Reference no: EM132203399
1. The Domestic Expansion of Bo’s Coffee
Philippine coffee chain Bo’s Coffee is planning to operate 200 local stores within two years2. The plan represents a change in direction for the brand, which opened its first outlet in Qatar recently. Chairman and President Steve Benitez says the company has secured a licensing deal with Qatari entrepreneurs, with international expansion being part of its long-term expansion plans. Meanwhile, overseas expansion for Bo’s is now shelved until 2020, as the brand’s immediate focus for growth is on domestic expansion. Bo’s Coffee was launched in Cebu City by Benitez in 1996. It has 30 outlets in Metro Cebu, and sources coffee beans from farmers in the Philippines. It also engages in other partnerships to help transform the lives of people in different communities. Benitez said: “The Qatar opening was long overdue. Finally, we have opened it. Our partners there are planning to open three to five more branches. We are happy to hear that despite minimal marketing, the coffee shop there is doing well. However, the plan is to grow the brand locally before we expand aggressively in other countries.”
1. Conduct an industry analysis of the coffee industry in Philippine.
2. Propose three possible growth strategies for Bo’s Coffee in the domestic market. Discuss the pros and cons of each strategy and prioritise your recommendations.
2. Facebook’s AI Research Labs
In July 2018, Facebook, the world’s biggest social network, said it would recruit high-profile engineers and expand its AI-research division to roughly 170 scientists and engineers across eight global offices1. The expansion of the international labs and new academic partnerships will be devoted to the study of robotics, virtual animation, learning machines and other forms of AI.
While Facebook’s AI rivals have developed automated voice assistants, such as Amazon’s Alexa, or spearheaded breakthroughs in gaming, robotics or self-driving cars, the social network has devoted much of its AI engineering to analysis of images, video and text — facial recognition, language translation and detection of unwanted content or harmful comments.
Facebook’s global expansion, beginning with labs in Paris and Montreal three years ago, has allowed the company to secure a seat near top universities, research institutes and other “talent factories” where AI researchers and academics are at work. Google recently announced it would open an AI lab in Accra, the capital of Ghana, in hopes of attracting AI talent from across West Africa.
1. Critically evaluate the internal and external context of Facebook’s strategy.
2. Identify and explain the risks associated with Facebook’s AI strategy.
3. Tea WG’s International Strategy
In July 2018, Tea WG announced its launch in Europe in conjunction with its 10th anniversary3. The luxury tea brand will open two Tea WG Salons and Boutiques in London at Knightsbridge and Leicester Square, achieving the distinction of being the first luxury tea brand to emerge from Asia in the UK market. Both new venues are opening in heritage buildings and include retail boutiques, patisserie counters and tea salons with refined, luxurious interiors designed and conceived by Taha Bouqdib, President and CEO, Tea WG. The concept salons showcase more than 800 of Tea WG’s signature harvests and tea blends, as well as its tea gastronomy, tea accessories and tea-infused foods.
The TWG brand was originally established in Singapore in 2008 as a luxury concept that incorporates unique and original retail outlets, exquisite tea rooms and an international distribution network to professionals. Today, it is one of the fastest growing luxury tea brands in the world.
1. Define TWG’s international strategy and discuss implications for the Strategy Diamond.
2. Apply the CAGE framework to identify desirable international arenas for TWG.
3. Using theories and concepts covered in the subject, critically discuss and recommend relevant international strategies for TWG as part of its global expansion plan.