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Human Resource Management - Case Study Example

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Dairy Queen: Introduction: This paper tries to analyze why Dairy Queen is unable to become the number one Ice cream consumption company in China. It is important to denote that the Chinese market is very luxurious…
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Human Resource Management
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"Human Resource Management"

Download file to see previous pages This paper has a recommendation on the best strategy that the business organization needs to employ in China, for purposes of achieving success. In trying to analyze the market performance of Dairy Queen, this paper looks at three management theories; namely contingency, systems and chaos theories. This paper analyzes the marketing department of Dairy Queen, for it is the one which is responsible for the sales that occur in China. Dairy Queen is a chain of fast food restaurants that are under the ownership of International Dairy Queen Inclusive (Douglas, 2012). The company began its operations in 1940 in the state of Illinois. By 1947, the company had over 100 stores, and as of 2010, Dairy Queen has more than 5700 stores all over the world. The largest store of the company is found in Riyadh, Saudi Arabia, while the store that records the highest sales is found in Canada. The company is a pioneer of fast food franchising, and it believes in the exploitation of the emerging markets (Benner and Nelson, 2012). China is an example of such an emerging market. On this basis therefore, this paper tries to explore its marketing strategies in China, and examine the reasons as to why they failed. The Story: On 10th of February 2012, Dairy Queen opened its 500th store in Hu Dong, the financial capital of Shanghai. Dairy Queen first joined the Chinese market in 1991 by opening a branch in Beijing. Ever since entering the Chinese market, the company has experienced growth in terms of its profitability, and market share. China presents the largest market for its ice cream products. The company charged with the responsibility of operating Dairy Queen Franchise products is referred to as Shanghai Shida Catering and Management Company (Benner and Nelson, 2012). On this basis therefore, Dairy Queen operates in China as a franchise. In regard to this therefore, in order to penetrate the Chinese market, Dairy Queen resorted to building strategic alliances with local company. An example is the Shanghai Catering Company. John Gainor, the President of Dairy Queen international agrees with this position, and denotes that it is the major contributor of its successes in the Chinese market (Douglas, 2012). However, it is important to denote that despite the successes of Dairy Queen in capturing a segment of the Chinese market, it is not the number one ice cream consumption company in China. Dairy Queen faces stiff competition from companies such as Nestle, Walls, Haagen Daz, and Baskin Robbins. It is important to denote that Haagen Daz is one of the biggest ice cream consuming companies in China (Lewis and Packard, 2012). Dairy Queen also fails to compete effectively with the Chinese domestic companies in the low end market areas. The Ice Cream consumption habits of the Chinese are dependent on their ability to afford consuming them at luxurious cafes (Aoki, 2012). Majority of the Chinese cannot afford to buy these products at such luxurious cafes, and hence their desire for ice cream products from their local companies. This is because they are affordable, and tailored to meet their needs. On this basis, if Dairy Queen needs to capture this market, which is the largest, then it has to revise its marketing strategies (Kotler and Keller, 2012). It has to develop products that satisfy the needs of both the high end, and the low end consumers. The Three Theories: There are three main theories that will ...Download file to see next pagesRead More
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