Business Letter Memo

Canadian Expansion Research have recently been contacted by the Minister of Trade and Commerce for Canada, who contacted me for the purpose of encouraging Burger Delight to expand into the Canadian market. I have researched the Canadian market and have found expansion into the area to be a promising possibility. The major benefits are the similarity between America and Canada which assure product acceptance, ease of entry and profitable sales.

I have provided an overview of the research below, describing the research findings and providing justification for continued consideration of the possibility of expansion. Canadian Culture The major factor that supports the idea of expansion into Canada is the similarity between Canadian culture and American culture. The similarities extend from language, to belief systems to lifestyle.

These similarities mean that product and promotional programs developed for the American market would be equally effective in the Canadian market, allowing for the marketing campaign expenditure for the American marketing programs also being utilized for the Canadian market, effectively spreading the cost of product and promotional development. The similarities would also allow for easier entry into the market, as the retail chain could develop mirroring the American chain. There would be no time or expense for researching to adapt the product to a foreign market.

The similarity in culture also almost guarantees product acceptance. Canadian Economy Canada can be described as "an affluent, high-tech industrial society" which "closely resembles the U.S. In its market-oriented economic system, pattern of production, and high living standards" (Emulate Me). Canada has been experiencing 3% growth since 1993 and has a per capita GDP of around $24,000 with a real per capita GDP growth rate of 4.3% (Emulate Me). Canada has natural resources, a skilled labor force and modern capital plants meaning that its economic conditions are good and are also solid.

This makes Canada not only a good market to enter at the current time, but also a safe market to enter with little risk of an economic downturn in the future. In an environment of major change, entering the Canadian market provides a good opportunity for Burger Delight to spread its risks outside of America, while still operating in safe and stable markets.

Relationship Between America and Canada Canada and America share a close business relationship with over $1 billion worth of trade being conducted per day between America and Canada (U.S. Department of State). The business environment is one of Canadian acceptance of American products, with American exports to Canada being larger than exports to all members of the European Union combined (U.S. Department of State). The business environment was also much improved with the passing of the Free Trade Agreement and then the North American Free Trade Agreement.

The agreement reduces trade barriers and provides guidelines for trade. Since its passing, trade increased by 40% and is likely to continue to increase as free trade develops further (U.S. Department of State). The business environment between Canada and America and the trade agreement suggests a smooth business environment and opportunity to resolve problems if they occur. Overall, this suggests that operations in Canada will be controllable and consistent.

The political relationship between Canada and America is also promising, with their generally being a collaborative relationship that encourages a relationship between the two countries. This collaboration means that expansion into the Canadian market will have political support. There is also a relationship between Canada and America in relation to the people, with more than 200 million people a year crossing the American-Canadian border (U.S. Department of State).

This travel between America and Canada introduces the opportunity for Burger Delight in Canada to appeal to Canadians as well as to Americans in Canada. Americans in Canada would be familiar with Burger Delight and would be attracted to the consistency. In the same way, having Burger Delight in Canada would work to promote Burger Delight stores in America to Canadian travellers. Canadian Food Canadian food is generally identical to American food. Canada already has various fast food burger chains.

The problem that this creates is that there is a lot of competition in the market. However, Burger Delight is well prepared to deal with this competition as it is similar to the American market. This is beneficial as there would be no requirement to either develop the product to Canadian standards or to sell the idea of the fast.