'BreadTalk Group Limited Essay\r'

'The BreadTalk base expressage has quickly globalized into 16 countries such as Singapore, China, Hong Kong, southern Korea and the Middle East(http://www. breadtalk. com/ourbrand-bt. html Our Presence,2012). It is fountainhead k nowadays for its bakeshop, restaurant and intellectual nourishment atrium, and this compromises of BreadTalk, Toast Box, The sparkler Room, nail Tai Fung, RamenPlay, Carl’s Jr China, and victuals Republic. organism founded in 2000, the young telephoner has achieved numerous awards which includes the Singapore Prestige s plaza Award in 2011(http://www. breadtalk. com/brand-accolades. tml Brand Accolades, 2012).\r\nThe convention has a global net income of oer 400 bakery outlets, with a forte of much than than 6000 employees, as well as operating 11 Michelin friend Din Tai Fung restaurants in Singapore and Thailand, and e realplace 30 award winning solid nutriment Republic nutriment atriums in Singapore, mainland China, Hong Kong an d Malaysia. The class brand is founded by the Chairman George Quek Meng Tong, who was ordained to the board in 2003, and re-elected in 2010. Being real get down in food and beverage fabrication since 1982(http://www. breadtalk. com/board-of-directors. tml, Chairman,2012), he started the bakery business with BreadTalk Private Limited and bought it to key on the Singapore Exchange Limited in 2003.\r\nThe sort made an number receipts of $333, 000, 000 and a profit of $11, 450, 000 amid 2010 and 2011. With an avail commensurate financial asset of $911, 000 at the end of 2011, the BreadTalk grouping has a brilliant future, with the addition of rapid growth of franchising network in Asia Pacific surface area (http://www. breadtalk. com/franchising. html, our presence, 2012). Today, organizations and firms pull in to keep changing and adapting to the global happy chance (R . Gomez-Mejia, 2012, page 56) to stay competitive in the industry. And this is because the general envi ronment is unendingly moving, and these dimensions †Demographic, frugal, policy-making or legal, sociocultural, technological and global †always influences the industry and firms.\r\nThese atoms be uncontrollable and thus, in order to stay competitive, the BreadTalk assembly gathers prepare required to understand individually segments and conception a outline that potbelly be implemented to tackle environmental changes corresponding demographics in China, global consumer preference, threat of pertly entrant, nd management across cultures. In recent years, firms are venturing into China’s market place due to its huge creation of least 6. 8 billion (Worldbank, 2012) , and is seen as a driver of growth for BreadTalk Group.\r\nIn Boston Consulting Group’s Growth-Share intercellular substance (R. Gomez-Mejia,2012 page 235), BreadTalk Group is a â€Å"Star” that earnings is growingly stable and exalted, with cash merge that is not negative . And thus, is to invest and grow. By buying an animate presence in China, nourishment Republic, BreadTalk was able to reap benefits from low setup approach, as well as to rule the consumers’ behaviors in China.\r\nUp to date, BreadTalk has already circulate into 32 cities of China, and outnumbers Singapore with 20 food courts, 3 Carl’s Jr fast food restaurants, 3 Ramen Play restaurants, and 184 Bakery outlets. The BreadTalk Group plans to grow aggressively in the market as â€Å"China currently accounts for active a third of BreadTalk’s revenue enhancement” (Themalaysian insider, 2010), and by establishing most of its presence in Beijing and Shanghai, BreadTalk has took advantage of the rising income which take to higher expenditure in consumers.\r\nThus, the demographic environment of China, has boost BreadTalk Group’s revenue, as well as being a large market for it to expand, hostile in Singapore where brands are really saturated . Th e BreadTalk Group tackles global consumer tastes and preferences very well even though it changes as time goes by. It has a very heavy branding and has a very exchangeable layout.\r\nFor example, each BreadTalk is knowing with the same clearly glass concept, and â€Å"see through” kitchens which conveys their bakery as fresh and artistic epoch Food Republic holds a more than nostalgic style of a Chinese village and Toast Box is designed with a more warm airwave of topical anaesthetic Nanyang coffee shops in the 60s and 70s(http://www. breadtalk. com/ourbrand-tb. html, our brands 2012). Thus, by standardizing the layouts of the brands in BreadTalk Group, the Group has saved live on the tedious process of customizing to local conditions as well as creating a upstanding brand through its crotchety layouts.\r\nAlthough the BreadTalk Group holds a very strong branding, the barriers to entry to food and beverage industry is very low. And thus, the threat of new entrants is very high as they female genitalia be the market share. Likewise in BreadTalk, existing competitors such as Bengawan Solo, Crystal gross scold My Bread, Imperial Kitchen, as well as umpteen neighborhood bakery stores that are located all all over the countries, shows a threat to BreadTalk as they are overlap the same market of consumers.\r\nBeing a big familiarity, BreadTalk faces risk of new entrants as new comer can take care from existing companies and create a similar or even a violate concept. With an extra competitor, unless the demand for BreadTalk bakery increases, the revenue will fall. Thus, it is very important for BreadTalk Group to keep innovating and moving to survive against many competitors. Lastly, the management across cultures is similarly an environmental factor that affects BreadTalk Group as it shapes the consumers’ preferences and tastes.\r\nFor example, the highest merchandising gyre in BreadTalk is the â€Å"Pork clean Bun”( ht tp://www. breadtalk. com/franchising. html,more bread business, 2012), however in Malaysia, the Muslim law does not result Malays to consume pork, and thus, it is taken out of the choices. BreadTalk too follow themes and trends in countries, like creating the Obunma bun during Obama’s elections, and the â€Å"Peace Panda lowlife” after the Sichuan earthquake in 2008, to launch social awareness to donate and friend the affected people in the earthquake.\r\n done connecting to cultures of different country, the BreadTalk Group not all holds a social responsible frontier, it as well caters to the taste and preferences of different cultures and thus, able to run many consumers. Besides the above factors, economic and cultural environment affects the business in BreadTalk Group as well. BreadTalk Group is now facing the rising of labor price and pretentiousness in China, and these are aleatory to how much it will affect the profits.\r\nWith the price of goods so ld attributing to nearly 30% of sales(http://breadtalk. istedcompany. com/financials. html, financials 2012), an inflation will cause an increase in the cost of goods sold nearer to its vernacular margins. Likewise in China, the government has gradually increased wages and might march on to do so. And this will increase the expenses of BreadTalk Group, pencil lead to a decrease in the profits. Although virtually companies could retrench, but BreadTalk Group needs the gay capital and thus, could only adjust its raw materials cost by buying forward, and negotiating contracts in bulk and then purchase at the best price available.\r\nBy doing so, the cost of sales would be reduced and the Group will be more efficient. The BreadTalk Group holds a low power distance, goals achieving culture, and uses a justice approach. For example, BreadTalk strives to have high and self-consistent standards of products to their customers. Employees will under-go hands on training on various outl ets to make sure enough that they have a formal trance to the organization and thus, would not face a cultural shock(R. Gomez-Mejia, 2012 page 66). BreadTalk to a fault emphasizes on team- structure by organizing team building trips and activities for its employees.\r\nBy doing so, employees will interact and understand each other, as well as building bonds that enhances teamwork, boosting effectiveness of the team. In BreadTalk, employees are similarly encourages to think erraticly and are tempered fairly, and thus, managers are required to develop a service culture and all these are to achieve an increase customer’s loyalty. Planning is essential for a company and this is one of the four management functions. through with(predicate) provision, BreadTalk is able to make action plans on how to expand boost into China, as well as allocating its resources to different regions.\r\nThrough the experience of Food Republic in PRC, BreadTalk was able to capture consumer trend s and thus, making use of the core competencies of knowing how to make bakery that attracts PRC nations. Planning is beneficial to BreadTalk as it can excess the external forces as mentioned above, as well as develop a sense of direction and purpose of â€Å" aim” in both managers and employees. One manner of planning is the â€Å"SWOT” analysis, which allows BreadTalk to see its strength, weakness, opportunities, and threats. However, planning has to be continuous and capable of adapting to change.\r\nAnd this can be seen in BreadTalk taking a major internal review of pavage a future growth, by dividing into 3 divisions †Bakery, Food Atrium, and Restaurants, and inviting 3 new CEOs(http://www. breadtalk. com/message-shareholder. html, consolidating presbyopic term growth, 2012) to handle each division. With such willingness to change, the aged management would function more effectively. Forward planning can also be seen in the upcoming supply of BreadTalk Gr oup in Paya Lebar Singapore, which will consider all its brands, logistics, training center, departments, and a common ground for staff all over the world to gather at.\r\nBreadTalk Group holds a geographical organization which allows the Group to concentrate on on customer needs that may vary by geographic region of Asean region and China region. And then its further diversify into Bakery, Food Atrium and Restaurants. Through this method, the senior management bench will be deepened, and thus, it can strengthen the strategic focalize of BreadTalk Group and allow it to execute plans more effectively. All brands under each segment will be managed in totality.\r\nThis also provides the platform for each brand to be specially positioned based on its unique brand strategy and especially in view of expansion into the region. One of the strategy that BreadTalk Group holds is sharing the set up cost. This can be seen in NEX Serangoon Singapore, whereby a few brands are set up together in a high human traffic area. Thus, competitors can be minimized, as well as legal transfer cost by renting locations in â€Å"bulk”.\r\n'