Java Lounge Case - Problems and Opportunities

Java Lounge Case

International Business

Problems and Opportunities

Innovation and universal business are two vital parts of globalization. We live in a world that obliges culture mindfulness, which is additionally the initial phase of doing global business. For the case Java Lounge Adjusting to Saudi Arabian Culture, the business has been fruitful because its business people invested time and cash to research their desire that enough Saudis had ended up sufficiently westernized and well-off to regular the restaurant. It is ambitious people have kept up solid culture mindfulness and had placed them on activities. The Java Lounge restaurant serves a niche of wealthy Saudi consumers.  

Saudi Arabia lives in cultural dichotomy. This cultural dichotomy means that many businesses may encounter issues related to the legal sanctions of Saudi Arabia. There are also work attitude and purchasing pattern issues of the customers. Ancient social customs of Saudi Arabia also clash with the realities of the Western world. Saudi Arabia is economically stable and one of less debt country present in the world. It is religiously prohibited in the Saudi Arabia to use pork products and alcohol. Live music is also strictly banned in Saudi Arabia. The women in the country must have a separate entrance and no female allowed to serve at the restaurants. The government law of the Saudi Arabia has a value system. Men and women cannot interact, and lack of modern reality is present in the country (Latham & Watkins, 2010).

The legal system of the country based on Islamic values that do not allow the selling accidental insurance. However, there are some modern looking Saudi Arabian lounges that have emerged. As a result, there has been a huge demand and market present for the Java bars in the country. Despite, the presence of an international market, interest fee loans, high and abundant oil resources, corruption free and the presence of stable legal system made the country ideal for the business.

Situational Analysis

S.W.O.T. Analysis

A.    Strengths

Increasing the younger population with the lounges. The Technology, adaptability to local culture, flexible management, the unique work experience at the java lounge.

B.    Weaknesses

The Java product prices, logo conflicts with other companies, lack of advertisement for these Java bars.

C.    Opportunities

An opportunity is the globalization and high chances of expansion in the market. Many consumers of the java lounge market are becoming brand conscious. This often gives companies the opportunity to get an increased market share in this industry. As a result, this would increase the number of people who want to enjoy Western-style servings. There are also, saving opportunities, with the increase in growth in the coffee market and the emergence of products during the process of adaptation. The increase product offering and expansion in the retail operations (Sohail, 2005).

D.    Threats

The threats are the increased competition, prohibited foreign brands due to cultural considerations, and there is also growth in poverty as compared developed countries present across the world. There is a decrease in entertainment, and often there is constant pressure. The reduced time for socialization might make the staff less productive in the work environment. There is and increase competition from McDonald, KFC, and Starbucks, recessions, and downturn in the economy. Lastly, there may be supply conflicts, which would involve raising prices for the food items and saturated market.