Cilantro Cafe Going International

Chipotle has opened their stores in few countries such as the UK, the US, Canada, Germany and France. It is now time for the corporation to follow the lead from other companies like Yum. Brands such as KFC and Taco Bell as well as McDonalds expand their footprint in the Asian market like Japan. For example, Chipotle operates less than 2,000 restaurants in only 5 countries, while McDonalds operates more than 35,000 restaurants in 119 countries, and Taco Bell, another Mexican restaurant, operates 6,500 restaurants in 20 countries which shows that the Chipotle could do better if it expands its business.

Chipotle’s main focus in marketing is in the United States but follows the same model in the international market. It has never been Chipotles intention to “put its stamp on a bunch of restaurants around the world”, but their vision as a company is to change the way people think about and eat fast food, which they feel the “other guys” are not focusing on, (Van Tan, n.d.). With this mindset, Chipotle believes there’s certainly room for them to build that position in other countries as it has been successful in the U.S., (Van Tan, n.d.). In the London market Chipotle followed the same model as in the United States about the brand and its grassroots marketing efforts to the streamlined menu to the assembly line operations, (Van Tan, n.d.). Chipotle executives’ views are that it doesn’t need to be any different going into Europe as it will all be the same. Chipotle is about simplicity, after all, (Van Tan, n.d.). From the start the London store focused on building management potential in its own employees. Management and personnel from the company travelled to London to open and train new Chipotle team members how to do things the Chipotle way, (Van Tan, n.d.). Chipotle strives to promote from within and with 80% of management staff coming from internal sources this is obvious, (Van Tan, n.d.). Developing their own people and moving them to manage other

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

International strategies are plans that are made by organizations to guide them in different commercial transactions that take place in different countries. On the other side, the organizational structures highlight how an organization plans its hierarchy, identify tasks to its personnel and ensure that workforce collaborate to reach a common goal. For a company to be successful in the international venture it has to properly organize its human resource, support devices as well as how it will group its products, services or brand so that it can increase its effectiveness. Therefore identifying the proper international strategy and organizational strategy for Whole Food Market will assist it to accomplish the goals that it has set and clearly

Chipotle Mexican Grill is an American restaurant chain that currently has more than 1700 locations, with most of its locations in the U.S. and several in Canada and Europe. Chipotle has been gradually expanding its international presence since it opened its first location outside the U.S., in Toronto in 2008 (International Strategy, 2015). The restaurant now has 17 locations outside of the U.S. including locations in London, Paris, and Frankfurt. However, like all other international corporations, Chipotle strives to grow its business even further and extend global awareness of its brand. The next step in Chipotle’s global strategic plan would be to venture into new waters and enter Asia. Hence, Chipotle is now analyzing the decision of expanding operations into China.

Summary statement of the problem: The Panera Bread Company has made a name for itself by offering quality, nutritious meals to its customers. You can eat at Panera Bread without worrying if you are getting a healthy, nutritious meal. With today’s health conscious society this has served the company well. With the rise in other health food type restaurants, the question arises is Panera Bread’s current strategy enough to keep them on top? In order to continue to succeed, Panera Bread needs to branch out into the foreign markets, add some key

Panera bread’s growth strategy was to capitalize on Panera’s market potential by opening both company-owned and franchised Panera Bread locations as fast as was prudent (A. A. Thompson). Panera Bread work closely with franchised branches in order for the company to broaden its market penetration (A. A. Thompson). Panera Bread has taken the appropriate measures to gain a competitive advantage to make franchising a successful market for the company to enter. Considering Panera Bread Company keeps interaction with the franchised branches to ensure success gives them the upper hand to ensure continued success.

Ans. Until then they were happy enough simply to expand their business in US, after that reached a certain size and the company had the management time to spend on it then it was time to think about replicating that success abroad. Because the markets abroad are much more competitive than in America where it is a slayer of small businesses, except for fresh produce sellers. Globalization has taken off in recent years, before the turn of the century it was much more difficult and expensive for franchises to efficiently expand outside of their native country.

To increase the amount and type of stores internationally, as it is in the United States.

This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs.

As learned in class, the advantages of international business are great, but so are the risks. Some of the risks involve ethical issues as the ones Chiquita faced doing business in Columbia. Chiquita was the first to successfully internationalize banana trade; Chiquita did so by paying special attention to retail development and followed industry trends. Their competitive advantage was acquired when the company revolutionalized the banana trade by using refrigerated ships for the first time.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Reasons why corporations like PepsiCo. need to globalize their operations include a need for competitive advantage against rivaling companies, increase their economies of scale to lower their production and distribution costs in moving products into new and existing markets, entering new markets to increase brand image and brand loyalty, and to increase net earnings which can then be distributed as dividends for their stockholders.

Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.

For any company going out for the foreign market is because of any one out of globalization, reducing tariff all over the world, to increase the market share, saturation of the local market, for getting the economies of scale of production, to use their excess capacity and use the resources where it is available at law cost.