Future of the company
Making a decision on which business to start is often a tedious task due to all the research that is involved and the necessary groundwork that has to be undertaken before the business takes off. However, the choice of a fast-food franchise looks bright especially considering the encouraging trends in the world food industry and particularly Canada.
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The food industry is a global business that is dependent on economic trends and dynamics that are mainly determined by individual national markets. Fast-food franchising, while well developed in Canada still has a lot of potential for growth in the country. The future of this franchising business venture therefore is secure but, it highly depends on the effective execution of the business plan.
Expansion to other cities like Montreal, Vancouver, Calgary and Ottawa
As our business plan stipulates, the company plans to open franchise stores in cities like Montreal, Vancouver, Calgary and Ottawa. It is important to note that opening of new franchise stores is a crucial part of our plan and will greatly impact the liquidity and net worth of the whole business operation.
While care will be taken in the licensing of new franchise stores, it is important to point out that the one-time entry fee that will be paid by new franchisers will complement the company in its marketing, training and support efforts in order break-even within the given timeline.
One of the most important growth initiatives that the company will capitalize on is the lack of recognizable fast-food brands in the small urban places of the country. The company understands that sustained economic growth in the country in the next ten years will transform these “small” towns to major urban centers with high populations.
Company status in ten years
One of the company’s main goals is to have at least two franchise stores in every major urban center in Canada. Most small and medium franchise stores break-even within one year after being set up. In ten years, it is expected that the company will be running numerous franchise stores that will be operating to full profit.
Additionally, there are plans to expand the franchise operation beyond Canada with the primary target being the United States and the UK. While the feasibility study of a possible expansion beyond the country’s borders is yet to be finalized, it is hoped that the growth rate of the business in ten years will be fast enough to fuel such an expansion. Mergers and acquisitions are some of the ways that will be explored at the time in the quest for expansion of the business.
Control of the fast-food market
The Canadian food market is the second biggest in the world with a total worth of US$100 billion. The Canadian fast-food market on the hand is approximately worth C$ 20 billion. In the Canadian fast-food franchise market, Tim Horton’s is the market leader and even trumps McDonald’s.
In ten years when the company goes global, it is hoped that the company will post sales in excess of C$ 100 million equivalent to 1% of the current total fast food market in Canada. The company anticipates new entrants into the Canadian fast-food market hence the cautious optimism of setting our target at 1%. Ultimately, the company hopes and is capable of controlling a sizable share of up to 5% in ten years or less.