8/13/2019 2b Ino Chara

http://slidepdf.com/reader/full/2b-ino-chara 1/2

MGM-2b

Q.2b: Functional Strategies including product, marketing & operations decisions

700words 

CAFÉ WHOLLY-OWNED BRAZIL, ARGENTINA:

* product:As part of the marketing mix, product is in an important element. The current menu of HRCfits to the tastes of South American countries therefore there is no need to adapt it/makechanges. However, a recent trend that should be considered is the growing demand forhealthy food in Argentina (ConsumerFoodService Argentina). Consequently, HRC mightneed to introduce healthier options. Also, the popularity of Argentinian wine amongst localsand tourists (http://www.just-drinks.com/news/malbec-wine-sales-blossom-in-downturn_id98296.aspx Kevany 2009 Ino find other source please), requires that HRCincludes it in its menus/restaurants in the country. Merchandise products such as t-shirts and

cups will also be localised for each city including Barbados.

*marketing:Due to the growing demand of healthy food (ConsumerFoodService Argentina), it might beappropriate for HRC to promote the healthier elements of its meals.

Promotional activities could also be used to prevent the company form being perceived as aforeign brand which is one of the disadvantages of the suggested entry-mode (Mellahi et al2005)… 

While both Argentina and Brazil have family-oriented cultures

(http://www.hispanicmarketadvisors.com/articles/capitalizing-on-the-latin-americas-internet_boom.html HMA 2012), it is suggested that HRC targets families by introducingrelevant promotional activities.

A survey indicated that in Sao Paulo, 60% of tourists learn about restaurants throughrecommendations (cityTravel TourimsSaoP). Therefore, HRC could collaborate with hotels inorder for them to recommend its restaurants to tourists.

?The pricing element is also considered. A factor that might affect this is exchange rates. It isimportant to mention that the Argentinian Peso was devaluated against the dollar and withinflation at high levels (http://www.ft.com/cms/s/0/809d7abe-b174-11e0-9444-00144feab49a.html#axzz1wpfLet4f )…im ports more expensive? 

*operations:In terms of operations, it is important to note that Argentina has import restrictions for USAon several goods including food(http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regula

tions%20and%20Standards%20-%20Narrative_Buenos%20Aires_Argentina_7-17-2009.pdf  

) and therefore HRC might want to collaborate with local suppliers in the country. Argentinaand Brazil are members of a regional common market (Mercosur) and important trading

 partners between them(http://www.hsbc.com/1/content/assets/business_banking/110214_hsbc_doing_business_in_argentina.pdf  

8/13/2019 2b Ino Chara

http://slidepdf.com/reader/full/2b-ino-chara 2/2

 HSBC 2011).

HRC currently works with quality suppliers around the world…indicating that it chooses to

 buy rather than make at some parts of it supply chain…? Externally and internally…A the nature of the business… 

For faster market/local responsiveness, the purchasing should be done by each restaurant ascurrently (CBORD 2012?). However, the regional headquarters will control this and settargets. Add here from Fatih’s Book: “These products are designed, tested, and then

analyzed for cost of ingredients, labor requirements, and customer satisfaction”. 

The key is for suppliers to deliver the right products/ingredients on time and for HRC to havethe correct kitchen layouts and restaurant facilities (Fatih’s book ) .

In Argentina, consumers prefer beef with consumption amounting to 56kg in 2010(http://www.guardian.co.uk/world/2010/sep/24/argentina-beef-consumption-drops  Carroll

2010 Ino find another source please) which needs to be considered as part of the operationsmanagement at the restaurants level since there should be enough quantities of beef available.

Add something about HR?