social
media and app based facilities to offer its services (Laothamatas, 2019).
Cultural Factors
Thai culture is welcoming of foreign elements. Meat and fish is consumed by every section of
the Thai population so there are no cultural standards to adhere to when it comes to fast food
production in the country (Laothamatas, 2019).

BUSINESS STRATEGY 7
PEST- C Analysis of Jamaica
Political
The political environment in Jamaica is influenced by the actions taken by the ruling
party.Jamaica is a third world nation characterized by political stability which is conducive
for growth of a fast food business (Laothamatas, 2019).
Economic
The Jamaican economy is heavily dependent on tourism and accounts for 20% of
GDP (Central Intelligence Agency,2019). Economic growth is low with agriculture and
tourism being the main industries. Economic instability is not encouraging for growth of new
fast food business (Nguyen, 2019).
Socio-Cultural
Jamaican society is made up of rich, middle income and poor people. Unemployment
rates are high, However people have the purchasing power needed to procure fast food
(Nguyen, 2019).
Technological
Use of internet is quite common in Jamaica. New business can use e-commerce
platforms and apps to sell fast food to Jamaican target population quickly and easily
(Nguyen, 2019).
Cultural
The Caribbean culture that prevails in Jamaica indicates that new fast food business
needs to adopt Caribbean variants to cater to local tastes and preferences (Nguyen, 2019).
The PEST-C analysis reveals that Canada is the most favourable destination to open
the fast food industry business due to its dynamic and vibrant food economy along with the
good consumer purchasing power.Blay and Donald (2006)reported that Canada has high
demand for exotic foods due to its diverse population (p.390).

BUSINESS STRATEGY 8
Key Success Factors to Open Fast Food Chain in Canada
Setting up a business in a different country can hold tremendous benefits if it comes
to financial resources. However, determining the location in an international business is
overwhelming. The various factors that impact the decision to open the fast food business are
described below (please refer to Appendix B).
Ease of Entry
Most of the fast foods restaurants in Canada are opened through Franchise. Franchise
of the brands like McDonald, Wendy’s and Kentucky Fried Chicken (KFC) are the most
common fast food restaurants in Canada. The capital requirement is low and the risk
associated with selling the franchise is less that helps in flourishing the fast food industry in
Canada(Couillard, 2019).
Government Regulations
The Canadian government provides assistance to business by two ways: financial and
administrative. The federal government executes most of its financial assistance through
Small Business Administration (Huebsch,n.d. ). Canada’s reputation for business extends its
economic stability. The government also helps the start-ups with maximum financing of
$1,000,000. Hence it makes Canada as a favourable country for the start-up. Canada being
the developed nation has a significant regulations and licensing particularly in relation to
safety in kitchen operations but still these issues do not create insurmountable barriers in
entering or operating in this industry (Couillard, 2019).
Market Size
Canada food service market is anticipated to reach USD 85.54 billion by 2024 with
the CGR of 4% during the forecast period (2019-2024) (“Canada foodservice market”, n.d.).
Millennials in the country are reported to add a boost to Canada’s food service industry. The
industry is projected to continue expanding over the five years (please refer appendix B) and

BUSINESS STRATEGY 9
the consumers are expected to pay higher price for healthier selections which help drive the
revenue growth (Couillard, 2019).
Opportunity for long term growth rate
Socializing and convenience are the major trend in the Canadian consumers. The
dining out trend shows that around 54% of Canadians eat out once a week (“Canada
foodservice market”, n.d). The huge preference for fast food among Canadians today implies
that plenty of growth prospects exist for fast food companies in the country. It shows that the
opportunity for the long term growth rate is high in Canadian economy.
Competitive Rivalry
Canada foodservice industry is highly fragmented. Canada has witnessed a spurt in its
fast food industry and with the presence of major fast food giants like McDonalds, KFC,
Burger and Subway in the country the new fast food enterprise will face considerable
competitive rivalry when entering the Canadian market (Kara et al., 2015). Both the global as
well as local players are gaining popularity and continue to expand in the country.
Technology and Innovation
Canada regularly leverages technology to increase the sales and reduce labour and
food costs. Restaurants that focus on improving the customer experience are more likely to
see increase in sales. The use of the sophisticated internet and mobile technology has also
enabled the industry players to reach the suppliers and the wholesalers online (Coulliard,
2019).
Reasons for Selecting Canada as the Country for Conducting Business Operations and
for Launching the New Fast Food Business
Flexible Political and Economic Conditions
After having conducted the Pest-C analysis of Canada it becomes clear that Canada
should be the destination for opening the new fast food business and not any other country in

BUSINESS STRATEGY 10
the world. The fact that Canada currently has a liberal government in power and also the
fact that it is one of the most prosperous countries in the Global North today implies
that ease of market entry is guaranteed for the new fast food business. The new business
will be able to make its entry into the Canadian market in a quick and easy manner because of
the flexibility of rules and regulations and economic benefits like concessions and tax
exemptions that the new business can avail in order to get its operations rolling over here.
The liberal climate in which political and economic affairs are implemented in Canada
implies that there are no stringent rules and regulations that the new business has to adhere to
that will restrict its mode of functioning in this part of the world. It will be able to flourish in
a flexible and dynamic political environment and consequently make its presence felt in the
Canadian market quite successfully, especially if the products of the new fast food business
are well received by the target audience.
Diverse Multi-Ethnic Society with High Purchasing Power
Another good reason for opening the new business in the country of Canada is the fact
that this is a country which is characterized by a multi-ethnic society, and whose members
have the purchasing power that is needed to purchase fast food not just once or twice but on a
regular basis. The diverse society of Canada comprising of people from different nationalities
such as White Canadians, Indians, Chinese, Spanish and Mexican people implies that the new
business is going to have quite a varied business clientele to reach out to. Due to the
economic prosperity that prevails in a developed country like Canada, most members of
society have sufficient income to take care of their own needs and to indulge in the purchase
of fast food every now and then.
Technological Advances and Substantive Market Size
The high rate of technological development that is seen to prevail in a country like
Canada is also something that is going to prove to be advantageous for the new fast food

BUSINESS STRATEGY 11
business, and which is one of the reasons why it should consider setting up operations in this
part of the world. There are apps and other technological advancements like e-commerce
platforms that the new business can make use of in order to sell fast food to a wide target
audience or population in a short span of time.
The love for fast food in Canada implies that the new business is going to be able to
carve out a decent place for itself in the fast food market in the country provided it caters to
the preferences and requirements of its target customers sufficiently well enough. Of course
the threat of competitive rivalry exists, as there are many new fast food business in Canada
already that can pose stiff competition to the new business and there are new ones that can
emerge in course of time as well.
In the ultimate analysis, the flexible and dynamic political and economic conditions,
the technological advancements, diverse and prosperous society in Canada will create the
conditions needed for the new business to do well in this part of the world as soon as it is
launched.

BUSINESS STRATEGY 12
References
Sushama, M.(2019, March 05). The rise and the rise of the fast food industry. Retrieved from
https://www.downtoearth.org.in/news/food/the-rise-and-rise-of-the-fast-food-
industry-63452
Couillard, L. (2019, May).IBISWorld Industry Report 72221aCA.Fast food restaurants in
Canada .Retrieved from
http://clients1.ibisworld.com.ezproxy.royalroads.ca/reports/ca/industry/
industryoutlook.aspx?entid=1980#IO
Jamaica Country Profile. (2015). Retrieved
fromhttps://www.foodexport.org/get-started/country-market-profiles/caribbean/
jamaica-country-profile#foodservice
Euromonitor International. (2019, April). Consumer food service in Vietnam. Retrieved from
www.portal.euromonitor.com
Euromonitor International. (2019, April). Consumer food service in Thailand. Retrieved from
www.portal.euromonitor.com
Central Intelligence Agency. (2019). Jamaica. In The world factbook. Retrieved from
https://www.cia.gov/library/publications/the-world-factbook/geos/jm.html
Huebsch, Russell. (n.d.). Government Assistance in Business. Small Business - Chron.com.
Retrieved from http://smallbusiness.chron.com/government-assistance-business-
3033.html