|Type of paper:||Essay|
|Categories:||Strategic management International business|
Culture compatibility is the main issue that needs to be considered in the plight to expand the market. Corporate culture management should align with Middle East approaches which are very different from European leadership style. Middle East leadership style is absolutely complex as compared with the European style of management and involvement of employees in the decision making approaches. Therefore, the management will have to come up with a training approach that should focus on establishing a workable corporate culture that can enable the Cafe to attain its vision and goals as a worldwide coffee shop.
Another variable is looking forwards on arriving at product cannibalization which is a challenging aspect in the operation of a worldwide business. Dr. Cafe needs to examine the mistakes that Starbucks has engaged in and avoid them as a strategy for establishing a robust means towards enhancing better practice.
The Most Appropriate Market Strategy
Franchising is the most appropriate market strategy to consider for Dr. Cafe Coffee. As a typical North American strategy, Franchising is viable for the rapid expansion of the coffee business in Europe. Dr. Cafe can perform well with Franchising since it can be connected with other firms in Europe since it was portrayed to have enhanced its approaches in upholding a repeated business model. Dr. Cafe is a food outlet. Thus it can easily be transferred to various markets in Europe.
Entry into the European market will require Dr. Cafe to uphold customer satisfaction and a working corporate culture that upholds both the customer behavior and employees' most appropriate leadership approach. Dr. Cafe is required to adopt two caveats which are the basis for considering the use of a franchise model. Uniqueness should be the order of Dr. Cafe in Europe. Dr. Cafe started early in 1997, and since 2008, its brand name has been recognized in the market. For that matter, Dr. Cafe should ensure that its strong brand recognition does not establish a harsh competitive ground in Europe due to the fear of product cannibalization. Creation of future competition should be minimized by keeping the brand image at an adjustable ground concerning an entrance of a competitor in the market.
Three challenges that Dr. Cafe Might Face in the Onset of Expansion.
Culture shock will be the most challenging issue for workers from the Middle East. Employees from the Middle East might find a hard time trying to cope up with the European culture. Culture shock will affect both the operations of the employees and behavior of customers towards the service that they receive at the company.
Secondly, red tape can be a challenge while operating in Europe. Administrative and bureaucratic tasks that have been made simple in Europe can fail to fit with the bureaucratic tasks of Dr. Cafe in the Middle East. Lack of a strong rule of law might challenge the operation of Dr. Cafe in Europe especially in the perspective of Middle East employees.
The most challenging issue will be the communication approaches between company employees, management and customers. The Middle East and Europe have extremely different language and cultural backgrounds. The differences might challenge the operations of the employees thus leading to a mismatch in the company's mission, vision, and goals.
Williams, G. S., Mayer, R. W., Chien, W. W., & Williams, C. R. (2015). Information Technology Integration in a Postmerger Environment. Journal of Leadership, Accountability & Ethics, 12(1).
McFarlin, D., & Sweeney, P. D. (2014). International management: strategic opportunities & cultural challenges. Routledge.
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