Date of Award

1996

Document Type

Thesis

Degree Name

Master of Professional Studies (MPS)

Degree Program

International Management

Department

School of Graduate Studies

First Advisor

Arthur E. Snyder

Abstract

Statement of the problem. "Peru has the ideal market for A&W restaurants."

Methods. The literature review would be done with the help of a questionnaire that had three different sections and with an interview with the president of A&W Mr. Feltenstein. The questionnaire proved that Peruvians want the presence of A&W, an American fast food restaurant in Lima, the capital of Peru. This researcher reviewed the literature concerning Peru. Results. The final results have been very positive, Peru has economic stabilization and is recognized internationally as a star. It was bankrupt five years ago and now is growing very fast. Inflation was the lowest in two decades, only 5%. and the government has almost defeated terrorism attacks. Peru is a safe and stable place for A&W to invest. People in Peru are willing to have A&W because they want to have more places to choose from. 'l'hey liked the menu and found it excellent in comparison to the existing competitors in Peru. 65% of the people that goes frequently to a fast food restaurant goes to Burger King an American hamburger chain or Bembos which is a national hamburger chain. This means A&W can serve this part of the market that is very big and served by only two companies, one local and one American.

Recommendations. It is an excellent idea to invest in an .4&W in Peru because the results from the questionnaire were very positive and show people in Peru are desperate to have an A&W because of its excellent menu and because they want more American chains to invest in Peru. Peru has a potential market. for growth, and they may open their second outlet after six months of their first outlet, like Burger King has done since they opened their first outlet; After one year, A&W can expand to other important cities such as Arequipa which is the second largest city of Peru in size and tourism and Cusco which is the first touristic city of Peru, where you can find Macchu Picchu one of the seven wonders of the world and be the first fast food chain that opens in those places. A&W should open immediately their first outlet in Peru for future expansion not only in Lima the capital of Peru and other important cities, but also in other neighboring countries to start building name recognition in South America, where people are desperate to have more consumer goods they did not have one decade ago.

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