149053111 - Review the article below do additional research...

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Review the article below , do additional research and answer these questions. You should prepare your report according to this format: Introduction/Context (write about one page summarizing the case; include the context and key questions raised in it) Q1 (list the question) A1 (your answer) Etc. Conclusion (write no more than one page of your conclusions and observations) Work cited Use list (bullets), graphs, charts, tables, etc. to make your report more effective (a sample is on Blackboard). Be sure to use data available in the Case supplemented with additional research. Your report must be between 4 and 5 pages, 1.5 space with font TNR11 ********************************************************* CASE QUESTIONS 1. Why do firms decide to enter the overseas market? Discuss the issues about local franchise business’s environmental change. 2. What are Paris Baguette’s strong points compared to competitors? What are Paris Baguette’s weak points compared to competitors? 3. How can Paris Baguette reduce the risk that may arise in adopting franchise strategy in China? 4. What are the main points of Paris Baguette’s global strategies?
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China Market Entry Strategy Of Paris Baguette INTRODUCTION The franchise system operates as follows: The franchisee sells the franchisor's products or services, trades under the franchisor's trademark or trade name, and benefits from the franchisor's help and support. These features make it relatively easy for a franchise to go global. For example, report from KOTRA said approximately 30,000 McDonald’s outlets in 120 countries were opened through franchising in 2010. However, the franchise system has been limited in its entry into overseas markets due to a lack of information or professional employees. For example, in the case of Korea, franchisors have opened only 60 overseas outlets out of 2,400 franchisors that exist in Korea. Eight years after opening its first outlets in Shanghai in 2004, Paris Baguette became the first Korean bakery franchise to have 113 outlets in China. In addition to its several stores already in the U. S., Paris Baguette aims to increase the number of its branches there, including in Los Angeles and New York. It recently opened one outlet in Singapore and eight outlets in Vietnam. The Fair Trade Commission (FTC) took action on trading standards, banning bakeries from opening a franchise within a 500-meter radius of their stores. Following this, the Korean National Commissions for Corporate Partnership (NCCP) issued a regulation prohibiting new franchise store openings within a radius of 500 meters from a local bakery (Go, 2009). Likewise, the local franchise business faces a new environment that requires franchises to modify their expansion strategy and look toward international markets for sales. This paper describes the issues confronting Paris Baguette’s international growth strategy: 1) How can businesses adapt local practices to fit easily into the new environment?; 2) Who are the target customers?; 3) Should Paris Baguette follow the domestic positioning strategy in the China market?
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