Report on Star Kabab's Global Expansion intoMexico Table of ContentsExecutive Summary........................................................................................................................3Introduction4PEST Factors ................................................................................................................................. 4 Government Intervention.......................................................................................................... 11 Economic Integration and its Infuence.......................................................................................121FDI related issues........................................................................................................................16Strategy related reasons for exanding to !exico.....................................................................19C"oice of Entry Strategy..............................................................................................................20Conclusion....................................................................................................................................22#ibliogra"y..........................................................................................................................23Executive Summary:Star Kabab is one of the most famous restaurants in Dhaka city. It is situated in the capital city of Dhaka ith a total of ! branches located in "anani# Dhanmondi# $arm%ate# Karanba&&ar# 'ld Dhaka# and (ari. )he slo%an of Star Kabab is to satisfy the customers ith *uality food.+s a part of the expansion of the Star Kabab to any forei%n country# e ha,e selected Mexico as ourpotential expansion opportunity. Mexico is an a%ricultural based country. )he food habit of the 2Mexicans is a bit similar to ours. Spices# fresh food consumption of Mexico is also similar to "an%ladesh. "eside of these factors the business model of Star Kabab# marketin% policies# strate%ic plans# ,ision and mana%ement are ell suited ith Mexico. Mexico is the country ith the loest total manufacturin% costs. )here is abundant labor force ith lon%er orkin% hours. Mexico has a netork of -. $ree )rade +%reements /$)+s0 hich %rants it preferential access to 11 countries and o,er one billion consumers. Mexico is a safe place for forei%n in,estment. Its macroeconomic financials are sound and has almost 2 times its forei%n debt. Mexico3s %o,ernment runs pro%rams that offer financial support# tax incenti,es# and technical assistance to firms. +reas such as education# ener%y# infrastructure and telecommunication are impro,in%. Mexico is a ,ibrant economy# adapti,e to chan%es. )heir food preferences match to hatStar Kabab has to offer. )here is restriction to hi%h calorie food ad,ertisement4 therefore e plan to promote Star Kabab as alo calorie food pro,ider. )he Mexican economy contains rapidly de,elopin% modern industrial and ser,ice sectors# ith increasin% pri,ate onership. )he most influential $)+ is the 5orth +merican $ree )rade +%reement /5+$)+0. 'ne of the ma6or indicators of the economy is Gross Domestic 7roduct /GD70. In Mexico e can notice the Gross Domestic 7roduct /GD70 in Mexico expanded ..89 percent in the fourth *uarter of .9-1 o,er the same *uarter of the pre,ious year. +fter analy&in% the important aspect e can say that# the o,erall condition is positi,e for Star Kabab to %o for startin% a business o,er there. )his as possible because of the policies of the Mexico# the consumers3 beha,ior# Mexico3s capacity of supplyin% the ra materials for Star Kabab and the business model and the strate%ies taken by Star Kabab. )here is a remarkable expansion of $DI o,er the last three decades in Mexico. It can be seen that Mexico3s $DI inflo has increased steadily o,er the period and its outflo %re in a much sloer rate than inflo. (e are illin% to establish Star Kabab as a full ser,ice restaurant in Mexico pro,idin% premium *uality food at reasonable price. Star Kabab's core competencies lies on its secret recipes and the experience of the chef staff. If e choose franchisin%# e ould lose our ed%e o,er the competition. +fter analy&in% all the benefits and costs#e ha,e come to a conclusion that onin% a subsidiary in Mexico ill be the most effecti,e choice of entry strate%y. (e ill start ith a small scale in,estment ith only one outlet of Star Kabab in Mexico# and if it acts fa,orable# Star Kabab can think about expandin% more in Mexico and open more outlets.Introduction:3In "an%ladesh there are many restaurants. If someone is asked to mention fe names of %ood restaurants# the name of Star Kabab ill be said ithin the top three# that3s a sure thin%. Star Kabab is one of the most famous restaurants in Dhaka city. It is situated in Dhaka# but it is famous all o,er the country. )here are ei%ht brunches of Star Kabab in Dhaka. )hey are in "anani# Dhanmondi /. branches0# $arm%ate# Karanba&&ar# 'ld Dhaka# and (ari /. branches0. +ll of these branches ha,e air conditioned facilities. )he branches can accommodate about 299 people at a time. )he set menu offers food startin% from )K:9 and up to )K299# but any can add more as their ish. Star Kabab offers breakfast# lunch# snacks and dinner. "eside these birthday celebration# party and also home deli,ery is a,ailable at Star Kabab. )he motto of Star Kabab is to satisfy the customers ith *uality food.+s a part of the expansion of the Star Kabab to any forei%n country# e ha,e selected Mexico as ourpotential expansion opportunity. Mexico is an a%ricultural based country. )he food habit of the Mexicans is a bit similar to ours. Spices# fresh food consumption of Mexico is also similar to "an%ladesh. "eside of these factors the business model of Star Kabab# marketin% policies# strate%ic plans# ,ision and mana%ement are ell suited ith Mexico. (e shall be focusin% different aspect of Star Kabab expandin% in Mexico in the later part of this report.PEST Factors:Political:Mexico# also knon as the ;nited Mexican States# has 2- states and - federal district. Mexico is runby a federal republic under a centrali&ed %o,ernment. Mexico has the type of %o,ernment hich can be described as illarreal /.9-.0 explains Mexico as the country ith the lar%est number of trade a%reements in ?atin +merica. Mexico3s primary moti,ation for the unilateral trade liberali&ation efforts of the late -@!9s and early -@@9s as to impro,e economic conditions in the country# hich policymakers hoped ould lead to %reater in,estor confidence and attract more forei%n in,estment. )his moti,ation as a ma6or factor in ne%otiatin% 5+$)+ ith the ;nited States and