MOS Burger is a celebrated fast-food service in Japan that founded in 1971 by Mr. Satoshi Sakurada. The name of MOS comes from the words Mountain, Ocean, and Sun and each of this word hold its ain significance. Mountain stands for dignified and baronial, Ocean stands for broad and huge while Sun represents vivacious and vitalizing ( “ MOS Food Singapore ” , 2012 ) . It is now the 2nd largest fast-food service in Japan after McDonald and MOS mercantile establishments had successfully expanded into abroad markets such as Taiwan, Singapore, China, and so on.
The company distinguish itself from rivals by apply ‘cook to order ‘ construct ( “ MOS Burger Website ” , 2012 ) . The nutrients will be cooked merely after the client ‘s order to guarantee the freshness of the nutrients. MOS ‘s Burgers used rice roll and many other Nipponese sauces like teriyaki sauce that cover up on the Burgers to demo its singularity which emphasized on supplying a healthy, delightful and clean nutrient. Furthermore, the company besides served assortment of alone and original MOS Burger every bit good as utilizing multinational schemes when traveling planetary because they keep standardized the formula and the concern system while localized some of the merchandise to suit with local gustatory sensation and penchant.
The corporate slogan “ To do people happy through nutrient ” was an of import driver for the company to bring forth fresh, delightful, and quality Burgers to their clients ( “ MOS Burger Website ” , 2012 ) . The passionate committedness of the company make it successful possible and to guarantee a uninterrupted endurance in this competitory market.
MOS Burger has successfully expanded its concern globally and presently there are 28 mercantile establishments in Singapore, 223outlets in Taiwan, 16 in Hong Kong, 7 in Thailand, 2 in Indonesia, 18 in China, 2 in Korea and 5 in Australia ( “ MOS Burger Website ” , 2012 ) . The 1412 mercantile establishments in Japan have about reached the bound for the company to spread out, therefore the company hope to speed up its enlargement with a vision from “ MOS of Japan to MOS of Asia ” and eventually “ MOS of the World ” . The company planned to spread out their concern and take to come in those markets that they have non enter yet such as Malaysia, Canada, Western states and so on in the hereafter ( “ MOS Food Singapore ” , 2012 ) .
The entry manner used by MOS Burger to come in the oversea market usually lies on joint venture and franchise system. The company signifier joint venture with the local company as enlargement scheme into abroad market ( “ MOS Burger Website ” , 2012 ) . MOS Burger headquarter will delegate a forces to discourse about the development and joint attempt with the local company to guarantee that they can come in into the new market successfully which is wholly differences in footings of the ways of making concern, civilization issues and other issues.
MOS Burger besides use franchise as one of the entry manner schemes but it is non easy to obtain a franchise licence from MOS Burger because it needs to carry through the demands set by the company. The possible franchisee demand to cognize good about the company ‘s doctrine that created by Mr. Sakurada because he wish to spouse with those who cares on nature ; and besides a group of people who can lend to the creative activity of felicity both for people and society ( “ MOS Burger Website ” , 2012 ) . However, the company will merely seek for the states or regional franchisees. As decision, the company is preferred to utilize a maestro franchise system to come in the new markets alternatively of a normal franchise system.
2.0 CURRENT EXPANSION STRATEGY
MOS Burger starts to spread out their concern since twelvemonth 2001 and the first abroad mercantile establishment is established at Taiwan. MOS Burger has work attentively to spread out their concern and successfully opened 265 shops across seven parts in twelvemonth 2011. ( “ MOS study ” , 2011 ) .
2.1 Joint Venture
Joint venture is an entry manner by set uping a house that is jointly owned by two or more otherwise independent houses ( Charles and William, 2011 ) . MOS Burger decided to utilize joint venture as one of the entry modes to come in other parts because it able to command over the concern and at the same clip it besides can deeply understand that peculiar part ‘s civilization and life style. In enlargement into each part, MOS Burger merely will set up a joint venture understanding with those companies that emphasizing on good homo relationship even it is able to prosecute net income ( MOS Burger Website, 2012 ) .
MOS Burger will carefully in evaluate and choose their joint venture companies in order to guarantee their concern public presentation to accomplish satisfaction consequence. Those companies that qualified to prosecute a joint venture understanding with MOS Burger must traveling through few procedures start from entry of proposal, presentation, interview and they must able to collaborate in the development of MOS Burger in that peculiar part ( “ MOS Burger Website ” , 2012 ) .
This scheme have been used really successfully in Taiwan by established a joint venture with TECO Group in twelvemonth 1990. After 22 old ages, there are 223 shops was opened in Taiwan ( “ MOS Burger Website ” , 2012 ) . The successful enlargement of MOS Burger in Taiwan is because they expert in developing their employees who able to understand the basic doctrine of MOS Burger which is “ safe and unafraid ” . ( Kouhei, Hideaki, Tsukasa, & A ; Shigeharu, 2010 ) In Indonesia, MOS Burger established a joint venture, Pt Mog Indonesia in twelvemonth 2008 and they start the first mercantile establishment in Plaza Sendayan located at South Jakarta ( “ Plaza Indonesia Shopping Centre ” , 2009 ) . Furthermore, MOS FOOD SERVICES Inc. has joint venture with Media Will Holding Co. Ltd, a Korean company that involved in wide spectrum of activities including printing, distribution and eating house direction to open a new South-Korea mercantile establishment in March 2012 ( “ MOS Report ” , 2011 ) .
Joint venture is of import for MOS Burger and successfully utilizing by MOS to spread out their concern to abroad parts including Taiwan, Hong Kong, Singapore and others. MOS Burger decided utilizing joint venture because they found that the natural barrier in developing the concern chances overseas. Those natural barriers chiefly refer to each part ‘s linguistic communication and civilization differs from each other ( “ MOS study ” , 2011 ) .
The successful of this scheme can be seen in Taiwan which consist the highest figure of mercantile establishments among the foreign markets. It was so success because the joint venture company – TECO group to the full understand their ain part and win in developing the employees who can talk Chinese good and at the same clip they able to understand the basic doctrine that developed by MOS Burger. ( Kouhei, Hideaki, Tsukasa, & A ; Shigeharu, 2010 ) However, joint venture still has its ain restrictions which are MOS Burger unable to the full control over their ain concern and struggle may originate when there is different point of positions. ( Charles and William, 2011 )
Other than joint venture, franchising is another entry scheme that used by MOS Burger as it falls under fast nutrient industry. Harmonizing to Charles and William ( 2011 ) , franchising considered as a specialised signifier of licensing in which franchiser sell the intangible belongings to the franchisee and insists on regulations to make the concern. MOS Burger expands their concern and increase the figure of mercantile establishment out of their place state by seeking big franchisees alternatively of seeking the little graduated table or single capacity ( “ MOS Burger Website ” , 2012 ) . Within every individual part, those single franchisees will be managed by the joint venture company together with MOS Burger to do certain all franchisees perform harmonizing to the established concern pattern and guarantee the quality control in term of nutrient every bit good as their client service.
Similar to joint venture, the franchise understanding will be signed after gone through several procedures which are propose, present, interview, environment analysis and so merely come with the understanding. MOS Burger will merely prosecute in partnership with those franchisees that sympathy to their thought included do work that will be appreciated by clients, acquiring personal satisfaction when client satisfy with them and must hold the full bosom motive to run the franchise concern. ( “ MOS Burger Website ” , 2012 ) Today, MOS Burger has become the 2nd largest franchise in Japan after McDonald. ( Phillip, 2012 ) .
This franchise system has been applied in different Asia part including Singapore, Hong Kong, Taiwan, Thailand and others. MOS Burger use franchise system able to bring forth fixed income by roll uping royal fees from the franchisees. However, increasing figure of franchise granted by MOS Burger will ensue in a stronger competition among all the MOS Burger ‘s franchise concern within a peculiar part. In Taiwan, MOS Burger consist of 223 mercantile establishments and each mercantile establishment is compete together in order to accomplish the highest net income for each other. Strong competition between the franchisees will diminish the overall net income that can bring forth by MOS Burger and this becomes the restriction of this scheme.
There are many success franchises from MOS Burger in different parts ; nevertheless there is a failure instance that found in Hawaii, United State. In the late of 1980s, MOS Burger was enter to Hawaii but the concern is fail due to the high rents, stock list job and inconsistent nutrient quality ( Andrew and Kulwant, 2005 ) .
2.3 Wholly Owned Outlet
In be aftering to spread out their concern out from so Asia, there is a entirely owned mercantile establishment which opens in Australia in April 2011. Michelle ( 2012 ) reported that Shinji Yamaguchi who is the caput of international operation of MOS Burger said they enter Australia because it closes to Asia and there are a batch of Asiatic people which have similar civilization ( Michelle, 2012 ) . Besides, Australia mercantile establishment besides is a trial tally of their concern pattern for MOS Burger before their program of come ining Western states. Yamaguchi said MOS Burger now is still ill-defined to utilize franchising scheme or entirely ain concern by them in the undermentioned twelvemonth to spread out the concern.
3.0 Future EXPANSION STRATEGYA
Success merely belongs to those who are good in prepared. An organisation or company want to accomplish a uninterrupted successful, a good planning hereafter schemes is a important. In order to accomplish the end from ‘ MOS of Japan ‘ to ‘MOS of the World ‘ , MOS Burger has been involved in enlargement of the concern in Asia and even program to come in Europe market in the hereafter. Once the MOS Burger decides to come in a foreign market, it must implement some of the entry manner schemes which are suited for future enlargement. As a fast nutrient company, it is popular for utilizing franchising or joint venture as a scheme for international enlargement. However, additions in competition during international enlargement, MOS Burger besides need to see some other schemes for future enlargement and stand out from rivals.
3.1 Export – Canada
MOS Burger is recommended invest into new merchandise line besides from joint venture and franchising. MOS Burger should utilize this well established trade name name to come out some bite nutrient and utilizing exporting schemes in future as good. This pattern found in success instance of Old Town White Coffee which expand their concern by come out ain trade name of bundle instant java besides from set up the nutrient shops. MOS Food services, Inc has experience in coaction with other companies and come out merchandise such as ‘MOS Baked Choco Caramel Corn ‘ and flight repasts such as ‘Air MOS Burger ‘ ( “ MOS study, 2011 ” ) . Furthermore, it besides collaborates with Kit Kat in Japan and come out ‘rich white cocoa ‘ within limited clip period. These indicate there is a possibility of MOS Burger to implement this scheme. MOS Burger is suggested export bite nutrient such as Nipponese Dorayaki, sweet like Hokkaido milk ice, pudding and sells their uncooked Hokkaido Croquette at the hypermarket in foreign states.
As reference above, MOS Burger is be aftering expand to Canada, so exporting scheme may follow to spread out their concern as it is a low hazard scheme. Besides, exporting schemes provide chances for MOS Burger to larn and understand more about the abroad markets in term of civilization, politic, economic, penchant before invest in bricks and howitzer shop ( “ FAO Corporate Document Repository ” , 1997 ) . Canada will be the first Europe state suggested for MOS Burger to follow export scheme for bite nutrients because harmonizing to National Eating Trends ( NET ) , noshing is the fastest turning circumstance in Canada and noshing consists of more than 24 % of all repast eaten in 2009 compared to 2000 with 22 % ( Demontis, 2010 ) .
Using export scheme can be a phase to follow franchise in Canada for MOS Burger. Export snack nutrients able to make Canada ‘s consumers awareness, involvement and acquaintance toward this trade name. Furthermore, MOS Burger besides can increase their understanding toward Canadian consumer behaviour and penchant. When MOS Burger achieve favourable consequence in Canada by utilizing export, they can be easier to be aftering the acceptance of maestro franchise system in Canada in the undermentioned twelvemonth ( “ MOS Food Singapore ” , 2012 ) . Canada is a feasible market due to turning in Canadian prefers Asiatic fast nutrient with a growing rate of 9 % ( Ryomoto, 2009 ) .Moreover, Ryomoto ( 2009 ) said that, altering in the consumer tendency toward convenient, safety and quality nutrients besides increase the feasibleness for MOS Burger fast nutrient franchise in Canada. Canada besides can go platform for MOS Burger to spread out into other western states.
3.2 Partnership – Malaya
Simultaneously, another entry scheme that recommended for MOS Burger is partnership. Partnership is one of the entry manners which two or more parties contribute their resources such as money, belongings, endowment, cognition and etc to portion in the net income and losingss of the concern ( Gerald & A ; Kathleen, 2005 ) . Partnership can convey several benefits. First and foremost is capital acquisition. The fund is lifting easy if there have several spouses because they can easy lend more financess instead than a individual entity. Second is portion duty. Different spouses will hold different abilities and accomplishments. Rather than delegate the undertaking every bit, partnership allow all the parties responsible the undertaking they are excel in.
Malaya is the suggested state that to follow this entry scheme. In order to avoid the ferocious competition in fast nutrient industry throughout Malaysia, MOS Burger will be suggested to get down and growth-up their concern at the location along with the South-North Expressway, Malaysia. These locations suggested as it can chiefly aim the travellers who use the freeway and deficiency of fast nutrient mercantile establishments along the main road. MOS Burger can spouse with the gasoline station such as Petronas, Shell or etc. This proposed entry manner is derived from other fast nutrient house such as Pizza Hut and Taco Bell. The Pizza Hut and Taco Bell have created a strong partnership and this is a successful cooperation ( “ Co-branding illustrations ” , 2012 ) .
Harmonizing to Onakayo ( 2003 ) the pull offing manager of Mobil Oil, Mobil gasoline station has a fast nutrient tribunal called “ On The Run ” and it provide household or friends to bask in a comfort and quality topographic point. Besides, Dr. Paa ( 2003 ) said that partnership of fast nutrient with gasoline station provide benefits to clients, portion holders every bit good as the overall economic system of a metropoliss or topographic points.
Besides, the pattern of this scheme can benefits those long journey travellers who use the South-North Expressway particularly those from Singapore to North countries need to pump in the gasoline and take a remainder during their journey or half manner. Dr Paa ( 2003 ) besides said that this pattern can commend as a touristry attractive force because it able to function the travellers ‘ demand who traveling about and between metropoliss. Once this partnership has been implementing, after the traveller pump in the gasoline they can take a remainder while will bask their repast merely beside the gasoline station merely. This will open-up a new chance for the MOS Burger while besides will pull the traveller for peculiar gasoline station to make full up fuel and remainder. This will make a win-win state of affairs.
3.3 Backward Integration – New Zealand
Last but non least, MOS Burger can follow backward integrating which is taking the function of their providers. Backward integrating allow MOS Burger to derive some benefits such as to guarantee the beginning of quality of the natural stuff at a competitory monetary values, have full control to the cost and able to provide the spread outing market either locally and abroad ( “ Poultry Integration, 2012 ” ) . This pattern has been used by KFC Holding ( KFCH ) as they have invested into different activities that assist their nucleus concern ( “ Poultry Integration, 2012 ” ) . To implement backward integrating, MOS Burger ‘s is recommended to to have a breeder farm and hatchery, provender Millss, carnal farm, broiler agriculture or farther processing workss through acquisition. Acquisition refers to geting others concerns through busying certain sum of portion or assets ( Tan, 2009 ) . Acquisition scheme able to supply the benefits of velocity, lessening in hazards, avoids strong competition, overcome entry barrier and others ( “ Business direction scheme ” , 2010 ) . Acquisition is deserving to be pattern as it allows the company to entree a wider client base and increase their market portion.
The most appropriate state for MOS Burger to follow backward integrating. Dairy Group ( 2012 ) said that New Zealand is the state which holds 35 % of dairy merchandises in the universe market. The dairy industry in New Zealand is celebrated and typical in term of its high quality and flavourful merchandises. Besides, harmonizing to the statistic New Zealand ( 2011 ) , milk pulverization, butter and cheese are the top 1 every bit good as meat and comestible offal as the top two trade goods that exported by New Zealand. In order to keep the strong place in the universe market, New Zealand is really consecutive in protecting their grass-fed heard through bio-security policies and utilizing bio-nutrients to feed the cow ( “ Investing now ” , 2012 ) .
As decision, the high attempt of New Zealand to guarantee the quality of their dairy merchandises provide a great chance to MOS Burger to implement the backward integrating as they can to the full command the quality of the dairy merchandises that may used as one or more natural stuffs for MOS Burger in the fast nutrient industry.
In decision, the survey has identified the entry manners and besides the enlargement schemes that adopted by MOS Burger to come in foreign markets. There are besides some future enlargement schemes proposed for the company which are applicable and implementable as some of the existent instances discussed have shown a good illustration. The entry modes that presently used by the company for enlargements are chiefly fall on franchise and joint venture. The company will take a suited franchisees or spouses that know good and aline to the MOS Burger ‘s doctrine to collaborate. This is to do sureA that the hazards of enter into a different market for making concern can be cut down and to keep a significant control over the quality of the nutrient. Furthermore, taking the right spouses is to guarantee that the committedness of the company can be transmit to those who like to eat MOS ‘s Burger.
Besides that, MOS Burger can spread out their concern utilizing other entry manners every bit good in the hereafter to vie with their challengers in foreign markets. Exporting is another option for MOS as it is the easiest manner for the company to come in the new markets and reach the clients easy. The company is suggest to export their merchandise in term of bite signifier by utilizing the well established trade name name “ MOS Burger ” to come in the Canadian market which has a high ingestion of bite nutrient. Meanwhile, the partnership entry manner can be adopted every bit good in Malaysia by collaborating with local well known company for illustration Petronas. MOS can spouse with the gasoline station distributer to construct their mercantile establishments beside or near the gasoline station along the South- North Highway in Malaysia to derive benefit while the travellers take their remainder or replenish gasoline at the gasoline station on the main road. Following, the company can besides utilize the backward integrating scheme to derive some advantages on the cost of stuff and besides to beef up the supply concatenation system of the company which need non depends much on the chief providers any longer. This can be done likely in New Zealand by geting a piece of land and engender their ain domestic fowl that needed for doing the Burgers. Finally, MOS Burger is a company that has a possible to spread out and turn globally. Therefore, it need to be managed by a gifted and committed direction squad and besides keep a good cooperation with his spouses and franchisees.