Strategic Expansion Proposal for Taco Bell to Malaysia

In: Business and Management

Submitted By humashams
Words 3628
Pages 15
November 25th, 2013

Taco Bell Corp.
1 Glen Bell Way
Irvine, California 92618
United States
Phone: +949-863-4500
Fax: +949-863-2252

Attention: Mr Greg Creed

Dear Sir,

As a member of the Global Strategy Team, I am presenting an expansion strategy which is in accordance to Taco Bell’s ideas and image. Our team is pleased to offer the documents entitled ‘Internationalisation of Taco Bell in Malaysia’ as a growth prospect.

The report has undertaken all aspects of analyzing the climate for Taco Bell in Malaysia. We have studied the environment and the business strategies to propose a plan that fits the company’s policy and purpose of internationalization.

Our team would like to thank you for this opportunity and hope that we have clarified all areas of the proposal. We are grateful for this opportunity and anticipate to working with you in the future.

We hope that this proposal will meet your approval.
Yours sincerely,

Sehr Ali Jafri

Table of Contents 1. Executive Summary 3 2. Introduction 3 3. Methodology 3 4. Motives for Internationalisation 4 5. Malaysia Economy Profile 5 5.1 Malaysian Fast-food Business Environment 6 6. Taco Bell’s Global Strategy 6 6.1 Entry Mode 7 7. Conclusion 7 8. Recommendations 7

1. Executive Summary
The purpose of this study is to critically analyse the investment opportunities prevalent in the Malaysian market by taking into consideration the significant macroeconomic factors, food industry trends, political environment and other socioeconomic trends that can affect business competitiveness.
The idea is to take advantage of the growing Asian market as part of Taco Bell’s internationalisation. The report also presents a valuable insight towards the possible strategies that should be adopted towards expansion into new markets. The study of macro and micro levels recommend that Malaysia is…...

Similar Documents

Taco Bell why Taco Bell restaurants should be an investment. This report is designed for Ms. Yolanda Yorbon, the current boss at Yolanda’s Yummy Restaurant. She has asked me and my research team to do some investigative work and present it in a long formal report. This will help her to determine which fast food franchise she should make an investment in between McDonald’s, Taco Bell, and Burger King. I will be examining the background behind the business, start-up costs, commitment, locations, requirements to work, requirements to franchise, and the ongoing fees for Taco Bell. Ms. Yolanda’s expertise is in the area of Mexican food. She really wants to be successful in other restaurant business ventures, and this is the way to provide the answers. Taco Bell Corp., based in Irvine, California, is the nation's leading Mexican-style chain. Taco Bell was founded by Glen Bell who first opened a hot dog stand in 1946 when he was 23 years old. Six years later, he sold the stand and opened a new one two years later, this time selling tacos under the name of Taco-Tia. Bell sold the El Tacos to his partner and built the first Taco Bell in Downey in 1962. Taco Bell Corp. started franchising in 1964. In 1970, Taco Bell went public with 325 restaurants. In 1978, PepsiCo purchased Taco Bell from Glen Bell. Taco Bell sells tacos, burritos, quesadillas, and many other Mexican foods. This would be great for Ms. Yolanda because her expertise is in Mexican food. Before starting up a Taco Bell......

Words: 653 - Pages: 3

Taco Bell

...Global Operations Taco Bell Case TACO BELL CASE 1. Draw a diagram of the process using the format in Exhibit 7.3. 2. Consider a base case where a customer arrives every 40 seconds and the Customer Service Champion can handle 120 customers per hour. There are two Food Champions, each capable of handling 100 orders per hour. How long should it take to be served by the restaurant (from the time a customer enters the kiosk queue until her food is delivered)? Use queuing models to estimate this. λ=Arrival Rate μ=Service Rate Based on M/M/1 Model So, λ=360040=90 Customers per hour μS (Service Champion)= 120 Customers per hour μF (Food Champion)= 200 Customers per hour Now, we need to calculate Average Total Time spent by customer in complete system: Ls (Service Champion) =λμ-λ Ls = 90120-90=3 Customers Ws (Service Champion) = Lsλrnote Ws = 390=0.033 hour or 2 min or 120 sec Ls (Food Champion) =λμ-λ Ls = 90200-90=0.82 customer Ws (Food Champion) = Lsλ Ws = 0.8290=0.009 hour or 0.54minor32.72sec ∴Total Average Time=WService+ WFood =120+32.72=152.72 seconds 3. On average, how busy are the Customer Service Champions and the two Food Champions? ρ=Ratio of Total arrival rate to service rate for a single server λμ ρService=90120=75% ρFood=90200=45% 4. On average, how many cars do you expect to have in the drive-thru line? (Include those waiting to place orders and those waiting for food.) ∴ Ls (Average number in system......

Words: 967 - Pages: 4

Taco Bell Swot

...Chapela Hospitality Marketing Week 2 Taco Bell The Taco Bell Company, like many other major corporations in the food industry, is not perfect. It has its own SWOT otherwise known as strengths, weaknesses, opportunities, and threats. Identifying these key categories will definitely help any company succeed and become better well-rounded. Strengths – Taco Bell is a very popular brand and has high customer loyalty. They are well known because of their advertising and marketing strategies. Taco Bell is also known for its quick service. Recently, Taco Bell has been adapting to distributing healthier, hygienic foods to stay ahead of the competition. A change in the management and organizational structure has led to much of Taco Bell’s success over the years. The company developed a new job position called “Market Manager.” This position was created to increase responsibilities and make the decision making process easier. This new key strength promotes self-sufficiency, increased employee motivation levels and efficient customer services. Weaknesses – Like every large company, Taco Bell has a few weaknesses. Taco Bell has encountered some bad rep and lost customers due to the traces of E. coli bacteria in 2006, 2009, and 2013 which led to customers being hospitalized. This led to multiple Taco Bells closing across the country. In 2007, Taco Bell reports of rodent infestation were found in a Manhattan location. Most of the food on Taco Bell’s menu is high in fat and has many...

Words: 898 - Pages: 4

Taco Bell

...Taco Bell Analysis Introduction In our fast paced world, fast food restaurants are very popular and fit right in. People enjoy the fact that they can get prepared food fast and at a reasonable price. There are a lot of fast food restaurants that offer you the option of buying a hamburger and French fries. So when Taco Bell came along and introduced to the fast food world Mexican food, it received a warm welcome. Taco Bell became an instant success. From the origination in 1954 to the present Taco Bell has been allowing their customers the opportunity to choose a variety of Mexican food. The organization and all subsidiaries/strategic business units Taco Bell is a subsidiary of Yum! Brands. In May of 2002, Tricon Global Restaurants Inc. changes its name to Yum! Brands, Inc. Yum! also operates or licenses Pizza Hut, KFC, and WingStreet. Prior to 2011 Yum! also owned Long John Silver’s and A&W Restaurants. It is based in Louisville, Kentucky, it is the world’s largest fast food restaurant company in terms of system units---more than 39,000 restaurants around the world in over 125 countries. In 2011, Yum!’s global sales totaled more than $12 billion. Taco Bell alone serves more than 36.8 million consumers each week in more than 6,000 restaurants in the U.S. Historical perspective on the organization. In 1954, Glen Bell opened the doors to his first Mexican food restaurant called “Taco Tia.” He drove around in an old bread truck handing out sombreros to......

Words: 1440 - Pages: 6

Taco Bell - Hbr Case

...  I ntroduction The given case deals with the growth of a well-known chain of restaurant named Taco Bell over a period of time. During the given period the restaurant’s sales doubled and profits tripled. This was the result of a series of changes made by the management in the functioning of the restaurant. How Taco Bell Evolved PRODUCTION AND PROCESS The company, with the advent of the modern era, keeping in mind the convenience of the customers increased its POA (point of access) and re-engineered its Multilevel Management system to Team-Managed Units. The earlier system was a “commanded and controlled” organizational structure which was changed to a structure that empowered its frontline employees. This induced a sense of ownership amongst the employees and was also in line with the concept of job rotation. Thus, the work load on the Managers and the General Manager considerably reduced and they got a chance to take up other pending yet urgent responsibilities and instead of being the command and control center, they became coaches and trainers. Each crew member was trained on functions of product assembly and delivery, cash registers, dining room attendance, labor scheduling, food ordering, interviewing etc. The time limit for obtaining basic proficiency was 60 days. Amongst the crew members a team leader was selected whose performance was higher than the rest. The job of team leader was to assign work on the basis of “aces in their places” which says that...

Words: 612 - Pages: 3

Encuesta Taco Bell

...Alexis Rodriguez 08-0337 Alexis Rodriguez 08-0337 Encuesta de como es el servicio en Taco Bell Arroyo Hondo Muestra: 10 Personas   | EXPECTATIVAS | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |   | PERSEPCIONES | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 1) | Los equipamientos e instalaciones de un food court deben estar en buen estado |   |   |   |   |   |   | X | | 1) | Los equipamientos e instalaciones están en buen estado |   |   |   |   | X |   |   | 2) | Todo personal tiene que tener un aspecto limpio y aseado |   |   |   |   |   | X |   | | 2) | El personal tiene un aspecto limpio y aseado |   |   |   |   |   | X |   | 3) | Los elementos de servicio (vasos, envases, etc.) deben estar en buen estado |   |   |   |   |   |   | X | | 3) | Elementos de servicio (vasos, envases, etc.) en buen estado |   |   |   |   |   |   | X | 4) | Se debe resolver cualquier imprevisto con la orden( Cambio de orden) |   |   |   |   |   | X |   | | 4) | Se resuelve de forma eficaz cualquier imprevisto con la orden |   |   |   |   |   | X |   | 5) | El servicio debe ser sin errores |   |   |   |   | X |   |   | | 5) | Se presta el servicio sin errores |   |   |   |   |   |   | X | 6) | Los alimentos deben estar a nivel |   |   |   |   |   | X |   | | 6) | El nivel de preparación de la comida está a nivel |   |   |   |   |   | X |   | 7) | El personal debe tener conocimiento de la composición de los platos |   |   |   |   | X |   |   | | 7) | El personal conoce la composición de los platos...

Words: 683 - Pages: 3

Taco Bell

...environmental factors that Yum! Brands, Inc needs to consider before attempting to open up Taco Bell stores in the Malaysia markets are the supplier, customer, competitors, the media (public) and the internal environment of the Taco Bell that is men or employees, money, machinery, materials and minute . To open up the Taco Bell in Malaysia market, Yum! Brands must consider with the suppliers in micro environment. Yum! Brands must make sure that Taco Bell in Malaysia market have the supplier that can supplies all the raw materials to prepare the Taco Bell’s product and other goods such as packaging material in the Malaysia market. Yum! Brands must to identify all the suppliers in Malaysia that can supply the goods to them and deal business with them for example Ayamas Food Corporation and Ramly Mokni Sdn Bhd can supply the meat to the Taco Bell restaurant. Other than that Taco Bell must ensure that the suppliers are not outside from the Malaysia, when the supplier logistic is far so the cost of delivery will be high. So, Taco Bell must deal with the supplier in the Malaysia market to get the lower cost of delivery. Yum! Brands must know the suppliers availability. Taco Bell also must deal business with the supplier that have stability and strong organization. This is because if the supplier are not large, strong and stability there may have the problem that can be face by the Taco Bell. There will have the problem of delivery such as delay in receiving raw material can make......

Words: 3112 - Pages: 13

Strategic Memo for Taco Bell Case 2-2

... • Taco Bell is a quick-service restaurant concept and operates in a very competitive climate. Was founded in 1962 by Glen Bell. • Kraft Foods Inc., is the largest food and beverage company in North America and the second largest in the world. Was founded in 1903 by James L. Kraft. • On August 1, 1996, Taco Bell and Kraft announced the formation of a license agreement for Kraft to manufacture and distribute Taco Bell-branded taco shells in grocery stores. • Taco Bell branding may be damaged in public perception because their Taco Bell-labeled taco shells sold by Kraft Foods Inc. might contain a corn ingredient unapproved for human consumption. • StarLink, developed by Aventis (a world leader in life science), is a genetically modified strain of corn engineered to produce a toxin to ward off crop-harming pests. This toxin is actually called «Cry9c» which is made only for commercial use as animal feed. • Nongovernmental organizations (widely known as NGO's) publicly rallied against those who support the use of genetically modified ingredients. They conducted a series of tests on 23 of the leading corn-based foods, including the Taco Bell Home Originals taco shells, which contained the «Cry9c» protein. • Kraft announced a voluntary recall of its entire line of Taco Bell Home Originals taco shell and taco kits. • Although Kraft has pledged to discontinue production of taco shell products, the recall does not include any products sold in Taco......

Words: 1221 - Pages: 5

Swot Taco Bell and quick service. -Good advertising and marketing. -An established brand in the United States with more than 5,600 outlets. -Has distinguished feature, it operates as free standing units in shopping malls, convenience stores, airports, etc. Weaknesses -In November 2006, 22 of its customers were hospitalized due to traces of E-coli bacteria. -In February 2007, Taco Bell Manhattan was reported to have rodents. Because of this incident several of Taco Bell’s outlets were closed throughout the United States. -Taco Bell faced huge human rights protests from workers during March 2005. -In 1998, Taco Bell was involved in a lawsuit in which they had to pay up about 42 million to two men who worked in their marketing department. -High fat and high calorie food not good for health conscious people. -Franchise management. Opportunities -Introduce home delivery. -Venturing into new markets. -New flavors and new recipes focused especially on health friendly ingredients. ( low calories,etc.) -Stay open later. ( most right now are open between 11 p.m.- 4 p.m.) Threats -Fast food competitors of Taco Bell ( McDonalds, Wendy’s, etc.) - More people becoming aware and researching about harmful health impacts of fast food consumption. -Fast food in general is highly labor intensive which increases the subjectivity involved in the delivery of services....

Words: 254 - Pages: 2

Taco Bell

...Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., they serve a variety of Tex-Mex foods including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "value menu" items. Taco Bell serves more than 2 billion customers each year in more than 6,500 restaurants mostly in the U.S., more than 80 percent of which are owned and operated by independent franchisees. History Founding and growth Taco Bell was founded by Glen Bell, who first opened a hot dog stand called Bell's Drive-In in San Bernardino, California Bell began eating there regularly, attempting to reverse-engineer the recipe, and eventually won the confidence of the proprietors such that they allowed him to see how the tacos and other foods were prepared. Several locations in the Midwestern United States were converted from Zantigo, a Minneapolis, Minnesota-based Mexican chain which PepsiCo acquired in 1986. Concepts In 1991, Taco Bell opened the first Taco Bell Express in San Francisco. This concept is a reduced-size restaurant with a limited menu, meant to emphasize volume. Taco Bell Express locations operate primarily inside convenience stores, truck stops, shopping malls, and airports. Taco Bell began co-branding with KFC in 1995, when the first such co-brand opened in Clayton, North Carolina. The chain has since co-branded with Pizza Hut and Long John Silver's as well. In 1997, PepsiCo experimented with a......

Words: 3264 - Pages: 14

Case Analysis Taco Bell

...Case Analysis #1: Taco Bell MGT 3620-350 Brian Deese The 7-S Model, as shown on page 76 of our textbook, consists of seven variables that all begin with the letter “S”. The base or hard S’s include Structure, Strategy, and Systems while the soft S’s are comprised of Skills, Style, Staff, and Shared Values. In this paper, we will analyze how human resource management at Taco Bell implemented changes in each of the seven variables of the 7-S Model and how these changes impacted the net effect of Taco Bell’s overall performance. Structure- Defined as the skeleton of the organizational chart, HRM at Taco Bell implemented changes to its structure in the late 1980’s from RM’s and ARM’s (restaurant managers / assistant restaurant managers) to RGM’s as well as ARGM’s. The new title, inserting the name “General” into the existing name, was purposely modified to promote a strong signal to the organization that a different behavior was now expected. To help insure that the new RGMs could succeed, Taco Bell provided them superior support as well as a whole new training plan. A redesign of the compensation and management structures was modified to decrease turnover and active communication of the new expectations were laid out to the RGMs and their supervisors. By empowering the RGM’s and ARGM’s with these much needed resources, Taco Bell was able to eliminate several middle management layers within the organization. This action also led to the change from using district managers......

Words: 1225 - Pages: 5

Taco Bell

...Taco Bell Strategy: Martin launched what he called the "four-by-four strategy," a bold plan that meant increasing the number of achieving companywide sales of $4 billion by the end of 1991. To accomplish this there had to be a key change in corporate thinking. The company had to understand it was not competing with other Mexican restaurants, but rather fast-food in general. This meant going head-to-head with well-established fast-food restaurants like McDonalds. To accomplish this, the mindset and capabilities of the company had to be changed. 1983 – 1988: The Company set about modernizing the company’s physical units. This included remodeling existing restaurants, increasing seating capacity, and adding drive-through windows. New signs were installed with an updated company logo and employees were outfitted with more contemporary uniforms. In addition the company experienced a 23% increase in growth by expanding into new regions in the Midwest, Southeast and Northeast. New electronic Point of Sales systems were added enabling a more efficient ordering system within the restaurant as well as allowing the company to track sales, product mix and inventory. New menu items were also introduced which allowed for more choices for the customer. 1988 – 1991: Strategy shifted to customer value (lower prices while preserving quality). Cost reduction was the focus which required a radical redefinition of the business. K-Minus was implemented where processes were transferred to......

Words: 1155 - Pages: 5

Taco Bell in India

...For the exclusive use of M. Alshahri, 2015. W14536 TACO BELL: A MEXICAN-INSPIRED RESTAURANT IN INDIA Lubna Nafees, Ashok Bajpai, Akshay Kumar, Anoop Chand, Maryne Ann James, Bonney Luke Thomas, Jayakrishnan B. Nair, Kunal Hazari and Garima Konda wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e); Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-10-29 With four outlets of Taco Bell opened in Bangalore by December 2013, Niren Chaudhary, managing director of Yum! Restaurants India, felt eager to expand its market offerings. He pulled out the morning newspaper and impatiently ruffled through the pages until he reached the business section. He paused briefly, folded the paper and leaned forward to read better. Focusing his......

Words: 6383 - Pages: 26

Taco Bell in Japan, Round Two Japan, Will This Time Be a Fiesta or Siesta?

...Taco Bell in Japan (Round Two Japan, will this time be a Fiesta or Siesta?) By Phillip Smith As a child, growing up on the West Coast of America, Taco Bell, was as common as McDonalds, with locations in every neighborhood. Its classic chicken quesadilla and bean burrito were staples of my college diet and I could not imagine a fast-food landscape without the spicy taco-sauce. Although, since moving to Japan in 2005, I’ve had to settle for eating Taco Bell only when traveling outside of Japan. That being said, every other major US fast-food chain seems to be serving its notable favorites in the land of the Rising Sun. For example, McDonalds operates over 3,100 units (Inagaki, 2015), Kentucky Fried Chicken has 1165 locations (Yum!’s, 2015) and Starbucks has 1117 (Loxcel, 2015); but where is Taco Bell? On 21 April, 2015, the multinational fast-food chain answered back with its launch into the Japan market with a new location in Shibuya, Tokyo. This is not Taco Bell’s first launch in Japan. Back in the late 1980’s it opened stores in two markets, Tokyo and Nagoya (Matayoshi, 2015). A few years later in the early 1990s, they closed all the Japan operations, abandoning the country. Will the second attempt be different? How will marketing play a role in its success? Did they invest in market research to gain insight in the lay of the land? How will its competitive environment contrast its first attempt to penetrate the Japan market? What type of competitive......

Words: 3503 - Pages: 15

Taco Bell

...Case Presentation: Taco Bell Case Presentation: Taco Bell Pat Lauscher and Jesse Paprocki BUS 754: Information Systems Mgmt Spring 2003 HISTORY (EVENTS) Company Focus: John Martin joined Taco Bell in 1983 as president and CEO, having previous executive level experience with other fast food chains. He discovered that the company didn’t know what business it was in, so he quickly focused Taco Bell on the fast food industry. Process Improvements: 1983-1988: Strong growth in the 60s and 70s came to a halt in the early 1980s as the fast food industry began showing signs of maturity. To deal with the potential threat of a maturing business, Taco Bell began a series of process improvement initiatives that really changed the way it did business. These improvements included increased restaurant capacity by modernizing its restaurants to include drive through windows, increased seating capacity, electronic point of sales systems (to replace plastic order boards), and reconfigured food production areas. Taco Bell also added some new menu items during this time. 1988-1991: Continuing to feel the effects of an industry margin squeeze, Martin commissioned two studies that tuned the company in to what the customers really valued, FACT (Fast, Accurate, Clean, and Temperature). In response, the organization stopped viewing quality and price as incompatible tradeoffs. The K-minus program transformed the kitchen into a heating and assembly unit and centralized......

Words: 1534 - Pages: 7