Rob Brozin, chairman of Nandos International, based in South Africa, was reconsidering the companys international expansion programme in general as well as the decision to enter Singapore and Malaysia. The time was April 1997 and the company had completed a successful listing on the Johannesburg Stock Exchange. The aims of the listing were to insulate the South African operations from the risks of international expansion and to raise the necessary capital for expansion. The key uncertainty facing Brozin was the extent to which Nandos success in South Africa was transferable abroad. The company had limited success with previous international expansion but believed that the mistakes of the past had been corrected.

Required:

Critically discuss how Nandos South Africa could choose the best entry mode for the new international market. Incorporate your knowledge of trading blocs into this discussion. Motivate your reasoning by supporting it with theory and relevant models.