Order Description
1 Assesses current and historical marketing practices in the host country and thoroughly analyse market opportunities available to the MNC.
2 Develop human resource management practices that are necessary for the success of the MNC in the host country.
. With supporting analysis: hiring, training, retention, advancement, and compensation practices necessary for the MNC’s success in the host country.
3 Develop the organizational structure necessary for the MNC’s success in the host country.
Develop organizational structure that fits the host country environment, cultural, marketing, human resources, and financial factors analysed in the previous sections with relevant support and rational.
Current and Historical Marketing Practices
Product
On websites, nutrition calculators allow customers to customize the perfect meal “Panda” and to ensure nutrients. The only thing customers need to do is choose the meal size and add their favorite delicious entrees and sides by clicking the green button that appears as they hover over each tasty item. The selection of entrees may be decided by location. Panda offers various foods, including chicken entrees, beef entrees, seafood entrees, regional entrees, and also sides, appetizers, desserts, and drinks. Panda not only tells the customer how they make every item and the ingredients used, but the customer also gets information about the nutritional value. The most important thing is the taste of the food must be timely and adjustments must be made to cater to local tastes. Brazilians favor tenderloin, and most like spicy dishes.
Price
A panda bowl is a reasonable size bowl with rice chow mien, or something like that, and with a meat of the customer’s choice. They are all good! The price is about $6, if the customer does not order a drink. There is a two-entree meal: half of the plate is a yummy meat and the other a side with rice or another similar side dish. The two-entree meal is about $7. You can also get egg rolls and other Asian side items for an extra $2. Over all, some people would say it is really expensive! However, the price is really good, and it is not bad to treat yourself with some yummy Chinese food every once in a while.
Promotion
Panda attracts more consumers with coupons, as does other fast food restaurants. For example, customers can get a free third entree after completing a short online survey. To access the survey, customers have to use the code printed on their receipt from a Panda restaurant. There is one thing, be sure to keep the receipt because you also need to enter the store number, and customers have to do it within a couple days of purchase. The receipt will give customers the web address for the survey. Many customers always get a free entree with this code. On the other hand, panda launched a new promotional gift card. Each card is 30$USD. Customers can purchase the gift card on Panda’s official website. The most delicious gift will be given and customers will find the right size and color without having to worry. Family and friends will be surprised when they receive the gift card. The promotion also applies to Brazil.
Place
Panda restaurants are generally located on densely populated streets and areas. Brazil’s population distribution has a large regional differences. Very few people live in north, central and west Brazil. Ninety percent of people live in the southeast coast area; large cities are also concentrated in this area. The area has maritime transport facilities, a tropical monsoon climate, and a surging population.
Sao Paulo, Brazil’s largest city; Rio de Janeiro, the second largest city and the host city of the 2016 Olympic Games; and Recife are the three most densely populated cities in Brazil. The local climate in the country and relatively low altitude of this area are all conditions that are suitable for human growth. On the contrary, the capital of Brazil, Brasilia, does not have these advantages.
Market Opportunities
The fast food industry is a large and diverse industry with plenty of opportunities in Brazil. According to A Survey of Brazilians’ Eating Habits (2010), 33% people of Brazilians were spending more on food than they were before because of the increasing size of the Brazilian middle class and the economic boom. This percentage follows only China and the USA, where 48% of the population is willing to spend more of their money on food. Whereas, 25% of Brazilians said that they ate fast food frequently. 28% of American ate fast-food regularly, which is similar to the fast-food habits of Brazilians. 19% of Brazilians said they dined at least two times a week in restaurants, which is also only behind China where 33% the Chinese ate out with such frequency. There are some other data about the food and drink industry in Brazil: 2014 per capita food consumption = +7.2% y-o-y, the forecast compound annual growth rate (CAGR) to 2018 = +7.4%; 2014 soft drink sales = +8.4% y-o-y; and forecast CAGR to 2018= +8.3%.
On the other hand, the chief economist Ian of Ukraine Bank in Brazil recently released a report showing that according to an observation of Brazil’s economic structure development plan in 1950, the Brazilian World Cup and the Olympics are bound to promote its infrastructure and employment rates. It also will create a tourist tide in Brazil. In other words, it will inject a strong economic stimulant from all areas of the country. The Vacas Foundation said the World Cup will inject 142 billion reais into the Brazilian economy from 2010 to 2014 (1 U.S. dollar equals 2.1 reais), and will bring revenue of 63.48 billion reais for Brazil. The 12 host cities in Brazil will receive a total of 14.54 billion reais in infrastructure investments from the 2014 World Cup; therefore, the GDP is expected to increase to 7.18 billion reais in Brazil. The World Cup and the Olympic Games biggest gift to Brazil will be their important role in the development of tourism. According to Brazilian government statistics and forecasts, thanks to several major events continuously held in Brazil, between 2010 to 2014, the total number of international tourists in Brazil will increase by 298 million, and in 2014 it will reach 7.4 million passengers during the World Cup. The Brazilian government will obtain an additional 5.94 billion reais in revenue throughout this four-year period. The fast food industry will get a huge market opportunity not only for the large number of tourism, but also the economic growth.
Human Resource
Panda express holds the principle that everything it has built is the spirit of opportunity and a belief in creating an environment that invites participation from everyone. So Panda express cares little about an employee’s nationality or gender. Instead, diversity in the workforce is an important element that composes of people from different skin colors and countries. No discrimination in Panda express. With such large diverse workforce, employees in different cultural background, race, religion and sex come to unite in Panda express. As a consequence, Panda express absorbs diverse culture and infuse it to itself, which makes it understand needs of customers who come from foreign countries easily due to its diverse employees. In Brazil’s market, if anyone who want to join in Panda’s family, they need to submit their resume, background checks, personal references and so on.
Panda Express tries to put employees on the first place and improve their quality by offering them opportunity to immerse in social environment. That is an uncommon way to learn something. With Panda Express’s training, it is not only an ordinary restaurant to sell food or service to people, but also a good chance to enhance its workforce, which makes its employees more knowledgeable and capable. “Today, there are 400 corporate employees, working in a culture Brandt describes as nurturing, instructional and focused on giving back, whether through the nonprofit Panda Cares program or through internally driving driven training and development events.” (Field, 2008, p. 61)
Hiring problem
There are many aspects involving the hiring process in Brazil. In 1943,Brazil created the Consolidation of Labor laws regulated labor relations, after that, this denomination must be followed by employers when they were hiring the employees. Otherwise, employees also expect other benefit, such as health care and day care assistance. Therefore, the workforce in Brazil is quilt expensive.
working week
According to Brazil’s business law, no one can work more than 44 hours a week, which means the person should work 8 hour work day (Monday – Friday) and then 4 hours on Saturdays in a week. Another right is that the benefits vary accordingly to company and employee’s occupation, for example, companies that have large number of women can be special cared a lot. Companies with high percentage of students will focus on scholarships.
Benefit
Many people in Brazil are willing to work for minimum salaries while they require providing benefit by companies, for example, some companies focus on benefit like day care because they are high degree of women concentration, the other companies focus on scholarship because the trainees and students employees.
The most common benefits are:
Health care: most companies not only offer health care to their employees, but also this benefit can be extended to children and spouse.
Day care assistance: the employer pays the daycare or at least part of it for the parents who have little kids. Some companies also pay part of the tuition for employees who are willing to attend a course that is relevant to his/her occupancy in the company.
Transportation and meals
Based on the law, employers should provide employees with transportation when they go to work or back home. Employees who work 44 hours a week can be provided with one meal. If a company has more than 30 employees should provide a proper place for employees to have meals.
Paid vacation
Employees have 30 day’s vacation after they have worked for 1 year. The employer decides which day of the vacation begins. If family members work in the same company, they can apply for the vacation together without affecting the company’s business.
Organizational structure
First of all, let us be familiar Organizational Structure for a Catering Company. The organizational structure of your catering company comes down to how much control you would like to give up. According to Lister (2010), this shift in control can be greatly beneficial if you’re able to put the right professionals in key positions to manage your company and provide consistent food and service for clients.
Marketing: Looking at the organizational structure of Panda Express senior management, it is evident that the company uses a liner system structure that keeps to unify commands and advises usefully.
The company is organized along different major business processes/functions, each headed by an Executive VP. Every department have special domain experts, training and monitoring are easy. These functions are HR (hiring, management), Complaint (customers service), Finance (including accounting system), Real estate (store design and location) and marketing (expansion in domestic or the global). This organizational structure can be used in Brazil because it is the most efficiency that can meet both the marketing requirement and the customer requirement. Mission is clear and every department just care their missions.
Environment and financial: Brazil is a developing country with stable political. The government is open-minded, so a lot foreign companies are willing to invest in Brazil. The government spending and consumer spending is increasing year by year, which means the financial environment in Brazil is optimistic and it is a potential market to expand.
Culture: Panda Express might seem like just another successful Chinese-food chain. But its success stems from an unusual corporate culture that centers on personal self-improvement as the route to better business performance. (Carol, 2010) “Panda focuses on fostering a culture that creates happy associates, which becomes happy guests. But first we have to work on ourselves and love ourselves. ” (Christopher, 2012) At Panda meetings, managers usually hug each other and sit together to come up with many good ideas. Managers usually discuss their personal lives, failings, and difficulties with their employees. What Panda Express wants to create is a fully equal society for both employers and employees. If it still use this strategy in Brazil for hiring employees, which will gain large popularity. Because everyone wants to be treat equally no matter he/she is the supervisor or employee.
Christopher, H. (October 19, 2012). Panda Express co-CEO discusses how to create a culture.
Retrieved from http://blogs.oregonstate.edu/business/2012/10/19/panda-express-co-ceo-discusses-how-to-create-a-culture/
Carol, T. (November 29, 2010). What You Can Learn from How Panda Express Takes a Meeting.
Retrieved from http://www.cbsnews.com/news/what-you-can-learn-from-how-panda-express-takes-a-meeting/
Field, K. (2008, June). Putting employees first. Chain Store Age, 61
Lister, J. (2010). Organizational Structure for a Catering Company.
Retrieved From
http://smallbusiness.chron.com/organizational-structure-catering-company-20292.html
Flavor of Brazil – marketing opportunity from:
http://flavorsofbrazil.blogspot.com/2011/01/survey-of-brazilians-eating-habits-2010.html
Product, price and promotion of Panda from:
https://www.pandaexpress.com/?utm_expid=34887396-0.qirSsxAhQYqgZtLlEvNg2g.0&utm_referrer=https%3A%2F%2Fwww.google.com%2F
The benefit of Brazil from world cup -marketing opportunity from:
http://uk.reuters.com/article/2014/05/16/uk-brazil-worldcup-poll-economy-idUKKBN0DW1IJ20140516