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b) Problems that Reload might come across include
Rivals such as Delifrance and Subway are better known multinational companies with well-established customer networks. This presents a problem for a comparatively small company such as Reload from entering out of the country markets where such competitors exist.
By locating in a different continent, Reload will need to establish itself with new suppliers who are reliable in providing the firm with fresh ingredients for its beverages and food.
Legal systems are different in foreign countries so legal experts will need to be hired to make sure there is a smooth transition of operations in Scotland and other countries outside of New Zealand.
Overseas dining and eating habits might be very different from those at home in New Zealand, so it is likely that Reload will need to expend money on marketing research in their overseas marketplace.
The selection of location itself can be a trouble for management. Location decisions are often made on the base of familiarity and this becomes more complicated when deciding between overseas locations.
There may also be staff planning issues, e.g. the need to hire managers and translators with linguistic skills in non-English speaking European countries.
FIXED COST=40000, VARIABLE COST=20 PER UNIT, SELLING PRICE=100 PER UNIT. TURNOVER REQUIRED FOR A PROFIT OF RS.30000
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