Subject category:
Entrepreneurship
Published by:
RSM Case Development Centre
Length: 10 pages
Data source: Field research
Abstract
This case focuses on the expansion of the Sr Frango da Guia (SFG) restaurants from Portugal to Brazil. After opening a number of successful restaurants in Portugal, Manuel Costa exported his business model to Brazil and opened two restaurants there. Soon he faced employee theft and disappointing profits. Costa had several options to resolve the problems: franchising, hiring Portuguese managers for his Brazilian restaurants, or partnering with a Brazilian business. In addition, conducting market research could also resolve questions about customer preference and effective marketing. All these options however would require further investment, which might not pay off. Costa was facing the choice between investing further in his Brazilian restaurants, or exiting the market. The case addresses important factors in start-ups internationalization attempt, including franchising, long-distance firm management, the economic circumstances of a foreign country, and the impact of local stakeholders and cultures.
About
Abstract
This case focuses on the expansion of the Sr Frango da Guia (SFG) restaurants from Portugal to Brazil. After opening a number of successful restaurants in Portugal, Manuel Costa exported his business model to Brazil and opened two restaurants there. Soon he faced employee theft and disappointing profits. Costa had several options to resolve the problems: franchising, hiring Portuguese managers for his Brazilian restaurants, or partnering with a Brazilian business. In addition, conducting market research could also resolve questions about customer preference and effective marketing. All these options however would require further investment, which might not pay off. Costa was facing the choice between investing further in his Brazilian restaurants, or exiting the market. The case addresses important factors in start-ups internationalization attempt, including franchising, long-distance firm management, the economic circumstances of a foreign country, and the impact of local stakeholders and cultures.