Case Solution for Paris Baguette: The Expansion Question

Complete Case details are given below :

Case Name :      Paris Baguette: The Expansion Question
Authors :           Bryan Hong, Ji-Hwan Lee, Kevin Kim
Source :             Ivey Publishing
Case ID :            W15066
Discipline :        General Management
Case Length :    16 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
In 2014, Paris Baguette was the largest bakery chain in South Korea with 3,200 stores throughout the country and 178 locations in China, Southeast Asia and the United States. Since 1988, the company had vertically integrated with ingredient suppliers and developed its own food processing capability, giving it considerable control over the value chain. In addition, it had developed an innovative franchise arrangement that allowed for improved cash flow from operations. However, in response to domestic market saturation, intense competition from local and multinational bakery chains and independent bakeries and a recent change in government regulations, its chief executive officer is wondering how best to achieve his goal of operating 6,000 stores in 60 countries worldwide and achieving revenue of KRW4 trillion by 2020. He is also considering whether it would be better to focus instead on improving the profitability of the company’s domestic operations and delay his expansion plans.
 
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