Country Study
This study will focus on the casual dining restaurant and sports bar Buffalo Wild Wings which primarily sells buffalo wings, and its potential international expansion into China, one of the worlds fastest growing major economies. In order to gain a better understanding of China, it is important to understand the environmental factors associated with the country. I will begin by discussing economic, geographic, and political-legal factors.
According to a 2013 estimate of purchasing power parity, China has a GDP of $13.3 trillion. It has a 7.6% GDP real growth rate and ranks 120th in the world in GDP per capita. One of the prime advantages of China is a populous labor force that ranks first in the world, totaling 797 million evenly split between agriculture and services with a few less working in the industrial sector. The unemployment rate is a manageable 6.4% and a 7.7% industrial production growth rate. China exports electrical and other machinery, data processing equipment, apparel, radio telephone handsets, textiles, and integrated circuits primarily to Hong Kong and the United States, as well as to Japan and South Korea. China also imports electrical and other machinery as well as oil and mineral fuels, metal ores, nuclear machinery components, optical and medical equipment, motor vehicles and soybeans. Its primary import partners are South Korea, Japan, Taiwan, United States, Australia, and Germany. China utilizes transportation through its 507 airports, and a railway system that ranks 3rd in the world totaling 86,000 km. China also makes use of its roadways totaling in excess of 4,000,000 km and stakes claim to the largest amount of navigable waterways in the world. Major seaports include: Dalian, Ningbo,...
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...rs. Internationally, our competition is far less and we have the opportunity to monopolize the market. Although the cost of entry may initially be steep, I would expect to turn a substantial profit within just a few short years based on the growing economy and lack of competition.
References
The World Factbook. (n.d.). Central Intelligence Agency. Retrieved March 28, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
China Employment Law Guide. (n.d.). Baker & McKenzie. Retrieved March 30, 2014, from http://www.bakermckenzie.com/files/Uploads/Documents/North %20America/DoingBusinessGuide/Dallas/br_china_employmentlawguide_13.pdf
Deloitte. (n.d.). Taxation and Investment in China 2013. Retrieved March 30, 2014, from http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-chinaguide- 2013.pdf
Buffalo Wild Wings was founded in 1982 by two longtime friends, Jim Disbrow and Scott Lowery. Disbrow was born in Kentucky and moved to Cincinnati Ohio, when he turned 11 so he could live with figure-skating coaches David and Rita Lowery the two later became his legal guardians. Their son Scott Lowery who was 1 when Disbrow moved in with the Lowerys, grew up regarding him as a brother. Disbrow was a rather gifted skater, so much so that he was named an alternate to the 1968 Winter Olympics in France for the United States Skating team. In 1974 Disbrow moved to Buffalo, New York. In Buffalo he got a firsthand look and taste for the cities spicy local style of chicken wings, in a place called the Anchor Bar. Later in 1981, while judging a figure skating competition at Kent State University. Disbrow ran into Lowery and the two decided to get some Buffalo-style chicken wings. After looking everywhere in town and not finding a single
Many people all over the United States identify Panda Express as not only authentic but also the best Chinese food they have ever had. However, it is initially important to understand that Panda Express is not real Chinese food and incomparable to cuisines found in China. By exploring the impact of American culture and its’ effects on Chinese food in America, it will shine light on Panda Express’ authenticity. The importance of this research lies in clarifying the false perception people have about Panda Express. It will elucidate how American culture influences a Chinese restaurant to acclimate and cater to
Some of the earliest settlers in China was around 1500 BC (History of China). With a vast population there are numerous religions followed such as: Buddhism, Christian, Muslim, Folk Religion, Hinduism, Judaism as well as others and those who do not practice a religious faith (CIA). Beijing is the capital of China and was named Peking prior to 1949 (Peking). Chinese or Mandarin is the official language there are several dialects to the language (CIA). In addition, the time zone in China is Coordinated Universal Time or UTC plus 8 hours (CIA). China exports the following: electrical and other machinery, clothing, furnishings, textiles and integrated circuits according to the CIA. According to Wikipedia there are 3,589 museums some of them included Shangyuan Art Museum, Chongquing Science and Technology Museum, Nanjing Museum and Zhenjiang Museum (List of Museums in
The United States and China share the most imbalanced bilateral trade relationship in the world. The United States imports more goods from China than it exports to a tune of $202 billion dollars each year. All told, China alone accounts for nearly 26% of the United States' $725.8 billion trade deficit. “Increasingly, this imbalance has been the subject of a major political backlash within the U.S. congress, where some have charged that the US is destroying its industrial base to support a communist country's industrialization." http://worldnews.about.com/od/china/a/china_trade.htm
In order to understand why China is in such environmental difficulties we need to understand why the lifestyles of people in Europe and the US could be to blame. The first area to consider is the environmental issues that China is currently suffering with. Once this is established I can assert what impact the US and Europe has in relation to these issues and what actually causes them. In linking the events it will be easier to see the chain of events. To do this I am going to work backwards and understand the issues that exist within China and then secondly what they are a result of. This will give me the background of why China’s environmental issues have become so dire.
... and modernization of its ship yards to support warship development that is equal to or exceeding what is produced elsewhere. This will ensure China’s ability to control safe passage through the East and South China Sea, without relying on or being hindered by the possibility of sea tread embargo.
In 2001 China entered the WTO it has made major stride in the world economy especially with trade agreements with the biggest capitalist economy and the biggest GDP and most developed country in the world the United States of America which has nearly 2.3 trillion of exported goods and service in 2013 (President, n.d.) When China entered in the WTO it had become the sixth largest economy and the largest market trade and was slightly ahead of Italy and just behind France. “China is third largest trading partner with the U.S and its trade surplus with the U.S. has increased to $201 billion around 2005 and by 2014 the total China-U.S. trade deals was 591 billion”. (Morrison, 2015) It had a global current account of $160 billion around 2005 (Hufbauer, Wong, & Sheth, 2006). As of 2015 “China is the U. S’s second largest trading company and the third largest export company and its biggest source of import”. (Morrison, 2015) Sales from a foreign affiliated U.S. firms in China totaled at 364 billion by 2013. (Morrison, 2015). What is also amazing is that China has the biggest U.S. treasury bonds and that keeps U.S interest rate low. Between 2010 to 2014 General Motor sold more cars in the Chine’s market than in the U.S. market and many U.S. firms participate in Chinese market to stay globally competitive. (Morrison, 2015). This kind of
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
According to National Chicken Council it is reported that during Super Bowl weekends Americans are expected to chow down on close to 1.25 billion chicken wings. Of this amount, a majority of the wings will be consumed either in or from a restaurant. In Hays, Kansas there is not a predominant wing venue, however, there is one name that frequently comes up: Buffalo Wild Wings. A very popular choice among the college crowd, this establishment has cemented its name with some of the top sports bars in the business since 1982. This analysis will discuss whether or not bringing Buffalo Wild Wings to Hays, Kansas would be a successful economic venture by looking at potential profitability, future clientele base, competing businesses, and employment opportunities.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
While their domestic figures were rosy, the international operations were losing ground. The once profitable Japanese market was declining, and the European and Middle Eastern ventures failed to gain momentum. Unfortunately, the U.S. market was experiencing saturation and the only way to grow seemed to be the overseas markets. They achieved entry through the use of wholly owned subsidiaries, licensing deals, or joint ventures.
Hoobler, Dorothy, Thomas Hoobler, and Michael Kort, comps. China: Regional Studies Series. Upper Saddle River, New Jersey: Globe Fearon, 1993. 174-177.
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand without having to pay such a large initial cost to open a new store since the franchise purchaser pays a cost to open the business. As well, the company can regulate many of the business activities so that there is a sense of consistency throughout all of the locations. The purchaser is allowed to use the trademarks and goods of the franchise which already have a large market presence. As well, they are provided with training and work standards by the company to help their business run smoothly (Kalnins & Lafontaine, 2004, p.761). Looking at the business model of the world’s largest food retailer, McDonald’s, provides great insight into franchising and business growth in general as well a better understanding of a global business that utilizes the franchising technique.
The first innovative strategy of KFC China is localizing the menu. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to implement for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating. “One of the lessons I take away from this case is that to do China, you have to do China”, says Shelman. KFC localizes their offerings and adapts their existing products to appeal to the Chinese customers’ needs. The menu features Chinese local food like egg and vegetables soup. Examples of innovative products are the Dragon Twister (chicken roll of old Beijing) and the glass jelly milk tea (Zhou...