BreadTalk Pte. Ltd
A Paper Submitted in Partial Fulfillment
of the Requirements for
College of Business and Public Management
Department of Business & Economics
March 4th, 2017BREADTALK PTE LTD 2
BreadTalk Pte Ltd
...
BreadTalk Pte. Ltd
A Paper Submitted in Partial Fulfillment
of the Requirements for
College of Business and Public Management
Department of Business & Economics
March 4th, 2017BREADTALK PTE LTD 2
BreadTalk Pte Ltd
Company Overview
BreadTalk Pte. Ltd is a subsidiary and the flagship brand of the BreadTalk Group
Limited. The company was formed in 2000 to produce and sell a variety of bread, buns, cakes,
and other pastries. Chiefly, it operates more than 38 outlets in Singapore where it began
(BreadTalk, 2017). Since its establishment, The BreadTalk Pte. Ltd has expanded to two other
countries that include Indonesia where the brand has 142 outlets and the Philippines where there
are 29 outlets (BreadTalk, 2017). The company also trades in other countries under different
brand names. Some of the common brand names operating under the larger BreadTalk Group
Limited include Din Tai Fung, Food Republic, and ToastBox (BreadTalk, 2017). Other countries
in which the group operates include Malaysia, Thailand, China, Vietnam, Kuwait, and Saudi
Arabia.
Considering the recent development in which BreadTalk Pte. Ltd has engaged Myanmar
as a possible region for expansion; this document asserts the position that the company is in a
global expansion strategy. At the time of presenting this report, it had not ventured into the
African, European, and US markets (BreadTalk, 2017). Consequently, some of the nations that
BreadTalk Pte. Ltd ought to consider include the United Kingdom, United States, and Australia.
There are fundamental differences that the company must look into before venturing into any of
the mentioned markets.
Model and Form of Operations
BreadTalk Pte. Ltd is a bakery that deals in the production and sale of a wide variety of
bread, cakes, buns, and other pastries. The ingredients for all of the company's products are
carefully handpicked to ensure the production of premium products, provide new creations andBREADTALK PTE LTD 3
flavors, and to satisfy the consumers' lifestyle and taste. Experienced master chefs are hired to
ensure that the firm continues to offer nothing but the best. The products are sold through the
many retail outlets operated by the company (BreadTalk, 2017).
Motive of Expanding Internationally
The motive for expanding in international markets is driven more by the need to access
new markets where it will maximize profits provided by the opportunities of a wider market
niche (BreadTalk, 2017). It is also one way of ensuring that the stakeholders get value for their
investments now that it is a public trade company.
The BreadTalk Pte. Ltd is a listed company in Singapore. Therefore, the company is
focused on growing profitability and returns to its shareholders. Consequently, one of the major
motives for expanding globally is to access more markets, which will lead to increased profits
(BreadTalk, 2017).
The second reason for international expansion lies in the fact that such expansion enables
the organization to access more opportunities, including access to new markets, talents, and new
sources of inputs. Notably, BreadTalk Pte. Ltd has expanded to more than 17 countries in Asia,
but it has not ventured into the US, Europe, and Africa (BreadTalk, 2017). Focusing on the new
markets would not only offer opportunities for the growth of revenues and profits but also new
experiences.
Three Countries for Possible Foreign Market Expansion
The three countries that BreadTalk Pte. Ltd should consider expanding are the United
States, United Kingdom, and Australia. There are several reasons for the selection of the three
countries. Firstly, the three countries have large populations that would offer an additional
market for the company's products. The nations are considerably wealthy as compared to theBREADTALK PTE LTD 4
markets in Asia and, as a result, they offer unique opportunities for growth as the disposable
incomes are considerably high (Kuehn, 2016). Thirdly, the three nations boast of high
populations of Asian immigrants who would be highly interested in the products offered by
BreadTalk Pte. Ltd (BreadTalk, 2017).
SWOT Analysis for the United States
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