個案資料
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Paris Baguette: The Expansion Question
內容大綱
In 2014, Paris Baguette was the largest bakery chain in South Korea with 3,200 stores throughout the country and 178 locations in China, Southeast Asia and the United States. Since 1988, the company had vertically integrated with ingredient suppliers and developed its own food processing capability, giving it considerable control over the value chain. In addition, it had developed an innovative franchise arrangement that allowed for improved cash flow from operations. However, in response to domestic market saturation, intense competition from local and multinational bakery chains and independent bakeries and a recent change in government regulations, its chief executive officer is wondering how best to achieve his goal of operating 6,000 stores in 60 countries worldwide and achieving revenue of KRW4 trillion by 2020. He is also considering whether it would be better to focus instead on improving the profitability of the company’s domestic operations and delay his expansion plans.
學習目標
This case is ideally suited for a strategy or international business course, addressing the topic of international expansion. The specific teaching objectives are the following:<br><ul><li>Understanding how to leverage sources of competitive advantage when considering global expansion of a consumer brand.</li><li>Identifying relevant advantages and challenges when entering different foreign markets, especially those that are culturally different.</li><li>Examining the advantages and disadvantages of expanding with a franchise structure, including the benefit of lower initial capital investments and the challenges of product quality management.</li><li>Recognizing the tension between short-term and long-term costs and benefits when considering expansion into foreign markets.</li></ul>