Future benefits and caveats

The Wok to Walk company is sure that the expansion to St. Petersburg will have a lot of benefits for the company which will improve the profit and be advantageous for it:

· The brand name of “Wok to Walk” will become internationally known and by the market entry in St. Petersburg there are going to be a lot of future perspectives in this geographical area;

· The urban young society of St. Petersburg will be a very interested consumer group because of their international knowledge and their demand for fast food which is already presented in European markets;

· We will definitely learn a lot about the Russian market in this business which can be helpful for our future operations;

· Because of our reliable franchise partners there will a constant source of profit additionally to our main business in the Netherlands;

· As we do not have a big investment ourselves in Russia by this probable risks do not matter us too much.

Nevertheless, our market entry to Russia will contain some issues and problems which should not be neglected:

· The Russian business environment is more risky than the European one and this could lead to costs not predictable by us;

· If our franchise partner abuses the resources we provide him with it is very difficult to fine him on the legal way;

· The difficult legal environment itself has to be studied quite well and some restrictions concerning international business which can take place should be observed in an accurate manner.

To sum up, the benefits of this investment are far bigger than the caveats and so we expect to have good chances to improve our whole business by entering the market. Our Russian operations will improve our company performance in different areas such as profits, R&D, marketing and so on. We see our investment into Russia going to be very advantageous and profitable in the next years so that it will become one of St. Petersburg’s most frequented fast food restaurants by students and young workers.

Дата добавления: 2015-08-18