Café de Coral Holdings Limited International Business Development Plan to

SBS6481

International Business Strategy
UON DBA Program

Block 5, 2013 (November 17th 2013)
Group Written Report

Café de Coral Holdings Limited International Business Development Plan to enter Australia market

Provided by H.E.L. Management Consulting Company Limited

contents
Pages
1. Executive Summary

3

2. Introduction

4

3. Industry Based view Analysis

5-6

4. Resource Based view Analysis

7-11

5. Institution Based view Analysis

12-15

6. Recommendations

15-16

7. References

17-19

8. Appendices

20-25

2

1.

Executive Summary

This group consulting project aims to devise an international business development plan for Café de Coral Holdings Limited in order to assist the company to facilitate its aspiration to enter into Australia’s fast food market.
Strategic analysis is conducted to provide necessary information to the company. The changing performance and attractiveness of the fast food industry in Australia is critically evaluated from the industry-based point of view. Since its establishment in
1968, Café the Coral has become the largest publicly listed Chinese fast food restaurant group in the world. The resource and capability the company accumulated during these years is essential criteria for it to expand internationally. Therefore, the
VRIO framework is used to cautiously evaluate the degree of which the company’s resource and capability is valuable, rare, hare-to-imitate and organizationally embedded. In addition, critical analysis based on institution-based point of view is also included in the report for the reason that institutional differences between two countries will affect the performance of the company.
Base on the above analysis, it is in the good faith to advise the company to enter
Australia fast food market in consideration of location, timing and mode of entry. It is where the rubber meets the road when Café the Coral can successfully overcome the

References: Australian Bureau of Statistics. (2013). Australian population clock. Retrieved from: http://www.abs.gov.au/websitedbs/D3310114.nsf/home/home?opendocument#frombanner=GT Euromonitor International. (2013). Fast Food in Australia. Retrieved from: http://0www.portal.euromonitor.com.library.newcastle.edu.au/Portal/Pages/Search/SearchRes ultsList.aspx Euromonitor International. (2012). Consumer Foodservice in Australia. Retrieved from: http://0-www.portal.euromonitor.com.library.newcastle.edu.au/ Euromonitor International. (2013). Consumer lifestyle in Australia. Retrieved from: http://0-www.portal.euromonitor.com.library.newcastle.edu.au/Portal/Pages MarketLine. (2012). MarkeLine industry profile: fast food in Australia. London, UK : MARKETLINE Ritchie, P. (1990). McDonald’s: A winner through logistics. International Journal of Physical Distribution & Logistics Management, 20(3), 21. Gillis, W. E., & Combs J. G. (2009). Franchisor strategy and firm performance: Making the most strategic resource investments Weaven, S., & Frazer L. (2007). Expansion through multiple unit franchising: Australian franchisors reveal their motivations Ming, T.T., Ismail, H. B. & Rasiah D. (2011). Hierarchical Chain of Consumer-Based Brand Equity: Review From The Fast Food Industry Zachary, M. A., McKenny, A. F., Short, J. C., Davis, K. M. Wu, D. (2011). Franchise branding: an organizational identity perspective Café de Coral Holdings Limited Annual Report (2013). Passport Consumer Food Service in Australia, Euromonitor International (2012) Mike W.Peng, 2009, Global Strategic Management, 2nd edition, South Western Rhonda, J., 2011, Marketing obesity? Junk food, advertising and kids, Social Policy Section, Research Paper no self-regulation is a charade, Obesity Policy Coalition, Partner media releases Food labelling review panel presented (2011): Response to the Recommendations of Harvard Law School library website, 2013 18 Wikipedia, 2013 Hofstede, 2013 Country Intelligence, 2013: Report, Australia, HIS Global Insight Q4 2013, Australia Business Forecast Report includes 10 year forecast to 2022, B. Taylor, K. Webber, G. Jacobs, 2013, Institutional Research in light of internationalization, growth, and competition, Wiley Periodicals S. Ahsan, 2001, Institutional Framework and poverty: A Transition Economy Perspective, CESIFO working paper No A. Kuncic, 2013, Institutional quality dataset, Journal of institutional economics(JIE) C Source: MarketLine, 2012. Appendix 2. Australia fast food market value forecast Source: MarketLine, 2012.