ADVENTUROUS APPETITE BUSINESS REPORT 1

Adventurous Appetite Expansion Analysis Report

Florent Salomé, Laura Oldakowski

Skema Business School

828 words
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Executive Summary

Adventurous Appetite is a Spanish start-up offering corporate event management services

for companies visiting Madrid, the purpose of this report is to determine whether or not they

should expend their activities to Beijing, China.

As a result of our analysis, we have determined that Beijing is not an ideal place to

expend the business into. Though it benefits from a diverse restaurant culture and is currently

going through rapid growth of the international business sector, there is a great amount of

competition already established in hotels. Furthermore, as the city is not withing the USA or the

EU, its presence in those travel agencies will not help its development.

Though Beijing is going through strong growth and economic development, we find that

the market is already saturated and expanding in this city is extremely risky. As such, we

recommend exploring other options such as large international hubs located in the EU or USA.
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Adventurous Appetite is a Spanish start-up offering corporate event management services

for companies visiting Madrid. Their recent high profits have provided sufficient capital in order

to expand operation into another city abroad. The three shortlisted cities that have made it to the

final stage of selection are Beijing, China, Vancouver, Canada, and Edinburgh, United Kingdom.

The purpose of this report is to advise Adventurous Appetite’s upper management on which city

to expand into. In order to do so, we will start by determining the key attributes of a city for the

business to operate in, then, we will see how each of the three proposed cities correspond to those

criteria.

Methodology

In order the determine the key characteristics, we must first find the keys to Adventurous

Appetite’s business model. After a review of the business model, we have found that the following

key criteria are crucial to the success of the company

- The city attracts both business customers who need event catering, as well as

tourists looking to avoid tourist spots in order to get an authentic experience

- The city has a lot of diverse restaurants with varying price points in order to attract

both corporate clients and budget tourists

- The city’s language is not English, as that would make it easier for clients to find

their own restaurant, rendering the service provided by Adventurous Appetite

redundant.

- The city is large enough to make foot travel inconvenient. In such a city, it would

be harder for tourists to find restaurants as they visit the city. Bigger cities are
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preferred as they encourage tourists to use our service to find the type of restaurants

they are looking for.

- There is low competition.

- The city is within the USA or the EU

Findings and SWOT Analysis

Our finding reveal that Beijing is facing a rapid growth of its international sector, which

leads to increasing amounts of offices, hotels, and commercial plazas. There is a large variety of

food and restaurants, since the city is too large to walk, visitors need guidance to find the restaurant

they wish to visit. However, the Adventurous Appetite does not have any partnerships with China-

based travel agencies as it does in the EU or USA. Also, Shanghai is China's restaurant capital,

making Beijing a second destination choice in terms of food-tourism. Though new potential

business customers and tourists are present in the city due to rapid economic growth, this

attractiveness has led to a lot of well-established competition with several hotels already offering

similar services.
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Strengths: Weaknesses:

- Rapid growth of the international hub - Partnership of Adventurous Appetite

- Variety of food and restaurants
- The city is too large to walk, customers
may need advice on where to go
has been established in US and EU,
China is not part of either one
- Shanghai is the restaurant capital of
China which makes Beijing only
second

Opportunity: Threats:

- International city undergoing rapid - Lots of well-established competition

change
- Considerable increase of tourism

Conclusion

Following our study, we reach the conclusion that Beijing is a rather risky city for

Adventurous Appetite to implement itself into. The company’s lack of presence in Chinese travel

agencies will make it difficult to find clients, and the huge competition in the hotel tour industry

will make it tough for the company to develop its client base.

Recommendations

We therefore recommend that Adventurous Appetite look into other cities to implement

itself into. Cities in the EU or US may be preferable as travel agencies are already familiar with

the company. International hubs may allow the company to reach a business clientele, as such Paris,

New York, or San Francisco may be options, but true research is needed to reach a final

recommendation. For the time being, we do not recommend that Adventurous Appetite expand

into Beijing.
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References

CGTN. (2019, July 9). Shanghai: The Restaurant Capital of China. 404. Retrieved October 16,
2022, from https://news.cgtn.com/news/2019-07-09/Shanghai-The-restaurant-capital-of-
China-IbIuOtcIww/index.html