Sabrie Salleh and Khairul Anwar Azhari are the founders of Burger Bakar Abang Burn (BBAB). They learnt the art and gained experience in preparing high quality grilled burgers from Australia. They started their humble small burger stall business back in 2012 at Dagang Avenue Food Court in Ampang. “We are in the business of selling happiness” is the mantra that flourishes BBAB since 2012. In 2014, after two years of establishment, BBAB has successfully incorporated franchise method to further increase its market share in Malaysia. Along with BBAB steady performance, the founders believe that they should explore and exploit new opportunities in the foreign market. Since they feel quite close to Australian business environment, they are considering the market for BBAB first international expansion. They are aware

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Sabrie Salleh and Khairul Anwar Azhari are the founders of Burger Bakar Abang Burn
(BBAB). They learnt the art and gained experience in preparing high quality grilled
burgers from Australia. They started their humble small burger stall business back in
2012 at Dagang Avenue Food Court in Ampang. “We are in the business of selling
happiness” is the mantra that flourishes BBAB since 2012. In 2014, after two years of
establishment, BBAB has successfully incorporated franchise method to further
increase its market share in Malaysia.

Along with BBAB steady performance, the founders believe that they should explore
and exploit new opportunities in the foreign market. Since they feel quite close to
Australian business environment, they are considering the market for BBAB first
international expansion. They are aware that responding to pressure for national
responsiveness and pressure for global integration are critical to ensure foreign
expansion works effectively. However, they do not have sufficient and solid information
with regards to international strategy. They strongly believe that they need to listen to
professionals before they can make their final decision. In this case, they strongly
believe that IBM641 students are the most competent and reliable talents in analyzing
the following questions:

1. Should BBAB execute international strategy, global strategy, transnational strategy
or multidomestic strategy for its international expansion in Australia? Write solid
justification.

2. For the recommended strategy, illustrate and explain systematically the appropriate
primary value chain activity of BBAB in Australia.

3. Then, for each value chain activity, state whether BBAB should engage in
concentrated or dispersed configuration. Provide solid justification.

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