Developing an International Growth Strategy at New York Fries

1148 Words Apr 3rd, 2014 5 Pages
Developing An International Growth Strategy At New York Fries New York Fries is known for its high quality fries made with real and hand-cut potatoes and fried in a non-hydrogenated, trans fat-free, sunflower oil. Jay Gould, president of The Company and founder is holding a biannual meeting with its franchisees in the next three days. He is planning to discuss about the plan to have international expansion into another countries, such as China, India, and South Korea. However there are many risks and costs to consider, as there have been a number of failures in international expansion at South Korea and Australia. NYF operate mainly from franchise. Franchise owners bought the rights to operate NYF in different locations. NYF will then …show more content…
Secondly, poor business skill can cause major problem. Often people prefer franchisee because it is a proven system with all the training and support from the headquarters. However, franchisees have to keep in mind that franchising is one of the types of business. Thus, like every other business, it requires the managers to have a good people skill, marketing, strategic plans, and also experiences. Without theses any business will fail. South Korea franchisee lack these qualities and resulting in a poor growth. In addition to it, South Korea franchisee also need a lot of support and time from the head quarters which often will be costly for the headquarter. In the end NYF business involve people; if the manager does not manage its employees properly, employee will be demotivated which will lead to high turnover ratio. In addition to it although NYF has its brand equity, managers need to actively come up with strategic plans to improve their standing in the local market as well. Third, unable to follow the standard of the parent company is the worst outcome of franchising. By franchising, franchisee receive brand equity of NYF, thus customer expect the same food and services that are being served at any other NYF branch. However, if the franchisee does not follow the standard, quality served will be different and resulting in customer’s dissatisfaction. Worst, this might affect the company’s image in general. Both Australian franchisee and the first South

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