With the business logistics of the Ottawa Desk Nibbles location all set in place, the immediate goal would be to first find candidate locations to expand the business. This would be done by creating a list and a rating system of necessary conditions of a major urban center to support another Desk Nibbles location. Some criteria on that list may include, but not limited to: Size of the City, Quantity of Businesses as Potential Clients, Presence of Competition, and Tax Rates. Potential locations may be chosen anywhere in the world, but it would be advised to open a second location more locally, such as in another city in Canada or even Ontario to build-up the experience to branch out to further, more foreign locations. Once a list of potential cities to open more locations is created, the top 3 to 5 choices on this list will be selected and a market analysis is done for each individual city. From this market analysis, the one or two most suitable locations will need to be chosen as a trial to the multidomestic expansion business plan. Using the original Ottawa location as a model, the location can then be set up from there. First, a list of large potential clients must be made and contacted with to ensure that there is interest for the service in the city. If there is a clear lack of demand in the city for the services Desk Nibbles provides, then another city where a market study was done would need to be found and potential clients be contacted there. If there is demand however, a convenient location for a branch must then be picked and a regional manager with past experience in the food industry, who is a native to the city or region must also be picked. As an incentive of quality assurance, the regional manager will need to have a special payment plan that is partially based on an hourly wage and partially a percent of the location’s profit or sales. Based on this manager’s knowledge of the area, a survey can then be created serving the goal of putting together a snack menu specific to the region or city, targeted towards office workers. The incentive of completing the survey may be a closed tasting, open only to office workers of the potential snacks sold in the region. Once data from the surveys is collected, the regional snack menu can then be created and suppliers of the snacks may be found and contacted. A small team totalling 4 to 5 employees, modelled after the original location’s early development can be created with the regional manager, a logistics specialist, marketing specialist and one or two salespeople being the team. Aside from the regional manager, it is recommended that people local to the area be hired, but that is not as vital as with the manager. Employees should also be offered lots of incentive bonuses to create original ideas for improving the branch revenue. Once the team is hired, the office location can be set and the regional team should then be briefed by a representative who knows the operation well from the original Ottawa location (perhaps even one of the brothers themselves) and stay at the new location for a time period of several months to aid and train the team when necessary. Web pages dedicated to the new locations should be set up right before the opening date and the slack chat box should be implemented into the web pages, giving a chance for the new team to become accustomed with all the business operations. While this is being done, the new location should begin creating advertisements unique to the location and coming into communications with notable potential clients. Finally, once the new location or locations are set up, they should open for business, potentially offering limited time discounts to early customers for the first 2-3 weeks to increase interest in the region. Performance reviews and financial statements should be done often, potentially on a monthly basis to ensure that the branch is on the right track for at least the first 4 months, and based on those two, as well as customer reviews, business should be ready to make adjustments to improve performance. New menu items as well as minor adjustments to the service aspect of the branch should be left to the creativity of the teams and significant decision making power should be given to the location managers, leaving intervention only when a branch shows signs of struggling financially or structurally, or in the case that the location begins making business decisions that deviate from the core aspects of the original Ottawa location. Any notable decisions should however be sent back to the Ottawa location. If significant financial growth happens for the location during this time period and the amount of employees on the team is becoming unsustainable for the workload, more employees should be hired.
Short-term (6-12 months):
At the 6 month mark, a performance review of the entire trial branch/branches should be done and based on their performance, further expansion should be considered domestically, as well as internationally. If the trial locations show to be financially sound for the company as a whole, the procedure to set up a new location covered in the immediate (0-6 months) implementation can be used to create more locations, but this time at a less local state.
However, if the trial locations show no significant financial growth, troubleshooting must be done to determine if the location chosen for the branch was simply wrong (too small of an urban centre, too few businesses etc) or the business itself is flawed and cannot function with the same rate of success outside of the Ottawa region in its current state. If a decision is made that the location was wrong, then criteria for selecting a city must be remade, but the current trial branches be kept in their current locations. Regardless of what the issue is determined to be, there must be an attempt made to make the two trial locations financially viable in the next 6 month period.
However, if the branches are viable, further business expansion may be done to all locations by attempting to secure better contracts with the suppliers of snacks and setting up more Smart Kitchens with major clients. Individual locations can also further expand their selection of snacks based on customer feedback of the particular area. Furthermore, specialized advertisements can now be made for different regions and locations, catering to the local culture and tastes.
When expanding to more locations at this stage, it will be important to chose wisely how many more branches the business can support and continue being profitable without significant changes to the business model. Taking out loans may also be necessary due to high start-up costs of new locations and it will be necessary to seriously consider how much debt the business can accumulate without running into problems in the future. Unless they’re unsecured loans, it will be necessary to consider what and how much collateral the business is willing to risk if any of the locations fail, especially as expansion goes into more foreign locations, which may create more uncertainty in terms of success of new branches due to differences in culture, laws and regulations, and tariffs and taxes. A business advisor or another specialized employee may be necessary which better understands the nuances of business in a particular country or region if there is mounting uncertainty, especially if Desk Nibbles choses to attempt expanding outside of the U.S. or Canada.
Once 12 months has passed since the implementation of the multidomestic strategy, a thorough business performance analysis will need to be done to quantify the success of the current strategy with all regional managers. A system for employees to present feedback straight to the corporate level should also be created for short term use during the annual review and evaluated.
If the strategy proves successful, then the procedure implemented and used over the last year can continue to be utilized. However, any changes presented by regional managers or even employees should be considered and depending on the implications of the proposal should be voted on amongst higher level staff or decided at the corporate level, depending on who and to what extent the decision affect the members of the company. Any changes that affect the structure of the business itself rather than just affecting individual locations using the multidomestic system will need to have a specific implementation procedure that causes the change to be a trial, limited by both time and locations on which these changes are made to study the effects of said changes and see their success rate while being able to compare with a baseline. During this time, a more sophisticated corporate leadership structure can also be created, especially if the company has by this point grown truly international by introducing positions above regional manager but below the owners and a team to analyze performance of the company as a whole.
If the strategy is unsuccessful however, then further analyzation must be done until the root of the issue is found and if the issue is in the business tactic itself or the implementation.
If the issue is in the implementation, then all the locations will be compared side by side and common traits of the unsuccessful branches will need to be found as well as common traits of the unsuccessful branches and analyzed. From seeing the common traits that make locations successful and unsuccessful, decisions can be made on how to remedy the situation, and these fixes can then be made to a trial size of locations for several months up to a year depending on how profitable or unprofitable the tactic is to see if there is improvement. If it is determined to be the tactic itself that does not work, then the business will need to be analyzed and it must be found what exactly about the multidomestic strategy is not functioning and changes be made accordingly by switching over to a different tactic that does not have these issues.