Hollys Coffee Based in Korea – Starting Business in Singapore
Hollys Coffee based in Korea, starting business in Singapore.
Brief Background of Company
Hollys Coffee is a specialty coffee company headquartered in Korea. The company was established in 1998 and opened Koreas first espresso shop that year. Its shops offer espresso, coffee, tea, coffee- and tea-based cold and hot specialty drinks, a variety of pastries and other snacks, and coffee supplies. By 2008 there were more than 100 Hollys Coffee shops in Korea, and the franchise had expanded with additional stores in Japan, China and Malaysia. It has a barista academy called the Hollys Coffee Academy.
Home Country: Korea
South Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity (PPP), identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD. It is a country filled with rich culture and heritage. All thanks to the influences of Korean pop to all over the world, there are more people getting more interested in Korean culture and heritage. We can seize the opportunity to start the business and learn to speak a little of their language can be useful to us as well. Other financial organizations like the World Bank describe Korea as one of the fastest-growing major economies of the next generation along with BRIC and Indonesia. South Korea was one of the few developed countries that was able to avoid a recession during the global financial crisis and its economic growth rate will reach 6.1% in 2010, a sharp recovery from economic growth rates of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis hit.
Host Country: Singapore
Singapore is well-renowned for its political stability, geographical location and the reputation of being a safe and orderly country. These are some of the most important factors of why people chose to start their business or to reside in Singapore. Apart from that, Singapore is a multi-racial country yet they are able to live together like one big family.
A brief description of the issues/challenges that the company faced or might face in Singapore
One important consideration when setting up a company in Malaysia is to have local participation. This means that the companies must employ at least 2 directors principally residing in Malaysia. I would need to research on whether this is applicable when opening up more Old Chang Kee outlets through franchise.
Another important factor to consider is the national language. Bahasa Malaysia is the national language