Essay on "Foreign Market Entry and Diversification"
Essay 4 pages (1027 words) Sources: 4 Style: APA
[EXCERPT] . . . .
Foreign Market Entry Strategies for Applebee'sTogether with International House of Pancakes, Applebee's is owned by DineEquity, Inc. And competes in the casual dining industry. In recent years, Applebee's International, Inc. And Applebee's Neighborhood Grills & Bars have expanded their operations throughout the United States and into 17 foreign countries. The casual dining business model developed by Applebee's has a proven track record of success in these venues, and further diversification of the company's operations abroad appears to be justified based on the review presented below.
Rationale in Support of Diversification
Today, Applebee's International, Inc. (hereinafter alternatively "Applebee's" or "the company") is owned by DineEquity, Inc., with the acquisition having been completed in November 2007 (Applebee's form 10-Q, 2011). According to DineEquity's most recent annual report (2011), "As of December 31, 2011, the company restaurant operations segment consisted of 177 company-operated Applebee's restaurants. . . . All company-operated restaurants are in the United States" (p. 2). By contrast, Applebee's Neighborhood Grill & Bar is the world's largest casual dining concept in terms of number of restaurants and market share with 2,019 system-wide restaurants as of December 31, 2011 (Form 10-Q, 2011).
The Applebee's Neighborhood Grill & Bar franchises include 1,842 franchisee-operated restaurants (as noted above, 177 of these restaurants are company-operated). These restaurants were located in almost all of the states (49), as well as a United States territory and 15 foreign countries as of December 31, 2011 (
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These attributes have helped make the company the world's largest casual dining restaurant operation which is no mean feat given the highly competitive nature of the industry. In this regard, Crandall, Vozikis and Sparks emphasize that, "The restaurant industry is one of the most competitive industries in the world today. It can cost a half a million dollars for a restaurant just to open for business" (p. 19). Moreover, the growth of the company-operated stores and the proven track record of success demonstrated by the continuing diversification of the company's operations abroad is all the more noteworthy given the challenges that are involved. For example, Crandall and his associates add that, "Owners work 70 hours a week, including holidays and weekends, and still 10% of them fail. Although the competition is fierce and the success rate for restaurants is extremely low, restaurants keep springing up" (1996, p. 19). Based on this proven track record of success, it just makes good business sense to expand this dining concept into other appropriate foreign countries as discussed further below.
Proposed Diversification Strategy
Although every consumer's dining preferences are unique, the company's casual dining business model has proven successful in a wide range of venues irrespective of regional or cross-cultural differences. For instance, Crandall et al. (1999) emphasize that, "The fastest-growing segment… READ MORE
Quoted Instructions for "Foreign Market Entry and Diversification" Assignment:
“Based on the strategy created in the previous assignments, write a four to five (4-5) page paper in which you follow these formatting requirements:
t
The company that I have been writing about is Applebee*****'s
1. Create an argument for diversification of your business that will be presented to the board of directors or business investors.
2. Develop a strategy for diversification indicating the products and industries for the diversification and how synergies may be gained from the diversified activity.
3. Identify and discuss the foreign market that the company should enter and discuss the strategy it should use to enter the market.
4.Discuss the challenges that company may face in the foreign market, and how it might respond strategically to minimize the impact of these challenges.
5. Create a scenario when it would not make sense for the company to diversify or expand into a foreign market. Provide support for your rationale.
6. Assess how the company will create a business environment conducive to ethical behavior.
7. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must:
*****¢Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
*****¢Include a cover page containing the title of the assignment, the student*****s name, the professor*****s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
*****¢Analyze a plan to implement a firm*****s strategy and manage the change from current operations.
*****¢Assess how Ethics, Corporate Social Responsibility, Environmental Sustainability, impacts strategy.
*****¢Use technology and information resources to research issues in strategic management.
*****¢Write clearly and concisely about strategic management using proper writing mechanics.
How to Reference "Foreign Market Entry and Diversification" Essay in a Bibliography
“Foreign Market Entry and Diversification.” A1-TermPaper.com, 2012, https://www.a1-termpaper.com/topics/essay/foreign-market-entry-strategies/5887349. Accessed 5 Jul 2024.
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