Oldktown Economy Case Study
No
Title Page
1 Introduction 2
2 Country Profile 3
3 Culture 4
4 Economic System 5
5 Political System 6
6 Religion 7
7 Challenges and Problems 8
8 Currency Risk 9
9 Religion 10
10 Cultures Difference 11
11 Solutions 12
12 Solution regarding Currency Problem 13
13 Solution regarding Religion Problem 14
14 Solution regarding Cultural Difference 15
15 Conclusion 16
16 Bibliography 17-18
Introduction
OldTown Berhad is a company founded in 1999, became the first white coffee manufacturer in Malaysia. They serve coffee beverages which are produced using their own formulated blend of coffees. OldTown’s business activities can be divided into 3 categories which are the operation of their café chain, the manufacturing of their products, and the …show more content…
China’s economy is majorly made up of mixed economy because it has features of a market economy and a planned economy (Chow, 2011). They also became one of the largest exporters all over the world and manufacturer for many types of goods. Besides that, China plays a major role in terms of trading and purchasing power internationally. Deng Xiaoping, the late leader of China starts to reform the economy and politics in China since the 30 years ago with average 10% GDP growth (The Economist, 2014). The reformation is a great success that he brought to the country as the government's planning and direct control is reduced massively (China Economic Reform Timeline, 2014). As China is the 4th largest country in the world, it has a massive land area and abundant with natural resources (Economy, 2013). This added advantage allows China to be a platform where almost everyone wants to start their business in or even deal with …show more content…
Restaurant franchise seems like has nothing to do with religion; however, religion is a part of their culture and affects people’s behavior, consuming pattern, a lot than we expect. The most obvious problem they probably face is Halal issue. China people love to eat pork. Following one research in 2007, Chinese pork consumption has increased 18% from 64 million to 78 million tons-two times higher than United States’ one. Pork is their most favored protein (Earth-policy.org, 2013). However, Old town coffee is halal restaurant which doesn’t offer pork. This fact will miss the big portion of potential sales. Nevertheless, Old town coffee might think they can run their business remaining their halal concept because there are Muslims in China as well; however, most of the Muslims are located in Western China’s Gansu, Yunnan, Qinghai and Xin jjang province which are quite far from major cities like Beijing and Shanghai: 10 above around 55 minority groups in China are specified in Muslim as well. If Old town coffee starts to launch their brand in China, they surely will open the shops in major cities can make profit. In Beijing and Shanghai, there are already few restaurants, competitors, targeting Muslims; so that, they will have to change their plan. Moreover, some Buddhist does not take beef as
Title Page
1 Introduction 2
2 Country Profile 3
3 Culture 4
4 Economic System 5
5 Political System 6
6 Religion 7
7 Challenges and Problems 8
8 Currency Risk 9
9 Religion 10
10 Cultures Difference 11
11 Solutions 12
12 Solution regarding Currency Problem 13
13 Solution regarding Religion Problem 14
14 Solution regarding Cultural Difference 15
15 Conclusion 16
16 Bibliography 17-18
Introduction
OldTown Berhad is a company founded in 1999, became the first white coffee manufacturer in Malaysia. They serve coffee beverages which are produced using their own formulated blend of coffees. OldTown’s business activities can be divided into 3 categories which are the operation of their café chain, the manufacturing of their products, and the …show more content…
China’s economy is majorly made up of mixed economy because it has features of a market economy and a planned economy (Chow, 2011). They also became one of the largest exporters all over the world and manufacturer for many types of goods. Besides that, China plays a major role in terms of trading and purchasing power internationally. Deng Xiaoping, the late leader of China starts to reform the economy and politics in China since the 30 years ago with average 10% GDP growth (The Economist, 2014). The reformation is a great success that he brought to the country as the government's planning and direct control is reduced massively (China Economic Reform Timeline, 2014). As China is the 4th largest country in the world, it has a massive land area and abundant with natural resources (Economy, 2013). This added advantage allows China to be a platform where almost everyone wants to start their business in or even deal with …show more content…
Restaurant franchise seems like has nothing to do with religion; however, religion is a part of their culture and affects people’s behavior, consuming pattern, a lot than we expect. The most obvious problem they probably face is Halal issue. China people love to eat pork. Following one research in 2007, Chinese pork consumption has increased 18% from 64 million to 78 million tons-two times higher than United States’ one. Pork is their most favored protein (Earth-policy.org, 2013). However, Old town coffee is halal restaurant which doesn’t offer pork. This fact will miss the big portion of potential sales. Nevertheless, Old town coffee might think they can run their business remaining their halal concept because there are Muslims in China as well; however, most of the Muslims are located in Western China’s Gansu, Yunnan, Qinghai and Xin jjang province which are quite far from major cities like Beijing and Shanghai: 10 above around 55 minority groups in China are specified in Muslim as well. If Old town coffee starts to launch their brand in China, they surely will open the shops in major cities can make profit. In Beijing and Shanghai, there are already few restaurants, competitors, targeting Muslims; so that, they will have to change their plan. Moreover, some Buddhist does not take beef as