Operations Strategy Case Study of Factory

Consultants Report | An Operational Review of “The Factory”
Contents (Jump to)
1. Executive Summary
2. Introduction
3. Strategic Review
4. Operational Issues
4.1 Processes
4.2 Plant/Equipment
4.3 Customers
4.4 Contractors/Supply Chain
4.5 Personnel
4.6 Environmental
4.7 Market/Competitors
5. Recommendations
6. Further Recommendations
7. Conclusion
8. Bibliography
9. Appendices
1. Executive Summary
This Report has identified the Pea Factory (the Factory)’s operations strategy as focusing on producing quality products, on time and satisfying the bespoke requirements of its customers. It achieves this through its quality controlled operational processes and procedures.
Unfortunately these processes and procedures are not without problems, which are categorised under the following headings; processes, personnel, environmental, plant/machinery and market/competition. Problems encountered with quality issues can be addressed by carrying out a review of the whole process using qualitative and quantitative methods, applying benchmarking techniques and reviewing the whole system and applying total quality management methodology.
The introduction of computerisation into the administrative process would eliminate human error and remove communication problems within the control room. It may also provide the opportunity of reducing costs (over a period), with the removal of personnel.
The supply chain is a fundamental area for focus, as this is crucial for the survival of the business. Ensuring the supply chain is running smoothly is not only an extremely difficult thing to achieve and it can also be extremely costly. The management team need to focus on maintaining good relations with all suppliers, contractors and subcontractors.
Many of the issues, such as lack of capacity, the requirement for additional equipment, increased market share etc could easily be improved with the acquisition of a competitor. This needs serious consideration, although it obviously requires investment by the parent company. In the meantime however, by implementing the recommendations in this report, the Factory can and will move closer to achieving sustainable competitive advantage and improving productivity, whilst reducing costs.

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2. Introduction
This Report has been commissioned to provide an operational review of “The Pea Factory” (the Factory). The operations strategy will be identified together with an analytical review being carried out on the operational problems facing the Factory. Areas such as; how the entire process is controlled, the use and maintenance of the equipment, the focus on the customers’ needs and the use of quality control amongst other areas.
The Report will also make recommendations for improvements to the operation, which will eliminate many of the problems highlighted. For instance, the introduction of a computerisation into the control room to monitor the process from start to finish would remove many of the timing and communication issues experienced.
In undertaking the research for this report there were a number of other aspects of the operation that were identified, which would benefit from improvement and they are also contained within this report.
3. Strategic Review
In order to complete a strategic review of the Factory, it is necessary to first understand what is meant by the term operations strategy. According to Slack et al1], it is;
“the total pattern of decisions and actions which set the role, objectives and activities of the operation so that they contribute to and support the organisation’s business strategy.”
In order to develop an operations strategy, the operations manager has to consider a number of factors such as the needs of customers, as well as what the competition are doing. According to Porter(2);
“an organisation should aim to achieve sustainable competitive advantage”
The Factory achieves this by focusing on their customer requirements and by producing a quality product, in a timely fashion and at a reasonable cost. The ability to adapt and be flexible in its approach to its customer’s demands is an important feature in the organisation’s strategy. The Factory concentrates on its core competencies (that of the production of frozen vegetables) rather than diversifying into other products such as pizzas, pies and other products. Specialisation is key to the strategy.
Whilst sufficient information is known about the Factory’s operations strategy, little is known about the Group’s strategy, and how the Factory’s operations strategy fits with it, other than to say that they are specialist food producers.
4. Operational Issues
A review of the processes and procedures of the Factory using a SWOT (strengths, weaknesses, opportunities, threats) analysis was undertaken (see Appendix 1 attached). This identified several operational problem areas, which have been grouped under the following headings; processes, plant/equipment, customers, contractors/supply chain, personnel, environmental and market/competitors.
4.1 Processes
The operation’s process is coordinated from the control room. Unfortunately the control systems used are manual ones, with any change in process being amended on “the board”, this manual process could lead to errors, miscommunication and time delays.
With the limited daily processing capacity, even if there was greater demand, the organisation would not be able to cope. Further, there is little room for error with the tight time line from picking to blanching.
Quality issues with stock held in quarantine, and bulk peas needing to be run though the Sortex colour sorter, several times, results in wasted time and cost.
4.2 Plant/Equipment
The extensive use of expensive machinery means that the organisation’s overheads are high with costly down time through failure (particularly unplanned). This has a detrimental effect of the Factory’s ability to achieve its targets and to fulfil orders, costing the organisation both time and money.
4.3 Customers
Tailor made packaging for its customers may have a negative effect on the cost base. Satisfying the customer’s needs is an important aspect of the organisations strategy, but the question needs to be asked, as what cost? In order to answer this question, detailed financial information would be required for analysis.
4.4 Contractors/Supply Chain
The use of so many contractors in various parts of the process does lead to problems such as communication, control and quality. Differing yields and size containers results in identification and storage difficulties. Using multiple storage contractors could result in missing stock and lack of quality control. This could result in down time and ultimately affect the quality of the product.
4.5 Personnel
Fluctuating staff levels at different times of the year causes particular problems for the organisation. The need to train and re-train new staff results in delays and errors. Lack of communication causes costly delays. Such seasonal work may not be entirely satisfying thereby creating problems with lack of job satisfaction, and therefore lack of attention to detail.
4.6 Environmental
Environmental issues are a major headache. The weather clearly impacts on the production of the pea crop. The varying weather patterns create uncertainty and scheduling issues. The crop rotation cycle also restricts the level of produce provided in any given region at any given time. This limiting factor can result in not enough of the product being available.
4.7 Market/Competitors
An analysis of the competitive environment reveals that there is at least one privately owned competitor who is using aggressive pricing in the market. There is also the issue of the major retailers controlling the market. If one of the retailers decides to stop using the Factory then this will negatively impact the level of profitability and sustainability of the business.
All of these issues need to be addressed immediately and the recommendations for doing so are highlighted in the next section.
5. Recommendations
All operation managers experience difficulties and this is certainly the case at the Factory. In order to achieve operational effectiveness, Slack et al (3), agrees that there should be;
“Smooth customer flow, a clean, well-designed environment, sufficient goods to satisfy demand, sufficient staff to serve customers, appropriate quality of service, a continuous stream of ideas to improve its operations”.
What better way to measure a smooth customer flow than to introduce a computerised system which will track the stock, deliveries and all the processes from start to finish. This would require significant investment, but would have the benefit of eliminating human error and reducing overhead (by reducing the number of staff required to fulfil the function).
Whilst this would affect staff morale, a programme of empowerment should be implemented combined with a reward scheme or performance measurement which would motivate the staff to achieve their individual and the organisation’s goals.
A Total Quality Management (TQM) process should be implemented, the characteristics of which are;
“meeting the needs and expectations of customers, covering all parts of the organisation, including every person in the organisation, examining all costs which are elated to quality, especially failure costs, getting things right first time, developing systems and procedures which support quality and improvement, developing a continuous process of improvement”.4]
Using a process flow chart (similar to that shown in Appendix 2) would help to clearly identify what happens during the operations process and therefore show up the problem areas. Input-output analysis could be undertaken. Further analysis could be carried out using scatter diagrams, cause-effect diagrams and Pareto5] diagrams.
The issue of the limited daily processing capacity could be improved with the purchase of additional equipment. Additional quality checks should be introduced into the process in order to eliminate time wasting through re-sorting the product, and the down time of equipment. This could be done through benchmarking or other continuous improvement mechanisms. According to Deming the PDCA6] (plan, do, check, act) cycle should be used, alternatively business process re-engineering which has been very popular recently. That is:
“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in the critical, contemporary measures of performance, such as cost, quality, service and speed.”7]
Although this has been criticised as being the latest fad, as well as being an excuse for removing personnel and it could ultimately result in the loss of essential experience from the Factory.
Additional preventative maintenance should be scheduled which would help resolve part of the issue of the unplanned downtime. The employment of an additional maintenance person would also speed up the process.
The issue of bespoke packaging of the product for the customer should be debated within [2]the management team. If uniform packaging is introduced, this could result in a reduction in costs. However this needs to be [3]carefully weighed up against the customer needs and ultimately deciding not to purchase from the Factory. A customer quality survey could be conducted in order to ascertain the possible effect of this suggestion.
The supply chain is also a critical area for the Factory to keep tight control on. According to Waller8];
“The supply chain is a complex network of suppliers, manufacturers and distributors whose ultimate objective is to provide goods and services to the client in a timely manner. The reliability of this supply chain depends on all the people in the network, plus the reliability of all the equipment employed including transportation vehicles, sophisticated machines and computer based information systems.”
The use of contractors is a major issue that needs to be addressed. Formal contracts should be drawn up setting out the conditions of the relationship (if it has not already been done); with penalties for missing certain key targets being made. Consideration should be given to the Factory acquiring its own transportation, storage and packaging facilities.
By focusing on the JIT (just-in-time) approach within the operation, it may further improve and simplify matters, as, according to Slack et al9];
“JIT is a disciplined approach to improving overall productivity and eliminating waste. It provides for the cost effective production and delivery of only the necessary quantity of parts at the right quality, at the right time and place, while using a minimum amount of facilities, equipment, materials and human resources. JIT is dependent on the balance between the supplier’s flexibility and the user’s flexibility.”
The need to keep a close eye on inventory is essential for the Factory, and to keep it as low as possible, thereby freeing up essential funds for other areas of the business.
The Factory needs to address all of these issues as a matter of urgency. Some of the recommendations identified here would involve capital investment. Therefore, further analysis would need to be undertaken once the necessary financial information is available, in order to present a robust business case to the parent company. The Factory needs to;
“secure essential increases in productivity (which) requires the combined efforts of all functions. The increased use of technology has resulted in maintenance making a major contribution to the effective efforts in most business”1]0)
In addition to the problem areas identified above, there are other areas that could be improved in the future, and these are mentioned in the following section.
6. Further Recommendations
Purchasing is an area that is significant to the business, as Slack et al1]1)suggests:
“purchasing at the right time and in the right quantity can impact on the operations performance in terms of delivery, speed, delivery reliability and flexibility.”
A separate review of the purchasing process and department should be initiated at some stage.
Undertaking a financial review may also identify further improvements or reductions within the business (environmental, taxes, transportation and fuel costs). Using forecasting tools such as qualitative and quantitative methods to more accurately predict risks, time horizons, and economic indicators could also identify further areas to improve.
Other problem areas that may be addressed include the environmental influences on the Factory. It should be possible to produce product all year using the poly-urethane tunnels that are seen in the countryside. The use of such tunnels would extend the growing period and lifecycle and allow pea production to take place all year, without the peaks and troughs that are currently happening. Further, if the organisation wanted full control of its entire process, then perhaps it should consider the acquisition of land to produce the product itself.
Finally, in terms of the competition, we already know that one competitor is privately owned. In order to achieve transformational growth, rather than organic growth and consequently achieve many of the objectives identified above, the organisation should acquire this competitor. There would, of course, be issues with the merger of another organisation into its current business, but the increase in market share, the ability to produce more products and the access to additional equipment that this would bring, would seem to be an obvious answer to many of the problems. A thorough business case would have to be submitted to the parent company to qualify and quantify this proposal.
7. Conclusion
The operations strategy of the Factory is aimed at producing quality goods, on time and to their customer’s exacting requirements. This is achieved at the Factory, but at what cost? A thorough review of the Factory has revealed a number of areas that can be improved.
Areas such as by identifying the process through the use of flow charts, then any weaknesses can be readily identified. The three quality checks that are currently undertaken is insufficient to prevent quality issues occurring, therefore additional checks should be implemented. Computerising the operations process would eliminate communication problems and speed up the process together with reducing costs.
Focusing on JIT and TQM would enhance the process further. Not forgetting staff morale. Their input is critical in ensuring the process runs smoothly, whether it is the manual or computerised method. Including reward schemes and introducing empowerment is a means of involving the staff in the process and in achieving the goals and objectives of the organisation.
If the parent company is willing to invest further, then transformational growth can be achieved by acquiring a competitor, land, a haulage company and by producing its own packaging. In order for the parent company to consider this, a business case would need to be produced, justifying the recommendation.
The Factory has a great number of strengths, not least of which is its; location, quality product and specialist knowledge, however, by addressing its operational weaknesses and threats, it is possible to achieve sustainable competitive advantage and to continue to achieve its operational strategy, goals and objectives.
8. Bibliography
Cheng TCE, Podolsky S (1993) Just in Time Manufacturing, Chapman & Hall (Pages 21 – 175)
Fitzsimmons JA, Sullivan RS (1982) Service Operations Management: McGraw Hill (Pages 7 – 25)
Hill, Terry. (2002) Operations Management – Strategic Context and Analysis, Basingstoke: Palgrave (pages 184-547)
Johnston, R. & Clark, G. (2001) Service Operations Management, Harlow: FT/Prentice Hall (pages 25 – 73)
Johnston R, Chambers S, Harland C, Hanson A, Slack N (1997) Cases in Operations Management: Financial Times, Pitman Publishing 2nd Ed (Pages 5 – 503)
Lowson, R. (2002) Strategic Operations Management The New Competitive Advantage: London, Routledge (Pages 5 – 158)
Muhlemann, A. Oakland, J & Lockyer, K. (1992) Production and Operations Management, 6th Ed, Harlow: FT/Prentice Hall (Pages 63-150)
Slack, N. Chambers, S. Johnston, R. (2004) Operations Management, Ed 4, Harlow, Pearson Education (pages 5 – 798)
Sutherland, J. & Canwell, D. (2004) Key Concepts in Operations Management, Basingstoke: Palgrave (Pages 19 – 117)
Taylor, D. & Brunt, D. (2001) Manufacturing Operations and Supply Chain Management, London: Thomson Learning (Pages 5 – 37)
Waller, D.L. (2003), Operations Management: a supply chain approach, London, Thomson Learning (pages 88 – 595)
Wild, R (2002) Operations Management, London: Continuum (Pages 17 – 187)
Appendix 1 – SWOT Analysis
Appendix 2 – Flow Chart of the Factory Pea Production Process

[1]Slack N, Chambers S, Johnston R (2004) Operations Management Ed 4, Harlow Pearson Education p77
Michael Porter from Lowson R (2002) Strategic Operations Management The New Competitive Advantage, London, Routledge, page 29

[4]4,5, 6, 7 From Slack et al p695-696
[8] Deming from Wild, Operations Management p 636
[9] Slack et al p548
[1]10 Hill T, (2002) operations Management – Strategic Context and Analysis, Basingstoke, Palgrave p184
[1]11 Slack et al p478

Case Study the Kader Toy Factory Fire



Case study the Kader toy factory fire
Kader toy factory which located near Bangkok, Thailand was a fire on 10 May 1993. It can be considered the worst-ever factory fire in history. There were 188 workers died and 469 others who were injured. Most of them were young female workers and from rural area. The factory was owned by a Thai transnational corporation, Charoen Pokphand (CP) Group and one of Asia’s largest agribusiness firms. The Kader toy factory used to manufacture stuffed toys and plastics dolls mainly planned for export to the United States and other counties. There were produced forDisney,Matteland others. The site that owned and operated by Kader has been destroyed in the blaze of fire. Kader has another two sister companies that on a contract that operated at that location.
There were several factors that lead to this fire. Firstly, the factory was designed and built poorly. Fire exits drawn in the map or building plans were not exists; in fact not constructed, and the existing exit doors were locked. Furthermore, the building was strengthened with un-insulated steel girders which rapidly lessened and crumbled when heated by the flames.
The malfunctions of fire alarms were the other factors that lead to the fire. There were four buildings on the Kader site, three of which were destroyed by the fire. The three buildings were designed a single E-shaped structure (see figure 1). Close at hand were a one-storey workshop and another four-storey structure pointed to as Building Four. Three buildings which involved in these incident Fire alarms in Buildings Two and Three had sounded and all the workers from these buildings were able to escape. Unfortunately, for Building One, the fire alarm did not sound. This part of the building was wholly committed to the storage of finished products and the fire spread quickly. The other factories were full of raw materials which also burned very quick. The fire spread extremely quickly when the Firefighters arrived at the factory, and found Building One nearly ready to collapse because of the occurrence of the combustible plastics and fabrics.

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Next, although each building at the plant was provided with a fire alarm system, none of the buildings had automatic sprinklers. The portable extinguishers and hose stations were installed on outside walls and in the stairwells of each building but none of the structural steel in the building were fireproofed.In addition, Kader factory did not provide its workers with decent fire safety training and the rigid security procedures. Fire drills and fire safety training were also minimal.

Figure 1.Site plan of the Kader toy factory
In Thailand, the Kader fire incident made a great deal for the country’s fire safety measures, especially its building code design requirements and enforcement policies. Thai Prime Minister, Minister Chuan Leekpai has made a tough action for those who violate the safety laws regarding the fire safety issues. According to theWall Street Journal(1993), Thai Industry Minister Sanan Kachornprasart is quoted that saying that “Those factories without fire prevention systems will be ordered to install one, or we will shut them down”.
The leaders, safety expert and officials said that this incident would help fasten building codes and safety regulations but unfortunately, that lasting progress is still far off as employers scoff rules and governments permit economic growth to take priority over worker safety. The fire has also attracted international debate about foreign investors’ obligation for ensuring the safety of the workers in their sponsoring country because foreign interests owned majority of the shares of Kader Industrial (Thailand) Co. Ltd. 79.96% of the Kader shareholders are from Hong Kong, 20% are from Taiwan, and only 0.04% of Kader is owned by Thai nationals.
A tragic industrial fire in Thailand the Kader Toy Factory fire was a fire on 10 May 1993 located in the NakhonPathom Province of Thailand. It can be considered the most focused worldwide industrial factory fire in history where officially 188 workers were killed, and over 500 were seriously injured, many seriously and also permanently. To avoid being burnt to death, they were forced to leap from second, third and fourth floors of the buildings. Most of the victims were young female workers from rural families. Moreover, this disaster was assumed as worst accidental that related to the loss of life fire in industry in history of Thailand.
In addition, many of the articles was pointed due to the underlying the world changes capitalist economy that causes such a tragedy accident ever. As we all know, the previous worst industrial fire at the Triangle Shirtwaist factory in New York in 1911. Despite the years between these two disasters, they share striking similarities.
In order to take the advantages of newest area of low cost labour, the company such as Kader Holding needs or should replace their operation regularly. As the result the Kader factory outside Bangkok was never intended to be a permanent structure just a temporary structure only as an instance the cheap shoddy buildings, which detected failed to achieve even the minimal Thai construction requirements, were simply packed to overflowing with workers and with their machines. Vitality safety precautions were deemed not necessary overheads.
A decade later, the condition that Thailand’s workers and other Asian countries have significantly worst. Moving into a global economy connote that products are manufactured at specific location and used at other locations end-to-end the world.Having a temptation for competitiveness in this new market should not head to settle by concession in fundamental industrial fire safety provisions. There is a moral responsibility to provide workers with a sufficient level of fire protection, no matter where they are located.
Three proposals can improve factory safety:
1) the government need to create an independent occupational safety and health (OSH) group with regulatory powers because the government cannot generate enough money to allow civil servants to enforce OSH laws, it is doubtful that an independent group could finance itself, because it would have to be enormous, and consequently cost a fortune, to inspect all the factories concerned. Furthermore in 2000 more than two thirds of Thailand’s factories employed less than 10 workers, who are not legally protected by the Workmen’s Compensation Fund. It is unlikely that OSH standards in these factories could be policed by an outside group.
2) Increase trade union involvement in education and participation unfortunately it is improbable that campaigns by existing trade unions could effectively improve OSH accident or incident rates, since only three percent of workers in Thailand are organised into unions – the prevalence of factories with less than 10 workers as already noted, is a huge obstacle to serious improvement in the rate of worker organisation.
3) the company should Reform the OSH laws, the proposal to reform OSH laws misses the point. In both the Triangle Shirtwaist factory disaster and in the Kader fire, death tolls were so high because the buildings were illegally built or illegally operated or both. Had the laws been followed in 1911 New York and 1993 Bangkok, the fires would not have broken out in the first place, and in the case of Kader, the building would not have collapsed before the workers had escaped. These ideas are valuable components of an OSH system, but the only effective solution is for companies and governments to tackle OSH by letting workers control their own safety. Instead of repressing independent democratic trade unions, they must instead discourage the small companies that are often sweat shops, and alternatively advocate worker participation in democratic trade unions that represent all workers, and allow workers to inspect and bargain working conditions with employers.

Cheesecake Factory Business Expansion into Canada

If someone were to have gone to Montréal, they may have quickly become familiar with the numerous tourist attractions, elements of scenery, or simply learned to adore the French language. However, regardless of what may have caught their attention, there is no denying just how wonderful the city truly is. To ensure its prosperity, Montréal has become a force for innovation and talent, as well as for economic, international and social development. Because of these advancements, the city has been considered as one of the best places to both live and visit in all of Canada, even going beyond the limits as one of the friendliest cities in the world. It continuously demonstrates itself to be an amazing location for any business, whether one starting small or beginning to expand. In saying, this proposal is to share ideas as to how Canada can offer one of its liveliest cities as a potential location and branch for The Cheesecake Factory. By investing the company as a branch in Montréal, Québec, The Cheesecake Factory is putting forth the belief to thrive in the city’s local economy, and become a successful component of its various other locations. The Cheesecake Factory is a great company that can maximize their profits and broaden their company growth by investing in this specific city; its delicious food, modern architecture and friendly atmosphere are what would it would bring to both citizens and visitors to the province. As the first Cheesecake Factory opened in Canada in Ontario’s capital, Toronto, for the first time, excitement and interest were solely generated by fellow Canadians; this proposal is to bring forth the idea that these exact feelings can be brought and experienced by a larger, potential population of consumers.
Why The Cheesecake Factory should invest in Canada
When investing into the Canadian markets, many businesses sourced in other countries – including the United States, etc. – who have expanded into Canada have seen commercial success in various different locations across the nation. This success is mainly due in part to the benefit Canada offers to these businesses in their respective industries. Specifically, in regards to this proposal, The Cheesecake Factory should invest in more than one Canadian location for numerous reasons – all of which are to the benefit of the company itself:
Economic Innovation
 To begin, Canada’s strong focus on innovation and creativity in a vast majority of public industries has been noted to strongly encourage both young entrepreneurs, as well as established business leaders, to develop more efficient and effective means in the sense of managing, developing, and starting new businesses. Saying this, Canada has the benefit of both a great business foundation and current-stable economy in place, in order to open newer opportunities for better investments to be made for present locations in the country. For example, in a variety of trade organizations such as the Group of Eight (G8), Canada is considered a fair location to conduct business, simply due to the environment of encouragement given from the developed innovation within different companies. Likewise, for many Canadian business owners in a particular industry, there are many opportunities available to support the potential but gradual expansion of their businesses; the encouragement of these ideas for a business within a particular setting allows for more opportunities to become available over time. The opportunities in question allow for individuals in question to be given chances to refamiliarize with the economy’s trends, and begin to plan ahead. For example, various financial support programs may become available for an individual to use to their benefit. Canada’s encouragement of such endeavors allows for the flow of innovative ideas for various business owners. Through this, Canada has created a positive and efficient environment for the majority of business owners to thrive in their particular industry.
Development in Major Cities
 Another reason as to why a corporation such as The Cheesecake Factory should invest in Canada is because of the potential for development to arise in a majority of Canada’s popular cities. Over time, Canada will continue finding new ways to successfully grow and develop its own economy, especially with the help of foreign businesses (or Foreign Direct Investments) being provided as an add-on to the growing economy. If more investors are drawn to the efforts of Canadian businesses, they may decide to begin investing in Canadian companies, or choose to expand their own within Canadian borders. This is more-so true while looking at Canada’s larger cities – Montréal, Toronto, Vancouver, Ottawa – many of these cities alone create a large amount of Canada’s GDP growth, with Montréal alone accounting for approximately 10 percent of Canada’s GDP growth (“Why invest in Canada?”, 2012). Because these large cities have almost a greater access to means of manufacturing, education, etc., it is able to show that they are constantly developing and improving upon previous milestones in their potential businesses in order reassure the value of consumers to their business; the developments in these major cities for consumers allow for industries such as restaurants and services to be more successful in larger areas.
Offers Access to International Markets
 Lastly, a corporation like the Cheesecake Factory should invest in Canada because of the its access to international markets for potential investors. For all investors, the success of a company relies on strong access to markets, in order to broaden their customer base. Canada offers this access through an extended and growing list of trade agreements held with various countries around the world. These agreements are able to represent ambitious trade expansion plans into different global markets. For both Canada and investors, this becomes an advantage, as it is able to maintain access to products from different areas for the world. Canada has numerous friendly ties to many countries with connections to customers interested in their products and resources around the world. The aforementioned restaurant industry with The Cheesecake Factory has many companies in a type of competition with one another, however as a result of this competition, they are likely to receive a high demand in another country, where such an establishment was not available before. The presence of potential investors in other countries makes them a more appealing country to invest in, knowing their strong connection with other countries are effective, thus allowing for said investors to begin seeing Canada as a trustworthy nation with a greater potential for expansion and monetary gain.
About Montréal, Québec
The largest and most populous city in the province of Québec, as well as the second-most populous city in Canada following Toronto, Ontario, Montréal is known as one of the most diverse yet cultured cities in all of Canada, holding high rankings as one the best cities to live in in terms of opportunities, quality of life, and the availability of luxuries. Although Québec City is the political capital of Québec, Montréal is both the cultural and economic capital, acting precisely as the main entry point to the province itself. It is a city rich in culture and history, and a well-deserved reputation as one of the liveliest and most animated cities in North America (“Montréal”). In accordance with worldwide statistics, Montréal is the second-largest French-speaking city in the world, behind Paris, France. Even though Montréal’s economy has been extremely positive in recent years, the city remains quite affordable in comparison to other central major cities in both Canada and the United States. Montréal has an estimated population of 1.75 million, as of 2016 (“Montréal Population 2018”). Due in part to its colonial history, the largest ethnic groups are those of European origin. The largest European ancestries in Montréal include a large majority of French (~26 percent), Italian, Irish and English descendants. The remainder of the population belongs to a visible minority (otherwise abbreviated as v.m.) The most common visible minorities included Arabs, Latin Americans and South Asians, as shown in the pie chart above (“Montréal Population 2018”). In accordance to demographics, the ages which see the highest members of the population include both males and females in two separate categories; between 25 to 29 years of age, and 30 to 34 years of age (Institut de la Statistique du Québec, 2014). As Montréal is a city with beautiful architecture, it is worth to take note of one of its most well-known attractions, such as the Notre-Dame Basilica in Old Montréal; with Roman Catholic roots dating back to the early 1700s of European settlers in Québec, this central church has remained a core attraction in the downtown area for decades (Canadian Interiors, 2017). With the city’s location, popularity, and rich history showing to be key aspects in terms of attraction for the city, Montréal’s economy offers many benefits for businesses to invest in, especially with regard to any specialized industries of choice (such as the restaurant industry, etc). To begin, Montréal has one of the most defined economies in Canada, with a number of independent industries run by consumers in various demographics. As such, also in part to its location, Montréal is accessible internationally, through a majority of international transportation. The economy of Montréal is the second largest of all the major cities in Canada, and the leading economy in Québec; it acts as a centre of technology, commerce, finance, and world affairs. By the end of 2015, Montréal was responsible for $193 Billion of Québec’s $370 Billion CDN GDP (“The 150 richest cities in the world by GDP”). Popular industries include aerospace, electronic goods, pharmaceuticals and telecommunications, with a majority of headquarter offices having a presence in various districts. The city’s service sector has strength and includes civil, mechanical engineering and research and development. With all these contributions to the Canadian service industry, Montréal has become is one of the most diverse economies.
Why The Cheesecake Factory should be opened in Montréal, Québec
        Montréal is known as one of the most developed and open municipalities in Canada, offering great investment opportunities for new businesses to arise. Because of this knowledge, many companies may see Montréal as an innovative and modern city with plenty of connections to be made among themselves, employers, and potential consumers. Due in part to its national status, Montréal is able to use these opportunities to its advantage; becoming a greater part of the global economy. Saying this, Montréal is an advantageous location to place The Cheesecake Factory, however a few specific reasons will be mentioned below:
Firstly, tourism acts as one of the most important industries in Montréal in terms of generating local revenue. On average, the city welcomes approximately eleven million visitors from various locations around the world throughout the course of a year – including China, Japan, the United Kingdom, United States, and Mexico. The tourism industry has found success mainly due in part to the various locations open to tourists, which hold key aspects of the city’s history and past government influence, while also having many approachable natural elements. The successful nature of Montréal’s tourism industry can be further shown through the total generated revenue; in 2017, a sum of $4 billion had been brought to the city, showing an increase of 9.7 percent from the previous year (Ayala, 2018). Having a Cheesecake Factory located among this mass of foreign and local visitors show countless benefits for the business in question, such as the increase in sales over a short period of time. As a large number of tourists approach these restaurants, the sales in these businesses, as well as others, will have high sales. As more and more people travel to a popular location, they are bound to try new and different things, especially in relation to food and dining. Because The Cheesecake Factory is also a location that has a fairly large menu of options, it allows for their consumers to feel less constricted about what they may want to order. As a final note, younger demographics, who are visiting the city with family members, may feel intrigued to try establishments that they are more familiar with, otherwise have heard of. The benefit of this is expanding the restaurant to reach a more common demographic that may go to the establishment more often, thus increasing sales and overall success of the business over a short amount of time.
Geographic Location
        Additionally, Montréal’s natural location in southern Québec acts as a great location for The Cheesecake Factory to invest towards, especially when considering the potential of exposure. The city’s strategic location allows for the seamless movement of imports and exports to and from North America to continents such as Europe and Asia. The Northeast North American corridor surrounds Montréal with one of the largest ports in North America, as well as three airports, including two international airports – Pierre Elliott Trudeau International Airport and Mirabel International Airport (Montréal International, 2016). Adding additional means of both national and international transportation – by land, ocean, or sky. With these types of resources available for use, it allows for different industries to manage any amount of supply they may receive from either local or international suppliers. With the investment of a business in a lively city such as Montréal, it becomes as no surprise to find potential connections being made on a wider – and possibly global – scale. Without access to such resources, businesses may not be able to expand to broader clients or consumers.
Diverse Economy
        One final reason as to why The Cheesecake Factory should decide to invest a location in Montréal is mainly due to the economic diversity that becomes available from members of Montréal’s younger demographics, especially in the city’s various industries, such as food services and restaurants. The majority of businesses in Montréal manage the opportunity to support up-and-coming businesses, similar as to how The Cheesecake Factory may be supported with aspects such as financial backing. Given this support from other industries, a restaurant such as The Cheesecake Factory begins to develop further opportunities to expand their business to a target demographic, as mentioned previously.
Competition and Competitors in Montréal
As Montréal itself is known to have one of the most popular tourism industries in all of Canada, there are bound to be instances that generate competition for rivaling businesses across the city. As for The Cheesecake Factory, competition may still prove fierce, as a majority of restaurants rely on their location in packed commercial areas, attempting to attract tourists. In saying, Montréal is home to a variety of different locations holding both restaurants and dessert shops; one similar combination of the two is a popular restaurant called Toqué!. The establishment currently holds a second-place spot as one of Canada’s best restaurants, out of an established one-hundred (“Canada’s 100 Best Restaurants 2018”, 2018). It is known for its farm-fresh Québécois dishes, including numerous freshly-made desserts – such as cheesecakes – offered as part of its menu. Due in part to its open location in short distance of shopping outlets and positive critical reception, Toqué! has attained a rating of 4.5 out of 5 stars through Google Reviews. Furthermore, one of the most popular dessert restaurants in Montréal is C’ChôColat, rating 4.4 out of 5 stars, as well as being highly reviewed by both guests and critics. C’ChôColat has adapted to a type of modern-European style, similar to that of The Cheesecake Factory, albeit offering additional European pastries on their menu. Another acclaimed restaurant includes Montréal’s Da Emma. Similar to the previous locations, this establishment holds a 4.5 out of 5 stars, located in nearby distance of shops along Commune St W. Similar to The Cheesecake Factory, it has an Italian aesthetic found through its design and overall atmosphere. In comparison to The Cheesecake Factory, each of these locations have the advantage of French – or Montréalen – culture incorporated within their establishments, from their menus, offered portions and expected pricing. However, each also lacks the simple attraction that The Cheesecake Factory has brought to its international locations, allowing it to be known as both a well-respected and acclaimed establishment.

(Left to Right, bottom): Interior of the three aforementioned restaurants – Touqe!, Da Emma, and C’ChôColat respectively. Here it can be noted that all have a unique yet modern-French aesthetic, solely based on the surrounding culture. This may be more difficult to achieve with a foreign business coming into the city from another location or country.

In summary, as stated throughout this proposal, Montréal can be acknowledged as one of the best locations for The Cheesecake Factory. Generally, Canada has countlessly shown itself to rank highly among numerous aspects of the economy and world of business, acting as an appealing location to expand a franchise into. Primarily focusing on Montréal and their success in Canada can be seen through analysing the city’s excellent economy, diverse demographics, and overall benefits that the city is able to provide towards growing businesses, regardless of its industry. As well known as it is, Montréal demonstrates itself to have advantageous benefits with a stable business economy and foundation fit for potential growth and further success as time goes on. As part of an economy that heavily relies on the actions of businesses and consumers, Montréal has everything in its advantage for this location to be successful and to be a competitor within the city’s own restaurant industry. Looking at Montréal’s liveliness, beautiful architecture and numerous tourist attractions makes the very experience of Montréal all the more worthwhile. By investing The Cheesecake Factory as a location in this city will mean having a larger selection of employees available to the business, a large market base, amazing locations to put this particular branch and the ability to share the amazing cuisine and atmosphere. It is a city where the name will be more known than ever imagined, and would be exposed to different cultures and communities. Montréal is a beautiful and welcoming city a corporation such as The Cheesecake Factory are able to successfully flourish among the local population. However, regardless of its expansion into a Canadian city, the many benefits listed above strongly encourage consideration for Montréal, Québec to be the next location for The Cheesecake Factory; with its flourishing tourism, diverse population and ever-expanding economy, it can be said with certainty that Montréal would help make the franchise even more successful.

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