Business A Global Perspective Business Essay Example

Australian Fast Foods acquired Red Rooster from Coles Myer Ltd. They brought extensive experience in the roasted chicken sector of the fast food industry.

Currently operating over 360 shops with approximately 5000 employees, Red Rooster offers more than just their traditional offerings of roasted A-grade fresh chicken and popular fries. Their menu also includes healthy baguettes, salads, burgers, and wraps. The franchise provides a successful partnership opportunity through continuous development of fresh products and implementation of effective marketing strategies.

Moreover, external analysis provides insights into economic trends and issues. India is experiencing significant economic growth and now ranks as the second-largest economy overall and fourth-largest economy in terms of growth. The rapid expansion of the middle class population in India has led to changes in lifestyle, including a significant growth in the fast food market.India's fast food industry is experiencing remarkable growth, surpassing that of other countries. Major international brands such as Domino's and Yum Foods have recognized the potential in India and are expanding their presence across the country. For instance, Domino's plans to open around 60 to 65 new locations annually from 2012 to 2020, while Yum Foods aims for approximately 1000 establishments by 2015 through its ownership of KFC.

The social culture in India places a strong emphasis on eating and snacking as a means of socializing, which has greatly contributed to the rapid growth of the fast food industry. Initially, local players dominated the market by offering Indian snacks at their restaurants. However, with the entry of international brands, customers embraced the diverse tastes and flavors offered by these foreign names.

Despite facing tough competition from well-informed local players who understood Indian consumers' preferences well,

larger brands had to adapt and modify their products to suit local tastes. Red Rooster successfully captured the essence of local flavors in India by adjusting their recipes accordingly.

However, being in the Indian market poses challenges for Red Rooster due to high bargaining power from clients caused by competition from McDonald's and KFC. This gives customers more options and increases their ability to negotiate. In comparison with other restaurants in India, Red Rooster has less bargaining power.
To maintain their bargaining power, Red Rooster must preserve the distinctiveness of their product. In India, there are several competitors like KFC and McDonald's that have the potential to replace Red Rooster's chicken products. However, each competitor offers different primary products. While it is relatively easy for any restaurant to enter the Indian market, it is challenging to sustain profitability due to intense competition. Despite facing well-known brands such as KFC and McDonald's, Red Rooster can leverage its trade name, reputation, and uniqueness in order to capture the market. The level of competition is comparatively low because Red Rooster provides a unique primary product compared to its rivals and other fast food restaurants in India. Internally, Red Rooster's strengths lie in its distinctive process of marinating the chicken for over 12 hours and roasting it in an oven using a special blend of Mediterranean herbs. As a leader in the Australian chicken industry, Red Rooster has acquired valuable expertise in franchising through its acquisition of Big Rooster establishments in Australia back in 1992. This expertise allows them to pass on their distinctive flavor and provide franchisees in India with the same taste experience for their customers.Red Rooster, a company

with plans to expand across Australia and open 600 locations, aims for a balanced mix of company-owned and franchisee-owned establishments. This successful strategy can also be applied when entering the Indian market, with a limited number of company-owned locations and most being franchisee-based. Red Rooster's innovative approach to recipe development allows for the addition of new flavors and menu items based on changing customer preferences. This adaptability will be particularly advantageous when entering markets like India where tastes differ significantly from those found in Australia. The ability to innovate and cater to local preferences will contribute greatly to the company's success.
Furthermore, Red Rooster has an established brand name and is capable of providing training programs for its franchisees. However, compared to competitors like KFC, McDonald's, and Subway who have been more proactive in their expansion efforts in Australia, Red Rooster has missed out on being a first mover in markets such as India.
This potential weakness is highlighted by the fact that Red Rooster has not expanded into any other countries before, indicating a lack of experience with entering new markets.This lack of experience is especially concerning given the volatile nature of the Indian market.
The significant taste preference differences between customers in Australia and India further emphasize this lack of experience as a weakness.Despite facing challenges such as competition from established global fast food brands like KFC, McDonald's, Subway, and Domino's who have already adapted their menus to suit Indian tastes, Red Rooster still has an opportunity to tap into India's large population, particularly the youth studying or working for multinational companies. The presence of these specialty chain restaurants has familiarized Indian customers with the concept,

reducing the need for extensive education on Red Rooster's part. Moreover, India's urban population includes a mobile middle class with increasing purchasing power, providing a significant market opportunity for Red Rooster if it adopts the right strategy. Additionally, the high television and mobile usage in India allows the company to effectively educate clients about its products. To take advantage of these opportunities and create buzz around its offerings, Red Rooster can implement promotions and discounts while utilizing various communication media channels. However, there are also threats posed by potential changes in government policies on foreign investments that may impact Red Rooster's expansion plans in India.Moreover, Red Rooster must address the growing emphasis on nutritional values in the fast food industry (Anonymous 2009). Additionally, they face risks in India due to health-conscious consumers and a significant vegetarian population. There is also a threat from local vegetarian activist groups.

In India, Red Rooster has several departments. The area manager is responsible for managing restaurants and training general managers. They also have a business development department that focuses on store building, design, network planning, store management, and acquisitions.

The finance department effectively manages the finances of the business by keeping accurate records of transactions. They handle cash flow, employee payments, supplier payments, and commercial team compensation to meet business goals.

The human resource department recruits suitable candidates for specific jobs. They train and develop these individuals to provide good customer service.

The operations department ensures that all Red Cock restaurants maintain a pleasing appearance. They provide proper training to employees while maintaining product quality and creating a fresh environment.

Lastly, the marketing department identifies customer needs and develops strategies based on local preferences

in the Indian market for Red Cock's products.Competing in the Indian fast food market are various well-known brands like Kentucky Fried Chicken (KFC), McDonald's, Domino's Pizza Hut, Yum Foods, and Cafe. These foreign trade names have gained a majority market share in India's organized fast food sector. However, there are also private chains and family-owned businesses in the unorganized sector that currently hold the largest market share due to their widespread presence throughout the country. The reason for this dominance is that major brands have not fully tapped into the Indian fast food market yet.

These established participants have successfully understood and adapted their products and strategies to cater to the tastes of Indian consumers. They are popular brands embraced by Indian consumers. On the other hand, Red Rooster faces challenges in establishing itself in India as it is relatively unknown. Additionally, its lack of experience operating outside of Australia poses another obstacle.

To establish a foothold in the competitive Indian fast food market, Red Rooster should effectively address both these issues. Comprehensive research on current conditions in India before venturing into the fast food market is crucial. This research should cover economic, political, societal, and demographic aspects of the state. Its objective is to analyze potential entry barriers, issue barriers or growth obstacles that may existRed Rooster should consider partnering with a local company in the state after completing their research phase. By learning from successful companies that have entered India, either through parent companies or collaborations with local businesses, Red Rooster can focus on its products while the partner handles marketing responsibilities. It is important for Red Rooster to decide on expanding through franchising or

solely-owned stores. It is recommended that they initially establish themselves as a brand in the market through company-owned stores before considering franchising. To ensure a smooth entry into the Indian market, Red Rooster should aim to hire skilled talent who understand local conditions and can develop strategies for success, including management of Indian origin at various levels. Adapting the menu based on reliable research to suit local tastes is crucial, as brands like McDonald's, Domino's, and KFC have found success by catering to Indian consumers in the fast food market through menu adjustments. With menu adaptations and a strong strategy team, Red Rooster has potential for success in this market. Finding an experienced strategic partner familiar with operating within the Indian fast food market would greatly benefit Red Rooster's efforts; Nirula's, a well-known brand in India, could be an excellent option for partnership.Despite the potential benefits of expanding into India's fast-growing economy, Red Rooster should carefully evaluate other potential partners before making any decisions. Proper preparation is crucial for success in this venture. This involves conducting thorough research, forming a capable team, exploring partnership opportunities, and creating a plan with short-term, midterm, and long-term objectives. By following these steps, Red Rooster can thrive in India's ever-changing and unpredictable markets.