International Hospitality Operation - Coursework Example

? International Hospitality Operation Business expansion entails several concepts of business management and diversity. Many things need to be considered whenever a company decides to expand its business especially in foreign countries. Some of the issues to consider include culture of the people in the new market and creation of jobs and employment to people in the industry. This paper will highlight both sides in the development of the fast food industry and how it can be enhanced further to satisfy the needs of all the stakeholders involved. Introduction Fast foods have become a common mode of meals especially in many urban centers around the globe. Majority of urban dwellers find it easy to get into a cafeteria or fast food outlet to swiftly grab something and move on with their daily business without spending much time on cooking. This is a business that actually benefits both consumers and stake holders (Frank et al, 2006). However, research has shown that, most fast foods have various side effects and complications, especially those that require deep frying into cooking fat. The regular use of fast foods by urban dwellers also threatens the environment in terms of pollution. For instance, polythene bags that are used for wrapping foods are in most cases thrown all over after using them, especially in comfort and social places. Chances for expanding fast food outlets in Brazil Contract farming and factors that impinge youth Acceptance to Contract farming Contract farming is basically a system of farming where the production and supply of both horticultural and agricultural products are produced by both primary produces as well as farmers (Philip & Morrison, 2006). Generally, farmers in particular have their terms specified in the contract. In such a contract, the commodity must be sold at a specified price, time and quantity. This type of farming has become the most favorable form of business that can boost the global food system (Silva, 2005). Contract farming has been advantageous to the farmers even though it is a risk taking issue. However, the risks are drastically reduced to an extent that the majority of them are adequately provided with farm inputs hence reducing the fear for losses that can be incurred. Furthermore, large scale farmers can also purchase the inputs at a low price (Silva, 2005). This alone has ensured that the input quality has been converted to the large amount of profits. In light with this, services such as mechanizations and transportation are provided to the farmers in accordance to the contract. With the advancement of technology, technological assistance is also provided to the farmers so as to boost their productions (Silva, 2005). The technical assistance crew also ensures that, the farmers are provided with management skills that can boost their contracted crops and livestock too. Market outlets are also put into consideration in the sense that, transaction costs are put into consideration so as to reduce the agony of searching for markets. As this goes on, the sales prices are also lowered. However, with the price fluctuation both internationally, as well as locally, such issues are also considered too (Silva, 2005). Residues from farms can also be useful. For instance, according to Brazil Fast Food Cooperation, 2009, manure from animals such as poultry can also be a source of income and as animal feeds, as well. Contract farming will always ensure that agricultural products are supplied to the market in large quantities (Silva, 2005). Such are the benefits firms like fast foods outlets come across. Since the contracts require specific quality product, this will ensure that fast food outlets and other firms are in a position to meet the requirements of their clients, as well as maintaining their standards (Silva, 2005). The mutual relationship between the farmers and contractors has also ensured that, farmers are able to access land through legal processes that burrs private companies to own land. Contracting allows such benefits in case the legal processes are not followed (Silva, 2005). The cost of labour has also been drastically reduced. Farmers have been given the mandate to hire their own laborers because this farming takes place in farming schemes where cheap labour is considered (Sillva, 2005). According to the Brazil fast food cooperation, the franchised sales have drastically grown from 16% in the first quarter to R$168.15 million (Brazil Fast Food Cooperation, 2009). In addition, the total revenue increased to 50% in the first session. There were consolidations of 14 pizza huts stores. One under the Bobs’ brand, and the other 4 under the KFC brand. Consequently the net revenue increased yearly due to the increase of retail outlets up to 552 from 532 (Brazil Fast Food Cooperation, 2009). Culture in relation to fast food outlets in Brazil Whenever the issue of civilization is brought to the limelight, culture is mentioned because it is from the past that the present has been achieved by improving on it like the situation in Brazil`s fast food industry (Risner, 2001). Culture vital as stakeholders move across borders to find a market for their goods, they meet people of different cultures and tradition (Geert, 2005). Despite the existence of different cultures, the most important thing is for business to prosper. Culture is about the people’s way of life and not a particular person (Kundu, 2001). Therefore, it is traced from time immemorial. A culture of a society or nation is formed from a collection of many cultures that exist in the community (Hecklin, 1995). Consequently, they are all channeled to one goal of developing a nation. Stake holders in business have to be flexible and accommodative to relate well with others in the industry. It is from culture that there is an easy identification of people in relation to what they believe and trust in. To change a people’s culture and what they believe in is not easy. Business investors have now embarked to studying about culture, perhaps to get good relation ethics in the course of partaking their business (Israel, 1973). Through education, sporting and club activities, culture is shared and exchanged. Children born in an ascertain society grow up aping what they see from the adults, and that is always the trend. To trade in a certain community, one has to adhere to the culture and norms of the place and thus entrepreneurs and all interested people in business have to give in to all the customs for the sake of their success in business (Hecklin, 1995). Prosperity in business is more than just grasping the education concept, but going an extra mile to learn customs and behaviors of human beings (Peter & Donnelly, 2008). Business people should have a high sense of knowing and unlocking business deals. How to handle cultural differences A lot of learners, researchers, organizations and individuals have come out to actually find out the role of culture in the development of business especially fast foods that were not part of the previous past (Hecklin, 1995). A high percentage of the studies broadly indicate that the role of culture cannot be ignored in fast food production industry. For business to be transacted well, both parties have to be aware of all the expectations needed from both ends (Israel, 1973). The instrumental factors to the flourishing of a business are good management of the industries, good marketing of the products, and consistency in terms of quality service deliverance to consumers of the products (Kundu, 2001). Various companies have adapted unique method of marketing and selling their products, which all centers down to making the consumers get attracted to their final products, and this considers the different countries and their cultures (Watson, 2005). Planning and operation considerations The priority, in consumers, has taken a different perspective because of the increased number of products in the market along with numerous outlets being put up (Hobbs, 1996). For insistence, basing their arguments on standard and quality, many consumers have embarked on online shopping. Because many users for such products are being enlightened, it calls for high alert from the manufactures to ensure sustainability of their consumers and meeting their expectations (Chungh, 2006). Companies have a role to ensure that, all services needed are availed without failure to customers to avoid a negative perception on them, as well as its failures. This means that they have to maintain the supply of their stock to all distributors. For these companies, their first priority should be delivering to the society. The solution to all this issues is DDSN that links up distribution to exact demand. With this in place, enough time is granted for questioning, consultation and also addressing such issues to enable a stable and efficient network. With DDSN, new researches and processes to keep the system running are met. Furthermore, it creates a good platform for a healthy competition and production favorable to consumers (Chungh, 2006). A lot of intelligence and aggressiveness is deployed to see trading opportunities and weaknesses that are to be identified by consumers and suppliers. Most people on the market would like to be fed with different products, but of value. If DDSN, is able to have all this issues channeled in the most professional manner then it would have accomplished its mission. Difficulties encountered in changing the current trend Setting up goals and objectives and turning them into a reality is a tough and difficult part of DDSN duty (Chungh, 2006). Not even the various companies that reach out to consumers are ready to have their consumers demands met. This alone has complicated matters for DDSN. Before these goods are released to the market, a lot of conditions are always looked at especially the culture and the government’s plans in the sector to both suit and the modern supply schedule. All products are carefully assessed and, the DDSN is certain that, their release in the market has a positive acceptance (Chungh, 2006). Despite all these strategies, the approach failed to work due to various reasons. That actual demand becomes a less priority and forecasts at the outlet stalls to consumers. In order for business to prosper, it calls for a good relationship among the partners alongside the ethics of trading with proper understanding of communication that has disadvantaged the industry (Chungh, 2006). When researchers identify issues that need a quick response, slow approach has been seen to be the order of the day, thus making the changes delay. Many consumer companies are yet to be stable to meet some pending and urgent demands. The Conflict on planning Profits are a big priority to all consumer companies, yet focus is less on strategies and plans for the future. Planning ensures that both the expectations of consumers and management are observed and considered all through the pact (Chungh, 2006). For a business deal to be transacted, issues like history of a region amongst them, how the natives look at the intended product is considered. The statistical data collected is at most times brushed aside. Data is at times not reliable by the fact that it is biased. It only meets the interest of a few stake holders at the expense of the majority. All individuals who research on particular data will want to make it true in the eyes of all. Collection of the data is quite expensive, time consuming and tiresome. However, even as teams divide to go and collect data, there end product during presentation it is just the same (Chungh, 2006). Those who collect unique and distinct information find it relatively hard to convince the rest with similar information. As much as the production requires team work in order to produce quality products, the key thing is always to avail them to the many consumers and distributors. Yes, the consumers might have lost interest in the various commodities, but to them, they still insist that their products be circulating on the market, but this strategy faces a lot of rebellion. However, it still faces many challenges and does not seem to work out with issues on transportation and time management, which makes delivery of goods a problem. Use of Direct –store delivery proves hard when one have to move all over the town places marking and unmarking all the outlets that run out of stock and doing this daily is expensive and uneconomical to the company (Chungh, 2006). Empty shelves also work to the disinterest of the retail operators and proper planning is to be deployed to handle this with both parties made comfortable. The changes in planning by DDSN Linking up both consumers and the producers is the role of the DDSN through a continued and consistent supply chain reaching out to all stakeholders (Chungh, 2006). Both time and speed have to be improved on for effectiveness and reliability and all parties being committed to the success of the industry. The use of information and technological gadgets to enhance communication and increase efficiency in both the consumers’ external and internal stakeholders if brought on board. DDSN critical task is to tirelessly work to eradicate all the issues that complicate the circulation of these products. A good flow of all these processes is a credit to DDSN and all the stakeholders. Technological measure will contribute a great deal. Records shall be kept safe for future reference. Training of both trading partners to correspond to the steadfast growing technology is a demand. A high sense of responsibility and adaptability to these new machines is also required. Managers’ work is fastened as they do not have to move collecting different data with machines that perform networking. It has become easier to ensure that they can access it from their offices and on time to do proper planning. It also gives them an opportunity to address emerging issues and getting to be informed of new channels and net works of transacting and expanding the business. How the environment affects fast foods outlets in Brazil An experiment was carried out on samples in cities such as Sao Paolo and Araras (Carlos, et al, 2009). The samples were collected from five different peanuts based on the demand value in the markets, ranging from unprocessed ones to roasted and salted ones, salty degree peanuts, sweet degree peanuts, and Pacoca. Four samples were gathered hence adding up to 20 samples each month (Carlos, et al, 2009). In a year, it was recorded that 48 samples of the products were collected. This means a total of 240 samples were analyzed. The samples were identified together with the details of the manufacturer, the manufacturing dates, and the expiry dates. They were maintained at room temperature to the last day for the experiment. Inflammation analysis was done using immune-affinity columns (Carlos, et al, 2009). It was found out that peanuts in the Northeast region of Sao Paulo are full of afflotoxins. The highest percentage was found of the toxic substances was the Pacoca peanut (Carlos, et al, 2009). Despite the decrease of afflotoxins, it is still considered as public as a major health problem in Brazil especially to the children health (Carlos, et al, 2009). Conclusion In order to have a successful business expansion in Brazil, there is a need to consider cultural diversity of the people of Brazil. This will ensure that the company is well equipped with necessary knowledge on how to deal with its new customers in the newly established market. Fast foods outlets have been a major booming business in most of the developing countries. Therefore, expanding business in these regions is a good move and should be articulated upon with business strategies in place. However, the health problems such as afflatoxins in fast food industry should also be addressed with caution. The company may engage in the farming industry in order to produce healthy products for their restaurants. The company can also decide to subsidize some input products to farmers. This will eliminate the challenge of lack of input materials that is faced by many farmers in developing countries. References: Brazil Fast Food Cooperation. (2009). Brazil fast food Announces First Quarter 2009 Results. Rio Jeneiro: Brazil Fast Food Cooperation. Carlos, A., et al. (2009). 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Promoting indigenous entrepreneurship through small scale contract farming: The poultry sector in Sararak, Malasia. Tropical Geography 2. Risner, M. E. (2001). Successful fast-foods franchising in Brazil. Florida: Center for Latin American Studies. Silva, C. A. (2005). The growing role of contract farming in Agri-food. Rome: FAO. United Nations (2005). The state of food insecurity in the world. Rome: Food and Agriculture Organization. Watson, J. (2005). The cultural politics of food and eating: a reader. Malden, Mass. [u.a.]: Blackwell. Read More