Developing an International Growth Strategy at New York Fries

1127 words 5 pages
Developing An International Growth Strategy At New York Fries New York Fries is known for its high quality fries made with real and hand-cut potatoes and fried in a non-hydrogenated, trans fat-free, sunflower oil. Jay Gould, president of The Company and founder is holding a biannual meeting with its franchisees in the next three days. He is planning to discuss about the plan to have international expansion into another countries, such as China, India, and South Korea. However there are many risks and costs to consider, as there have been a number of failures in international expansion at South Korea and Australia. NYF operate mainly from franchise. Franchise owners bought the rights to operate NYF in different locations. NYF will then …show more content…

Company becomes international in scope for many reasons: continued growth, domestic market saturation, potential foreign market, and many more. Franchising is a good way of internationalization because it can act as additional source of income, lessen risk compare to opening a wholly-owned branch in another country, smaller central organization, and maintaining a more cost effective labor. Although there are few disadvantages as well such as cost for training and support of the franchisees, risk of having their company’s image being broken by the misfit of their franchisees, franchisors has to disclose confidential information which will be risky if franchisees decide to open a new company, and pressure from franchisees to change certain policies. However, looking at the success of NYF franchising, I think that the benefits of franchising actually outweigh the disadvantages of franchising. However, there are certain things to be considered before NYF decide to expand their business in India and China. A few considerations that worth noting are conducting market research and finding the right franchisee with good business skills. Market research include finding the right target market, income distribution, and its culture. For example China and India are a strong culturist countries, so there is high possibility that NYF might not attract many consumer if localization is not done. Furthermore, the case also stated that there are many western quick-service restaurants

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