You are the CEO of SUBWAY Restaurants and You Want to Develop Significantly by Expanding into Indonesia: International Business Assignment, SMU, Singapore

Assignment Details:

You are the CEO of SUBWAY Restaurants and you want to develop significantly by expanding into Indonesia. You need to present a proposal to the board of directors of the company to gain their approval for the expansion. They are, generally, a bit risk-averse and medium to long-term thinkers.

Expanding Subway Restaurant Franchise business to Indonesia

To discuss the following

1. Introduction

2. Business structure – entry mode – Franchise

3. GDP Analysis

4. Political stability & support

5. Changes required in the business model and advertisement due to the large Muslim population

6. Tackling corruption

7. Supply chain stability, advantages, and disadvantages. Subway has been supported by IPCA for their supply chain. You need to research how it works and describe how to bring IPCA support and HAVI into Indonesia

8. Political risk and mitigation plan.

9. Discuss also any Competition risk

Some research work about Indonesia

1. Bigger market size (45 million middle class)
2. Higher middle-class growth potential
3. No major sandwich competition existence ( First mover advantage)
4. Descent infrastructure (Highways & Airports)
5. Culture (Exposure, an abundance of a suitable workforce)
6. Supplier & Fresh produce availability ( Havi Indonesia)
7. Indonesia has better fast-food eatery culture
8. Medium-High risk and high return
9. Higher possibility of future franchisees to many major cities in Java Island