Corporate Globalization: Bring American "Dutchbros Coffee" to Canada

Corporate Globalization Assessment
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Corporate Globalization Assessment
Executive Summary
Dutch Bros Coffee decision to start operations in Canada is a good move. Given its strong presence in the US, the business can leverage its brand loyalty in the US to expand to Canada succesfully. The Canadian market has a huge potential for coffee products. This paper provides an analysis for Dutch Bros Coffee to enter the Canadian market. The analysis covers various aspects which are instrumental for entry. While Canada is a viable market, the business needs to invest more into establishing relations with clients in Canada. This will establish its reputation among clients and increase its market share in the new market
Introduction
It is important for businesses to continually think about how to expand to new markets. In a globalized world, businesses need to identify ways of capturing overseas markets to increase their market share. Expanding the coffee brand Dutch Bros Coffee to a new market in Canada is critical in allowing the business to tap into the growing coffee market in Canada. However, businesses need to undertake a comprehensive analysis of both external and internal factors that can determine their success. A comprehensive evaluation of Dutch Bros Coffee will allow the management to establish how the business is likely to perform in the new market and help the management in making the most appropriate decisions.
Macro Analysis – PESTLE and Implications
The PESTLE analysis will allow the management to understand the external factors that will affect Dutch Bros Coffee in Canada.
Political
Canada’s political environment is relatively stable, which offers a good environment for new businesses. Political stability will be a key factor in ensuring that Dutch Bros Coffee can comply with the required regulations. The business will find it easier to meet the required laws, licenses and regulations. For the business to have a smooth entry into the Canadian market, it needs to understand all the legal requirements.
Economic
Canada's market is welcoming to foreign brands. The economy is diversified making it possible for any business to establish its operations and succeed. The coffee industry in Canada has experienced growth over the years. This provides Dutch Bros Coffee with an opportunity to take advantage of the growing economy. However, factors like inflation can adversely affect the profitability of the business. Inflation is likely to increase the cost of production, hence decreasing the businesses’ revenue.
Sociocultural
Canada is a multicultural society because of its willingness to accommodate people from diverse cultures. As a result, it has different consumer preferences. Dutch Bros Coffee needs to identify the various consumer tastes and preferences of the Canadian market. It needs to offer differentiated products to ensure all customers can identify with them.
Technological
Canada is technologically advanced with consumers embracing digital solutions in purchasing products. For instance, clients pored products from apps and websites, and have them delivered at their door steps. Dutch Bros Coffee needs to invest in the development of digital solutions to ensure that customers can order the products in the comfort of their homes.
Legal
Dutch Bros Coffee needs to comply with all the local laws in Canada. Encasing legal experts will allow the business to navigate the complex legal system. This will also minimize exposure to lawsuits which can adversely hinder its operations.
Environmental
Canada is concerned about the environment and Dutch Bros Coffee needs to be conscious about the environment. In particular, the business needs to adopt eco-friendly practices like reduction of waste and conversation of energy so that it can resonate with environmentally conscious clients.
Culture –Hofstede and Implications
Dutch Bros Coffee must understand the cultural dimensions of the Canadian market. The use of the Hofstede cultural dimension model will be critical in analyzing the cultural aspects of the market. Firstly, the power distance in Canada is relatively low since Canadian society values equality and collaboration. This implies the need for the business to engage its employees in decision-making. It needs to create a working environment where workers feel valued and involved. Secondly, Canada is an individualistic society where people value their autonomy. Dutch Bros Coffee needs to appeal to the individual needs of the clients and customize its services to fit their tastes and preferences. Thirdly, regarding masculinity and femininity, Canada presents a balanced approach towards gender roles. The business needs to ensure the business environment promotes equality. Fourthly, Canadians exhibit moderate levels of uncertainty avoidance. As a result, the business needs to ensure that it provides clear information regarding its products. Customers need to be aware of the ingredients employed and any other important information. Lastly, regarding indulgence vs. restraint, Canadian society is more indulgent where people value leisure. In this regard, Dutch Bros Coffee can position itself as promoting leisure. The business can position its products as allowing people to indulge in leisure activities to capture the attention of the consumers.
Competitiveness
Resources & Capabilities
In the US, the business has numerous shops which allows it to reach more clients. In 2022, the business opened 133 new shops, 120 of them company-operated, across 11 states. In 2023, Dutch Bros Coffee targets 150 new systemwide shops, which will allow the business to achieve the five-year goal of 800 systemwide shops and a revenue of $1 billion by the end of 2023 CITATION Bus23 \l 1033 (Business Wire, 2023). Moreover, the business has more than 15000 employees in the US. Such a large number of workforces gives the business the human resource capital needed to actualize its goals and objectives. The business can capitalize on the experiences of the workers in the US to build the skills of the new workforce in Canada.
Value Chain with Financial Analysis
The business has a well-established value chain in the US. In its inbound logistics, Dutch Bros Coffee has established sources of coffee beans. It ensures that beans are acquired from regions where sustainability practices are used. Regarding outbound logistics, the business has a rich distribution network that delivers the products to various stores. In Canada, the business should work towards establishing strong inbound and outbound logistics by using the experiences gained in the US. Another aspect of the value chain is strong marketing in the US. Building the reputation of Dutch Bros Coffee has been achiev...