This study examines Albania, FYROM, Bulgaria and Romania and determines whether they provide favourable market conditions for Sara-Lee to expand its Cafitesse coffee system operation there. The expansion will take place through local distributors and not through alternative entry modes. Once a country qualified for expansion, a further investigation was made to provide Sara Lee with proposed selling prices and a list of possible local distributors.
The business environment in each country was evaluated through a PEST analysis. The market capacity of each country was determined through the analysis of the coffee market and the tourism industry. Other relevant information, such as coffee habits, climate etc was also taken into account. In order to collect field data regarding specific market issues, several interviews were held with locals and hotel owners and specific issues, such as taxation, were examined.
Based on the analysis the study recommends that Sara Lee expand its operations to Romania.
