Analyzing for Yoshinoya's Expansion in European Markets

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International Business Management (A)

Jun 4, 2010

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Course Name: Managing in Global Markets

Topic: Analyzing for Yoshinoya’s Expansion in European Markets

Prepared for: Mr. Peter Erdélyi

Prepared by: Chien-Hua Liu (Jack Liu)

Word Count: 4,853

CONTENTS

Introduction 3

1. Strategic analysis of potential European markets for Yoshinoya 3

1.1 What internal, external and risk factors related market selection 4

1.2 How potential markets were selected 5

1.3 Results of PESTEL analysis and key attractiveness for selecting countries 6

2. New international market entry strategy for Europe for Yoshinoya 10

2.1 Entry-mode strategies and exit strategies 11

2.2 Functional strategies 13

2.3 An organizational structure for the implementation of the strategies 17

2.4 A strategic control system for managing the implementation of the strategies 18

Conclusion 19

Appendices 20

References 27

Introduction

In mid-term business plan, Yoshinoya plans to strengthen its present business and to expand 7 stores in European region including UK and Russia (Yoshinoya Holdings, 2010) (Appendix 1). However, it seems to underestimate the potential opportunity in European market. Therefore, this report will help Yoshinoya to analysis the potential expansion in European fast food market and to conclude a long-term strategic plan for them. Yoshinoya-Holdings (2010) pointed out that Yoshinoya already has some overseas expansion experiences in USA and some Asian countries and now its strategy is to strengthen the competitive power by accelerating the store opening aboard. However, it is also important for Yoshinoya to plan their exit strategy as it is not only a plan for failure but also for success in the future (Pinson, 2008).

1. Strategic analysis of potential European markets for Yoshinoya

International expansion has speeded up during the last five years but the global economic downturn makes this trend tough...