International Competitive Strategy

The Strategy for International Business

Industrial Structure:

a. Service:

Besides food, we are offering value-added services like online delivery service and free resources. Online
delivery service is convenient for customers nowadays by clicking one button your food can be deliver at
your doorstep. Free resources are an extraordinary method to make included worth and grandstand your
image's capacity to offer a touch of a bonus to clients.

b. Operations:

Restaurant activities are about significantly more than nourishment. We structure activities planned for
satisfying clients, making a benefit and keeping away from potential emergencies, for example, food
contamination. Notwithstanding taking care of the coordination of requesting and stocking fixings, we
should direct the nonfood components of an eating background, for example, ambiance and service.
What's more, cleaning is an essential piece of cafe tasks, establishing a positive connection on clients and
furthermore protecting them from nourishment borne ailments.

c. Macro Forces:

i. Economic:

Baku is the capital of Azerbaijan. Despite heavy burden because of millions of refugees, the country has
managed to mobilize the economic condition in the country. So, its easy for us to start a new business that
will be profitable for us due to the stabilize economical condition.

ii. Social and culture:

Each country has a lot of center social convictions that are passed from age to age. Changes in these center
convictions influence purchaser buys. If its food or lifestyle, Baku has similarities with Pakistani culture,
which includes, Unparalleled Hospitality, Cultural Diversity and especially tea, one of the striking parts
of Azerbaijan culture is the tea drinking rituals.
 iii. Technological:

We are going to open restaurant, so we don’t need such technology services except mobile app
development and website.

iv. Political:

The city is now stabilized politically after the war, especially back from 2014. Joblessness has diminished
altogether in the course of the most recent decade. It dropped to 5% in 2014. 8.5% swelling is conjecture
by the International Monetary Fund (IMF) for 2015. The duty approach isn't much intense in the nation,
which is an advantage for us.

Industrial Change:

d. State Policies:

Starting business in Azerbaijan is not a problem for Pakistan as we are the first country who recognized
Azerbaijan and shook hands with them. We are opening a restaurant in Baku which is the capital of
Azerbaijan. As policies are concerned, we will start the restaurant as a partnership agreement between
each of the members. According to the Azerbaijani market we have to register our restaurant will be
registered through one stop-shop principle which will allow us to start the operations within 2 working
days.

e. Labor Law:

In Azerbaijan everyone is free to work or not to work, no one may be forced to work. There is no
discrimination related to gender, age, language etc. there is also an employment contract between
employee and employer which ensure employee salary, insurance and all the safety measures.

f. Availability of finance:

Banking activity is regulated by central bank of Azerbaijan and under the control of charter of financial
market supervisory authority of republic of Azerbaijan. Finances are available for the companies and
business how are licensed through one stop-shop principle. The banking sector are not allowed to engage
in transportation, agriculture, mining, construction and insurance activity. Finances are available or the
business and companies which are engage in whole sales and retail trade, production and food processing.

Creating Value:

A company can create value by using two strategies which are cost leadership and differentiation
strategy. In cost leadership strategy a company can produce and sell goods on lower rates as compare to
the competitors and in differentiation strategy the company has a unique characteristic as compare to the
competitor’s product. In our case we will be using differentiational strategy for our restaurant as we will
be introducing different taste with different spices while keeping the same shape of their traditional dishes
and bringing Pakistani tarka in their dishes.

Managing the value chain:

The company can manage the value chain by either concentrated or dispersed methods. In concentrated
the facilities and all the production availability are on the same location which helps to reduce the
transportation cost, while in dispersed method the facilities are geographically dispersed. In our case we
will be using concentrated method to reduce the labor and transportation cost because our warehouses
and production facilities will be in Baku.

Our strategy to enter in Baku:

There are four international strategies that business can use to enter in a foreign market, from those four
strategies we are using Multidomestic Strategy to open our restaurant in Baku. In multidomestic strategy
we will be focusing on traditional dishes of Baku and bringing pure Pakistani dishes for the food lovers
in Baku. We will be focusing on the local markets and people living in Baku.

Global integration vs local responsiveness:

Companies that operate internationally faces two shaped forces, pressures for global integration and
pressure for local responsiveness thus the pressure for global integration focuses on Standardized
activates which will be same worldwide and on other side pressures for local responsiveness focuses on
the customized or shape -up activates according to the targeted country demand.

In our case for our restaurant we’ll be having high pressure for local responsiveness and low pressure
for global integration as we’re using strategy to enter in Baku is multidomestic. We’ll be preparing the
dishes according to the taste and preferences for people living in Baku with Pakistani tarka which clearly
says that their a pressure for local responsiveness.

Q1. Do we have enough potential to open Pakistani Restaurant in Baku?

Truly, we have that potential. Our field-tested strategy is clear which incorporates, for example, financing,
area, topic and staffing, which is essential to begin eatery business to get the best shots for progress and
in the event that you have an incredible group, you can without much of a stretch make the progress.
Barely any individuals from our group have visited Baku additionally we have learned about Azerbaijan,
Baku. Along these lines, we realize how to pitch the focused-on individuals through an appropriate
channel. With the unmistakable objectives and goals, we can without much of a stretch make the progress.

Q2. Do we have enough risk-taking ability so that we can sell the items in less price than we will
produce?

Initially, we don’t have much resources. After few months or a year, we can start selling in low prices and
can give discounts to our customers. Because once we are on ground, our expenses will be high, which
includes, raw material expense, labor expense, infrastructure and location expense and much more. After
a year once we start earning profit, we will be able to take risk.