“To provide the best chicken-eating experience to our customers, delivering profitability for our partners (shareholders, franchisees, suppliers), and continued development for
our collaborators, while maintaining social responsibility in our community.”
This research project discusses the best management practices of the Guatemalan restaurant chain Campero International, S.A., operating as Pollo Campero (PC). The firm does not consider itself as a typical Latin restaurant chain; the menus are mainly prepared with spicy ingredients.1 The entity acts in different places of the world, 50 of its 300 restaurants are located in the United States. Referring to the Hispanic Business Magazine, the overall average sales of the U.S. restaurants achieve a $1.9 million per average. PC avoids the terminology “fast food” and describes itself instead as a family dining restaurant chain.
Best Management Practices (BMP) are the most effective methods or techniques regarding achieving an objective, while making the optimum use of a firm’s resources. The information for this paper has been obtained from the company’s web page, the case we got in class, different sources from electronic libraries and several web pages. The institutional, cultural and organizational context in which the best practice is implemented will be described as well as the company’s best practices. This paper will focus on Pollo Campero’s best practices in Guatemala, the U.S.A. and Latin America.
The impact of the best practices on the stakeholders will be analyzed. The research paper will end with our own conclusions in terms of our cultural backgrounds: Germany and Mexico.
Table of Contents
1. Introduction
2. Institutional, cultural and organizational context
2.1 Institutional context
2.2 Cultural context
2.3 Organizational context
3. Practices in Guatemala, the U.S.A. and Latin America
3.1 Practices of Pollo Campero in Guatemala
3.2 Practices of Pollo Campero in the U.S.A.
3.3 Practices of Pollo Campero in Latin America
4. Impacts of the best practices on the stakeholders
4.1 Impacts of the BMP’s on the Gutierrez Family
4.2 Impacts of the BMP’s on the franchise owners
4.3 Impacts of the BMP’s on the employees
4.4 Impacts of the BMP’s on the clientele
4. Conclusions
4.1 From a German perspective
4.2 From a Mexican perspective
Objectives and Topics
The primary objective of this paper is to analyze the best management practices (BMPs) of the Guatemalan restaurant chain Pollo Campero and evaluate their implementation and impact across different regional markets, specifically Guatemala, the U.S.A., and Latin America.
- Analysis of the institutional, cultural, and organizational environment of Pollo Campero.
- Examination of specific management practices in home and foreign markets.
- Evaluation of the impact of these practices on key stakeholders, including the owning family, franchisees, employees, and customers.
- Comparison of international expansion strategies from different cultural perspectives (German and Mexican).
- Identification of success factors and challenges in globalizing a Latin American business model.
Excerpt from the Book
3.3 Best practices in the U.S. market
As early as in 1986, Gutiérrez was deciding to enter the U.S. market. He was choosing to start in Miami, which due to its large Hispanic population was considered a natural market for Pollo Campero. Unfortunately, things did not work out well and the company had to withdraw from the U.S. market in 1987. The learnings the company got from its failure were as follows: firstly, direct ownership had not been the right model to use in the U.S.. Secondly, there was a need to “standardize operational processes in restaurant outlets” in order to handle its staff in a more effective manner.
Having learned from its failure in the U.S. market, the company decided to move its business model from only operating company-owned restaurants to opening franchised restaurants abroad. Pollo Campero began opening franchises in close countries like Ecuador, Panama and Costa Rica in order to learn about franchising. After having been successful in those countries, the company was opening a franchise in Los Angeles in 2002. Starting working with franchises in close countries has been described in 2004 by Roberto Denegri, president and COO of Campero USA Corp., as follows: “Actually that was very bright because we learned a lot of things. We made a lot of mistakes, and we made a lot of corrections of course, and now that we are rolling it out in the states we are better prepared to do so”.
Summary of Chapters
1. Introduction: Presents the company mission and defines the objective of analyzing best management practices and their impact on stakeholders.
2. Institutional, cultural and organizational context: Outlines the complex socio-political and economic environment in Guatemala and how it shapes business operations.
3. Practices in Guatemala, the U.S.A. and Latin America: Details the specific management strategies, including franchising and operational standardization, used to expand into different regions.
4. Impacts of the best practices on the stakeholders: Assesses how organizational and management decisions affect the founding family, franchisees, employees, and the customer base.
4. Conclusions: Offers a reflective summary of the company's internationalization strategies from German and Mexican perspectives.
Keywords
Pollo Campero, Best Management Practices, Guatemala, Internationalization, Franchising, Stakeholder Analysis, Latin American Management, Corporate Social Responsibility, Operational Standardization, Market Expansion, Family Business, Restaurant Chain, Global Business, Business Strategy, Institutional Context
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on identifying and analyzing the "Best Management Practices" (BMPs) implemented by the Guatemalan restaurant chain Pollo Campero to succeed in both its domestic market and international markets like the U.S.
Which stakeholder groups are analyzed in the study?
The study examines the impacts of management practices on four key groups: the Gutierrez family (owners), franchise owners, employees, and the clientele.
What is the central research question?
The paper seeks to understand how Pollo Campero leverages its unique business practices to adapt its model, mitigate risks, and achieve growth in varying institutional and cultural environments.
What methodology is used in this report?
The research relies on qualitative data, including company website information, academic case studies, electronic libraries, and various industry web sources to describe the institutional context and management practices.
What is the main theme of the chapter on Pollo Campero's U.S. operations?
This section highlights the lessons learned from an initial failed market entry in 1987, leading to a shift toward a franchising model and the standardization of operations.
Which specific keywords characterize this work?
Key terms include Pollo Campero, Best Management Practices, Internationalization, Franchising, Stakeholder Analysis, and Latin American Management.
Why was the franchising model critical for the company's expansion into the U.S.?
Franchising allowed the company to share risk with local partners and leverage their market knowledge, which helped overcome the difficulties faced when attempting to run company-owned stores alone.
What role does the "Instituto Campero" play for the employees?
The Instituto Campero provides basic education and professional development, improving literacy rates and staff capability, which reduces employee turnover and increases overall operational efficiency.
How does the author interpret the expansion strategy from a German perspective?
From a German perspective, the key takeaway is the absolute necessity of carefully analyzing foreign markets and being willing to adapt the business model to local realities to avoid failure.
- Quote paper
- Joannis Paul Schweres (Author), 2015, Pollo Campero's Best Management Practices. Introduction to Management in Latin America, Munich, GRIN Verlag, https://www.grin.com/document/295946
