Neal Dotterer Jareed Gaines

Dan Oakes Kyle Norwood

Dennis Doherty

“To deliver an unparalleled guest experience through the best combination of food, drinks

and games in an ideal environment for celebrating all out fun.”

Agenda

• Company Overview • International Management Strategy • Management organization • International management issues • International policies and processes • Metrics Report • How we will be successful

Key people

• Tyler J. Wolfram, Chairman • Stephen M. King, CEO and Director • Dolf Berle, COO and President • John B. Mulleady, Sr. VP and CDO

Company Description

• Dave and Buster’s • Restaurant and entertainment business • Founded and Headquartered in Dallas, Texas • 59 locations across the United States and one

in Canada • Currently have about 8,000 employees • Revenue in 2011$541.5 million

Competitors

• Champs

• Hooters

• Buffalo Wild Wings

Core Values

The following 4 values are the foundation to D&B’s success…

• Fun to our core at Dave & Buster’s we can’t just help entertaining Guests and showing them a great time

• Everybody is somebody at Dave & Buster’s we believe that each person and every position matters: everyone contributes to our success

• You got it! attitude at Dave & Buster's you can feel our positive energy • Founders' spirit at Dave & Buster's we believe that having the passion,

pride and drive are what make a difference

New locations in India • Bangalore, India

– Third most populous city in India, top 10 preferred entrepreneurial locations in the world

• Mumbai, also known as Bombay, India – Most populous city in India, fourth in the world

• New Delhi, India – Second most populous in India, eighth in the world

• Projected Annual Revenue about $24.5 million • Number of Employees 1,000 employees • Restaurant and entertainment business

– Geared toward a different culture

Key Strategies

• Economic, Political, & Quality Imperatives – Combine approaches

• Environment Scanning & Internal Resource

– Combine two processes to set goals

• First-Mover Strategy

Goals

• Gain market share • Create brand awareness

– Reputation for quality, family focus – Created through strong marketing effort

• Profitability – Will result from execution of marketing campaign

• Eventual expansion

Functional (marketing, engineering,

manufacturing, service, finance, etc.)

50% Leadership/Inter-personal Skills

20%

Political 20%

Teams 8%

Economic 8%

Diversity 8%

Strategic Areas Adressed

Organizational Plan

Manager Descriptions

Compensation Plan

Cultural Differences

• South Central Asia – Bangladesh – India – Nepal – Pakistan – Sri Lanka

Religion and education

• 80% Christian • Education is provided

by public and private sector

• 82% of India practice Hinduism

• Many people do not eat beef or pork

• Education is provided by the public and private sector

• Only 15% of students make it to highschool

Economics and Politics

• The way of living in India is cheaper then in the US – 3 bedroom apartment is around $1,000 in India

compared to $1800 in the US

• India is the largest economy in its region – Fourth largest buying power in the world

• India is the worlds most populous democracy

Languages and family

• India has over 300 known languages – 2 Main languages are Hindi and English

• Extended families live under the same roof • Arranged marriages • Male is always the head of the household • 52% of families work in agriculture

Other issues

• India has low Social responsibility – Many child labor issues

• We will have to change management styles – In India supervisors are not used to having strict

deadlines – Assertion and aggressiveness can be taken as

disrespect to the employees

Policies and Processes

• Age Policies – Primarily an Adult Establishment – Guests under the age of 18 must be accompanied

by an adult 25 and older (Varies from country to country)

– One parent can accompany up to six under aged guests

– Supervisor is responsible for all conduct and safety of their underage guests

Policies and Processes

• Identification – Valid Identification Card – Must be licensed by a state governmental agency – Must contain your photograph and date of birth – Any damage to ID is not accepted

• Behavior – Loud/abusive language not tolerated – Excessive intoxication not tolerated

Policies and Processes

• Smoking – Pipe or Cigar smoking is not permitted – Snuff or chewing tobacco is not permitted – Smoking is allowed outside establishment in

specified designated areas (vary by location) • Dress Code

– Appropriate Attire – Clean Attire – Required at all locations

Policies and Processes

• Impact on Business – We strive to provide an unparallel guest

experience – Provides a safe and fun environment for our

guests – Helps us to reach our mission

Dave & Buster’s

Age Restrictions

Provide a fun, safe environment for our

guests

Practices and Policies

Dress Code

Smoking Restrictions

Behavior

Proper Identification

If properly followed, these practices will provide our

customers with a safe, fun filled environment!

International Management Metrics

• We will analyze several key measures to evaluate our success in India. – Business Results and Outcomes – Costs – Management Retention – Employee Capacity

Business Results and Outcomes

• Arguably most important metric • Analyze Financial Statements

– Profit vs. Loses – Break even point and Overall Profit – Sales figures – Trend Analysis

Costs

• Entering a new market, some high costs necessary. – Research and development, market segmentation – Advertising

• We need to keep labor costs as low as possible • Lower costs allow us to invest more money

into the company

Management Retention

• Management is one of our most important assets – Necessary for company direction and employee

satisfaction

• Successful management key to our success – Allows for employee growth and company

expansion

Employee Capacity

• Want to recruit and hire employees with a diverse skill set – Fewer employees needed this way – Allows us to reduce labor costs

• Employees are key to customer satisfaction – Need to keep a solid working relationship

• Huge emphasis on our employee training program

Overall Success

• Analyzing profits and loses • Cut costs • Possibility for expansion • Employee and Customer Satisfaction • Successful Market Saturation

Neal Dotterer Dan Oakes

Kyle Norwood Dennis Doherty

Jareed Gaines

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Executive Summary

As a full service restaurant and entertainment business, we strongly feel we can reach out to the Indian culture and become a quick success to their market, especially by following our strict set of core values; Fun to our core at Dave & Buster’s we can’t just help entertaining Guests and showing them a great time, Everybody is somebody at Dave & Buster’s we believe that each person and every position matters: everyone contributes to our success, You got it! attitude at Dave & Buster's you can feel our positive energy, Founders' spirit at Dave & Buster's we believe that having the passion, pride and drive are what make a difference. With these in mind we can adapt to whatever culture or region we need to, making it easy to be a winning organization. Where we are at now as an organization, and where we want to be in two years as an international organization, is something more than possible to accomplish, and we hope to exceed our expectations.

Our management team worked tirelessly to formulate and implement he best strategic plan for Dave & Buster’s expansion to India. We were sensitive to cultural differences in the research analysis of the Indian market. There is a solid understanding that an entirely different strategic plan must be used. A plan like that of the Dave & Buster’s corporation in the United States would not be successful in this move to a foreign market. We used various approaches in the formulation of our international management strategy. Economic, political, and quality imperatives will be combined to create an adaptive plan for our company. We will consider macroeconomic factors, keep our overall vision in mind, and use total quality management processes along the way to ensure our transition is going smoothly. Management will also combine environmental screening processes with internal resource analysis to create realistic goals for the company. We will use our first-mover strategy to attempt to gain valuable rewards in this untapped foreign market. All of these strategies will work together to help achieve our international goals. We will hope to gain market share, create a brand image for Dave & Buster’s in India, and increase profitability for the overall corporation.

For Dave and Busters to be successful in India our managers will have to adjust to

the cultural differenced between the US and India. There are differences in religion, language, education, politics, and the economy. The main focus we have is in religion. Most Indians are Hindu. This means they do not eat red meat or pork. We will have to have vegetarian substitutes in our restaurant. Also with language we will have to accommodate the Hindi language in our menus advertising and store signs, managers must be able to deal with Hindi and English. We have to put a huge emphasis on social responsibility and make sure we do not violate child labor laws. Also our managing styles must emphasize timely deadlines. Although managers can not be to aggressive because employees in India can take that as offensive.

With the policies that we have come up with to run our business, we feel that they will have a positive impact on our company. Our mission is to provide our customers with an unparalleled guest experience. We hope that the impact of our policies and processes are one which provides a safe, fun, and comfortable experience for our guests. One major factor of moving our business to South East Asia and one that will have a major impact on our success are our age policies. Different countries have different rules and opinions on the legal drinking age. As we expand to different countries we have to be aware of this and change our age policy to fit accordingly. If we continue to expand and successfully change

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our age policy around to fit the varying drinking ages, then we will be a successful company and our policy and processes will have a major positive impact on our business.

At Dave and Buster’s we are committed to a standard of excellence in our industry. We

want to be successful in every aspect of our business. As a company, we have set goals and targets for our new locations in India. Aside from these goals, we also have other measures we will be looking at to gauge our overall success. We will be carefully analyzing our business outcomes, costs, management retention, and employee capacity. By analyzing these metrics, we can determine what areas of our business need more focus and which ones are meeting our goals. Ultimately, we hope to create an establishment that is profitable, one that is enjoyable to work in, and one that our customers will want to come back to.

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1.) Company Overview Dave and Buster’s is a full service American restaurant and entertainment business.

It has been called a “grown up’s” version of Chuckee Cheese, but has both the atmosphere of a family oriented place and also that geared towards both young and older adults. With a full service restaurant, bar, and also extremely large video arcade, Dave and Buster’s is a place where all ages can have a good time. D&B as it is also known as, was founded and is headquartered in Dallas Texas. With over 59 locations across the United States, and one in Canada, D&B is doing a more than average job of spreading the “fun” for everyone. It currently employs about 8,000 people in its United States and Canada locations, and in 2011 had a annual revenue of about $541.5 million.

D&B’s follows a strict set of core values that state, “Fun to our core at Dave & Buster’s we can’t just help entertaining Guests and showing them a great time, Everybody is somebody at Dave & Buster’s we believe that each person and every position matters: everyone contributes to our success, You got it! attitude at Dave & Buster's you can feel our positive energy, Founders' spirit at Dave & Buster's we believe that having the passion, pride and drive are what make a difference.” i By following these and teaching them to all employees, D&B feels they will remain a successful organization. They also have a clear mission statement that says, “To deliver an unparalleled guest experience through the best combination of food, drinks and games in an ideal environment for celebrating all out fun.” ii

With this being said we have recently planned to open three new D&B locations

within the South Central Asian region, more specifically in India. We feel if we can adapt our menu to reflect India’s culture and trends, D&B can be a very successful international organization. One location is opening in Bangalore, India. Although only the third most populous city in India, it is top ten preferred entrepreneurial locations in the world. We feel we can take advantage of this, getting quick popularity and a strong market share in the city. The next location is opening in Mumbai, or Bombay, India. As it is known, this is India’s most populous city, and better yet the fourth most populous city in the world. Obviously with a location like this being so populated, we have a better opportunity of attracting larger crowds, tourists, and the later night “city roamers” who enjoy going out and having a good time. The final location is opening in New Delhi, India. Similar to Mumbai, New Delhi is also very populated. Ranking as India’s second most populous city, it is also on the charts as the eight most populated city in the world.

With these three locations on the map, we also have our start up highlights. Our

annual revenue for the above mentioned location is $25 million, and we have about 1,000 employees working amongst the three locations. With this being said, we have high expectations and a bold 24 month goal in mind. In the next two years we hope to finish up with these three locations employing about 1,500 people, and bringing in an annual revenue of about $30 million. If we can increase our revenue about 20% in the next two years, and also hire an additional 500 people or even more if necessary, we feel we will be on a great path to success and will also be establishing ourselves as a international success.

As far as organizing our company, we have a pretty simplistic format. The CEO will

obviously oversee all locations and operations that take place. There will then be a separate North America Division that is in charge of more specifically divised Northern, Southern, Eastern, and Western region. There will then be marketing, finance, engineering, human

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resources, and business development sectors that focus strictly on the North America region. On the other side of things, there will be a chief international officer, who will work under the CEO, but specifically focus on our newly established international locations in south central Asia. He will oversee the international division, in which then has its separate and own marketing, finance, engineering, human resources, and business development sectors. This being to help focus on international affairs and operations separately, splitting up work more efficiently and effectively.

Items on the Dave & Buster's menu are typically offered from early lunch until late

night and feature a wide variety of food. The selections include pastas, burgers, steaks, seafood, chicken and desserts. The menu is updated to reflect current trends and guest favorites. Buffets are available for special events and private parties and there are typically promotions such as happy hours going on weekly. With this being said, there will obviously need to be many changes in our international menu and locations. Food and drinks will be set to cultural standards and trends in India, creating options that will please them. All D&Bs also offer full bar service, which attracts much of its young to mid age adult crowd.

When it comes to having fun D&B doesn’t mess around. The entertainment

attractions offer both traditional games and high-tech entertainment. Dave and Buster's locations offers traditional entertainment options like pocket billiards, shuffleboard tables, a "Show Room" or other special event rooms (which are designed for hosting social parties or business gatherings) and an assortment of high-tech advanced video games. We feel we can implement many cultural norms and trends into the entertainment section of D&B to satisfy the Indian culture. For example, with cinema being such a popular pastime and trend in India, we can implement games with their favorite Indian actors and celebrities, adjusting to what will fit their cultural desires.

2.) Company Organization Chart

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3.) INTERNATIONAL MANAGEMENT STRATEGY

I. Theory Foundation:

The text by Luthans and Doh describes International management as process for adapting existing management techniques and concepts into a multinational environment. International management involves adjusting strategy to fit different economic, political, and cultural environments. The process for expanding internationally must be done well planned and thought out. A different strategy may need to be used depending on the country of expansion and the cultural differences involved. The authors say, “Strategic Management is the process of determining an organization’s basic mission and long-term objectives and then implementing a plan of action for pursuing this mission and attaining these objectives.” iii The basic idea is that there must be a well devised strategy involved. An existing company cannot simply open up a franchise in a country halfway around the world and expect a smooth transition. Management teams must be able to utilize the general principles and practices of international management to accurately predict changes and implement a strategy for success on the multinational scale.

Strategic planning is a process that many multinational corporations believe is vital to their success. The text says, “…strategic planning helps companies coordinate and monitor its far-flung operations and deal with political risk, competition, and currency instability.”iv The key for companies is to have a well-developed plan prior to entry that can be used throughout the process. Having a plan set in place will also help to keep in mind the goals of the company and measure success moving forward. Without proper planning and research, growth into the international marketplace is not possible. Expansion requires careful planning and strategic implementation in order to be successful.

The formulation and implementation of an international management strategy requires a variety of approaches. “Four common approaches to formulating and implementing strategy are (1) focusing on the economic imperative; (2) addressing the political imperative; (3) emphasizing the quality imperative; and (4) implementing an administrative coordination strategy.”v The first step, the economic imperative, is based on cost leadership, differentiation, and segmentation. The imperative says that middle managers, in this case the managers overseas, are essential in helping to initiate profit growth in their international branches. The approach places value on the product or service offered by the company and says that “management uses a worldwide strategy that is consistent on a country-to-county basis.”vi The political imperative is a formulation and implementation technique used when a “country-responsive” strategy is necessary. These countries have their own strategies to protect local market niches and support domestic business. Countries like India have certain preferences based on the customs of their culture. While the idea behind what Dave and Buster’s will not change in the Indian marketplace, the culture will cause us to address the political imperative in the formulation and implementation of our strategy. Our strategy concerning menu options and gaming content cannot be offered the same way it is in the United States of America. The authors say that in this type of politically influenced culture, “…success of the product or service generally depends heavily on marketing, sales, and service…”vii This is exactly where we plan to focus our attention in the implementation of our international management strategy. We know that much of D&B’s success will rely on marketing and the ability of our marketing managers to create a reputation for our business. The next approach is the quality imperative, which includes a practice called Total Quality Management, or TQM. The

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approach incorporates “…a wide number of forms, including cross-training personnel to do the jobs of all members in their work group, process re-engineering designed to help identify and eliminate redundant tasks and wasteful effort, and reward systems designed to reinforce quality performance.”viii Overall, the essential goal of TQM is to focus on the quality of the service, in this case, and satisfy the customers. In the case of our company, quality control in our separate Indian franchises will be important for the developing reputation in this new market. The approach is implementing an administrative coordination strategy. This method involves making “strategic decisions based on the merits of the individual situation rather than using a predetermined economic or political strategy.”ix

Another set of steps included in the text that supports the formulation of an international strategy involves, “(1) scanning the external environment for opportunities and threats; (2) conducting an internal resource analysis of company strengths and weaknesses; and (3) formulating goals in light of the external scanning and internal analysis.”x The first step, environmental scanning, is essentially the performance of a SWOT analysis on the country or region that the company is looking to extend business to. The company must look at the strengths, weaknesses, opportunities, and threats involved in operating in that specific geographic area. This external study includes factors that could potentially affect the corporation, including; regulatory factors, industry and market factors, social factors, political factors, economic factors, and technological factors. This would be an important strategy for the international management team at Dave and Buster’s, as they attempt to do business in a country whose culture is drastically different than that of the current American franchises. The next step in formulation of a strategy is internal resource analysis, which the text describes as a process that “…helps the firm to evaluate its current managerial, technical, material, and financial resources and capabilities to better assess its strengths and weaknesses.”xi This analysis is essential because it gives the company an understanding of where it is positioned from a resource standpoint. Knowing its strengths and weaknesses will help the management team determine whether they have the resources and capabilities to execute a move into a foreign market. Internal Resource analysis is a process that will be critical in Dave and Buster’s expansion into India. The corporation must understand not only what it needs to accomplish in the external environment, but also whether or not it is capable of such a move. The final step involves a combination of both previously noted processes. Goal setting for strategy formulation combines a thorough environmental scan and analysis of internal resources. This will help the company set realistic goals for itself in its move to a new market and in turn, put itself in a better position to achieve those goals. Profitability and marketing tend to top the list for companies operating in a new international market. The text cites a main reason behind this with the fact that “…these ted to be more externally environmentally responsive, whereas production, finance, and personnel functions tend to be more internally controlled.”xii In the case of Dave and Buster’s expansion into the Indian market, the goals will stay on the trends and be focused in the areas of marketing and profitability. Without a strong focus on marketing the company will not be able to gain a quality reputation in a market that knows little to nothing about what they offer. Sequentially, a successful marketing campaign will lead to higher profitability for Dave and Buster’s. Goals must be set in regards to profitability in a case like this, because the move to India involves high risk and effort.

In an emerging market like India, Dave and Buster’s will be a first-mover in an industry that combines family dining and entertainment. First-Mover strategies involve a

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high risk for companies looking to expand internationally, but also involve high rewards. Early entry in an emerging market can lead to early positioning as the market share leader, if combine with other successful transitional strategies. Being the lone company in a new market can have advantages that for the future outlook of the particular industry. “These include capturing learning effects important for increasing market share, achieving scale economies that accrue from opportunities for capturing that greater share, and developing of alliances with the most attractive local partner.”xiii The emerging Indian market does not have any current companies that would compete with Dave and Busters. A first-mover strategy can lead to dominance in the market and an advantage over future late-movers. Typical goals for multinational corporations are set in areas like profitability, marketing, operations, finance, and human resources. II. Key Statements: The keys in international management that will help to devise our strategy for operation in India include the economic, political, and quality imperatives, environmental scanning and internal resource analysis, and first-mover strategy. 1) Economic, Political, and Quality Imperatives

A.) Economic Imperative i.) Emphasis on cost leadership, differentiation, and segmentation. ii.) Places responsibility on middle managers to initiate profit growth iii.) Value on the product/service provided by the company iv.) Country-to-country basis

B.) Political Imperative i.) “Country-responsive” strategy ii.) Countries support domestic businesses and protect local market niches iii.) Depend heavily on marketing, sales, and service

C.) Quality Imperative i.) Total Quality Management (TQM) process ii.) Quality control iii.) Focus on quality of the service provided iv.) Reinforce quality performance and satisfy customers

- Combination of these three approaches works to coordinate strategy both regionally and globally.

2.) Environmental Scanning and Internal Resource Analysis

A.) Environmental Scanning i.) SWOT Analysis ii.) Factors

a.) Regulatory, industry and market, social, political, economic, technology iii.) Forecast of trends related to external changes in the geographic

environment B.) Internal Resource Analysis

i.) Evaluation of current resources and capabilities ii.) Helps to better assess strengths and weaknesses

- Combining the two processes helps the company in determining whether expansion to a foreign market is possible.

- An understanding of external factors and internal capabilities helps to set better goals for the company.

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3.) First Mover Strategy A.) High risk, high reward B.) Capture learning effects C.) Increase market share D.) Achieve scale economies E.) Develop alliances

- If successful, gain an advantage in all of these categories over potential late-movers.

III.) Key Considerations Key considerations affecting the key statements include:

1.) We must understand that we cannot devote sole focus into an economic imperative strategy. While we do want to keep our focus on what we offer as a company, there are alarming differences between the cultures in India and the United States. While the value of our company is what we offer as a service, we must be aware that a country-to-country basis cannot lay the foundation for implementation in India. As far as the political imperative, we must be able to tailor our products and services to fit the social norms. This imperative depends heavily on marketing and sales. The marketing strategy must be our strongest aspect in expansion to this foreign country because it will help generate attention and build a reputation for Dave and Buster’s. Quality management must also be dealt with very carefully. It will be the job of our human resource managers to identify the best ways to handle employees. We must maintain high-quality service, while understanding the type of working conditions the Indian people are most responsive to.

2.) Once again, we must consider the cultural differences in India and gain an understanding of the best procedures to use for a successful transition. Environmental Scanning offered a positive outlook that led to the decision to expand in this new market. We must now stay aware of the findings as we implement our strategy. We can use findings about Indian culture to promote a family-oriented environment that appeals to their focus on family as the highest priority. We can tailor our marketing campaign to encourage visits to Dave and Buster’s as a family outing. Our management can use the country’s fascination with movies and entertainment to modify the types of games and simulations we offer. It must also be acknowledged that the diet of the Indian people is drastically different than that of Americans. The menus in stores must be changed to fit in with the norms of their culture.

3.) As first-movers we must acknowledge that there are high risks involved. This must be considered eery step of the way in the implementation of our international management strategy. We must use risk management techniques to weigh out our decisions. While the rewards can be intriguing, our managers have to realize that we are in unfamiliar territory and not make any decisions that will be detrimental to the transition.

IV.) Key Goals Goals for our transition into India are to gain market share in the restaurant and entertainment industry. As a first-mover it is essential that we expend a lot of our efforts into marketing the Dave and Buster’s experience. We want to create a quality reputation and become the leading destination for Indian families to go out, eat, and be entertained. We hope to be profitable in our first years of operation as we continue to build a reputation.

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In years following our business development manager will look to use our reputation to seek new locations for Dave and Buster’s locations throughout India. V.) International Management Strategy Our International Management Strategy includes extensively researching the culture of India to help tailor our operations. We want our entire management team to have a full understanding of Indian culture and use the information to make Dave and Buster’s more profitable. Management will work to create a dining menu that is acceptable for Indian people. We will use the countries multi-billion dollar film industry to our advantage, tying in movie characters and Indian celebrities to the games and entertainment offered. Our marketing and sales teams will work to create a brand in India, much like the teams in the US have. With India’s emphasis on family being so high, we will work to promote the Dave and Buster’s name as a place where families can go together to eat and be entertained. We want there to be an association between the D&B name and a family-oriented environment. Finally, we will focus on the management of our franchise workers, who will be trained in ways that fit their culture. Overall, we have an adaptive strategy. We will constantly work to gain a better understanding of what management practices work best, and what needs to be changed. All strategic plans will make for a smooth transition into this new market, open the door for future expansion, and increase the profitability for the Dave and Buster’s Corporation on a global scale.

a.) Strategic areas of manager/employee skill and knowledge that will need to be addressed: 1.) Functional (marketing, engineering, manufacturing, service, finance, etc.) 50% 2.) Leadership/Interpersonal Skills 20% 3.) Political 20% 4.) Teams 8% 5.) Economic 8% 6.) Diversity 8%

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Functional (marketing, engineering,

manufacturing, service, finance,

etc.) 50% Leadership/Inter-

personal Skills 20%

Political 20%

Teams 8%

Economic 8%

Diversity 8%

Strategic Areas Adressed

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4.) International Management Organization Chart

President of Indian Operations

Manager: Co-Director

of Marketing

Manager: Co-Director

of Marketing

Manager: Co-Director

of Marketing

Manager: Head of

Sales

Co-Manager: Bus.

Development

Co-Manager: Bus.

Development

Manager: Head of Finance

Manager: Co-Director

of HR

Manager: Co-Director

of HR

Business Operations

Manager

Franchise

Manager

Franchise

Manager

Franchise

Manager

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II.) International Management Manager Descriptions:

Title/Position How Many People hold this position? Tasks, Duties, Responsibilities

President Indian Operations 1

Chief officer of Indian Operations

Co-Director of Marketing 3 Co-Manage Marketing effort

Head of Sales 1 Negotiate Partnerships, Endorsements

Head of Finance 1 Oversee Accounting/Finance Business Operations Manager 1

Development efforts & operations in India

Co-Manager Bus. Development 2 R&D

Franchise Managers 3 Oversee operations at individual locations

Co-Director of HR 2 Recruiting, hiring, payroll, & satisfaction

III.) International Management Participant Compensation Plan

Title

Avg. Annual Salary per person

Total Annual Salary

Total Benefits Cost (30%)

Total Compensation

President Indian Operations $200,000 $200,000 $60,000 $260,000 Co-Director of Marketing $100,000 $600,000 $180,000 $780,000

Head of Sales $75,000 $75,000 $22,500 $97,500

Head of Finance $125,000 $125,000 $37,500 $162,500 Business Operations Manager $100,000 $100,000 $30,000 $130,000 Co-Manager Bus. Development $80,000 $160,000 $48,000 $208,000

Franchise Managers $75,000 $225,000 $67,500 $292,500

Co-Director of HR $100,000 $200,000 $60,000 $260,000

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IV.) Who is responsible for this plan? Aside from the United States corporate managers, this plan is the responsibility of the President of Indian Operations, the Head of Finance, and the Human Resource Directors.

5.) International Management Issues for the company

For our business to be successful we will have to understand all the cultural

differences between our country and the country we plan on moving our company too. Trying to run a Dave and Busters in India will be a lot different then trying to run one in the US. Specific styles of work and managing will have to be changed according to the change in culture. There are certain aspects that can really affect the company such as if its high context or low context, also what religions, languages, and economy there is. Family values can also play a part in the food industry.

Religion and education are two issues that should be examined before moving a company. Since we are trying to open a Dave and Busters franchise in India, we have to look at what the differences are between India and the United States. Dave and Busters is a successful business in the US so it will be good if most of the cultural aspects match up between the two countries. The religions between the US and India are very different. Eighty percent of the US are Christian where as 82% of India are practice Hinduism. These two religions are very different. Many people of India do not eat red meat because of their religion. So our company will have to make a lot of vegetarian substitutions to our menu. Even though this is a big difference we do not feel it will hurt our company. The substitutions will be easy to make. McDonalds has moved to India and they sell mostly vegetarian food. So we will look into McDonalds to get some advice on how to go about changing from meat to vegetarian food. Unlike religion education is similar to the US. There is public and private schooling. One difference is the schooling is a lot worse in India. Only about fifteen percent of students make it to high school. We are not to worried about the education system when transitioning our company.

Another culture difference that could affect us are economics and politics. India’s way of living is much cheaper then here in the US. A three bedroom apartment is around $1,000 in India compared to $1800 in the US. This means our prices will have to be lower then normal which could effect our sales. On the positive side India is the fourth largest buying power in the world. This shows the economy is on the rise which is good for our company. India has an enormous population and a lot of manpower and natural resources. It is also a front runner for the information technology industry. Some Economists have predicted that India will be one of the world's economic leaders by 2020. India is the world’s most populous democracy. They run their government very similar to the US so there wont be a lot of difference in this aspect when moving the company.

Next on the list of key differences will be Languages and families. There are over 300 languages known in India. Most people speak Hindi and English. This will be a serious change that we have to make. We will have to change menus, prices, and advertising campaigns. This will be costly to our company but I feel we will be able to make up for it in sales. Dave and Busters is something new to India and we feel it will be a huge attraction to families. In India extended families live under the same roof and men are the head of the household. The daughters usually have arranged marriages. Agriculture is a huge success in

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India and 52% of families work in agriculture. This is great for our company because we will need a lot of vegetarian meals for our restaurant.

Some other issues our managers will have to deal with is the companies social responsibility. There are many child labor issues that go on in India. As a company we cannot be involved with this. It could ruin our reputation as a company. Also we will have to change management styles when moving to India. In India supervisors are not used to having strict deadlines. And employees can often get offended when supervisors use aggression or assertion. Managers are going to have to make a big emphasis on establishing deadlines and letting people know how important they are in the process.

6.) Company international management policies and processes

To provide our customers and guests with the best atmosphere and

experience possible, we have implemented specific policies and processes to follow so that we can ensure our guests an unparallel experience. The first step to providing an amazing time for our guest is to make sure that they are safe and comfortable. To do this we have issued policies dealing with age, proper identification, smoking restrictions, behavior, and dress code.

The first policy that we will implement will deal with age. Dave and Buster’s is

primarily an adult establishment, due to the fact that alcohol is served and usually brings in most of our business. To follow the drinking age of South Central Asia, we have a policy that states guests under the age of 18 must be accompanied by an adult who is 25 years old or older. These age restrictions vary from country to country because the drinking age also changes when dealing with different countries. The guardian or supervisor who is accompanying the underage child can have to up to six under aged guests. This is a policy that will be strictly enforced. If an adult 25 and older has seven under aged guests with them, then they will have to find another adult to be the guardian of the seventh child. We do this because we feel that one guardian will not be able to monitor and control seven total children. All supervisors of under aged children are responsible for the conduct and safety of their under aged guests. If a child were to cause an issue the adult will be held liable. To make sure our customers are following our policies, each person who walks in the building must have proper identification. To have proper identification your ID card must be licensed by a state governmental agency. It must also have a photograph, date of birth, height, and eye color. Any ID that is damaged or tampered with will not be allowed. Customers must have a proper ID to verify their age. Like previously stated, we want all of our guests to have an experience of a lifetime and we feel that this rule will stop many issues from occurring.

Our next policy deals directly with smoking. Smoking is something that we as a

company feel very strongly about. We want our customers to feel comfortable in every aspect while visiting our establishment. Although we do allow guests to smoke we do have some restrictions on what and where they partake in this activity. Smoking is not a hobby that every person enjoys. There are many reasons to this, one most commonly being the health risks associated with smoking. Knowing this, we do not allow guests to smoke inside our establishment. To protect the health of nonsmokers we have designated areas that are located outside of our establishment (balconies, rooftops, etc) for smoking purposes. These designated areas will be different at different Dave and Buster’s locations around the country. This is so customers who do not smoke are not harmed or bothered by the actions

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of smokers. We want all of customers to feel comfortable and enjoy their time at Dave & Buster’s. Therefore, we feel that allowing smoking outside will benefit both non smoking and smoking parties. Pipe and cigar smoking are not permitted anywhere on Dave & Buster’s property. Also joining this list are chewing tobacco, and snuff. That also includes designated outside areas.

7.) Policies and Practices impact on the International Management activities

and practices in our plan With the policies that we have come up with to run our business, we feel that they

will have a positive impact on our company. Our mission is to provide our customers with an unparallel guest experience. We hope that the impact of our policies and processes are one which provides a safe, fun, and comfortable experience for our guests. One major factor of moving our business to South East Asia and one that will have a major impact on our success are our age policies. Different countries have different rules and opinions on the legal drinking age. As we expand to different countries we have to be aware of this and change our age policy to fit accordingly. If we continue to expand and successfully change our age policy around to fit the varying drinking ages, then we will be a successful company and our policy and processes will have a major positive impact on our business.

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8.) Flow Chart (From Items 6 and 7)

Dave & Buster’s

Age

Provide a fun, safe environment for our

guests

Practices and Policies

Dress

Smoking Restrictions

Behavior

Proper

If properly followed, these practices will provide our customers with a safe, fun

filled environment!

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9.) International Management Metrics

We at Dave and Buster’s are committed to both long term and short term success. In order to properly analyze our overall success as a company, we will have to look into several key measures to determine what areas we need to improve on, what areas are adequate, and what areas are performing well. These measures include, but are not limited to: outcomes and business results, overall costs, management retention, and employee capacity. If we properly manage these factors, we can continue to find success and grow as a company internationally. Business Results and Outcomes

Business results and outcomes is arguably our most important metric. Seeing as this section involves our financial statements, it is absolutely imperative that we examine this factor closely and often. If we are going to be successful in India, we must turn a profit within the first few years of being there. Our overall sales will be crucial to our success, as we are trying to establish ourselves in a relatively untested market. Return on investment and overall profit will also be very important factors, as we need to make profit in order to continue operations and expand throughout India. Costs

Another key factor we will be looking at is overall costs and expenses of our company. Although we are not a start up, we are saturating a new market, so our advertising costs may be high. We will also have to spend a significant amount of money developing a new menu and products that appeal to the region. However, we must try to keep our expenses down by any means necessary in order to be successful. By keeping our costs low, we increase our chances at making higher profits. One key advantage we will have is the fact that India has relatively low labor costs. By keeping labor low and hopefully turning an early profit, we can invest more money back into the company and look to grow the company further in the future. Management Retention

Management Retention will also be crucial to our success. We will look to hire managers that not only understand the customs and beliefs of local workers but will also be able to effectively implement our company’s management plans as well. If our managers are successful in implementing plans and effectively leading workers, we should have no problem in retaining our managers. However, if our managers are unsuccessful in doing these, we will have to hire new managers. This process will not only slow our progress as a company, but will hinder our overall success as we try to establish ourselves in the Southeast Asian Market. Our lower management team is an incredibly important asset in our international expansion, and our overall success abroad depends on them directly. Employee Capacity

Employee capacity is another very important metric for us. Because we are initially trying to keep our labor costs as low as possible, it is essential that we hire employees who not only possess a great work ethic, but also have a variety of skills that can be utilized. We realize that there may not be many qualified employees available for immediate hire, so we

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will devote a great deal of time and money to employee training. As we begin to turn profit and look to grow our company even larger, it is essential that we have unparalleled service from our employees. We need to establish a positive reputation, and it begins with our employees.

10.) Analysis of Success

Our overall success in India hinges on all four of these factors. Ultimately, profit, sales, and costs are the most important statistics that we will analyze. If we do not keep our costs low, our chances of turning a profit decrease substantially. Likewise, if our sales do not meet our expectations, we will not turn a profit, especially since we are a start up in an untested market. We will not be able to continue to grow as a company if we do not had money available to us. Therefore we must devote our all of our efforts into turning a profit rapidly. Other factors, such as management retention and employee capacity are important as we try to establish a positive image for our company.

i "Our Mission and Values." www.daveandbusters.com. N.p.. Web. 28 Nov 2012. <http://www.daveandbusters.com/about-us/mission-and-values/>. ii "Our Mission and Values." www.daveandbusters.com. N.p.. Web. 28 Nov 2012. <http://www.daveandbusters.com/about-us/mission-and-values/>. iii Fred Luthans, and Jonathan P. Doh. International Management: Culture, Strategy, and Behavior. 8th ed. Boston: McGraw-Hill, 2006. Print. Pg. 271. iv Luthans, F., & Doh, J. (2012). 273. v Luthans, F., & Doh, J. (2012). 273. vi Luthans, F., & Doh, J. (2012). 273. vii Luthans, F., & Doh, J. (2012). 274. viii Luthans, F., & Doh, J. (2012). 275. ix Luthans, F., & Doh, J. (2012). 277. x Luthans, F., & Doh, J. (2012). 280. xi Luthans, F., & Doh, J. (2012). 282. xii Luthans, F., & Doh, J. (2012). 284. xiii Luthans, F., & Doh, J. (2012). 290.

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Work Cited

Textbook Fred Luthans, Jonathan P. Doh, International Management, Eighth Edition, (New York: McGraw-Hill

2012)

Web Document Our Mission and Values." www.daveandbusters.com. N.p.. Web. 28 Nov 2012.

<http://www.daveandbusters.com/about-us/mission-and-values/>.

Web Document . "Dave & Buster's Makes Having Fun Even Easier With Free Charging Station App ." heraldonline.com.

N.p., 27 2012. Web. 27 Nov 2012. <http://www.heraldonline.com/2012/11/27/4443153/dave-busters-makes-having-fun.html>.