CAGE FRAMEWORK

Cultural distance Due to the religion, some Local customization of

Administrative and political
distance
Geographical distance
Economic distance
foods cannot be served. Ex:
pork in Muslim countries.
Taxes varies for each country.
Repatriate money from a
country is complex.
Food supplies, ingredients
and other essential supplies
such as packaging materials to
each country is time and cost
consuming
Cross border managerial
mobility was
limited to high levels of
management
hence there is limited of
availability of
human resources
product lines received
variations in the taste of food
to meet the different needs
and cultures of each global
country.
The firm will work with tax
authorities to ensure a legally
process on repatriating funds
back.
Food supplies are sourced
locally to ensure freshness.
This is a way to reduce time
and costs.
Labors (example: operation
outlet
staffs, managers) are sourced
locally as to have a better
gasp of
the local environment and the
customer’s needs.

MARKET ANALYSIS

CULTURAL
- China and U.S. had much cultural
differences
- Language barrier
- Upper scaled people in China prefer
more ¨american style¨ of food
ADMINISTRATIVE
- Local policies and U.S. policies have
different policies. Therefore the
distance is far.

ECONOMIC GEOGRAPHIC
Both are dominant countries - Far distance between China and U.S.

-Tricon spent around 20 million per year on R&D projects mostly meant for the U.S. market, but
the company also needs overseas innovation.

- The company should focus in doing more market research in overseas

YIPS FRAMEWORK

MARKET DRIVERS COST DRIVERS

- Increase in transactions of China as - Some markets have lower cost in raw
compared to U.S. materials that can be exported to
- Increasing growth rate in fast food company- wide
industry - Franchise requires low set-up cost for
TRI
COMPETITIVE DRIVERS
- More working adults and lesser people
dining at home
- The company wants to have a pie of
the share in the food industry

- Market drivers are the dominant factor because of the increase in term of the sales and
transaction when it was launched in China