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19). The family-friendly atmosphere at the company's restaurants has also been conducive to its growth, as well as Applebee's combination of good food and alcoholic beverages. For instance, Crandall and his colleagues suggest that the casual dining nomenclature ". . . includes such settings as Applebee's where the food comes with a relaxed atmosphere. The concept here is 'not-so-fast' food for aging boomers who may still crave a burger but now want to sit down and eat it from a plate, perhaps with a glass of wine" (p. 19). The company has a proven track record of success in its foreign markets, making further expansions a viable proposition as discussed further below.
Identification and Discussion of Potential Foreign Market and Proposed Entry Strategy People the world over want to enjoy good food and drinks in a relaxing atmosphere, differing only in regional and local preferences. Therefore, expanding the company's operations into additional foreign markets is a timely and justifiable enterprise.
In general, companies have a wide range of entry strategies available to enter foreign markets, including using company-owned restaurants that use locally hired managers or franchises (Prater & Ghosh, 2005). Given the broad-based nature of regional and local differences in beverage and food preferences, the use of local talent is regarded as essential to success in either case (Tavoletti, 2011).
Anticipated Challenges in the Foreign Market and Strategic Responses
The company must be prepared for changes in demand for its products due to economic downturns. In this regard, Crandall et al. (1999) report that, "The implementation of any restaurant-merchandising concept must be managed by appropriately setting prices. In order to do this, restaurant personnel must grasp the idea behind menu-item demand and the elasticity of that demand" (p. 19). In other words, local managers or franchise owners must have a keen understanding of how changes in price will affect current demand as well as how further demand will change as prices are increased or decreased (Crandall et al., 1999).
References
Applebee's form 10-K. (2011, December 31). United States Securities and Exchange
Commission. Retrieved from http://www.sec.gov/Archives/edgar/data/49754/
000004975412000005/din-12312011x10k.htm.
Crandall, R., Vozikis, G.S. & Sparks, D.L. (1996, Fall). Differentiating restaurant startups: A
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