INTLBUS FINALS PART 1 CASE STUDY

8 months has passed since the new ready-to-drink (RTD) milk tea called Grey’s of RICAN
Corporation blew the market away. It was not like any of the RTD milk teas in the market – it
tasted like it was newly brewed, and captured all the delicious flavors a customer could expect
when they walk in a milk tea store. Since then, RICAN has also launched a product line with
add-on sinkers: pearls, nata, and pudding. The texture exclaimed freshness, without synthetic
tastes lingering – unlike other RTD milk tea brands in the market.

Even with the pandemic, the two-month long lockdown, and the extended quarantine for most of
the country, sales kept going up. Grey’s left the shelves as soon as they arrived, already
affecting milk tea stores. Since going out has been limited, consumers preferred to purchase
Grey’s from the grocery to consume when they wanted at home, instead of using a food hailing
app to purchase milk tea in-store. It was advantageous to RICAN Corp.

The lead product manager, Danny, has been getting praises all over. He maintains a great
relationship with the R&D team, the chief food technologist, the head chemical engineer,
even with the plant manager. Cyril, his boss, calls him up to a meeting one Saturday
afternoon. This is highly unusual since RICAN strictly observed a no-weekend work policy.

“Here’s the man of the hour… or better yet, the year!” exclaims Cyril. “Have a seat.” He pulls a
chair for Danny. “What’s cookin’ boss?” Danny asks. “I like that, even your expressions align
with Grey’s – brewing = cooking, get me?” Cyril jokes failingly. Danny gives of a light laugh to
patronize his boss. Cyril’s known for his corny jokes, but Danny felt there was more to this than
chitchat. “Well Danny, I don’t want to take you away from your weekend so I’ll get on with it.
The board is extremely happy with how things are looking. A year ago, we almost shut down
the plant. This year we had to expand!” Cyril shares with gleaming eyes as Danny listens
intently. “We want to stay on top. The Philippine market enjoys these fads. Only a few move up
to become trends. So we’re widening the market,” explains Cyril.

“Widen how?” asks Danny slowly, as if he was puzzled. “We’re bringing Grey’s to the rest of
Southeast Asia, starting with Thailand, then Vietnam, and then Singapore,” explains Cyril
excitedly. Pretending he did not almost just choke when he heard it, Danny went on to share his
concerns. “How are we going to do this? We know nothing about these countries! We don’t
have property there to put a plant. Do we even have an office there or anyone who we can
connect to?” Cyril cuts Danny. “I understand your concern, and this is why we are flying you to
Thailand to look around. Just absorb what you can, the culture, the behavior, their preferences,
and taste. And then we’ll see how we move on from there.” Cyril grins as if he has provided the
answers to what would be Danny’s obvious questions. “And yes, we do have an office in
Thailand, just a 20-minute ride from Bangkok. Enjoy the next two months as if it was a paid
vacation!”

Danny’s already thinking of all the execution on the department’s plans for the next two
months. “Who’s going to be in charge while I’m away?” He blurted. “Whoever you
recommend! It’s your department, Danny. We don’t want anything to change. Just testing the
waters elsewhere.” Cyril motions to the waiter to order a fresh cup of coffee. “Isn’t there civil
unrest going on in Thailand right now demanding government reform of their monarchy?”
again asks a concerned Danny. He feels that the trip is a waste, especially since it’s nearing
the holidays and his team is expecting to double their best month’s sales with Grey’s. “Isn’t
there civil unrest here in the Philippines as well?” Cyril reasons
out. “It may not be exactly the same, but there is always something somewhere. We need to
take a look at where we can go, or how we can improve. If you deem things inoperable, then
we will move forward elsewhere,” says Cyril as he assures Danny. “That’s what I like about you.
You care about the company, the product, where it’s headed. Not your per diem, your
accommodation, or your travel logistics. But don’t worry about that at all, the CFO has signed
the best package for this stint.”

The two continue to talk, but Danny couldn't help looking at his watch. He wasn’t bored. He
just needed to get back to his home office and start planning. And this time, he will be
planning for two markets with totally different scenarios.

Case Questions:

1. What problems do you think Danny will encounter when he reaches

Thailand?
2. Do you think bringing Grey’s to a different country is a good move?
Why?
3. What kind of corporate structure will Danny have to build in a different
country?
4. What steps does he need to take to at least start smoothly?
5. Do you think Danny is equipped to be bringing the product to a foreign country?
Why? If not, who should be executing this?
6. Is this idea a smart idea, a necessary step, or an uncalculated risk?
7. What challenges in importation can he encounter?
8. If RICAN builds a plant in Thailand to reduce import costs and tariffs, what challenges
can they encounter?
9. Aside from the civil unrest in Thailand, what are the global trade environments currently
in Singapore and Vietnam?
10. What factors of the global economic environment do you think can stand as hurdles to
RICAN’s success in southeast Asia?