Loob Holdings Sdn Bhd has been a master franchisee of Chatime brand in Malaysia. The CEO of Loob Holdings Sdn Bhd is Bryan Loo. His company get a crisis in early 2017 when the owner of Chatime brand, La Kaffa has terminated the master franchisee contract of Loob Holdings Sdn Bhd dramatically even though their agreement still has the remaining contracts for about 20 years that last until 2041. This is because La Kaffa claims Loob Holdings Sdn Bhd violates the contract term when their company using the ingredient for Chatime product that was not recognized by La Kaffa while the company is very concerned about product and taste quality. Bryan Loo states that La Kaffa’s ingredient is very expensive and saying the ingredients they uses are ‘halal’.
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Intercultural communication is referred to the wide range of communication issues that inevitably arise within an organization composed of individuals from a variety of religious, social, ethnic and technical backgrounds. Loob Holdings Sdn Bhd and La Kaffa had a different culture in religious, social and ethnic. So, La Kaffa must analyse their franchisee culture to prevent the controversial issues such as non-halal food. With cross-cultural communication, they can learn the norms, customs, values, and beliefs of Malaysia culture. It is really important because this issues can give a bad impression of the customer to Chatime and also damage the image of Chatime. The bubble tea is the main beverage of Chatime and usually, this bubble tea using the ingredient such as tea base that mixed with milk or fruit and chewy tapioca balls and fruit jelly also added. So, there will be uncertainty about the nature of this ingredient whether it is halal or non-halal. In addition, La Kaffa must reinforce franchisee’s confidence by showing the ingredient used to have a halal logo. But, Loob Holdings Sdn Bhd chooses to solve this problem by buying halal ingredient from other companies such as Cadbury to get the value of local product and also did variety in ingredient and flavour of …show more content…
Negotiation means the process of discussing something with someone in order to reach an agreement with them. In this crisis, Loob Holdings Sdn Bhd using negotiation style. The negotiation style that they choose is competitive style. This competitive style is really concerned to achieve their goal regardless of the impact on others. This negotiation is effective when they did not concerned about a long-term relationship and just only care about the short-term task. They often use whatever power and manipulative tactics they can muster, including their personality, position, brand strength and others. The result of this negotiation is one side will and while another loses. It means “I win and you lose”. When La Kaffa terminates the contract of their franchisee in Malaysia, they took the opportunity to make a new contract with Loob Holdings Sdn Bhd by adding some additional term in the contract. But, Loob Holdings Sdn Bhd using competitive style by rejecting the new collaboration with that Taiwanese company. After that, Loob Holding Sdn Bhd did branding process by rebrand their franchise. The new brand is Tealive. With this consequences, La Kaffa was shocked by Bryan’s actions that did not want to collaborate with them. They also worry because the majority of Chatime’s earnings in Malaysia give them 20% of total revenue for La Kaffa. In this situation, Bryan Loo is winning in this negotiation and
Intercultural communication is referred to the wide range of communication issues that inevitably arise within an organization composed of individuals from a variety of religious, social, ethnic and technical backgrounds. Loob Holdings Sdn Bhd and La Kaffa had a different culture in religious, social and ethnic. So, La Kaffa must analyse their franchisee culture to prevent the controversial issues such as non-halal food. With cross-cultural communication, they can learn the norms, customs, values, and beliefs of Malaysia culture. It is really important because this issues can give a bad impression of the customer to Chatime and also damage the image of Chatime. The bubble tea is the main beverage of Chatime and usually, this bubble tea using the ingredient such as tea base that mixed with milk or fruit and chewy tapioca balls and fruit jelly also added. So, there will be uncertainty about the nature of this ingredient whether it is halal or non-halal. In addition, La Kaffa must reinforce franchisee’s confidence by showing the ingredient used to have a halal logo. But, Loob Holdings Sdn Bhd chooses to solve this problem by buying halal ingredient from other companies such as Cadbury to get the value of local product and also did variety in ingredient and flavour of …show more content…
Negotiation means the process of discussing something with someone in order to reach an agreement with them. In this crisis, Loob Holdings Sdn Bhd using negotiation style. The negotiation style that they choose is competitive style. This competitive style is really concerned to achieve their goal regardless of the impact on others. This negotiation is effective when they did not concerned about a long-term relationship and just only care about the short-term task. They often use whatever power and manipulative tactics they can muster, including their personality, position, brand strength and others. The result of this negotiation is one side will and while another loses. It means “I win and you lose”. When La Kaffa terminates the contract of their franchisee in Malaysia, they took the opportunity to make a new contract with Loob Holdings Sdn Bhd by adding some additional term in the contract. But, Loob Holdings Sdn Bhd using competitive style by rejecting the new collaboration with that Taiwanese company. After that, Loob Holding Sdn Bhd did branding process by rebrand their franchise. The new brand is Tealive. With this consequences, La Kaffa was shocked by Bryan’s actions that did not want to collaborate with them. They also worry because the majority of Chatime’s earnings in Malaysia give them 20% of total revenue for La Kaffa. In this situation, Bryan Loo is winning in this negotiation and