Global Business Environment

3.6 Dangerous Issues

3.6.1 Diseases

In recent years, there has been the Avian Flu which has caused many people to avoid eating poultry. In more recent months, the Avian Flu outbreak in some parts of Europe may affect the sales of poultry dishes in Secret Recipe’s outlets (CDC 2005), as consumers are afraid to consume poultry fearing that they may be infected with the Avian Flu. In order to overcome this issue, the management needs to come up with alternatives to poultry products so that consumers will still have a wide choice of meals to choose from. This step can ensure the consistency of sales in Secret Recipe’s outlets.

3.6.2 Usage of Banned Chemicals in Food

China’s economy is growing at a very fast rate and will soon resulting in a higher demand for needs than there is supply. Thus, there may be some scheming manufacturers who will use this opportunity to incorporate some illegal chemicals in their products. The banned chemicals are hazardous and may cause death to the consumers. In 2001, 146 people were reported dead and over 15000 were hospitalized due to the chemical used in the food industry (Li 2004). There is also a common problem whereby the manufacturer will sell some of the food under the name of a popular brand but is actually a copy version of it. Secret Recipe outlets should pay extra precaution on the supplies of food ingredients delivered so as to ensure that the goods they ordered are indeed approved by the government’s health regulations

4.0 Conclusion

In conclusion, China’s market presents a lucrative opportunity for Secret Recipe to invest in. China’s economy is currently expanding rapidly, and will furthermore be boosted when the 2008 Olympic Games are held in Beijing, followed by the 2010 World Expo being held in Shanghai. Therefore, since China’s market is still on the verge of a robust economic boom, Secret Recipe will not stand to lose from investing in China, and will reap long-term profits. However, though attractive the...