Welcome To Our Presentation

1. Welcome To Our Presentation

2. An International Business Plan A Franchise of~ “The Hunted Beef Sandwich Shop”

3. Prepared For Aysha Binte Shafiullah Lecturer, School of Business UITS, Dhaka.

4. Prepared By 1. Nasrin Akhter 08410021 2. Abu Zafor ibne Hasan 08410107 3. Asma-ul-Hosna 08410052 4. Masuma Chowdhury 08410053 5. Aruna Anwar 08510024 6. Nusrat Jahan 09310186 7. Fatema Nilu 10510238 8. Mahbuba Ferdoushi 11310293 Department of School of Business University of Information Technology & Sciences

5. Introduction • International Business involves coordinating the firm’s business activities in more than one nation. The international business strategy is effectively realized by choosing the suitable international marketing channels. The mode of entry into a foreign market is the medium through which the firm’s global marketing strategy is communicated among the customers in the chosen foreign location and also among potential customers scattered all around the globe.

6. Introduction Cont’ • Mode of entry is a vital and basic decision for starting a new business in foreign location. Here we have chosen the mode to be Franchise. Opening a franchise company has its joys and perils. While the built-in brand recognition is a big plus for a start-up, that brand has not reached the level of some of the largest fast food chains. But the combined management experience, and synergy between the goals of the franchisor and the company's goals lead to the long-term success of our franchise.

7. The Hunted Beef Sandwich Shop is a Quick Service Restaurant (QSR) Entered business in 2001in Bangladesh For last 10 years Down the Line we are serving thousands of customers with our great quality Asian flavored food services. Company Overview

8. In Bangladesh developed a range of Beef & non beef items. It introduced Quick Service home delevary sytem in stipulated areas Has many Competitors yet established its brand name with interesting menus Much successful at revenue earnings. Company Overview

9. International Marketing Objectives: • To acquire 25% market shares in the region. • •To position ourselves as a local company, with strong ties to the community. • •To be perceived as the cleanest, most responsive Quick Service Restaurant (QSR).

10. The Sub Shop's mission is to bring to market the tastiest and healthiest fast food in American market, offering real value over other fast food restaurants. High standards of quality and cleanliness will establish a reputation as the cleanest QSR in abroad ie in Ashland USA.The community is as important to us as making a profit. Mission

11. Strengths and core competence • The business owners and managers have a combined 10 years experience working in the restaurant industry • The franchise managers are natives of Ashland, have strong ties to the community, and are willing to build stronger ties. • By its core competence we increase revenues. • Our strength is we adapt to domestic customers demand.

12. Hunted Beef Sandwich Hunted Hotdog Hunted Burger Onion mushroom soup Cupcakes Green Salad Product or service overview

13. Marketing Plan • Marketing strategy is obviously to make eating out feel fun • Focuses on price penetration • Service, Hygiene, Products customization are prime focus • It is aimed at 100% customer satisfaction of every customer -accuracy in service taking -food quality -Knowing needs

14. Franchisor ~ the Hunted Beef Sandwich Shop Franchisee~ Transom Beverages Location for franchise ~ Ashland, USA . Operation Plan - Mode of entry

15. What is a franchise? • License to use an established brand • Use is very restrictive – many rules to be followed. • Provide a proven successful business format • Entrepreneurship for people that are not particularly entrepreneurial.

16. Franchising Agreements Issue Questions to Resolve Franchise fee Amount? One time? Per unit? Royalties Amount? Percentage of net or gross? Sliding scale? Quality control Quality specs? Monitoring practices? Rewards? Sanctions? Advertising Fee? Local budget? National? Intensity? Messages? Offerings Product line? Product mix? Requirements? Alternatives? Equipment Required? Additional? Financing? Location Site selection requirements? Franchisor aid? Financing? Operations Signs? Hours? Maintenance? Décor? Personnel policies? Reporting Types? Frequency? Auditing? Sanctions? Disputes Resolution methods? Equity of resolution process? Termination Timing? Causes? Sanctions? Recourse?

17. Earn foreign exchange Optimum utilization of resources Achieve its objectives To spread business risks Improve organization’s efficiency Get benefits from Government Expand and diversify Increase competitive capacity Importance of doing Business Internationally:

18. Ashland (pop. 18,560) has built its economy on a resource base of timber, favorable climate, attractive landscape, cultural attractions, a well educated labor force and education. The Oregon Shakespeare Festival attracts more than 100,000 visitors annually. And because Ashland is considered a "destination" city, an additional 258,427 people visit here for its other attractions such as recreation, shopping and sightseeing. Location Analysis

19. Location Analysis

20. Target Market • 1.Tourists. This is the largest market for us, making up over 93% of our yearly traffic. The majority of them are retired or semi-retired baby boomers, and urban professionals. The median age is 52, average household income is $80,000/year, and favorite activities include gardening, reading, attending art exhibits, and traveling. • 2.Downtown workers. This group is the second largest group of customers. The median age is 32, average household income is $40,000/year, and favorite activities include camping, fishing, hunting, and spending time with family.

21. Target Market Continued • 3.Students. This includes high school students and college students from Southern Oregon University. The median age is 20, household income is $12,000/year, and favorite activities include snowboarding/skiing, dancing, and shopping. • 4.Weekend shoppers. This group includes people who travel from rural areas, and nearby towns such Medford, Yreka, Grants Pass, and Jacksonville. The median age is 44, household income is $35,000/year, and favorite activities include fishing, hunting, gardening, and spending time with family.

22. Ownership Advantages:The ownership advantage is our brand name. We use our ownership proprietary technology. We have our companion as Transcom Beverages. We compete with local firm. Location Advantages:Under taking the business activity must be more profitable in foreign location then under taking it in domestic locations. We can avoid high tariffs in Ashland with lowest cost production, low labor cost, low material cost. We can monitor R&D and manage additional administrative cost. Political risk is also considered low there. Location advantage may also be culture bound. We also consider the culture. Internalization advantages:The level of transaction cost monitoring, cost of negotiating, enforcing an agreement is critical to this decision. For these cost being low we were able to use them in franchising. We consider nature of ownership advantage it processes and harmonious working relation with local firm. The only material we carry is the spices which are used. Other materials are collected from Ashland. So our total cost of production is low. Mode of entry-Decision making factors

23. Advantages of the selected entry mode • Faster growth • Lower capital requirements • Motivation – franchisors are owners of the franchise • Control of locations • Revenue stream – franchise fees/royalties

24. Disadvantages of the selected entry mode • Reduced control • Profit sharing • Greater commitment to operating support • Problem franchisees

25. Strengths The company's strengths are listed below: The business owners and managers have a combined 10 years experience working in the restaurant industry. The supply chain has been well established by the franchisor, and it is in the interest of the franchisor to extend credit so that its franchisees may order supplies and continue to pay the quarterly franchise fee. The owners and managers are natives of Ashland, have strong ties to the community, and are willing to build stronger ties. Weaknesses Cash flow is limited to owner's resources and potential bank loans. Generous employee benefits and ownership increase financial risk slightly. Management teams' many years of experience may include assumptions that limit amount of risk taken, and therefore, potential returns SWOT Analysis

26. SWOT Analysis Opportunities • Rapid growth in tourism. • Increasing popularity of restaurants that serve high-quality fast food. Threats • Industry is highly susceptible to a recession. • Recessionary pressures may also reduce the amount available for unsecured lines of credit. • Loss of lease, or regulatory measures that limit the scope of building renovation.

27. Contingency Plan Potential Problem Solution • The building doesn't meet a city code, or needs more updating than was originally planned. Work with contractors and city politicians to make appropriate changes. • The unemployment level in Oregon continues to climb and people reduce the amount of money they spend on eating out. Solution: Change product position to "inexpensive alternative to dining out" or "reduce your food bill." • The company loses the owner or manager to an accident or an executive recruiter. Purchased a "successionary" insurance policy. • The SBA loan funding falls through. Other funding sources, including Venture Capitalists, have shown an interest in capitalizing the business. • A similar sandwich franchise opens in the Ashland Metro area and pulls customers from us. More aggressive promotional campaigns are made if needed

28. References • References: • www.google.com • http://www.zainbooks.com/books/marketing/international-marketing_26_factors-influencing-fdi.html • http://en.wikipedia.com • rg/wiki/Market_entry_strategy • http://www.fao.org/docrep/W5973E/w5973e0b.htm • Books • International Business Environment and Operations By Daniels,Radebaugh,Sullivan • International Business: A managerialPerspective By Ricky W, Griffin Micheal W.Pustay