Bba International Hospitality Management Essay Example

products in its fabric. In addition, shops opened where the products could be sold, through the famous “wall”. Mr. J. J. e Borst did not want to outsource the production because then he did not have control over the quality anymore. Because of this successful concept in 1978 the first franchise settlement was opened in Amsterdam. A few years later other FEBO’s opened their doors in; Purmerend, Hoorn and Hoofddorp. Those neighbor cities of Amsterdam were chosen, to keep the existing target group also called an overflow area. In 1990 the son of the founder took over the company and built a big kitchen in Amsterdam were they produced all the products, they own this kitchen as well to keep their production in their own hands.

Later, other franchised FEBO’s opened their doors in the rest of Holland. Now a day there are 61 branches and 55 of them are franchised. All of those shops need to be modern and to have the same charisma. Hygiene is very important and the counter is the hearth of the shop. Everything is about the product, high quality and quick stock turnover. All the FEBO’s need to be located on A1 locations, and what is more, they need to have a certain surface, minimum of 80m2. (Febo) 1. 2 Strategies Strategy formulation can be analysed through the model of the Strategic lenses.

This model suggests that there are 4 ways of formulating and implementing a strategy. Namely those are strategy as design, as experience, as ideas and as discourse. Companies that formulate strategy as discourse are using models and analytical tools to carefully analyze the situation.

FEBO is not implementing this way of strategy formulation. It is more using the strategy as experience way, as the strategies and way of doing business are based on past experience. This can be seen yet from the begging, when FEBO expanded from bakery to franchise fast food because of the experience that this is what the customers want.

Moreover, strategy as ideas is to be innovative and use the full potential of employees’ ideas. This is also what FEBO implemented, when they found the food walls. The last lens is strategy as discourse and this is to use language to formulate a strategy. This angle of looking at a strategy can be also found in FEBO and more particularly in its logo- The most delicious. This logo passes the strategy of good taste to both its employees and customers. (Johnson et. all, 2008). At the moment FEBO is number one mark leader of the fast food sector in the Netherlands.

This also has to do with their strategy; “Quality stays”. FEBO is continuously busy with improving their receipts and products. Also freshness is one of the strategies, all the products are made the same day as they are sold. The products are made of the best quality of meat, herbs, butter and flower. After they are made they are transport by FEBO`s own trucks to keep the quality high. What FEBO is also very famous for is the concept of getting food out of the “wall”. This is a typical Dutch, and only at FEBO’s.

People have to put some coins in the machines and they can choose their snack without

ordering it. This is considered as Smart strategy, because it created a better brand awareness and now everybody recognizes the food out of the wall as part of FEBO. 1. 3 What to do in China This report is analyzing and considering the possibility of export of FEBO to China. FEBO is a typical Dutch fast food chain, where people can 24/7 get food out of the wall. When exporting this to China it is important that the Dutch style identity and the same products, quality and the “food wall” are preserved. 1. Suppliers It is important that the products are kept as much as possible the same as they are in Holland. One of the basic strategies of FEBO’s is freshness, which means that is it not possible to export the products from Holland all the way to China.

They need to be made in China, some essential ingredients as herbs can be exported, but products as meat and potatoes have to come from China. Those ingredients have to be prepared according to the typical Dutch receipts. This method also saves money, because the company does not have to fly over all the raw ingredients to make the snacks. . FEBO internal analysis An internal analysis of an organisation is performed to evaluate its current position and recourses and determine the strengths and the weaknesses. In this part of the report internal analysis of FEBO will be done on the basis on evaluating its product position, marketing capability, research and development, organisational structure, human resources, facilities and equipment, past strategies. Product position The current products of FEBO are all fast food, which can

be taken from a wall.

However, what distinguishes FEBO is that its products are fresh and never a compromise on quality is made. The company is choosing carefully the best suppliers and producing its products every day in a fabric in Amsterdam, in that way there is a direct control on the quality. After being produced in Amsterdam, the food is distributed through the companies own logistic channels to the 61 shops in the Netherlands. In order to make the product positioning of FEBO clearer, the company will be placed on the strategic clock which can be seen in the graph below. Evaluation will be made on the basis of quality and price.

The product of FEBO is differentiated from the other fast food, but differentiation is not their strategy as they are also keeping the prices low. What the organisation is doing can be named as hybrid as they are offering more quality and low price. The combination of the two is normally difficult to manage and most companies provide either quality or cheap product, but FEBO achieves both by selling big quantities and distributing the costs over a big production. The marketing concept and at the same time advertising promise that FEBO is using is the most delicious.

The accent of the company is definitely on the quality of the ingredients and the freshness of the food offered to the customers. FEBO is also having a cheap price, but this is not directly communicated to the customers as sometimes people consider low priced products as low quality products. That is why the marketing capability is all about the high quality

and appeal to the customers. This is also the reason why, no matter that it is a franchise company, FEBO apart from know-how and brand is also providing the franchisee with the in-house produced and distributed food on daily basis.  FEBO extended its range of products throughout the years of its foundation. However, the concept of high quality is something that stays in the company. It is making research and developing only the new products that fit in the major concept. In addition the company is performing a research for every new franchisee and has certain requirements as opening shops only in A1 locations. What is more, FEBO has done a research and provided a map with possible locations for new shops. If a franchisee suggests another location, FEBO will conduct research and evaluate if it is suitable. Organisational structure FEBO was opened as a family business and still the director today is a family member. He is already a third generation running the company. His name is Mr. JR Breast and he is on the top of the organisation. The structure of the company is kept simple with direct relations, so that it can work effectively and quickly. There are several management departments, performing the basic tasks. Namely those are- Quality manager, Franchise manager, Marketing manager, financial manager and Manager company stores.

They are all directed and controlled by the director of FEBO. The Franchise manager is working together with a consultant for franchising and the financial manager has financial administration. Moreover, there are two secretaries working in FEBO as well. With this structure every employee has tasks and responsibilities and there is

no confusion about who is doing what. The organisational structure of FEBO helps in achieving quick and fruitful relationships with franchisee. 2. 5 Human resources The employees working in the management of FEBO are professionals and are carefully selected.

They all contribute to the process of adding value and producing and delivering high quality products to the customers. The human resources that FEBO employs also include their franchisee and the full and part time employees working in the shops, so that is why the management of FEBO is considering each case separately. An approval to be a franchisee of FEBO is only given to the ones that cover the requirements. Human resource force is important for FEBO because quality products cannot be produced by unqualified personnel.

The facilities and equipment of FEBO are very important part of the competitive advantage. The walls or vendor machines placed at the shops of FEBO are something unique. They help in delivering fast service to the customers and are even considered as an attraction by the tourists. Furthermore, the shops which are also part of the facilities of FEBO are only in A1 location, which means that a lot of people pass by them and this is an advantage compared to competitors who do not have such good locations or at least not for all of their shops.

Very important facilities for FEBO are its fabric and trucks without which the company will not be able to control the quality throughout its whole chain and will be highly dependent on outside organisations. 2. 7 Past strategies FEBO started as a family owned bakery and because of

the success and interest it started growing. It can be said that the strategies were not carefully planned, but they emerged from the everyday doing business and from the customer needs. Moreover, as FEBO`s strategy is to produce in-house to keep the quality, this was a strategy that was formulated from the gained experience.

The family saw that the customers value the personal touch. That is why no matter that the range of the products is growing and there are more and more FEBO restaurants, the quality is kept high by still holding the production and distribution in house, because the past experience shows that this is the formula for success for FEBO. 3. Target market (external research) 3. 1 Selection The choice of market selection is a key strategic option in export marketing which provide the basic information for export marketing mix decisions.

In general, the selection is through identifying and analyzing different possible markets for export market expansion from aspects such as market size, market growth, competitive conditions and government regulations, etc to determine the most suitable target market for the company to export at the current situation. Therefore, the selection for target market can be seen as a really essential process for the exporting and international marketing. FEBO is a traditional Dutch company. In addition, it is liked by most of people in the Netherlands no matter from which nationality they are.

Therefore there are a lot of choices of feasible countries for export marketing. According to Douglas and Craig (1983), by examining the operating risks, market potential, costs and potential local and foreign competition, the list of feasible

countries could be evaluated and ranked. As the result, the most suitable market would be selected out. However, it still needs to be further in-depth analyzed later. (Albaum, 1998, P132-133) For the reasons above, the following part would be the assessment of different choice markets for FEBO’s export marketing later in order to select the most suitable target market for FEBO.