Diversification Dilemma of U-Pie China
Product Number：
EN_2016ZLGL_4838
Page Views：
1049
CaseName：
Diversification Dilemma of U-Pie China
Authors：
Deng Ziliang,Zhang Jing
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Beijing Bai Mai food processing Co., Ltd.
Industry：
Manufacturing
Discipline：
Strategy、International Business、General Management
Scale：
SMEs
Language：
English
Type of Case：
Decision Case
KeyWords：
multinational enterprise; fast food chain industry; diversified operations; suppliers; investment decisions
Abstract：
In the early 1990s, following the pace of an internationally renowned fast food chain enterprise M-Burger to develop in China, U-Pie, an American manufacturer, cooperated with the Chinese state-owned corporation Shou Yuan and set up the joint venture U-Pie China. Three manufacturing enterprises have been founded at present, including two in Beijing and the other one in Guangzhou, whose main purpose is to supply semi-finished productions of uniquely flavored pies (side dishes) for M-Burger China and neighboring markets, while also producing a small amount of buns (main dishes). During M-Burger’s integration of Southern bun market in 2012, U-Pie faced the dilemma of diversification strategy: whether they should self-challenge the problems of technology and management, actively participate in the expansionary strategies designed by M-Burger for the southern Chinese market and seize the opportunity to leap from a fringe firm to an industry leader?
Intended Audience：
Undergraduate,EE,MBA,EMBA
Data Source：
Secondary
Publication Date：
2015
Revision Date：
2016
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