Pinkberry in Prague

BUSA 305 A
February 17, 2016
Joi Calia
Chloe Flaminio
Geneva Howat

Module 1
Pinkberry is a frozen yogurt store. In its ten year existence, Pinkberry has established
franchises in over twenty-one countries. This frozen yogurt brand creates frozen yogurt that
tastes good and is good for you. Pinkberry advocates that its products tastes as good as it makes
you feel. The fruit is fresh, and the yogurt is made with real milk and yogurt. It creates an
atmosphere and environment that is about the consumer. Pinkberry describes itself as the sum of
distinctive products, outstanding service, and inspirational design. They recently opened stores in
Chile, Lebanon, Turkey, and Japan. This brand is slowly spreading across the globe, but its still
missing a few key markets.
One of these markets is the European market. The European dessert market is dominated
by gelato, which is a thick ice cream. Frozen yogurt offers a healthier, more diverse experience.
As well as offering many different flavors, there are dozens of toppings as well to customize the
perfect dish for each consumer. To break into this market, the first store needs to be in the right
location. Possible locations are Prague (Czech Republic) or Rome (Italy). We want to target a
market of those in their teens through the forties. They would be able to meet their friends and
catch up over Pinkberry. It would be easier than a meal, yet more fun than just coffee. While
theyre out in the city, Pinkberry offers an easy, fast, healthy, and individualized option. A
secondary market targets families. They would be able to go out to one place and please
everyone. Each member creates their own dessert, making exactly what they want.
Regarding population, the Czech Republic has a population of just over ten million
people, with Prague having a population of 1.314 million people. Looking at the target ages of
15-54 years old, 53.93% of the population are in this range. Italy has a population of just over 61
million people, with Rome having a population of 3.718 million people. Of the total population,

52.53% are in the age range of 15-54 years. Both countries have relatively the same percentage
for the target market. Because frozen yogurt offers a healthier alternative to the popular gelato,
its important to view the obesity rates of each country. The Czech Republic has an obesity rate
of 29.1%. The Italys obesity rate is 23.7%. These are all relatively the same, meaning any
country would offer the same opportunity to present frozen yogurt as a healthy dessert.
Now we look at the numbers for potential workers. Having a large service industry
creates a large pool of experienced workers that could help shape the Pinkberry experience. The
Czech Republics GDP is largely split between industry (37.8%) and services (59.5%), with 60%
of the labor force working service jobs. Italy has three-fourths of their GDP made through
services, with 67.8% of its labor force being employed in service positions. Logistically, the
language barrier needs to be considered. The Czech Republics official language is Czech, and
Italys official language is Italian. We would need to hire someone who could translate and help
us expand in those countries.
Next we look at the big picture of each countrys economy. Czech Republics economy
had fallen into a recession in 2008 and more recently in 2012. There have been concerns about
corruption in the government, especially with public procurement. Their GDP was $315.9 billion
dollars in 2014, with a 2% growth rate. This increasing growth rate indicates the country is
leaving the recession. Their public debt was 42.1% of GDP in 2014, which is relatively low. Italy
has high public debt and structural obstacles to growth, making it vulnerable. In 2014, public
debt was 132% of GDP. Its GDP was 2.135 trillion dollars, with a -.4% growth rate. Because the
factors of population, obesity rates, labor force, and language barriers were similar, the overall
economy is the deciding factor. Based on recent trends, the best choice for our Pinkberry is in
Prague.

Module 2
Prague offers an untapped market without much competition. There are many gelato
stores, but not many places offering healthy alternatives. When searching for frozen yogurt stores
near Prague, there are two results Yobur and Yogoterie. Yobur has limited flavors, listing only
seven, with no options to twist flavors together. Yogoterie has a few more options with thirteen
flavors, but that does not compare with Pinkberry who has twenty tart flavors, and twenty sweet
flavors. Pinkberry has a competitive advantage of offering forty flavors. This means people have
a better chance of finding something they like and it draws them back to try another one of the
many flavors. Yobur offers a similar amount of toppings as Pinkberry. Yogoterie serves only fruit
toppings, so Pinkberry will have the competitive advantage by offering both fruity and sweeter
toppings. Pinkberry also has a variety of ways to take your dessert. As well as the customizable
dish, one can get a frozen yogurt or Greek yogurt smoothie, pack a to-go container, or order a
pick-up pack. This pack is ordered beforehand, and will be ready to go in thirty minutes or less.
Although there are two other frozen yogurt stores, Pinkberry has the competitive advantage of
offering more flavors and toppings, as well as, having a variety of ways to serve the product.
Module 3
Geographically, the Czech Republic is landlocked between Germany, Poland, Slovakia,
and Austria. The country is located along some of the oldest and most significant land routes in
Europe, with plenty of ways to travel within the country. The Czech Republic has 9,621.5 km of
railways and 130,661 km of roadways. All of these roadways are paved. They have 664 km of
waterways, and a river port to Prague on the Vltava River. Even though the Czech Republic is
landlocked, we could ship products via waterways if need be. The climate is temperate; they

have cool summers, and cold, cloudy, and humid winters. This allows frozen yogurt to never go
out of season. The land is mostly plains, hills, and plateaus. About 54.8% is agricultural land and
34.4% is forest. It should be easy to navigate throughout the country. The Czech Republic has
natural resources of hard and soft coal, kaolin, clay, graphite, timber, and arable land. Their
agriculture products are wheat, potatoes, sugar beets, hops, fruit, pigs, and poultry. Industry plays
a big part as well. These products include motor vehicles, metallurgy, machinery and equipment,
glass, and armaments. This location poses a few risks as well. Flooding is a natural hazard that
we need to consider. There also seems to be air and water pollution, but EU codes are working to
reduce pollution.
The Czech Republic exports and imports goods adding up to billions of dollars. They had
$110.5 billion in exports consisting of machinery and transport equipment, raw materials, fuel,
and chemicals. Germany, Slovakia, Poland, UK, France, and Austria are their export partners.
Imports included the same commodities at $101.9 billion. Their import partners are Germany,
Poland, Slovakia, China, Netherlands, and Austria. The Czech Republic received $142.6 billion
in direct foreign investment in 2014. This country is already being invested in, and has
experience with foreign companies. Their GDP in 2014 was $315.9 billion with a growth rate of
2%. The inflation rate was .4%. The central bank discount rate is .05% with their commercial
bank prime lending rate at 4.64%. The inflation rate and discount rate are both relatively low
compared to other countries around the world. The koruna is their currency, with the exchange
rate of 20.758 CZK per 1 US dollar.
The Czech Republic also is a major producer and consumer of energy. The country
produced 81.86 billion kWh in 2012, with 60.55 billion kWh being consumed. They exported
27.46 billion kWh and imported 10.57 billion kWh. Electricity is produced from four different

sources fossil fuels, nuclear fuel, hydroelectric plants, and other renewable resources. There is
plenty of energy available for all of Pinkberrys needs. The Czech Republic has a growing,
advancing communications network. Fourteen million mobile cellular phones are in use. The
Czech telecommunications system may have started late, but it is growing quickly. In 2014, there
were 8.2 million Internet users, with 77.5% of the population; this number has probably
increased in the past two years.
Module 4
With respect to marriage and the family, Czech society has always been strongly
influenced by political and cultural changes. The trends shaping family behavior in the Czech
Republic in early twenty-first century are: a tendency to copy the trends of Western Europe,
which concludes putting off marriage until later, having children at a later age, and having a high
divorce rate. This trend exists alongside a strong preference for legal marriages if there are
children, and a strong emphasis on the institution of the traditional family. Czech is the only
official language of the Czech Republic and it is spoken by about 96% of the population. The
other 4% of the population most likely speak Slovak, German, Polish and English.
There are many different customs and traditions in Prague, Czech Republic. The Burning
of the Witches on April 30 is a famous one every year where Czechs build bonfires and create an
image of the legendary witch who perpetuated winter. The old belief was that witches powers
diminished as the weather warmed. Thus, in burning a witch figure, it was believed that the cold
weather could be eradicated much more quickly. Easter is one of the most joyful holidays in the
Czech nation.
Business is generally conducted more formally in the UK. Czech people use formal titles
and surnames even with long standing colleagues and acquaintances. Over familiarity is not

encouraged, particularly in the early stages of a business relationship. When first contacting a
representative of a Czech company, the use of mister and misses is a standard. Czech business
people increasingly use English. Finally, Czech companies and organizations do not always
respond to letters or email messages. The chances of receiving a reply will be enhanced if one is
able to send a letter or email in Czech.
Module 5

Module 6
The structure of our company is rather straight forward. We will be a company
incorporated in Prague. Our main product is low price, self-serve frozen yogurt with many
different topping options for the final finish. We also offer smoothies and to-go packs if
customers are in a rush and do not have time to stay and enjoy.
Our target market is ages 15-54 because young people like frozen yogurt and older
people like frozen yogurt because it is less fattening than ice cream.
We will be a decentralized organization, in which daily operations and decision-making
responsibilities are delegated by top management to middle and lower-level mangers within the
organization, allowing top management to focus more on major decisions. For a small business,
growth may create the need to decentralize to continue efficient operations. Decentralization
offers several advantages, though relinquishing control may be difficult for a business owner
accustomed to making all the decisions. We have chosen this so that our employees can be
empowered by having more autonomy to make their own decisions. It gives them a sense of
importance and makes them feel as if they have more input in the direction of the company.

Decentralization can also facilitate the process of expansion, allowing several more locations for
Pinkberry.
Our goal is to provide customers with the best frozen yogurt and smoothie services at the
lowest price possible for the consumers and we are hoping by adding in smoothies to our frozen
yogurt business, that it will increase in profits for the sake of our business.

Module 7