The president and CEO of Chuck E. Cheese, Mike Magusiak

The Business Expansion to Latin America

The business is expanding to Latin America, according to Mike Magusiak, the president and CEO of Chuck E. Cheese. The choice was made after careful deliberation by the board of directors and administration of the company. Latin America has a high proportion of children, among other things. Mike Magusiak is certain that Chuck E. Cheese will successfully amuse these children because the business is well-liked by kids and is aware of this market. Latin America is also a family-oriented region where parents take their kids to restaurants and seek for activities to keep them occupied. Chuck E. Cheese’s goal aligns perfectly with the culture of Latin America. Language differences do not present a challenge since Latin America is culturally similar to the United States.

The Company’s Readiness for International Growth

Furthermore, Mike Magusiak argues that the company is ready to venture in international growth because it has had 30 years of operating success and offers attractive unit profitability. As such, Chuck E. Cheese will efficiently serve Latin America population. Moreover, Latin Americans are friendly and hospitable people where no direct competition for the company exists. It is also important to recognize that menu items of Chuck E. Cheese can be modified to meet local preferences and tastes. In addition to the availability of Chuck E. Cheese food ingredients throughout Latin America, the company also provides over 2 million birthday parties enabling Latin Americans to celebrate with their families. Concentrating on international growth for Chuck E. Cheese will not only create more employment opportunities but also facilitate the acquisition of new successful concepts to benefit the company.

Consumer Behavior and Cultural Fit in Latin America

Questions for Discussion

1. From a consumer behavior standpoint, I believe Chuck E. Cheese is a good fit for Latin America due to several factors. First, there is a huge population in Latin America demographics comprising of children. Since the company focuses on entertaining kids, Latin America provides an environment of great potential for Chuck E. Cheese. Second, the mission of the company is bringing families together in the same place for fun, games, and food; this aspect fits well with Latin America culture. As such, the company will attract a large number of consumers, thereby promoting its success. Furthermore, Chuck E. Cheese understands that the only way to make parents happy is by making sure their children are happy and satisfied. In order to provide a pleasant experience for both the parents and their kids, the company offers a product which entertains children keeping them off from bothering their parents and other diners. Of most importance is the fact that Chuck E. Cheese can readily get food ingredients for their recipes throughout Latin America. As such, food authenticity is preserved and customers are welcome to enjoy their preferred meals. Furthermore, Chuck E. Cheese menu items can be easily modified to achieve customer’s tastes and preferences. Another aspect that makes Chuck E. Cheese fit for Latin America is the similarity in culture between Latin America and the United States. For instance, when Latin Americans visit the United States, most of them head to entertainment complexes such as Disney World, Disneyland, and other entertainment providers. Therefore, all these factors show that the company will fit well and be successful in Latin America.

2. However, the major cultural difference between Latin America and the United States is language. English is not the first language in Latin America unlike in the United States. Chuck E. Cheese will curb this by employing Spanish and Portuguese speaking people for effective communication. Another cultural difference is the fact that unlike people in the United States, Latin Americans are family-focused. Therefore, parents and grandparents visit restaurants with their children. On the other hand, in the United States, parents are more interested in looking for ways to entertain their children. As such, they take them to places like Disneyland and other entertainment providers. On the contrary, in Latin America, birthdays, fiestas, and other celebrations have to be celebrated with their families. However, in the United States, it is not a necessity to celebrate special times with families. It depends on one’s choice and their preferred people in their special celebration who are sometimes invited through cards. Moreover, in the United States, the taste of food is more important than its authenticity. If a customer enjoys a particular meal, they will not pay attention to its authenticity. On the contrary, in Latin America, food authenticity is key to many clients and this results in the need to find food ingredients for their traditional meals. Therefore, Chuck E. Cheese has made it a priority to ensure they can access food ingredients of their recipes in Latin America to observe authenticity as well.

Arguments for Expanding to Latin America

3. The arguments used in this case are the fact that if Latin Americans are family focused; as a result, they will look for places not only to have good meals but also entertain their children. Essentially, Latin Americans visit restaurants with their kids; for this reason, Chuck E. Cheese company provides products which can entertain children of their customers. It is important to note that kids are not patient enough to enjoy services offered in a full-service restaurant. It is, therefore, essential to ensure one provides other products which will keep children from bothering their parents and other diners in the restaurant. As a result, everyone who visits Chuck E. Cheese will be satisfied and happy with services and products in the company. These are some of the reasons which make Mike Magusiak, the CEO, and president of Chuck E. Cheese, optimistic that their business will perform well in Latin America. In the same way, in the United States, parents prefer to visit an entertainment complex. Therefore, it is not important to provide other distractions for children in the restaurants. To keep their children entertained, parents in the United States take their kids to Disneyland, Disney World, and other entertainment providers. The two countries have different preferences in as far as entertainment for their children is concerned.

Questions for Further Consideration

4. There are several questions that I would like answered before Chuck E. Cheese is expanded to Latin America. First, what is the estimated cost of this expansion and how does the company plans to meet the cost? How will this affect the normal operations of the enterprise and what are the measures established to ensure the smooth running of all other entertainment centers? Second, what is the decision by the company’s management and board of directors on the new expansion’s leadership? Third, who are people chosen to lead the new corporation in Latin America and what was the criterion for their selection. The fifth question is, if the company does not perform as expected, what actions are to be undertaken?