Consulting Presentation
Transcript: Language: English Egalitarian: No formal class structure History: Colony of Great Britain Cuisine: International Social Freedom: Ranked 3rd Globally Outlook: Environmentally Responsible Trend: Movement toward healthy cooking ? Competitive Landscape Summary/ Recommendations Australia - Political/Legal System Dmitry Price - Joe McGurk - Spencer Scott - Ahmed Mazrouei - Derrick Dow Stable System - 3 Branches of Government Very Similar to the U.K. Based on Common Law System Business Regulated by Australian Trade Commission Offers services for businesses looking to invest Since Chipotle's products are meant to be fresh food, porting is not an option We decided on a joint venture with a local businessperson similar to Starbucks's entry into Japan Benefits: Gain knowledge of Australian people, laws, market, and industry Shared risks, shared rewards 2 locations in each major city: Sidney, Melbourne, and Brisbane Product testing in high traffic areas Future plans for expansion once we gauge the market Entry Mode Australia - Economy Chipotle vs. Nando's The Journey to Australia 64% of the entire population of Australia located in the 5 major cities of Australia Nando's is known for Peri-Peri sauces/marinades and their chicken Chipotle's competitive advantage Better ingredients: Vegetables are organic and grown locally Chickens are raised naturally and humanely without added hormones FDI Laws in Australia Spinnaker Consulting Group Chipotle 2011 Sales: $2.03B Sales growth: 8.3% Sales per unit: $1.8M Nando's 2011 Sales: $1.02B Sales growth: 16.48% Sales per unit: $1.07M Social Responsibility Foreign Acquisitions and Takeovers Act 1975 Allows FDI of up to A$235M without Review FDI over A$235M must be reviewed by FIRB AUSFTA Free trade agreement between US & Australia Allows US investors a higher threshold (A$1004M) Australia - Culture December 4, 2012 "Food with integrity" Chipotle is deeply committed to food integrity; Partners with firms that naturally raise animals, grow vegetables naturally and have high quality standard. Ex: hormone free beef, fresh vegetables and rice from farmers. Fast food with high consumption like Mcdonald's threatening the health of the society especially Australia consider fastest growing fast food Australian's prefer to eat healthier cuisine Chipotle Background Simple Mexican Dishes 1212 establishments in US 1 UK - 1 France - 2 Canada Operates in high-traffic locations "Food with Integrity" High-Quality Atmosphere Enter Australian Market Reduce Risk: Partner with a local partner in JV Consult AusTrade Initially target Melbourne, Sydney, and Brisbane Utilize "Food with Integrity" initiative Source ingredients locally from domestic suppliers Glocalize
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