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Al Baik Analysis - Essay Example

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The project talks about the idea of going international or to remain in the home ground and act globally. The project talks about fast food chain of restaurant, Al Baik which is situated in Saudi Arabia. It has been one of the most popular fast food centers…
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Al Baik Analysis
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Al Baik Analysis

Download file to see previous pages... Over the years Al Baik has grown and has opened few outlets in Makkah, Yanbu and Taif but has not gone global. This paper aims to talk about situations where the companies do not tend to go global and the reason behind the decision. Al Baik is one such company which utilises the most of its home ground and feels that it should expand only when the company fits to all the requirements to go global and maintain its brand name at the same time. AL Baik has been the price leader and has applied the strategy of both cost leadership and differentiation through which it has been able to achieve competitive advantage and according to the CEO of AL Baik, Rami Abughazalah the company has been able to flourish in Saudi Arabia and has given a tough competition to its brands such as Mc Donald’s and KFC. A literature review has been provided where the fact of going global has been discussed and also why companies do not go global despite of the buzz globalization, what are the benefits of going global and the expansion mode in Saudi Arabia and their culture. The research has been conducted both in primary and secondary method in order to get into the details of the plans of expansion of AL Baik, the famous fast food restaurant. Thus it can be concluded that AL Baik has plans to expand in the future but only when the situation and the conditions are correct and according to the situations favouring AL Baik. ...
The restaurant was not franchised but it was an agency from the US from a company which sold fryers and secret mixers. The restaurant stood at Jeddah. But during the first year of its operation the company suffered a huge loss because people at that point of time did not understand the concept of fried chicken. Thus in order to create an awareness of the product Shakkour Abughazalah printed on every bag a statement that explained the meaning and concept of fried chicken. The company reached its first milestone when about 100 people visited Al Baik on a day and thus it continues to serve people in Jeddah and in nearby cities. Today Al Baik is one of the most famous fast food chains of restaurants operating in Jeddah and has opened few outlets in Makkah, Yanbu and Taif. In Jeddah the company has about 40 outlets and has been the market leader. Research Methodology The research methodology includes both primary as well as secondary research. On the basis of the research it has been analysed that Al Baik has made its plans for expansion but considering the conditions it would expand. In terms of primary research, interview was conducted with the CEO of AL Baik, Rami Abughazalah and secondary research was based on from the research made on the literature review. This has also helped to come in to conclusion as to why firms do not go global and also the reason for organisation going global. An analysis into the interview of the CEO has made it clear the strategies and the plans of the company to expand. Business Strategies used by Al Baik The business strategies adopted by AL Baik is based on the interview conducted with the CEO of Al Baik, Rami Abughazalah. Therefore assumptions are made on the strategies used by AL ...Download file to see next pagesRead More
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