mgt410_ panda express in brazil
TRANSCRIPT
• Company Background • Panda Express International • SWOT Analysis • Porter’s 5 Forces • Financial Benefits• VRIO• Franchising in Brazil• Panda Express in Brazil• Recommendations
Agenda
Background of Panda Express in the US
•Started in 1973 in Pasadena, California
•Mission: Deliver exceptional Asian dining experiences by building an organization where people are inspired to better their lives.
•Values: Proactive, Respect/Win-Win, Growth, Great Operations, Giving
•More than 1600 locations
•Bright and Fresh Design Concept
Peggy Cherng, Co-Chair and Co-Chief Executive
Strength
● Panda Express is among the US's 25 largest quick-service operations and Asian quick-serve category
Weakness
● Although they do not use MSG and cut fresh vegetables every day, they still have the image of being “fast food”
Opportunity
● Introducing more items on its menu
Financial Benefit For You!Estimated Start Up Cost
Initial License Fee $25,000Lease Building $10,000 - 425,000 Initial 3 months’ RentLeasehold Improvements $ 80,000 - 500,000Furniture/Fixtures/Equipment, & Supplies $ 90,000 - 220,000Initial Inventory $2,200 - 3,600Computer Hardware & Software $14,000 - 18,000Cash Register(s) $ 6,000 - 8,000Insurance $ 20,000 - 65,000 Annual PremiumInitial Training Expenses $13,000 - 29,000
Total: $ 359,200 - 1,509,600
LOW RISK
Internal Analysis
ValueGourmet Chinese food - fast casual environment
The company’s mission
Company Values: Proactive, Respect/Win-Win, Growth, Great Operation, & Giving.
RarityUS leader in Asian diningNo other restaurant like it in Brazil Quick-service chains recent growth of 46%
ImitabilityThe business concepts = tangible resource The business structure & beliefs = intangible resources and adds value to the company and its level of success.
OrganizationPanda Express as a company/ their values/ Panda Cares about the community
Will a franchise work in Brazil?
As of 2013, Brazil has the third largest franchising system in the world.
The Brazilian Association of Franchising states that, “the sector has been growing 10% to 13% annually for the past decade.”
Brazil is currently the 8th largest economy in the world and is growing rapidly.
Will Panda Express work in Brazil?
According to Global Entrepreneurship Monitor,
between 2002 and 2010, the number of young Brazilians aged between 18 and 24 who became
entrepreneurs rose by 74%.
When asked to describe their main goal for the next 5 years, Co-CEO’s Andrew and Peggy
Cherng responded, “To be recognized as a world leader in
people development.”
Recommendations
Case Studies
• McDonalds
• Dunkin Donuts
• Pizza Hut
• Subway
Open in Rio De Janeiro shopping centers
ProposalBarra Shopping Center!
Biggest shopping center in Latin America –
577 stores, 25M shoppers each year
“Some industry observers pointed out that McDonald’s success in Brazil was due to the selection of the local partner that helped the company understand and relate to cultural parameters in Brazil and create a
homegrown flavor without losing the brand specifications.”
ResourcesForbes. (2015). #603 Andrew and Peggy Chang. Retrieved from Forbes: http://www.forbes.com/profile/andrew-peggy-cherng/
Killifer, V. (2011, February 6). Panda Express on Expansion Fast Track. Retrieved from Fast Casual: http://www.fastcasual.com/articles/panda-express-on-expansion-fast-track/
P.F. Chang's. (2015). International Locations. Retrieved from P.F. Chang's: https://www.pfchangs.com/international
Risner, M. E. (2001). Successful Fast Food Franchising in Brazil and the Role of Culture. Florida. Retrieved from http://globalelearning.org/wp-content/uploads/2011/01/Successful-Franchising-in-Brazil.pdf
Sarku Japan. (n.d.). About Us. Retrieved from Sarku Japan: http://www.sarkujapan.com/#about-us
Panhia• http://www.bloomberg.com/research/stocks/snapshot/snapshot.asp?ticker=BOBS• http://www.qsrmagazine.com/growth/translating-american-dream• http://www.euromonitor.com/fast-food-in-brazil/report• http://www.globalelearning.org/wp-content/uploads/2011/01/Successful-Franchising-in-Brazil.pdf• http://www.pandacares.org/about/#prettyPhoto ( Team: videos on Panda Care)
Sanah • http://www.mbaskool.com/brandguide/food-and-beverages/10211-panda-express.html
ResourcesBrittaghInternational Business Publications (2013). Brazil: business & investment opportunities yearbook volume 1.Bank of America (2013). Panda Express continues on its path of rapid growth. Retrieved from: http://about.bankofamerica.com/en-us/partnering-locally/panda-restaurant-group.html
BFFC (2015) http://www/bffc.com/brExport.Gov (2015). Doing Business in Brazil. Retrieved from: http://www.export.gov/brazil/doingbusinessinbrazil/index.asp
Leiboitz, Ed (2015). The Tao of Panda Express. Los Angeles Magazine. Retrieved from: http://www.lamag.com/longform/tao-panda/
OTC Adventures (2013) Brazil Fast Food Corp is emerging markets restaurants at a discount. Retrieved from http://www.otcadventures.com/?p=727
Smith, Daniel (2013). Translating the American Dream. Quick service and fast casual dining franchises. Retrieved from: http://www.qsrmagazine.com/growth/translating-american-dream