The feasibility of Chinese restaurant chains’ internationalization: a study on United Kingdom market
ZHU, TONG (2014) The feasibility of Chinese restaurant chains’ internationalization: a study on United Kingdom market. [Dissertation (University of Nottingham only)] (Unpublished)
Chinese food chain companies have strong desires in participating in the outward FDI trend and competing in an international market. However, few brands have succeeded in operating Chinese food chain restaurants worldwide. Blank of pioneers leaves the question whether Chinese restaurant chains could succeed in internationalization or not. This dissertation aims to answer the question ‘How feasible is Chinese restaurant chain industry’s internationalization’. 3 research questions are raised for a comprehensively analysis: (1) ‘Does Chinese food-chain companies have enough ability and motives to internationalize’; (2) ‘Are there enough opportunities for them in foreign markets’; (3) ‘How should Chinese restaurant companies internationalize’. To answer those questions, this dissertation starts from literature reviews on internationalization theories done by previous scholars which could be applied in the application of Chinese restaurant chain industry. It contains 3 dimensions: internationalization motives, entry mode and internationalization strategy. These 3 dimensions refer to origins of a firm’s international expansions, methods of entering a foreign market, international strategic choices and factors affecting those decisions making. Then, it continues on reviewing information and knowledge on restaurant chain sectors. It includes how many types of restaurants are suitable to develop to a restaurant chain; what are their differences; and what is the current condition of Chinese restaurant chain industry. The study got 2 sub questions to answer after those reviewing on literatures: (1) Which type of Chinese restaurant chain companies are easier to gain a considering foreign market share while internationalising? Casual dining or fast casual? (2) What kind of strategy should Chinese restaurant chain companies choose in real operation? Do they need to focus more on localisation or standardization? Through a survey conducted to collecting UK customers’ opinions on restaurant chains and Chinese food, the study got a conclusion that Chinese fast casual restaurant chains implementing localization strategy will be more suitable in internationalization.
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