Assignment/Reflection 3
Top 10 Reasons for a US-based company to expand to Barcelona
1. Barcelona has a great location because it is the southern gateway to Europe and the center of an emerging economic Eurozone (The Mediterranean Sea). It is also a great platform for links into Latin America.
2. It has a great connection to the outside world, due to it's high speed train station, it's international airport, and motorways connecting to the European network.
3. Barcelona has very successful foreign investment, and 90% of the 5,000 foreign countries located in Barcelona area, and more than half of the companies in Spain being located in Catalonia.
4. There are a number of economic and strategically powerful sectors in Barcelona. These are linked to new technologies and sustainability, which offer new opportunities for business and development.
5. Barcelona is a hub for attracting many types of talent and this can be extremely beneficial for any sort of business looking to expand or develop in particular sectors.
6. The city is extremely entrepreneurial. It has a long tradition of commerce and enterprise, as well as an openness to do business with people from other markets. It is also developing as a European center for the creation of new companies.
7. Barcelona has one of the best qualities of life for it's workers, and has held this position for the last 14 years according to the European Cities Monitor. The standard of life has had a great effect on the workers of this city
8. Barcelona holds an international prestige, as concluded by various independent international comparative studies and analyses.
9. The city is constantly reinventing it's urban planning and has a great ability to move with the times. It's strategic projects deal with logistics, internationalism, creativity, design and research.
10. Barcelona holds a great level of emphasis on it's education. 48% of the city is employed in intensive knowledge services, 8 private and public universities that specialize and hold prestige in various fields, and 2 of the cities business schools are amongst the top 25 in the world.
It would be a safe to draw the conclusion that overall, Barcelona is a very attractive city not only in means of business and enterprise, but when it comes to simply enjoying the quality of one's life holistically.
Why might a US Company be hesitant to invest in Barcelona?
Some hesitancies may arise in investing in companies located in Barcelona because of the political strife in regional fragmentation occurring due to the recent struggle with Catalonia wanting to declare it's independence in Spain. This could be hindering or detrimental to any operations of the business, on a corporate scale, or in regards to the daily functions of a business. This may not be particularly attractive to a company looking to invest in Barcelona, due to the level of uncertainty it may hold in the short or long term. Other barriers such as language (the main language in Barcelona is Castilian, Spanish) or the currency exchange rate (dollars to Euro) also may play a factor as to why a business may be hesitant in investing in Barcelona.
US-based company that should expand into the Barcelona Market
7/11 is an American-Japanese international chain of convenience stores that is headquartered in Irving, Texas. With 56,600 stores in 18 countries, 7/11 has made an international presence and is continuing to expand to countries across the globe. As the manager of international operations, it would definitely make sense for 7/11 to expand to Barcelona.
The company was founded in 1927 and is one of the world's largest franchise companies with over 55,000 locations world-wide. The convenience store has become immensely popular, beating McDonalds in 2007 and outgrowing them by about 20,000 stores in the countries that it operates in. In the United States, 7/11 is known as a convenience store that sells it's renowned "slurpee" drink, but the 7/11 stores vary based on what country it is operating it. For example, in Indonesia, 7/11 is an upscale, hip coffee house where 65% of customers are under the age of 35. Expanding to Barcelona would definitely be a great move for the franchise, and would help it to expand more into the European Market.
As a city of expats, Barcelona would be a great location to open a number of 7/11 stores. It would add a bit of familiarity to the faces that know of the company, but would be something new for those who have not. One of the great things about the 7/11 franchise is it's ability to differentiate each of it's franchises to accommodate the location of the storefront itself. In being an urban and modern city, the 7/11 in Barcelona could reflect the colorful history of the Barcelona in aesthetic, which would be appealing to both natives and tourists as well. There is a great amount of tourism that comes in and out of the city, and this would gain a great deal of buzz and exposure for the franchise.
In Barcelona having such a vivacious, warm, and hot climate, 7/11's slurpee drink can achieve great success in a location such as this. It can customize it's slurpee flavors to match local popular flavors in Barcelona, and this again, would emphasize the American-Japanese based company with a Baercelonian twist. 7/11 only has storefronts in 4 other European countries (UK, Denmark, Norway and Sweden), so in introuducing itself to Barcelona, this can definitely be a gateway to other more popular European markets.
Expanding it's franchise to Barcelona would definitely be impactful and beneficial to the 7/11 franchise. Barcelona has an advancing and innovating business market, as well as numerous trends that are getting worldwide acclaim. As a prestigious beacon to innovation, successful foreign investment, worldwide markets, and a high-quality of life, expanding to Barcelona would be a successful move for the 7/11 franchise.