Global strategy gone astray: Maersk's big box boats and the world shipping industry

A.P. Moller‐Maersk Group (A.P. Moller‐Mærsk AS in Danish), commonly known as Maersk, is the world's largest global shipping conglomerate from Denmark and carries a rich history and corporate heritage in the industry. The company operates large container ships which are mostly known as “big box boats” in the industry. By using interdisciplinary literature and the shipping industry's operational routes and corporate developments, this case‐based research analyzes and discusses Maersk's internationalization and its global strategies. Although Maersk aggressively sought internationalization and company‐specific expansion, its global strategy and international expansion areas have encountered problems because of the slowdown of the global economy, de‐globalization, and the U.S.–China trade tussle. The case‐based research analyzes and discusses these issues within the areas of international business and the company's global strategies and industry‐specific competition. Analysts and industry observers believe that Maersk will continue to be a major shipping and logistics firm and will thrive in global markets. At the same time, the company will be impacted by the changing competition, regulatory forces, and new technologies in logistics and global shipping. This case study also provides future developments and growth prospects of Maersk and the shipping industry.     

Multi-Attribute Dimensions of Service Quality in the Fast Food Restaurant Industry

Abstract

As the fast food restaurant industry grows in the Western industrialized world, it has also become increasingly competitive. In such an environment, marketers are concerned about how to increase or maintain market share through better service quality and effective segmentation strategies. This paper reports a two-phase exploratory study conducted to determine the dimensions of service quality in the fast food industry, from the consumer's perspective. Factor analysis revealed 10 dimensions made up of 57 different attributes. The 10 dimensions were able to discriminate among three groups of fast food patrons, namely: frequent, less frequent, and more frequent patrons. Managerial implications of these findings, for market segmentation, targeting, positioning, and promotional strategies are discussed.     

“Skip” sack and applebee's:: How pub ventures went public

Many people who jump into the restaurant business hoping to make it big end up failing. But success is still possible, as demonstrated by the case of Applebee's franchisee Pub Ventures of New England.     

International Market Entry Strategies of Emerging Market MNEs: A Case Study of Qatar Telecom

ABSTRACT

Drawing on existing theoretical perspectives and previous research, this study essentially investigated the strategic motives, location choice, and international entry mode strategies of emerging market multinational enterprises based on a case study of a telecom company, Qatar Telecom (Qtel) from the Gulf Cooperation Council. Using empirical findings from the semi-structured interviews, this study has clearly indicated that the main strategic motivation behind Qtel's internationalization was essentially opportunity seeking in terms of enabling market development and generating higher return on investment. Although Qtel used different entry strategies depending on the characteristics of host country markets, the company is more in favor of mergers and acquisitions than greenfield investments.     

Franchising and firm financial performance among U.S. restaurants

Franchising has attracted the attention of retailing and entrepreneurship scholars in the past three decades, but evidence pertaining to how franchising affects financial performance is mixed and inconclusive. Thus, the question remains as to whether franchising firms exhibit better financial performance than non-franchising firms in the same industry. In order to find an answer to this question, our study compares the risk-adjusted financial performance of franchising versus non-franchising restaurant firms over the 1995–2008 interval, using five different performance measures: the Sharpe Ratio, the Treynor Ratio, the Jensen Index, the Sortino Ratio, and the Upside Potential Ratio. For each measure, the results revealed that franchising restaurant firms outperformed their non-franchising counterparts. Thus, we provide very robust evidence that franchising is superior on average in the restaurant industry, which can help explain the increasing popularity of franchising as a business form.     

Managing for Excellence in the Food and Beverages Industry

Abstract

In order to understand how to manage for excellence in the food and beverages industry, one must recognize some key principles that are utilized by top companies in this industry. The following article will provide detail examples of three top organizations to let the readers realize the strategies used by each company and what makes them superior than other competitors. The first example is about Nestlé's excellent achievement on market research and successful story about “Wellness strategy”. The second example shows how Coca-Cola produces the world's best known product and implements “Total Quality Management” and “Just-In-Time” system. The third example reveals the success secrets of McDonald's franchise kingdom and “three-legged-stool” relationship with its franchisees and suppliers. To be the top leader in the food and beverage industry, we suggest learning these skills.     

我国中餐业特许经营的问题与管理对策

特许经营是中餐业经营的新方法。这种方法极大地满足了顾客的需求 ,促进了我国中餐业的发展。可以预言 ,随着我国经济的发展 ,中餐业特许经营将成为我国 2 1世纪主要的经营方式 ,将对我国经济和社会做出巨大的贡献。目前我国中餐业特许经营出现了一些问题和困惑 ,阻碍了其快速发展 ,我们必须认真对待和解决。同时应重视整合我国中餐资源 ,加强宏观管理 ,使我国中餐业特许经营不断发展和壮大。     

Pioneering Asian Franchise Brands: Pho24 in Vietnam

Pho24 is Vietnam's largest and most rapidly growing franchise system. In this research, a case study approach is used to study the franchising strategy employed by the organization to achieve rapid growth in Vietnam and internationally. Key people in the organization were interviewed, including the founder/franchiser, franchisees, and company employees. Data were collected over a 12-month period from the organization's operations in three countries: Vietnam, Australia, and Singapore. The findings indicate that cultural and legal contexts heavily influence the franchiser's philosophy. Traditional explanations of franchising, such as resource constraints theory and agency theory, only partially explain the motivations for franchising. An alternative hybrid model of franchising—an Asian partnership model of franchise brand management—is adopted to improve control and collaboration between the franchiser and franchisees.     

Strategies for Business Format Franchisors to Expand into Global Markets

Abstract

Franchising is emerging as a highly effective strategy for growth, job creation, and economic development and is spreading rapidly around the globe. However, the pursuit of global markets by franchisors has traditionally relied on employing just three generic franchising options (i.e., direct franchising, master franchising, area development). This paper presents a more expansive view of strategic choice for franchisors by presenting first-mover, platform, and conversion strategies as additional strategic approaches that may be utilized to meet the challenge of expanding into international markets. Propositions are advanced to first suggest which strategic approaches aremost appropriate under varied foreign market conditions and then how these approaches should be linked to the three generic licensing options to create combination strategies based on franchisor experience/capabilities and similar/dissimilar markets. A contingency model of global franchising is presented, which depicts the above relationships and provides an overall framework that can assist franchisors in solving the foreign expansion and distribution question. Managerial and research implications are then provided.     

Influence of Social Acceptability and Attitudes in Restaurant Beef Consumption

ABSTRACT

The competition for meeting consumer preferences for beef steak in the casual dining restaurant is increasing. In order to better understand these preferences researchers employed Sapp's expanded rational expectations intention model, a depiction of Ajzen and Fishbein's theory of reasoned action, to investigate consumers' intentions to consume beef steak in the casual dining restaurant. The expanded model added the social acceptability construct to Ajzen and Fishbein's rational expectations model. Social acceptability had significant causal path estimates for attitude, intention, and subjective norm. Additionally, researchers looked at possible gender differences in the social acceptability, attitude, and behavioral intention constructs. The path estimate between social acceptability and behavioral intention was significant for females but not for males. The attitude to behavioral intention causal path was the strongest path for both males and females; however, neither gender differed in the amount of weight placed on this causal path. The results of this study may assist the beef and restaurant industry to more effectively compete for market share by meeting consumer preferences for beef steak in the casual dining environment.     

The Effects of Coupon Promotion on Repeat Visits in Restaurants

Abstract

Will customers' intention to return to a restaurant increase with coupon promotion? To answer this question, this study examines the hypothetical effects of coupon promotion on return visits to restaurants. Based on a literature review, three hypotheses were developed to test the effect of a coupon, its face value, and a patron's prior dining experience on return intention. The authors found that neither coupon use nor coupon face value contributed to explaining respondents' return intentions. However, repeat customers have a greater likelihood of returning to the restaurant than new customers. The study also showed that the quality of food and service were key indicators of return intention.     

Delineating Foreign Market Potential: A Tool for International Market Selection

International expansion is becoming more imperative in today's marketplace. However, determining which markets best suit a specific company is not a straightforward task. This study tackles the question of how managers should go about identifying, evaluating, and selecting foreign markets. For this purpose, we propose a practical, flexible, and forward‐looking three‐stage template for assessing foreign market opportunities and identifying the most promising international markets. The three stages include determining country responsiveness for a specific industry, estimating future industry growth, and incorporating an industry‐relevant aggregate measure. The study illustrates the tool for three companies from various industries and discusses the implications. The proposed tool offers insights on crucial dimensions for the industry‐specific market potential, and assists managers in identifying favorable foreign markets. This study also addresses the gap in the international market selection literature by developing a new empirical tool for foreign market analysis and selection using longitudinal secondary data. © 2015 Wiley Periodicals, Inc.     

Franchising in the Balkans: History,status, and challenges

Abstract

Since the Balkans have not been covered with regards to franchising in any comprehensive fashion in the past, this study represents a first look at the topic in this part of the world and contributes to the literature on franchising in emerging economies. This research contrasts the development of franchising in the ten Balkan countries of Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Montenegro, Romania, Serbia, and Slovenia. A comprehensive overview of the franchise industry and its history is created for each country, integrating economic and franchise infrastructure development. The study reveals severe deficiencies in the region with regards to the availability of official data and a lack of specific legislation with regards to franchising and disclosure mandates, as well as education about franchising and a reliable legal environment. Implications for researchers and policy makers conclude the study.     

Economic Transition

Abstract

Poland has become one of Eastern Europe's biggest success stories as an important emerging market and rapidly growing economy. However, transition from a centrally planned economy to a market economy has proven to be an enormous challenge in regard to the development and growth of small entrepreneurial ventures within the tourism and hospitality industry. The objective of this study is to examine the environment for growth and development of these enterprises after more than a decade of transition. The 2002 survey was conducted to examine various factors, such as: entrepreneurial disposition, entrepreneurial orientation, strategies, organizational factors, and environmental factors. A model of the entrepreneurial environment was used to analyze policy implications that can be used to assist in the growth and development of the tourism and hospitality industry in Poland and in the other countries in the region.     

Simulation Study on the Queuing System in a Fast-Food Restaurant

Abstract

The fast-food industry has experienced prosperous growth over the last three decades. In fast-food operations, the term “fast” refers to “quickservice.” The customers coming to a fast-food restaurant do not expect to wait for a long time to receive the food service. The waiting time for customers to receive the food service becomes one of the key quality characteristics in a fast-food restaurant. However, waiting lines always exist in a fast-food restaurant during peak hours. In this article, a simulation model is built to study the queuing system in a fast-food restaurant, which is located in the downtown area of the city of Touliu, Taiwan. From the results of the study, the manager of the restaurant should recruit another server during peak hours such that the customers' waiting time can be reduced. Meanwhile, the validation procedure for a simulation model is also briefly reviewed in this article.     

Market Orientation,Competitive Strategy and Firm Performance

Abstract

In this paper, we investigate the mediating effects of a firm's competitive strategy in the market orientation-performance relationship. Based on a sample of 371 manufacturing firms in China, evidence was found that the three dimensions of market orientation exert different effects on competitive strategy and performance. Among them, customer orientation has the strongest association with competitive strategy and market performance. This lends credence to a componentwise approach on the study of the relationship between market orientation and performance. The results of structural equation analyses indicate that the mediating effect of competitive strategy is mainly revealed in innovation strategy, the most vital factor in creating superior value for the company in the emerging market. Limitations of this study and implications for future studies are discussed.     

Interfirm Arrangements in Different Institutional Environments

Abstract

This paper aims to investigate the effect of the institutional environment variables on the organizational choice by franchise chains that share a business format. Inasmuch as this type of franchising requires strict standardization, a comparative analysis of the same franchise chain operating in different institutional environments allows for the control of several variables, such as product and firm strategies, so that the observed organizational differences may be attributed to institutional variables. Different rules of the game may explain different governance structures in the transaction between franchisor and franchisees and their procurement contracts. In this paper, we did case studies based on semi-structured interviews with procurement and franchising managers of McDonald's in France and Brazil. The main finding is that McDonald's uses in Brazil governance structures that provide more control on transactions, both in the transactions with their outlets and their suppliers. In accordance with our results, institutional environment features explains differences in the organizational choice in each country. Results suggest the need for further research in two directions: a larger sample of countries and the investigation of other franchise chains.     

Liquid Applepie: Market Entry Strategy for a New Lifestyle Drink

ABSTRACT

This is a theoretical case which observes the path a small business needs to follow to be successful. It is hoped the company involved will take these conclusions into consideration for future development.

This case study has been conducted in order to understand the theoretical models of international marketing. It determines the key criteria that need to be considered when entering a foreign market. The idea was to develop a market entry strategy for a Polish Vodka manufacturer who wants to enter the Austrian market.

After an analysis of the market and consideration of the situational factors, which are very important for the development of a detailed SWOT analysis, the segmentation, targeting, positioning and finally the selection of the right entry method, including the customer specific marketing tools, have been identified.     

From an aggregate to a brand network: a study of the brand portfolio at L'Oréal

Abstract

Our purpose is to contribute to the understanding of brand-portfolio management by examining the brand-portfolio strategies of a world-leading company. We started to work on a case study with L'Oréal. Our research focused on two questions: (1) what reasons lead L'Oréal to develop a brand-portfolio strategy?; (2) how can brand-portfolio management create a higher and stronger level of competitive advantage for this company? The results show that an aggregation of brands is not in itself a brand portfolio. The juxtaposition of brands is one of, but not the sole, element necessary for the development of a brand portfolio, which is a combination of a brand ensemble and key competences born out of organisational savoir-faire. By analysing the evolution of the L'Oréal brand portfolio, this work shows how the brand combination within a portfolio is a key factor for company development, growth, and risk management. It is a crucial phase to understand L'Oréal's competitive advantage.     

The Role of Economic-Demographic Factors in U.S. International Restaurant Franchising:

This paper studies the effect of both economic and demographic factors on the international restaurant franchising (IRF). The study utilizes regression analysis of pooled cross-section (6 countries) and time series (10 years)data. It is found that among the economic factors, the market size has a strong positive effect on IRF. On the other hand, the ratio of female workers to the total labor force is positively related to international restaurant franchising. The paper also investigates the relationship between demo-economic factors and IRF for two subsets of interest, developed and developing countries.