This is due to many factors. Firstly, if the chosen partner has the right political connections, Apex-Pal would be able to secure the appropriate permits and licences quickly and avoid incurring excessive expenses in the process. The local partner would also be able to deal with government officials and effectively manage the relationships with the appropriate authorities to ensure success in the venture.
Secondly, Apex-Pal can tap into its partner's local knowledge and business expertise in deciding on critical aspects of running the business. This will save Apex-Pal valuable resources in time-consuming background checks, market research and preliminary assessment. Thirdly, a partnership would give Apex-Pal wider access to good Russian managers who are vital to the day-to-day operation of the company.
Fourthly, Apex-Pal will be able to retain a good degree of control over the business compared to if they were to license its trademark to a Russian company. Lastly, there would be a synergy of ideas and experiences, allowing both parties to improve the company together. The cost of setting up the business as well as the risks involved will also be shared by both partners. The immediate risks would be the issue of trust and whether the Russian partners will place the interest of the joint venture ahead of their own personal interests. Also, by relying on the Russian partners to maintain strong relationships with the Russian authorities, Apex-Pal would effectively have given their partners a strong hold over them.
This increases the bargaining power their partners will have, which may in turn compromise Apex-Pal's position. For example, after the transfer of technical expertise and. This form of entry, also referred to as foreign direct investment, involves the establishment of a new wholly-owned subsidiary. In layman's terms, it means Apex-Pal setting up Sakae Sushi outlets by itself. This gives Apex-Pal absolute control over its Russian operations and avoids the risk of working with dishonest partners.
In addition, Apex-Pal can protect its business model and safeguard proprietory technologies.
SAKAE: Dreams Big, Leaps into New Markets
However, there are many disadvantages associated with Greenfield investment, especially in Russia. Firstly, set-up costs will be high and Apex-Pal may experience difficulties obtaining the permits needed to start Sakae Sushi.
Essentially, all the benefits associated with having a strong partner when investing via joint venture, would be lost. Secondly, without the expertise of a local partner, entry into Russia will have to be very well planned and thought through, making expansion into Russia in the short-term unadvisable. This form of entry involves licensing the Sakae Sushi trademark to a Russian company.
IP-адрес данного ресурса заблокирован в соответствии с действующим законодательством.
Apex-Pal will be entitled to a. Often, to obtain the licences, the franchisee would be required to pay the franchisor a fixed sum, as well as to show that they have the capital to grow the business. This form of entry would achieve most of the advantages offered by entry via joint venture, and would enable Sakae Sushi to earn immediate revenue through licensing fees.
Furthermore, since there is no capital outlay, there would be less potential losses, although it would also mean that Apex-Pal would earn less than the joint venture method, should Sakae Sushi become a commercial success. The main disadvantage of franchising is that Apex-Pal would lose almost all control of the Sakae Sushi trademark in Russia.
In addition, the success of franchises often requires a strong legal framework that will ensure that commercial contracts are not breached and the franchisee lives up to his commitments. Given the complex Russian political and legal environment, Apex-Pal may have difficulties enforcing their legal rights if there are disputes. Should the franchisee prove incompetent, this may have adverse effects on Sakae Sushi, damaging its brand equity.
Despite the disadvantages, it is likely that at some point Sakae Sushi would consider franchising as a way of further expanding into Russia. However, without strong global brand equity, it may be difficult for Apex-Pal to find businesses in Russia who are willing to pay the franchising fees. And even if there are potential franchisees who are willing to pay the right fees, not many may have adequate resources to meet the requirements set by Apex-Pal.
As the franchisor, Apex-Pal would probably need to beef up its brand equity before thinking about franchising in Russia and franchising fees would probably have to be set at appropriate levels. Since its humble beginnings as a solitary outlet in Raffles Place 10 years ago, Sakae Sushi has grown from strength to strength to become the leading kaiten-zushi conveyor-belt sushi chain in Singapore.
With 34 outlets in Singapore alone, Sakae Sushi has a market presence that towers over its closest competitors. Internationally, Sakae Sushi has done well, with 20 outlets in six different countries. In , Apex-Pal, the holding company for Sakae Sushi, saw revenues increase It is difficult to dispute that Sakae Sushi has one of the most successful and sustainable business models. Compared to traditional brick-and-mortar companies, Sakae Sushi requires a lower set-up cost, allowing it to build rapidly on its success, thus making it relatively scalable.
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Such communication may take place during monthly or weekly staff meetings held to update staff about their performance and to encourage them to improve service quality. The service staff need to be fully aware of such goals so that they will be motivated to work towards improving their customer service level.
There can be further empowerment of service staff to enhance their service level. For instance, an outlet manager can reveal the monthly sales performance of his or her outlet to indicate how the sales performance can improve if service staff take the initiative to communicate outlet promotions to customers. With the input of all service staff in the outlet, it is possible to jointly set a target for increase in sales in the following month. Service staff will then become clear of the roles required in their jobs, and be encouraged to carry out their tasks effectively since they played a role in goal setting.
Although the service staff at Sakae Sushi may be aware of promotions and are willing to share information with customers, they may lack the proficiency or confidence to do so. Sixty percent of the service staff at Sakae Sushi are Malaysians, some of whom may not be able to speak English fluently and communicate information clearly to customers.
Ebook Sakae! Cooking Up A Global Food Business
In addition, fearing embarrassment, they may not even attempt to interact with customers. Hence, it is extremely important to train service staff to become proficient in English and enhance their level of self-confidence. To overcome the problem of language proficiency, managers of every outlet can prepare a script for the. With increased fluency, confidence levels will increase and service staff will eventually take the initiative to inform customers of special promotions. Sakae Sushi can also increase the confidence of service staff through role-playing.
During training, service staff may act out the role of customers and staff to familiarise themselves with the process. In addition, through feedback from fellow colleagues, they may be better prepared to answer FAQs and thus provide better customer service. Two Malaysian service staff who were interviewed in May mentioned they encountered impatient customers who complained of slow service occasionally, even though they came in during peak hours and were duly informed that meals would take longer to be served.
It is comforting to note that the service crew also mentioned that the company is well-prepared for such incidents and the company has already trained them to handle such customers.
Special staff initiatives can also be put in place to encourage service staff to communicate promotions to customers. Service staff are encouraged to share three on-going promotions with every customer when they are seated. Repetition of the three promotions throughout the day will increase familiarity and shorten the time taken. With an explicit initiative put into place, service staff will be. We believe there are a few things that Apex-Pal can do to enhance its ability to handle difficult situations such as those mentioned earlier.
This belief influences the way service staff deal with difficult situations.
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However, this belief can be slightly altered to encourage a more proactive effort in ensuring that customers have pleasant experiences at Sakae Sushi. When customers do not leave Sakae Sushi unhappy, it merely indicates that they are satisfied with the service they received. However, Sakae Sushi needs to foster close relationships with its customers and enhance its brand loyalty if it wants to be the preferred brand for Japanese food, and to ward off competition. Hence, customers should not be just satisfied or happy with the service, they need to be delighted with it. By altering this belief slightly, positive results can be reaped.
With this, service staff are encouraged implicitly to go the extra mile for their customers. Service staff will eventually develop an eager attitude in resolving difficult situations, be more professional in dealing with difficult customers, and more effective in persuading and coaxing unhappy customers. The image portrayed by the front-line employees will, to a great extent, depend on the quality of their customer service skills. A positive approach from the service staff will help Sakae Sushi develop and secure long-term relationships with its customers.
Service staff must be trained to listen actively, empathise with unhappy customers, read customers' body language and suggest effective solutions during conflicts with customers. Similarly, role-playing during training will allow service staff to anticipate possible service breakdowns and coach them in handling such situations. Currently, only managers of Sakae Sushi outlets are given the authority to handle difficult situations and step in when crises arise. They are also empowered to waive the cost of a meal when necessary. Managers are usually busy and they may be unable to attend to a fuming customer there and then.
Hence, junior staff should also be trained to handle difficult situations and unhappy customers can be appeased quickly without attracting the attention or affecting the mood of other diners. Besides outlet managers, every staff member can be taught a trick or two in service recovery within certain monetary limits.
In this way, service breakdowns will be resolved in a much shorter time and dissatisfied customers can be won over promptly. Junior service staff should be given greater authority to deal with difficult situations swiftly.
For instance, they may appease angry customers by giving them a complimentary dessert or waiving a portion of the bill. Take Ritz Carlton Millenia Singapore for example. Without having to go through the bureaucracy, if there is a valid reason, staff are authorised to use the amount. According to the Spring Singapore website, the result was an increase of