What mode of entry should Reale consider? Should it be different based on the market selected? What are the environmental and organisational variables that should impact the decision?

MODE OF MARKET ENTRY

Contract-based model Equity-based Mode

• FRANCHISING • JOINT-VENTURES

• WHOLLY OWNED SUBSIDIARIES• Direct Franchising

• Master Franchising• Area Franchising• Sequential Franchising• Multi-Unit Franchising

BRAZIL

• Develop high interactive relationships with non-competing businesses

• It should grow franchise sector.

CHINA

• Should focus on urbanization transition.• Establish JVs with established brands.

GERMANY

• Had about 1000 franchise systems that operated 64000 units with the help of 470000 employees.

• Direct franchising and utilizing nearness to Italy

INDIA

• It is witnessing franchise success but young.

JAPAN

• Franchising sector had flattened out.• JVs with the identifiation of right business

partners.

USA AND UK

• Area franchising• Utilize nearness to Italy of UK.• Penetrating Starbuck’s market segment• Massive marketing campaign and direct

franchising