Global Strategic Plan For Yoshinoyas Brand Commerce Essay

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Yoshinoya is among the world's leading names in the fast food stores. In the Japan, it has become one of the most recognizable names among the existing stores. The operation of organizations has evolved in the many years. The accessibility of global networks has instituted a new situation for these organizations in improving their market share and eventual profit making activities (Daniels,2001). Not only are these organizations subjected to a much higher and more cutthroat competition, they have to struggle to win every percentage of the market and acquire a competitive advantage. With its eye on the international field, the company seeks to expand its market share by competing with the world's top players in the industry (De Wit, Bob,2004). The emergence of globalization has given businesses immense pressure. This study intends to provide Yoshinoya an analysis of the environment of its target country. In addition, analysis with regards to the company's marketing mix and mode of entry in the market will also be provided in the latter part of the study. Using the economic analysis tools such as the PESTEL analysis, the external environment of Japan will be surveyed. The arguments and observations on this study will be supported with the use of past and existing literature.

Political and social environment, as the macro environment of Yoshinoya, considerably have an impact in the international and global business spectrum.  In this paper, it discusses about the nature of Yoshinoya, exploring into the external environment influences using the Political, Economic, Socio-cultural, Environmental and the Likely Future Trends (PESTEL) analysis. The PESTEL analysis, despite of it not being able to capture all the complexities of the external environment, it can still aide the firm in the development of an appropriate strategic framework.  Further, it seeks to discuss the future developments of the Yoshinoya, with emphasis in the political and the social environment


The brand Yoshinoya might not be a famous as McDonald's to most diners outside of Japan, but the rigid is certainly the country strongest respond to the Golden arches. Yoshinoya supply fast food Japanese style. With more than 1000 outlets across Japan and 276 overseas mainly in the US, Yoshinoya is only a mid sized player in the worldwide fast food industry but its ongoing growth is unique and its steady financial performance sufficient to make Ronald McDonald protective. In 2007 the company recorded sales of ¥ 135 billion and in spite of some significant challenges still showed a ¥ 2 billion pre-tax profit (Roger Farrell, 2008). Yet its need for growth remains undiminished. Shuji Abe, president of Yoshinoya considers that it should be probable to grow to 1340 outlets in Japan and 560 restaurants abroad by 2012. But, Abe highlight, this growth must be recognizing one store at a time and not on the basis of some pre set strategic plan. Instead of standardizing the fast food formula and then rolling it out across Japan, the Yoshinoya philosophy has been to avoid a cookie cutter move toward and an inflexible expansion plan. In Abe view such a copy-paste programme of expansion would make inadequate use of the company ability to study, improve and become accustomed along the way. In the food service industry with its many limited uniqueness and unfolding rules of the match much still remains to be exposed en route. Hence, the Japanese fast food giant believe ongoing testing and improvement a vital and integral part of its strategy development making widespread use (Daniels,2001)

Yoshinoya, on the other hand, presumably covers a vast field and it's broader than that of an other competitor.  Fundamentally, the orientation of a Yoshinoya focuses on the exploitation of business opportunities across boundaries to achieve corporate goals synergistically (Roger Farrell, 2008).  Moreover, it takes into consideration the overall effect of diverse markets in the designing and in the implementation of strategic objectives. 

The corporations must carefully and thoroughly foresee rather than oversee the macro environment especially in the context of political and social components.  It is evident that social, cultural, political and economic factors can either push or hold back the process of globalization (De Wit, Bob, 2004).  Among the key aspects in the use of PESTEL analysis are to grasp the pivotal drivers of change, the focus force of environmental factors, the arrangement of effects, and the like.  To gain an in-depth analysis of the political and social environment, it is deemed significant to look into the relevant PESTEL analysis, and not only focusing on the social and political circumstance because these factors are somewhat dependent over the rest of the factors.



The political influence usually comprises the stability of the government, policy of taxation, regulations of the foreign trade and social welfare policies.  In this paper we would look into how the Yoshinoya should adopt and fit in into the political arena, particularly in the country that holds a capitalist political ideology, and in the imposition of tax law. The capitalist is descriptive of the country sparing some parts of its economic activity to local citizens.  Foreign-owned firms, in this regard, generously offer a tempting target for local politicians, and such that, firms already operating in a foreign country braces an ongoing public relations problems as they may be harassed by the local populace (Daniels, 2001). With the fact that majority of foreign firms are wealthier, plausible cases of exploitations can surmount and indirectly found somewhere, which in turn, are counteracted in a means of a façade, like for instance, international firms promoting the locals to a managerial positions.  Another factor that has an influence politically are the imposition of local tax law that is applicable and are mandated by individual countries to foreign companies.  In some countries, especially the corrupt countries, there are cases, in which international operations are asked more than their normal tax payments.

Simply, stated the political ideology trend interrelates with both international and local barriers, such that political philosophies of the leaders of a particular country are highly influenced from which the political leader has been a part of (De Wit, Bob, 2004).  Additionally, the political attitudes and philosophies held by a political leader mirrors partly in the sociological and educational factor in the given country.


The importance of determining resources would likely predict the competitiveness of a country as stressed by the conventional trade theories.  Consequently, it prompts for Yoshinoya firms to ensure that adequate resources that are of sufficient quality can be accessible and the availability of the said resources are present (De Wit, Bob, 2004).  Thus, access to global resource base is a key factor influencing international production.  For both international and global business, labor quality is a determinant of competitiveness such that it is resistant of imitation and the most immobile factors. 

Overall, the economic factors, both domestic and foreign, tend to alter rather rapidly, resulting to great alterations in the legal rules.  Further, country may now in turn, imposed very tight exchange controls, restrictions in the profit remissions and strict in the import restrictions.  Nevertheless, the failure of an international and global business to anticipate and miss out economic developments spells profit lost. 



The socio-cultural context typically comprises the population demographics, population's income distribution, social mobility, consumerism, level of education, technological efforts and among others (Deresky,2003).  Among the PESTEL trend, socio-cultural analysis is the most difficult to look into since aside from its unpredictability, it is said to be barely readily quantifiable (Daniels, 2001).  Citizens of every country greatly have a deep sense of national identity.  By deep it connotes it is difficult to alter or can be instantly transformed.  For Yoshinoya to fit in they must be adaptive, recognize and give utmost respect to the national identity projected by the local populace. 


Environmental analysis includes the measures of environment protection, competition law, employment law, product safety, and basically all factors that are related to environment.

Future Developments

Towards the twentieth century, apparently, changes in the Europe economy deeply affects business, politics, society, citizens and the interaction between the stakeholders is what is come to be known as globalization.  Globalization as defined by the International Monetary Fund (IMF), is the growing interdependence of countries Europe through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology (Roger Farrell, 2008).  By growing interdependence of economies, it pertains to the increasing acceptance of economic liberalism that serves as a precursor to globalization.  Moreover, as competitive liberalism extends into domestic economic policy had somewhat deepened the roots of globalization (Johnson, 2005). The changing regulations and attitudes promotes additional and more opportunities for investment security, like the increasing participation of privatization programs in developed countries, like the Europe, at one level. 

Interestingly, included in the key drivers that characterize the future growth of business, are the involvement of international governance and regulation and the convergence of socio-cultural.  First, is the stretch of international governance and regulation, wherein, it is at first formulated in a regional level like the European Union or at the international level.  Second, is the socio-cultural convergence as a resulting consequence of liberalization and the emergent outstretch of the Europe communication technology. It is like the continuing efforts of business to promote a careful dealing with the rigid to transform social and cultural components as a barrier have been somewhat conquered already but does not necessarily mean that there are altered to a very great level, however, there is only an place with regards to the operation of the business (Daniels, 2001).



The development of Yoshinoya extends their opportunities to maximize profits and gain a competitive edge.  However, with the presence of macro environment that is hard to penetrate, these businesses looks for means to get through and get over the barriers for them to penetrate successfully (William M. Pride, 2008).  Political environments are dependent with the social environment such that political leaders are mainly influenced from pertinent social factors.  The social factors, on the other hand, also have a political influence such that they are subject to the political environment they are operating. 


The future marked by business offers boundless growth and prosperity, not only for the Europe developed countries but for the developing countries as well.  But given its opportunities, there are also the negative impacts bring such as further widening the gap between the rich and the poor promoting inequality, anarchy in the economy, surrender in political control and the extreme negative impact may be the lost of cultural identity of a country (Johnson, 2005). 

Japanese manufacturers of development food have moved some manufacture facilities offshore to be more competitive in home market, since both food inputs and handing out and labor costs are thus lowered - allowing these rigid to retain a degree of competitiveness with trade in food products. Classically marketing and distribution functions are kept in the Japanese parent company (Roger Farrell, 2008).

The situational analysis looks into the detailed circumstance of the Europe and the market chosen for the launching of the Yoshinoya. External environment covers the political, economic, socio-cultural, technological, environmental and legal characteristics of Europe while internal environment refers to the characteristics of the market and competition in the business locality of the project.


Daniels, John D & Lee H Radebaugh (2001) International Business: Environments and Operations. Prentice Hall

Deresky, Helen (2003) International Management: Managing Across Borders and Cultures. 4th ed. Prentice Hall

De Wit, Bob & Ron Meyer (2004) Strategy: Process, Content, Context. An International Perspective. 3rd ed. Thomson

Johnson, Gerry, Kevan Scholes & Richard Whittington (2005) Exploring Corporate Strategy. 7th ed. FT Prentice Hall

Japanese Investment in the World Economy: A Study of Strategic Themes in the Internationalisation of Japanese Industry New horizons in international business by Roger Farrell Publisher Edward Elgar Publishing, 2008

Marketing by William M. Pride, O. C. Ferrell, Edition: 15, Publisher Cengage Learning, 2008