Assignment Sample on Business Report
Introduction
In this 21st century, there has been a huge need for recognition and expansion and for this reason, there are companies that tend to establish their resources and services in other foreign countries. Therefore, this study contributes to the understanding of the need for industrialisation that would help the company and also the chosen country to maintain their economy by maintaining a balance between import & export (Shah et al., 2023). This study is therefore widely discussing the contradictory portions for invading Poland from the UK and what all resources Toby Carvery requires to make successful sustainability.
Task 1- Company Overview and Country Selection
Toby Carvery UK has been identified as one of the most popular and trusted pub dining establishments in Britain and is the home of great British roast dinners (Tobycarvery.co.uk. 2023). The company over 30 years have been piling plates high with fresh veggies, crispy roasties and slices of succulent meat from Aberdeen to Plymouth. In today’s time, Mitchells & Butlers serves over 135M meals and 453M drinks every year. This has been a leading restaurant & pub operator in the UK. Toby Carvery is proud to play their part in serving at least 21M of those meals (Tobycarvery.co.uk. 2023).
The company is the home of the roast and they believe that they were out on this earth to make memories!
Their vision is to remain at the heart of the community through their passionate team and continued innovation.
The menu of Toby Carvery enlists 110 different means such as midweek, Saturday, Sunday & bank holidays, midweek breakfast, weekend breakfast, children’s, vegetarian & vegan, pudding, takeaway and drinks menu (Tobycarvery.co.uk. 2023).
The menu items are mainly highlighted upon baked camembert, hand-carved roast turkey & Gammon, maple-flavoured glazed pigs in a blanket, roast potatoes, cherry tomatoes and onion chutney (Tobycarvery.co.uk. 2023). The chef’s favourite freshly made sandwiches & wraps with the help of famous roast Carvery meats.
The country that has been chosen is Poland. The reason for choosing this country is because Poland is 1.3 times bigger than the UK. That is, the UK has only 67.8M people, 29.7M fewer than Poland (Mylifeelsewhere.com. 2023) [Refer to Appendix 1]. Poland has more land connectivity access than the UK, that is, they share borders with several European countries.
As per 2022 reports, the Annual GDP of Poland is $688,301M in comparison to the UK which is having $3,070,600M Annual GDP. GDP per capita for Poland would be $18,280 in 2022 in comparison to the UK which would be $45, 775 in 2022 (Countryeconomy.com. 2023).
Agricultural production- Poland is stated to have a strong agricultural base with huge farmlands & diverse agricultural production. Whereas, the UK has diverse agricultural production as well but has relatively smaller land area and varied climatic conditions influence over the crops.
Food processing and manufacturing- UK is a well-developed food processing & manufacturing sector producing a wide range of processed & packaged food. Whereas, Poland’s food processing sector has grown a lot in past years and this provides a variety of food products which also involves canned goods, frozen products and dairy products (McClements & Grossmann, 2021). The main motive for the industrialisation of Toby Carvery in Poland is to attract foreign investments that would actively take part in international markets (Watson et al., 2023). Following the usage of the Uppsala Internationalisation Model by Toby Carvery, the company would be able to typically begin its internationalisation in Poland. This theory is determined to help the company in mentioning their efforts by entering into a new place geographically and culturally. This would also make the company seem to be close to markets that would get expansion within more distant and dissimilar markets. The Uppsala Internationalisation model is determined to provide the firm with step-by-step instructions and guidance for entering the foreign market of Poland. The step-by-step instructions are praised as market strategy and gradual market entry processes, knowledge accumulation, network relationships as well as increasing adaptability. With the help of thorough research and adaptability, Toby Carvery is considered to be able to have a significant understanding of the local market of Poland and likewise adjust the strategies accordingly.
Task 2 – Analysis of MACRO & MICRO factors
PESTLE Analysis
Political factor
Stability of Government
Poland is having a stable political environment with the parliamentary republic system. The Govt policies, and regulations, are aligned with the food industry and business operations which might be impactful for Toby Carvery’s expansion. COVID-19 had a negative impact which caused issues in the food industry’s sustainability (de Sousa & Castañeda-Ayarza, 2022).
Bilateral and Multilateral trade agreement
Poland is also a member of the EU and the trade agreements that are initiated by the EU with other countries are beneficial for all the member countries Poland also derives benefit from such agreements. These agreements that are initiated by the EU can facilitate in reducing trade barriers and tariffs which can make it significantly easier for Toby Carvery to experience a more cost-effective and smooth flow of imports and exports of all the pood products.
Economic factor
Inflation rate in Poland
The inflation rate of Poland is high at 11.0% which causes trouble to Toby Carvery’s sales (Ycharts.com. 2023) [Refer to appendix 4].
Tax on Food items in Poland
Toby Carvery can get a boost in selling the food items offered by them due to the reduction of VAT by the Poland government from 5% to 0% to provide a shield and protection from the inflation of the country (gov. pl, 2023).
Socio-cultural factor
Social Trend in Poland
The evolving customer preferences, and increasing focus on the health and wellness of the people of Poland, Toby Carvery, might require adapting the menu offerings towards theatre for changing dietary preferences.
Standard of Living in Poland
The living expenses of around 1.1 months are covered by the after-tax salary that is received by the people of Poland whereas the salary in the UK covers nearly 1.6 months also Poland ranked 86th in comparison to the UK ranked 1 in the list of most expensive countries of the world (Livingcost.org, 2023). This can be an unfavourable condition for Toby Carvery as the spending of the people in Poland is more channelised towards necessary goods.
Technological factor
Artificial Intelligence
With the initiation of AI technology that is effective towards the food industry, inventory management and customer experience. Toby Carvery requires them to adopt technological improvement efficiency and enhance their customer engagement as per Poland (Abdullah et al., 2022).
IT advancement
The estimated government expenditure towards the IT sector of Poland during the end of 2021 was nearly 2.2% of the total GDP of Poland and this can be proven beneficial for Toby Carvery to gain a potential initiative in undertaking advanced IT improvement in the operational areas of the company (Trade.gov, 2023).
Legal factor
General Food Laws
Poland could provide Toby Carvery with legal law with General Food Law EC/178/2002 which would provide the company with general standards and needs to govern food and agricultural imports (Agriexchange.apeda.gov.in. 2021).
Equal Treatment at Work
As per the law of the land, discrimination in the workplace is prohibited in terms of termination and employment. Moreover, the Poland law states that employee contracts, promotion and employment conditions must be in favour of the people of Poland (Migrant.info.pl, 2023).
Environmental factor
Environmental Awareness
With the increase in sustainable and environmental awareness factors, Toby Carvery requires to focus on attaining sustainable resources and waste reduction initiatives with their expansion.
Eco-Friendly Packaging
The company has claimed responsibility towards the increasing environmental conditions and reported on its website that the packaging used by them is sustainable and eco-friendly and this can effectively address the environmental issues of Poland (Tobycarvery.co.uk, 2023).
Distributors
Distributors in Poland have been identified to play the most significant role within the supply chain and this would provide Toby Carvery access to the distribution of their products to varied locations in Poland (Kasznik & Łapniewska, 2023). Through experiencing food, the industry can access essential smooth operations.
Suppliers
The resources are majorly supplied by Mitchells & Butlers which has been identified as the largest choice of eating and drinking out experiences through successful brands and delivery choices. The supply chain in Poland is relatively complex for the food industry due to various factors such as Food production diversity, international trade agreements, compliance with quality standards and food safety along with customer regulations (Zimon, Madzik & Domingues, 2020). The seasonal variations also cause a huge impact on the supply chain of the country and the logistics network of the country is advanced but still needs significant improvement for temperature-sensitive products and perishable goods. Toby Carvery can use the supply chain of Poland by infusing it with the latest technologies and this can provide a better acquisition of raw materials and delivery of finished goods.
Customers
Residents, families, tourists & visitors, office workers & lunch goers, celebratory occasions and food enthusiasts. This shows that Toby Carvery uses demographic segmentation based on how they treat their customers. Toby Carvery’s main focus has been on serving freshly prepared roasts with a selection of meats such as roast beef, turkey, and gammon.
Competitors
The competitors are based in the UK’s casual dining and Carvery-style restaurant market. Harvester, Crown Carveries, Beefeater, Vintage Inns and Sizzling Pubs have been identified as having a similar kind of food structure and service providence (Osińska & Zalewski, 2023).
Strategic partners
Some of the potential strategic partners of Toby Carvery are food suppliers, beverage companies, marketing & advertising agencies, loc tourism companies, loyalty programs, delivery & technology platforms and environmental & sustainability initiatives. Identify providing valuable support in terms of marketing distribution as less market insights.
Task 3- Cultural issues
Power distance
With a score of 35, the UK is relatively a low PDI score which also prefers having a more equal distribution of power and less hierarchical structures. This also helps Toby Carvery to be themselves and not pretend in front of any UK customers. Whereas, Poland with 68 scores is slightly on a high PDI score that provides the note to the company in having greater acceptance of hierarchical systems & authority (Hofstede-Insights.com. 2023). Therefore, it states that there is a high difference in the culture and the perspectives of both UK and Poland and also, Toby Carvery has to work hard on managing their team while industrialization in a foreign country.
Individualism
With an 89 score, the UK states that they provide individual space, individual achievement, autonomy and individual rights that also help Toby Carvery to use their ideas for attracting customers. Contrarily, Poland scores 60, that is they have less individualism and signify more focus on collective identity, group loyalty and family values (Hofstede-Insights.com. 2023). Therefore, this states a high difference between the score and the perspectives of both countries for Toby Carvery. The high differentiating factor of the scores in both countries would be an issue for Toby Carvery as they need to be more specific towards group discussion, collaborative workspace and being available for each other like a team. Due to the UK being high on individualism, it might be difficult for the company during foreign expansion.
Masculinity
There is a slight difference between the UK and Poland’s scores, which are 66 and 64 respectively. The UK with 66 scores has a high emphasis on competitiveness, success and material achievement and a lesser involvement of women within any sector. And Poland with a 64 score has also been identified with balancing assertiveness through nurturing and quality of life. This might be helpful for Toby Carvery to access relatively lesser masculinity and competitiveness. Due to similar scoring, the company would not have to deal with the changes in the mindset of its staff members nor they need to be hiring more female employees to sustain themselves in the Polish market. Therefore, this counts to be beneficial for the firm.
Uncertainty avoidance
The UK certainly has scored 35 which states that the UK has a lesser number of resources that they could use if any uncertain situation arrives (Hofstede-Insights.com. 2023). Therefore, in contrast to this Toby Carvery while industrialisation in Poland can access a high rate of resources if they face any uncertain situation anytime as Poland scores 93. This, therefore, states that there is a high difference between the scores of both countries and that Toby Carvery would be able to access improved facilities within a foreign country. This makes the company face high demands and interest gain of their potential clients/customers. This would also be providing the firm to follow agile principles which would help the company in managing its expansion and certain changes in its productivity and managing levels.
Long-term orientation
With a 51 score from the UK, it is evident that Toby Carvery has been possessing long-term goals for better recognition and development across the world in Poland. However, Poland with a 38 score would prove Toby Carvery wrong about long-term goals (Hofstede-Insights.com. 2023). Instead, they focus more on short and medium-term and prioritise these first for better long-term approaches. Therefore, this states similarities within the long-term orientations of both the countries and that Toby Carvery would not find any vast difference for this dimension in Poland. This would further provide the company not to be agile in any such changes in accessing better fortunes and outcomes. The firm would also determine that within both the country the company would have to work on gaining the best short-term goals which could stabilise their further process.
Indulgence
UK’s score is 69 which states that the customers of the UK would get easily satisfied with Toby Carvery’s services and food quality as the company is based in the UK. The customers of the UK are thus identified to be having habitual buying behaviour and for this real, they would get naturally satisfied with their services (Hofstede-Insights.com. 2023). Contrarily, Poland scored 29 that stating that the customers of this new place would not get satisfied easily as they certainly have complex buying behaviour and dissonance buying behaviour. Therefore, with this huge difference between both the countries, Toby Carvery has to work hard, and know Poland’s customers’ interests in food and then satisfy them.
The similarities would not cause any issue within the marketing mix of Toby Carvery, however, the differences within the dimensions of the UK and Poland would cause certain changes within 4ps of Toby Carvery. Product adaptability involves menu localisation, vegetarian & dietary preferences are required to be adapted for Toby Carvery for industrialization in Poland as this country has dietary and vegan preference options. The Price adaptability of Toby Carvery is required to switch to a competitive pricing structure as this would help them to adapt to the market stability within a new area. This would also maintain profitability within the company as this would lead the company to first analyse their competitors and then set their prices.
Promotion adaptability-The company is required to start online-offline integration as this would provide Toby Carvery to reach out to their broader audience and encourager their customer engagement procedures. The Place adaptability of the firm is chosen as Urban cities and tourist destinations are the best places for Toby Carvery in Poland to expand its industrialisation.
Both Hall’s High and Low Context Cultures are stated to understand the cultural differences between the UK and Poland. The UK has been considered to have low context culture, values direct communication and only relies upon non-verbal cues. Moreover, you can have been identified to prefer clear and straightforward communications within business settings. Contrarily, Poland is also having a low context culture that is sharing a similarity with the UK concerning direct communication (Aririguzoh, 2022). Poland’s culture has placed a stronger emphasis on family as well as group harmony and their communication systems might be displayed more collectively. Both countries are sharing nuances that influence their social interaction expectations as well as the significance of relationships in varied ways (Yousefpour, 2022). Toby Carvery needs to understand this and adapt Poland’s marketing communication, and also overall approaches to expand perfectly.
Task 4 – Market entry strategies
Direct Exporting: This states the direct selling of firms’ services or goods to foreign customers without having any intermediaries.
Indirect Exporting: The selling of goods or services to foreign customers through intermediaries such as distributors or agents.
Licensing: Licencing is a strategy which grants permission to a foreign company to use all the IP processes such as trademarks or technology in exchange for royalties or fees.
Joint Ventures: Joint ventures provide companies to collaborate with foreign organisations and establish a new entity as well as share resources, risks as well as profit within that specific market area (Cassia & Magno, 2022).
Subsidiaries: This strategy provides the organisation with establishing a wholly owned foreign company to conduct businesses within foreign markets, while being able to retain complete control over all the operations, as well as decision-making.
Toby Carvery is suggested to use direct exporting and licensing market strategies.
Direct Exporting:
Advantages- Toby Carvery would be able to have full control over branding, customer relationships as well as market insights. This would also allow the firm to tailor their marketing strategies as well as adapt to local approaches, leading through more personalised & effective approaches in the Poland market.
Disadvantages- Toby Carvery in Poland could face issues in initial investment, operational costs, regularity complexities and the need for local market expertise. As there is high competition the company lacks in signifying time and effort in establishing distribution channels.
Licencing:
Advantages- Toby Carvery in Poland would be able to access reduced financial risks along with investments as the licensee would be able to cover the costs of establishing & operating the business successfully (Onoz & Giachetti, 2023). The firm would also be able to have rapid market entry and leverage the local licensee’s knowledge of the Poland market and the market regulations.
Disadvantages- Toby Carvery in Poland would face limited control over operations & brand image, and there would also be potential conflicts with the licensee’s goals towards business. The firm would also face issues in ensuring consistency within quality standards and brand reputation (Brouthers, Chen & Shaheer, 2022).
The internal factors for Toby Carvery Suggest that influence within their market entry involves the size of the firm financial resource’s managerial expertise as well as already existing international experiences. An MNC might have more resources as well as capabilities to invest in market entry strategies. The external factors involve competition levels within the new country’s economic conditions, regularity, environment, cultural differences as well as consumer preferences (Enow, 2022). Therefore, understanding the macroeconomic trends and market demands as well as the competitive landscape of Poland would help Toby Carvery To determine the best entry mode which is direct exporting and licencing this would help them in tailoring their marketing mix and have a successful establishment within the presence of Poland. Also, with proper analysis of both macro and micro factors above, it has been identified that there is a wide range of crucial information that is required to be looked upon before entering into a new country.
Task 5- Marketing Mix Adaptation and Standardisation
Product offerings
Standardisation- The Specialty is roast dishes (beef, turkey, gammon).
Adaptation- Adapting menu localisation that is vegan or vegetarian food and dietary items to access local tastes and attract more customers.
Price strategy
Standardisation- Premium pricing strategy
Adaptation- Competitive pricing strategy
Promotion campaign
Standardisation- Traditional and online integration of promotional approaches.
Adaptation- Offline and online integration of resources. Social media platforms for communicating with customers.
Market research
Standardisation- Limited market-specific research.
Adaptation- Conducting thorough market research for understanding Poland’s culture, customers, habits, trends and interests.
Hollensen’s book, the Uppsala industrialisation model, is significant for Toby Carvery’s market adaptability in Poland as this provides an emphasis on the cautions as well as all the gradual approaches that the company would be able to take within the international expansion (Hollensen, 2020). This model approves that the company is required to focus on learning and accumulating knowledge through a marketing mix including all the menu pricing promotions as well as services that the firm could build to attract and sustain their customers for long-term orientation.
Product
Segmentation
Demographic segmentation would be used by Toby Carvery in Poland as this would provide the company with the ability to recognise its target customers with age, interest, habit, income group, occupation and nationality (McKercher et al., 2023).
Target Market
Age and Gender- 18 and above of all gender
Income group- All income group
Locations- Urban cities and Tourist destinations
Positioning
Marketing Mix (4ps)
Product
The product line of Toby Carvery is vast and this restaurant chain is involved in offering Yorkshire pudding, gravy, roast potatoes, seasonal vegetables, variety of meat options such as turkey, lamb, beef and pork along with that the restaurant also deals in vegan and vegetarian options to meet the demand of the consumers from all over the country. This has facilitated the company to acquire a larger consumer base (Kotler, 2012).
Price
Due to the high inflation rate, there would be high operating expenses and transportation costs. The taxes of the company would also be increased in Poland and with the lack of a backup plan financially the company would not be able to employ anyone and thus the unemployment rate would increase (Magnani, 2022). A high inflation rate would also cause issues with import duty as the import costs would be increased and those are being imported from one country to another. The imported goods would be expensive for the customers and the result would be the customers would not approach this firm in Poland.
Promotion
Social media platforms would be one of the best promotional platforms for communicating the unique positioning of the company. Such as Facebook, Instagram, YouTube, and Google are the best sites where the company could promote their services in Poland. The competitiveness could advantage Toby Carvery as they would be using a competitive pricing strategy (Dudziak, Stoma & Osmólska, 2023).
Place
The urban cities and tourist destinations would be great for the establishment; however, the company could use doorstep food delivery techniques and legal authorities in the food waste reduction process in this way Toby Carvery would increase its expansion in Poland.
Adaptation and standardisation are used in the marketing mix due to the various benefits that are associated with the same. Adaptation refers to the approach in which the marketing mix of 4ps is used to meet certain requirements along with the cultural nuances of a specific individual market which is Poland in the specific case and this approach effectively acknowledges the consumer behaviour and preferences. Standardisation refers to minimal modification in the marketing mix and dealing across multiple markets. This has been used to derive brief ideas regarding the brand consistency, cost-effectiveness and global competitiveness of Toby Carvery (Kotler, 2012).
Conclusion
The above study is determined to focus on essential approaches as well as techniques that Toby Carvery would be using for expansion processes. This study has also been identified to focus on collective strategies that would be significant for the growth of the company. This study has also been able to provide the company with the knowledge of understanding all the significant standards that are linked with basic requirements to get recognition and expansion in Poland.
References
Market References
Agriexchange.apeda.gov.in. (2021). Retrieved on: 23rd July 2023, from: https://agriexchange.apeda.gov.in/ir_standards/Import_Regulation/FoodImportRegulationsWarsawPoland2112.pdf
Countryeconomy.com. (2023). Retrieved on: 23rd July 2023, from: https://countryeconomy.com/countries/compare/poland/uk
Hofstede-Insights.com. (2023). Retrieved on: 23rd July 2023, from: https://www.hofstede-insights.com/country-comparison-tool?countries=poland%2Cunited+kingdom
Mylifeelsewhere.com. (2023). Retrieved on: 23rd July 2023, from: https://www.mylifeelsewhere.com/country-size-comparison/poland/united-kingdom#:~:text=Poland%20is%20about%201.3%20times%20bigger%20than%20United%20Kingdom.&text=Meanwhile%2C%20the%20population%20of%20United
Rateinflation.com. (2023). Retrieved on: 23rd July 2023, from: https://www.rateinflation.com/inflation-rate/uk-inflation-rate/#:~:text=Current%20UK%20inflation%20rate&text=The%20Consumer%20Price%20Index%20for
Tobycarvery.co.uk . (2023). Retrieved on: 23rd July 2023, from: https://www.tobycarvery.co.uk/about#/
Tobycarvery.co.uk. (2023). Retrieved on: 23rd July 2023, from: https://www.tobycarvery.co.uk/carvery#/
Ycharts.com. (2023). Retrieved on: 23rd July 2023, from: https://ycharts.com/indicators/poland_inflation_rate#:~:text=Poland%20Inflation%20Rate%20is%20at
Gov.pl. (2023). Retrieved on: 23rd July 2023, from: https://www.gov.pl/web/primeminister/we-are-extending-0-vat-on-food#:~:text=In%20Poland%2C%20thanks%20to%20the,from%20February%201%2C%202022).
livingcost.org. (2023). Retrieved on: 23rd July 2023, from: https://livingcost.org/cost/poland/united-kingdom#:~:text=Poland%20ranked%2086th%20vs%2016th,months%20in%20the%20United%20Kingdom.
Trade.gov. (2023). Retrieved on: 23rd July 2023, from: https://www.trade.gov/country-commercial-guides/poland-digital-technologies#:~:text=At%20the%20end%20of%202021,of%20a%20project’s%20actual%20value.
Migrant.info.pl. (2023). Retrieved on: 23rd July 2023, from: https://www.migrant.info.pl/equal-treatment.html#:~:text=In%20Poland%2C%20discrimination%20in%20the,in%20order%20to%20improve%20qualifications.
Tobycarvery.co.uk. (2023). Retrieved on: 23rd July 2023, from: https://www.tobycarvery.co.uk/our-responsibilities
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