LETTER OF TRANSMITTAL
22 Nov 2012
Datuk Steven Sim
Chief executive officer and managing movie director
Magic formula Recipe Cakes and Café Sdn Bhd
FINAL REPORT SUBMITTING – GROWTH PLAN TO VIETNAM MARKET Make sure you find attached the reported requested by Board.
This kind of report reveals an insight in to the Vietnamese marketplace and explains why this really is a potential person to invest in. Really is endless that the info provided is useful in the decision-making with regard to further development of Magic formula Recipe down the road. If you need virtually any farther logic on the statement, please tend not to hesitate to contact me, the team leader, in a email address: [email protected] nottingham. edu. my
Nguyen Huynh Bao Ngoc
For the Global Technique Team
Stand of Contents
1 . Exec summary3
installment payments on your Introduction4
a few. Methodology5
four. Findings and Discussion6
4. 1 . Motives of internationalization6
4. 2 . Justification of entering into Vietnam6
6. Recommendations: 14
6th. 1 . Most suitable strategy14
six. 2 . Entry mode14
six. 3. Suitable organization structure15
1 . Exec summary
This report vitally examines the potential of Vietnam as the next remain in Secret Recipe's global expansion plan. At first, the report highlights the current great accomplishments that Secret Recipe have been attaining from its very first internationalized activity. Making use of the proper approach and getting favored by buyers all assure an auspicious future for the sequence. Taking all of these merits, the organization consecutively looks for new market segments with new resources. Together, findings have demostrated that Vietnam is a desirable market for its potentials within a fast-growing overall economy and long lasting profitability, as well as rich methods. Then, the nation risk examination and the country market and industry opportunities analysis were introduced to examine Vietnam's advantages and disadvantages. The result is that you have rooms for both of them. Therefore , so as to succeed, recommendations on ideal entry method, strategy and organization composition are specific. To be more in depth, the most suitable entrance mode is definitely master franchising via a joint venture because it brings about the positively high assurance in functioning. As for strategy, it is an worldwide one to make sure consistency inside the menu and concept through control over the core expertise and leaving other decisions to international subsidiaries. Besides, the Throughout the world Area Framework is vital regarding managing you can actually global growth as it permits local responsiveness and decentralized authority, which in turn both matter for foreseeable future growth. Finally, the main conclusion is that Vietnam is the correct solution intended for the Board's decision to expand overseas. non-etheless, the management ought to cautiously take into account the recommendations in order that Secret Formula can earn.
installment payments on your Introduction
Secret Recipe offers gained their popularity with Malaysia nevertheless also throughout the region. The truly amazing succeed stemmed from the feel brought to consumers and the superior quality food offered at inexpensive price points. The number of overseas outlets is now exceeding forty five and is expecting to increase. In respect to Welch and Luostarinen (1988), internationalization can be described as a procedure by which the level of involvement in overseas actions of a company rises. Without a doubt, adding the quantity of overseas stores up to 75 was area of the ambitious global expansion prepare. Recently, the company has spent RM60 mil to invest in two more fresh markets which are India and Cambodia (TheSundaily. com, 2011). Evangelista (1994) argues which the readiness to finance international actions proves that firms would like to move additional. In the past 3 years, the company offers witnessed a growth charge of 30% (Articlebase. com, 2011). Benefiting from both the standing and the development pace, it is the...
References: A recipe for success (2011) [Online]. Offered at http://top10malaysia.com/home/index.php/trail-blazing-companies/secret-recipe [Accessed 19th October 2012]
Problem in Vietnam is significant, blatant, widespread (September 2012) [Online]. Available at http://tuoitrenews.vn/cmlink/tuoitrenews/politics/corruption-in-vietnam-is-serious-blatant-rampant-1.85998 [Accessed 12th Nov 2012]
Foodservice in Vietnam to 2014 (July 2011) [Online]. Sold at http://www.marketresearch.com/Datamonitor-v72/Foodservice-Vietnam-6446347/ [Accessed 28th October 2012]
D. S. Welch, R. K. Luostarinen (1988). ‘Internationalization: advancement of a concept'. Journal of General Managing, 14 (2) (1988), pp. 34–55
Top secret Recipe to invest RM60m in expansion (December 2011) [Online]. Offered by http://www.thesundaily.my/news/243733 [Accessed 21st October 2012]
Key Recipe in Malaysia (July 2011) [Online]
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