A Study on the Globalization Strategies and Business Performance of A Food Service Firm: Focused on the Strategies of Dongwon Homefood

Enterprises are developing through changes and innovation, while other unsuccessful enterprises have oftentimes dwindled away, or have been merged or acquired (M&A) by others or have even gone bankrupt. Knowing this fact, enterprises should create a sustainable management environment by having or developing core competencies. Just as an economic crisis takes place due to the bubbles created while the economy is in the process of development, crises are encountered by enterprises due to the bubbles created while they are expanding for promoting the scale of economy through business diversification. In order to make themselves restructured with a slimmed structure in an effort to survive by removing the bubbles, enterprises are promoting their practice of outsourcing so as to enhance their competitiveness through continued cost and time reduction in accordance with their outsourcing strategies. Accordingly, a number of outsourcing areas have emerged, and one of those areas, the outsourcing of contract food-service has been put into practise by large industries in almost all the places where refectories are available since over 20 years ago when the "Law for Providing Contract Food-service to Large Firms' Affiliates and Schools" were passed. Selling "meals" has been regarded to be done exclusively by individuals or small and medium enterprises, but it is now done by food firms owned by large and middle-standing enterprises and even by non-food firms which have entered this market where they have later grown to be food-service specialty firms (general food specialty enterprise). Hence, those individuals and small and medium firms in this market that are relatively weak in financial capabilities and competitiveness are gradually disappearing from the market in the form of withdrawal, M&A or bankruptcy. In the meantime, large firms have been excluded from bidding for refectory food-service of public institutions compelled by the "Plan for Practicing Assistance Measures to Support Small Firms and Merchants" which came into enforcement in March 2012 to protect small and medium firms. With the establishment of the Korean Commission for Corporate Partnership (KCCP), the government is expanding the number of items that are exclusive for small and medium industries, thus providing small and medium firms with more opportunities for revival. Each one of the large firms of OurHome, Samsung Welstory, CJ Freshway, etc. has grown to be a food-service specialty firm (general food specialty enterprise) with annual sales of over KRW 1.0 trillion, and now they are expanding their production scale in overseas markets based on their know-how and experiences of over 20 years.