Strategic Analysis For Best Coffee China

STRATEGIC ANALYSIS FOR BEST COFFEE CHINA

Linda Qin

Bachelor of Economics,

Guangdong University of Foreign Studies, 1996

PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

In the

Faculty

of

Business Administration

O Linda Qin 2004

SIMON FRASER UNIVERSITY

Fall 2004

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APPROVAL

Name: Linda Qin

Degree: Master of Business Administration

Title of Project: Strategic Analysis for Best Coffee China

Examining Committee:

Chair: Dr. Neil R. Abramson

Senior Supervisor

Associate Professor

Dr. David C. Thomas

Second Senior Supervisor

Professor

Date DefendedIApproved:

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ABSTRACT

Best Coffee Canada, a well-known coffee company founded in 1992, has been actively

involved with international expansion.

Best Coffee China (CCC), the master franchisee for Best Coffee in China, started

building corporate stores in four major cities in early 2003. Since then, CCC is now experiencing

aggressive expansion, which unavoidably requires strong resource management and effective

corporate system development.

However, CCC is lacking a centralized decision-making team. Furthermore, CCC finds it

difficult to maintain a pool of well-trained managers. This also explains why CCC had to spend a

higher cost on everything at the early stage.

This graduation paper aims to examine the key successful factors for Best Coffee to

thrive in China, and to provide the reasons that hinder Best Coffee's fast growth in China. By

using Porter's five forces to analyse external