Pret a Manger

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Index

1…………………..…..Title Page
2……………………….Index
3-4……...................…..Introduction
4-7…………………….Entering the UAE
7-8.................................Entering Egypt
8-9.................................Entering Kazakhstan
9-10.............................. Ethnocentric or Polycentric Approach

Introduction
The retail outlets, more so specifically the fast food industry was introduced through the concept of offering packaged food with a typically low preparation time. Franchised restaurants receive standardized food products from a central location in order to cut labor and land costs to benefit from economies of scale. While a growing global middle class combined with international expansion ensure rising overseas sales are determined by strong economic growth in emerging markets. However fast food has an innate negative connotation relating it to being unhealthy. Sinclair and Julian, two college students challenged such relationship and came up with the idea of opening such unusual dining place that would combine natural and chemical free food with a fast/take-away service. This was realized with the opening of the first Pret a Manger which was launched in London, in 1986. Today, the private limited company is one of the most popular sandwich retailers in the United Kingdom. Pret offers a variety of food, such as sushi, pastries, berries, fruit bowls, salads and many different sandwiches as well as a choice of fresh juices, tea and coffee drinks. Unlike most fast food retailers, there is a kitchen in every Pret A Manger shop. Chefs come every day, early in the morning to make fresh food, choosing ingredients carefully. Following its popularity in London, the organization decided to expand in the year 2000 to the United States, and after a few years to Asia. At present, there are about 263 shops located around the world with a turnover of roughly £270 million a year. In order for a firm to enter foreign markets successfully it must initially research the most appropriate entry strategy for each distinct market. Such decisions are not only vital for the corporation’s international expansion but also have long-term implications for multi-national companies. Exporting, licensing, turnkey projects, franchising, joint ventures and subsidiaries are the main entry strategies a firm may opt for when internationalizing. Taking into consideration various factors which may influence a firm and analyzing the consequences of such will bring a company to conclude the choice of international entry strategy in given circumstances which may vary vastly in different countries. Pret a manger focuses on a slow development because by being private, they don’t feel the need for rapid expansion. Entering the United Arab Emirates

The United Arab Emirates is a gulf Arab Muslim country located in the southeast of the Arabian peninsula in southwest Asia. Its capital city is Abu Dhabi, which is in addition the country's core of political, industrial and cultural actions, as well as Dubai. The countries that surround it are Bahrain, Kuwait, Qatar, Iran, Iraq and Saudi Arabia. U.A.E. possess one of the largest developed economies in west Asia, it is among economies which have strong market exchange rates, with an addition to a high GDP. The bases of the emirates wealth is due to their abundance amount of oil reserves, which are ranked as the world’s sixth largest. Furthermore, it is the fifteenth in purchasing power per capita, with an addition to an astronomical human development index in its region which ranks them globally as the thirty-second. Due to the location and the strong economic primary sources of the Emirates, it has increasingly become a very popular choice in doing international business. However when a foreign firm wants to enter a new country, a lucid research of the foreign market must take place in order to minimize risk. Performing such analysis is evident for Pret a Manger when entering the Arab food market. The...
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