Paul's Strategy

Résumé du document

Possible countries for the further expansion of the company are the rapidly developing BRIC countries (Brazil, Russia, India and China) or Singapore. Choose one of these countries and assess its suitability for further expansion of the Groupe Holder. You should justify you recommendation and quote your sources.
To develop this question, I choose China for a further expansion of the Group Holder. To start with, let's reconsider the question: Why China can be the most suitable developing country for the expansion of the giant Group Holder?
Peoples' Republic of China, is the biggest country in the world (9,596,960 km2), with also the biggest population (1 338 613 000 in 2009) . This is a market that is more than interesting to conquer. But there is one thing that westerners should not forget: as an Asian country, China has a different perception for products' consumption, of the market, of the way of trading, etc. This is because China is the oldest country in the world with a culture and traditions built on more than 2200 years of history. China does not only have one tradition and only one culture, but it has several cultures and traditions. Nowadays, China, the third most powerful country in the world, is divided in 23 provinces, 5 autonomous regions and 4 municipalities with Beijing as capital. This little introduction about China shows that the Holder family should take risk even if it will be long to implement there. Indeed, some figures are showing that doing business in China is not so easy.

Extraits

[...] As we know, it is the franchisee that is taking care of labor issues. The Group Holder doesn't need to lose time on these details because the franchisee as the entrepreneur is doing the work. In the same idea, when there are some complaints, the plaintiff cannot ask for the franchisor as it is the franchisee that is responsible for these things. Now let's take a look at some disadvantages of operating in franchise for the Group Holder. A really big investment must be done from the franchisor at the beginning of the creation or going from a normal activity to a franchise system. [...]

[...] Explain why so many of the international stores are operated as franchises. You should explain both the benefits and disadvantages of franchising for the Group Holder. How could the other companies in the group support the Paul bakeries in your chosen market? As an example, the reason why the Group Holder decided to develop the franchise concept for Paul is the following: They wanted to keep developing themselves as a family Business while retaining their financial independence. In that case, we can definitely say that the franchise method in to develop brand awareness. [...]

[...] You should justify you recommendation and quote your sources. To develop this question, I choose China for a further expansion of the Group Holder. To start with, let's reconsider the question: Why China can be the most suitable developing country for the expansion of the giant Group Holder? Peoples' Republic of China, is the biggest country in the world (9,596,960 km2), with also the biggest population ( in 2009)[1]. This is a market that is more than interesting to conquer. [...]

[...] However, there is a problem. Usually, Chinese are not able to cook the bread as we are doing in France. Therefore, the bread is usually too salty or too sweet. Setting up Paul Bakeries in popular and crowded places will be the best solution to fill in this lack of experience in bread production. The group Holder can be opportunist and turn this weakness into strength. They will establish there, sell a “made in France bread” and will sell at higher price that France because the product is considered like a luxury. [...]

[...] IFH (The Holder Training Institute) can prepare for new franchisees of Paul in China special training program, how to adopt Paul's franchisees to cooperate in new business environment. New programs will include intercultural approach. The Panétude Company of the group Holder can design interior and atmosphere for new Paul's shops in China. The company will not have to pay for decoration. The Panétude can guarantee the company's unique look uniqueness that Paul will need when starting to implement in another market. As we can see in the official website of the Groupe Holder, the Saint Preux concept is today being refocused. [...]