Product Number:
EN_2020ZLGL_8134
CaseName:
Diversification Dilemma of U-Pie (China)
Authors:
Deng Ziliang, Zhang Jing
Author Affiliation:
Renmin University of China
Enterprise/Organization:
U-Pie China
Discipline:
Strategy、International Business
Type of Case:
Decision Case
KeyWords:
international enterprise; fast-food chain industry; diversified operations; suppliers; investment decisions.
Abstract:
In the early 1990s, following the pace of development of an internationally renowned fast-food chain enterprise M-Burger in China, U-Pie, an American food processor, cooperated with a Chinese state-owned corporation Shou Yuan and set up a joint venture U-Pie China. Three manufacturing enterprises have been founded at present, including two in Beijing and 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 number of buns (main dishes). During M-Burger’s integration into the southern bun market in 2012, U-Pie faced the dilemma of diversification strategy: whether they should 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 being a fringe firm to an industry leader.
Intended Audience:
Undergraduate,MBA,EMBA
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