Global Expansion Plan
LETTER OF TRANSMITTAL
22 November 2012
Datuk Steven Sim
Chief executive officer and managing director
Secret Recipe Cakes and Café Sdn Bhd
Malaysia
Dear Sir,
FINAL REPORT SUBMISSION – EXPANSION PLAN TO VIETNAM MARKET
Please find attached the reported requested by the Board.
This report reveals an insight into the Vietnamese market and explains why this is a potential one to invest in.
We hope that the information provided is useful in the decision-making with regard to further development of Secret Recipe in the future.
If you need any farther clarification on the report, please do not hesitate to contact me, the team leader, at an email address: ksay1nho@email.nottingham.edu.my
Yours sincerely,
Nguyen Huynh Bao Ngoc
On behalf of the Global Strategy Team
Table of Contents 1. Executive summary 3 2. Introduction 4 3. Methodology 5 4. Findings and Discussion 6 4.1. Motives of internationalization 6 4.2. Justification of entering into Vietnam 6 5. Conclusion 13 6. Recommendations: 14 6.1. Most appropriate strategy 14 6.2. Entry mode 14 6.3. Appropriate organization structure 15 7. References 16
1. Executive summary
This report critically examines the possibility of Vietnam to be the next stop in Secret Recipe’s global expansion plan.
Initially, the report highlights the current great achievements that Secret Recipe has been attaining from its very first internationalized activity. Employing the proper strategy and being favored by consumers all guarantee an auspicious future for the chain. Taking all of these merits, the company consecutively looks for new marketplaces with new resources. Simultaneously, findings have shown that Vietnam is an appealing market because of its potentials in a fast-growing economy and long-term profitability, as well as rich resources.
Then, the country risk analysis and the country market and industry opportunities analysis were introduced to evaluate
22 November 2012
Datuk Steven Sim
Chief executive officer and managing director
Secret Recipe Cakes and Café Sdn Bhd
Malaysia
Dear Sir,
FINAL REPORT SUBMISSION – EXPANSION PLAN TO VIETNAM MARKET
Please find attached the reported requested by the Board.
This report reveals an insight into the Vietnamese market and explains why this is a potential one to invest in.
We hope that the information provided is useful in the decision-making with regard to further development of Secret Recipe in the future.
If you need any farther clarification on the report, please do not hesitate to contact me, the team leader, at an email address: ksay1nho@email.nottingham.edu.my
Yours sincerely,
Nguyen Huynh Bao Ngoc
On behalf of the Global Strategy Team
Table of Contents 1. Executive summary 3 2. Introduction 4 3. Methodology 5 4. Findings and Discussion 6 4.1. Motives of internationalization 6 4.2. Justification of entering into Vietnam 6 5. Conclusion 13 6. Recommendations: 14 6.1. Most appropriate strategy 14 6.2. Entry mode 14 6.3. Appropriate organization structure 15 7. References 16
1. Executive summary
This report critically examines the possibility of Vietnam to be the next stop in Secret Recipe’s global expansion plan.
Initially, the report highlights the current great achievements that Secret Recipe has been attaining from its very first internationalized activity. Employing the proper strategy and being favored by consumers all guarantee an auspicious future for the chain. Taking all of these merits, the company consecutively looks for new marketplaces with new resources. Simultaneously, findings have shown that Vietnam is an appealing market because of its potentials in a fast-growing economy and long-term profitability, as well as rich resources.
Then, the country risk analysis and the country market and industry opportunities analysis were introduced to evaluate
References: A recipe for success (2011) [Online]. Available at http://top10malaysia.com/home/index.php/trail-blazing-companies/secret-recipe [Accessed 19th October 2012] B.M Corruption in Vietnam is serious, blatant, rampant (September 2012) [Online]. Available at http://tuoitrenews.vn/cmlink/tuoitrenews/politics/corruption-in-vietnam-is-serious-blatant-rampant-1.85998 [Accessed 12th November 2012] Dunning, H Foodservice in Vietnam to 2014 (July 2011) [Online]. Available at http://www.marketresearch.com/Datamonitor-v72/Foodservice-Vietnam-6446347/ [Accessed 28th October 2012] F.U L.S. Welch, R.K. Luostarinen (1988). ‘Internationalization: evolution of a concept’. Journal of General Management, 14 (2) (1988), pp. 34–55 P.J Secret Recipe to invest RM60m on expansion (December 2011) [Online]. Available at http://www.thesundaily.my/news/243733 [Accessed 21st October 2012] Secret Recipe in Malaysia (July 2011) [Online]