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Kingfisher patisseries goes international - Essay Example

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For starters, due diligence is needed before businesses commit themselves to overseas ventures and this includes a thorough appraisal of how the markets in those country work and the…
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Kingfisher patisseries goes international
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Download file to see previous pages ed offers from Singaporean and Korean food processors because of Patrick’s limited knowledge of those markets as well as ambiguous regulations that governed the import and sale of food products in those countries (Kotler, 2007). This should have served as an example for Patrick and Kingfisher into not entering into markets about which they know little about.
This issue raises questions about client-supplier relationships and as shown in the case, all recipients from the suppliers cannot be relied upon to act in good faith or show compliance with local regulations that are in place in the countries in which they operate. Further, Denzo Gato cannot be excused of negligence or ignorance about the local regulations as he is expected to fully comply with the same. Taking all these factors into consideration, the conclusion is that Kingfisher should not have entered into contractual obligations with Denzo Gato. As the case shows, Kingfisher lost out on the contract as well as suffered monetary losses as well.
Q2) In my opinion, Denzo Gato was not a good choice for Kingfisher in terms of compatibility. First, Denzo Gato operates in what is known as the “grey area” between complying with regulations in the letter of the law and the spirit of the law. Denzo Gato does not fully comply with the regulations and operates in between the relevant laws. The case illustrates the fact that Denzo Gato was a large chain that covered the supermarkets as well as four star hotels. However, this means that Kingfisher is not compatible with Denzo Gato in terms of size or scale of operation (Hartman, 1995).
The other aspect of incompatibility is because of the technological gap that exists between Kingfisher’s operations and that of Denzo Gato. There is a clear instance of Kingfisher not being technologically compatible with that of Denzo Gato. The case shows the instances where Denzo Gato had to repeatedly ask Kingfisher to upgrade its manufacturing processes and align them ...Download file to see next pagesRead More
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