Essay Sample on Effects on economy
Canuck Burgers is a food industrial corporation targeted to expanding their franchise around the world. One of the many targeted cities is Jaipur, India. Angels R Us, the London-based NGO has extended a research to seek out the negative aspects of Canuck Burgers opening a food facility in Jaipur, India. Taking the economy, environment, culture and religion into consideration, this research will convey reasons why Canuck burgers should not expand to Jaipur and why the community would not benefit from the expansion as well.
Opening up a food facility in Jaipur can have potentially negative aspects on the profit margin for Canuck Burgers. The first aspect of negativity to consider is the economy of the location. According to the research completed, Jaipur is one of the poorest destinations in India with low per capita income. It is not densely populated and the literacy rate is low, especially amongst women. Although their economy is well established, it is largely dependent on weak factors such as tourism and mining. Its economy has been affected a lot over the years due to terrorist attacks from neighbouring cities. Economic afflictions and discernment of gross social prejudice have given a rise to ideological terrorist groups.
Factors such as, rural unemployment, the absence of land developments, and mistreatment of landless labourers by land owners, etc. were the reasons for the attacks(Raman, 2003). The terrorist attacks included grave explosions which killed many people. “I heard two explosions and I was wondering what happened. Then a bomb went off right in front of me,” said Malchand Bagoria, who manages a fruit stall in Jaipur (AFP,2008). Jaipur can potentially become a terrorist attack zone. If an event like this has happened in the past then the likeliness for a repeated attack is highly possible. Canuck burgers could suffer a lot of damages to their businesses if Jaipur becomes a popular terrorist attack zone, thus should not take chances of opening up a fast-food facility in Jaipur.
Jaipur has a pastoral economy meaning, their money for their economy comes from agriculture and live stock. Agriculture is the main form of economy for this region, it accounts for 22.5 %. Members of the community use live stock and cultivate crops in order to produce their income. The total cultivated area of the region incorporates about 20 million hectares and out of this only 20% of the land is irrigated (Rajasthan Travels). The farmers habitually make use of their own live stock for daily meals. They do not procure their meat from external sources because it would be ineffectual since they can simply utilize their own stock instead of disposing their income and buying meat from an additional source.
This would be an interesting fact to consider when deciding to open up Canuck burgers in Jaipur. Canuck burgers sell hamburgers which are prepared with beef and chicken, and if the members of the community conventionally eat from what they own then the potential consumers would not frequently go out and purchase hamburgers if they can utilize their own meat to prepare their own burgers at home.
The population would not benefit from the expansion of Canuck Burger Corporation economically as well. If per say the Canuck Burgers Corporation did do well in the market, the profit made would not affect the economy in any large way since it is a franchise and the money goes back to the corporation. Canuck Burgers would only improve the economy if they were aiming to invest in Jaipur economy, but rather they are investing in themselves. Either way, it would not benefit Jaipur or Canuck Burgers Corporation.
Jaipur is known for tourism and a large part of their economy relies on the money made from the tourists. However, the best time of the year to tour Jaipur is only during the winter because for the period of the summer, it is immensely hot and during monsoon season there is too much thunder and rain. (Indo Vacations, 2008). Business would be the most productive only during those three months of winter because people and tourists would prefer to reside in their homes to avoid the unpleasant weather during the other seasons.
The state of affairs is even worse during the summer when water may be accessible for only a few minutes, or every second or third day. In those time periods, water would have to be imported in or kept in large bulks for emergencies in order to serve the consumers water and properly clean materials in the restaurant. In addition, since it is not a well developed country, there are a lot of power outages which could be a problem for food storage.
Meat used to make the burgers are stored in fridges, and during the power outages the meat will spoil which will result in loss of inventory and as well as money. If power generators come to mind to power the stores then that would just add to the extra expenses that need to be made if Canuck Burgers were to expand there. The economy is not as stable as other countries and the chances for success are lenient towards a negative outcome.
Furthermore, entering into this economy and market can cause for a lot of “copy-cats.” The competition in the market could be another factor influencing the success of this new corporation aimed at opening in Jaipur. Seeing as it is a pastoral economy and members of the community live on or own farms, they have access to a lot of meat. Once they have a sample of Canuck Burger’s product, they could imitate it by creating the same product but under a foreign name and discounted price. The competition would also have no need to import items from aboard; they can just produce it there. They have better access to more resources than Canuck Burgers would have since they are a part of the community. Although costs may be cheaper for Canuck Burgers there for materials, not all ingredients or items for production can be made there.
That would further add to the expenses for frequently importing items. The competition market would also increase for the public’s attention. Since the competitors would be from the community, they know what is best for people and what they would prefer. Canuck Burgers would have to continuously improve their marketing strategies to keep up with the competition. Furthermore, residents may feel as if they’re culture is being Westernized by this new fast-food chain and refuse to eat the food in order to preserve their culture.
Fast-food is not a traditional food eaten by the population and they may feel as if it may change their original heritage. In addition to that fact, it is not a common tradition to go out and eat at fast-food stores as it is in the Western society. Jaipur folks are more homely and prefer natural food that they make themselves. Canuck Burgers’ entrance into the market could ruin business for present restaurants in Jaipur as well and cause them to lose their business. It could tip off the existing market if successful and ruin a lot of businesses. Therefore, Jaipur would not benefit from the expansion of Canuck Burgers as well.