Individual Report - Fast Food Case Context Essay - 1

Individual Report - Fast Food chance Context - Essay Ex fat2. The Economic Environment The Chinese Foodservices industriousness is currently valued at $366.9 billion USD and is expected to grow to nearly $500 billion USD by 2015 (New Zealand Trade & Enterprise 2012). extensive service restaurants maintain approximately 75 percent market shargon in China, whilst fast pabulum concepts maintain 25 percent market share in this industry. A recent study farther revealed that approximately 50 percent of all Chinese consumers prefer eating in restaurant environments oer that of home-cooked products, arraying a potential market of a half billion consumers geographically dispersed throughout the area (Ganster 2006). This preference for external restaurant dining is fuelled by rising consumer incomes which have increased by night club percent in urban regions and 12 percent in rural areas (Censky 2012). There are ample market opportunities in China based largely on social trends of restau rant consumption that are favourable for launching a new fast food brand with sufficient incomes to consume low a moderately-priced business model. By 2020, it is estimated that total, national seafood consumption volumes in China will be at 35.9 kg/capita, fuelled by a strong consumer demand for seafood (Redfern Associates 2010). Market expansion into China will encourage require access to appropriate capital and credit to ensure adequate asset procurement and structuring of operations. In 2012, the countrys fiscal leadership injected nearly 58 billion USD into the economic system to energise currency exchange rates and fuel new corporate borrowing in the financial vault of heaven (Safe Trading 2013). This has opened avenues for support in foreign direct investment and improved the dynamics by which financial lenders evaluate loan generation to fuel economic growth through business development. However, in that location is a risk as it relates to the economic environment in Ch ina. As a product of the recession begun in 2008 that impacted outside(a) economies, Chinas efforts to stabilise the exchange rate led to fast inflation in the food sector that has raised pricing along the foods supply chain (Ho 2011). though inflationary costs provide opportunities to increase revenues by nearly 17 percent in the foods industry by superimposing higher pricing models to offset procurement costs, rising costs in a real expoundd foods supply chain pose risks in a country where consumers are notoriously price-sensitive (Vangpeng 2012). Price-sensitive buyers represent the ability of consumer target groups to impose pricing transparency and leverage pricing demands. 3. Political Considerations Fortunately for the tip and chips brand, progressive changes to a more capitalistic model of government are providing new support for twain domestic and foreign business development. Influence of the World Trade Organization has opened new dispersal channels with much less stringent regulations and imposition of import/export tariffs that promote better international trade (Areddy 2009). For the business desiring to establish a supply chain network utilising foreign seafood product farmers and distri entirelyors, earlier than domestic suppliers, the government provides ample support in legislation to remove economic barriers that can complicate cost control. At the same time, the domestic supply chain for aquatic foods products is complicated and widely dispersed, but