Breadtalk is a well know bakery in Singapore. The company was started in July 2000.

It is a chain of retail shops which selling a wide range of breads,buns,cakes and pastries.in Singapore they have 24 outlets and also expand their company by opening branches in all over Asia countries such like Malaysia,Indonesia,Thailand,Viet

henBreadTalk made its debut on the Singapore stock exchange in late 2002, George Quek, the founder and managing director of the bakery chain, was assessing the opportunitiesand the risks facing the company. BreadTalk had made progress in establishing its brand name and expanding into emerging markets like China and Indonesia. In a short span of three years, the bakery chain opened more than 20 outlets in Singapore, making t i one of the most recognised local brand names. With its signature 'open concept' kitchen, the business presented its products in attractive packages embodying novelty, creativity and fun. When the BreadTalk concept was first introduced in Singapore, its critics were sceptical of its long-term prospects and predicted that the fad would fizzle out just like the 'bubble tea' phenomenon.

Question 4 (a)

There is 2 main evvironment faced by Breadtalk is Singapore is Economic and Political/legal. The political environment forces originate. The outcome of political decisions can often be seen in the economic and legislative policies of governments. Government policy is closely related, they influence other environmental forces which can affect a organization.

Year Segment

2003 Profit from ops $( ooo)

2004 Profit from ops $( ooo)

2005 Profit from ops $( ooo)

2006 Profit % from ops $( ooo)

2007 Profit from ops $( ooo)

Bakery Restaurant FoodCourt

999 257 -

79.5 20.5 -

-802 2091 -

N.M 100.0 -

-116 3283 1586

N.M 67.4 32.6

1829 3487 2185

24.4 46.5 29.1

3873 4571 3457

32.5 38.4 29.1

Question 4(b) Currency transaction risk. Currency transaction risk occurs because the company has transactions denominated in a foreign currency and these transactions must be restated into U.S. dollar equivalents before they can be recorded. Gains or losses are recognized when a payment is made or at any intervening balance sheet date. Currency translation risk. Currency translation risk occurs because the company has net assets, including equity investments, and liabilities denominated in a foreign currency. The Group has transactional currency exposures arising from sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of Group entities, primarily SGD, Renminbi (RMB) and Hong Kong Dollar (HKD). The foreign currencies in which these transactions are denominated are mainly US dollars (USD), HKD, RMB and SGD. Currently, the Chinese government imposes control over foreign currency. RMB, the official currency in the People s Republic of China ( PRC ), is not freely convertible. Enterprises operating in the PRC can enter into exchange transactions through the People s Bank of China or other authorised financial institutions. Payments for imported materials or services and remittance of earnings outside of the PRC are subject to the availability of foreign currency which depends on the foreign currency denominated earnings of the enterprises, or exchanges of RMB for foreign currency must be arranged through the People s Bank of China or other authorised financial institutions. Approval for exchanges at the People s Bank of China or other authorised financial institutions is granted to enterprises in the PRC for valid reasons such as purchase of imported materials and remittance of earnings. While conversion of RMB into Singapore dollars or other currencies can generally be effected at the People s Bank of China or other authorised financial institutions, there is no guarantee that it can be effected at all times.The Group is also exposed to currency translation risk

arising from its net investments in foreign operations, in Malaysia, the PRC, Hong Kong, Thailand and Taiwan. The Group s net investments in these countries are not hedged as currency positions in Ringgit Malaysia, RMB, Hong Kong dollar, Thai Baht and Taiwan dollar are considered to be longterm in nature.

Question 5(a)

High-context culture is a culture in which people consider that peripheral and hearsay information is very necessary in decision because such information bears on the context of that situation.Low-context culture is a culture where people consider the relevant only information that they receive first-hand and that bears directly on the decision which they need to make. The differences can see in areas such like locus of control, flexibility of time , level of commitment to relationships , and use of non-verbal communication. For high-context in locus of control is inner and personal acceptance for the failure but for low-context is outer and will blame other for the failure.Low-context culture will more focus on verbal communication than body language but high-context culture much tononverbal communication. High-context will have high commitment in long-term relationships. For them relationship is more important than task but lowcontext are low commitment to relationship and task is more important than relationship. The time is open and flexible for high-context and the process is important than product. Low-context will highly organized the time and product is more important than the process.

END NOTE 1 2 Hofstede,Cultures and Organizations,pp.49-78 John R. Boatright,Ethics and the Conduct of Business (Ypper Saddle River ,NJ:Prentice Hall, 1993);p.13-16

Question 5 (b)

Question 6 (a) When a company is starts business in foreign country, they need some market entry strategies to make sure performs well. There have 5 main entry strategies such like export, franchising, licensing, management contract and join ventures. Exporting of goods or services which produce by a company based in a country to customer that reside in a different country.For Example, Fritolays are exporting their products to all country to expand their business. Franchising is a special form of licensing which a party (the franchisor)sells to an independent party (the franchisee) to use of a trademark that is an essential asset for the franchisee s business. For example, 7-eleven grants to franchisees the good will of the 7-eleven s name and support services to get started,such as store and equipment layout information and training program. Licensing.In a specified area for a specified period, a company have rights to intangible property , a company to use by licensing agreement. Licensing usually has an economic motive which desire for faster grow-up ,lower costs, and access to additional resorrces .Microsoft (U.S) join with LGE (South Korea) entered a technology-sharing , cross- licensing agreement for complementary computer technology. Management Contract is an arrangment where a company provides management personnel, who can perform general or specialized management functions to another company for after. For example, The British Airport Authority (BAA) has contracts to manage airports in Indianapolis (U.S), Naples (Italy) and Melbourne (Australia) because it has developed success full airport management skills. Join ventures.Among the international companies,they will sharing ownership which more than anoe organization owns a company. Two companies from the same country are together in a foreign market like Mitubishi (Japan) and Nec in the United Kingdom.

END NOTES 1 2 3 4 5 Daniels, Radebaugh,andSullivan,International Business :Export and Import Strategies (2009):533 Daniels, Radebaugh,andSullivan,International Business : Direct Investment and collaborative Strategies (2009):587 Daniels, Radebaugh,andSullivan,International Business : Direct Investment and collaborative Strategies (2009):586 Daniels, Radebaugh,andSullivan,International Business : Direct Investment and collaborative Strategies (2009):588 Daniels, Radebaugh,andSullivan,International Business : Direct Investment and collaborative Strategies (2009):590

Question 6(b)

Breadtalk used franchising and join ventures in their business. BreadTalk start to make more stronger theirbrand and they expand their markets in China and Indonesia. The first franchise outlet is in Jakarta .Breadtalk introduce a popular Taiwanese dumpling restaurant in Singapore via a franchise agreemen Din Tai Fung. Franchise process increase, especially in the PRC and Indonesia where a lot of new franchises were opened. BreadTalk Group made a announced that Megabite Hong Kong Limited, has entered into a joint venture agreement with Wingain Global Limited (Wingain), to invest in a company which registered in Guangzhou, PRC under the name of Food Republic Guangzhou F&B Management Co., Ltd. The Guangzhou Company will operate food courts in Guangzhou under the Food Repun lic trademarks. .

END NOTES

1 http://www.asiacase.com/case/ntuAbcc/breadtalk.html 2 http://www.reuters.com/finance/stocks/BRET.SI/key-developments

Question 7

Breadtalk using geocentric and polycentric staffing strategies in Singapore. Geocentric staffing is more to employing the best people to key jobs throughout the global operation,regardless of nationality.Atcually it attempt to bring together home and host country needs. As part of this revamp, over 100 new breads were created by our Research and Development ('R&D') Team in consultation with top chefs and food consultants from France, Japan, Spain and Taiwan . Polycentric staffing policy believe that local staff know the local environment more better than foreigner. Its also belief that business units in other country should act like local companies. Singapore Breadtalk managers can action faster to market needs in the pricing, production, product life cycle, and political activity.Its make sense because their policy is towards global strategy.They try to expand the business by employing the local candidate because the local people can understand the local customer in Singapore.Breadtalk has many global service programs and requires moving their managers from the world head quaters to the other parts of the world for empowering the local mangers with global tools via training program.

END NOTES

John Tomlinson,Globalization and Culture (Chicago :University of Chicago Press,1999)

2 3

http://breadtalk.listedcompany.com/concept.html Mary Yoko Brannen and Yoko Salk,Partnerning across Borders:Negotiating Organizational Culture in a German-Japanese Joint Venture (2000):53

,. Absence of problems associated with expatriate managers including cultural myopia. Provides continuity in the management of foreign subsidiaries. Ethnocentric and polycentric pressures are balanced in favour of optimising the company's operations. The ethnocentric pressure for low cost standardised operations is satisfied because enough of the right kinds of products exist in the global customer base to permit scale economies and experience curve effects. The polycentric pressure for local responsiveness is satisfied because of the need to meet the distinctive characteristics which remain in every market.

http://breadtalk.listedcompany.com/misc/ar2008.pdf http://www.scribd.com/search?query=macroecomic

http://www.scribd.com/doc/3699043/BreadTalk-FinalReport