La Napoli Case StudyIntroductionLa Napoli is part of Tom Brown’s Restaurant Group that was set up in Hong Kong. La Napoli was developed following the suggestion of one Mr. Luigi Compio who approached the restaurant CEO, Chris Parkes, with a proposition of developing a prestigious restaurant complex in Hong Kong shopping centers. Campio was a chef of Italian-American origin who wanted one final project to leave a mark in the cuisine world. Despite Campio studying Italian cuisine for a long time and having referred to as Master Chef, it did not play any role in making the La Napoli restaurant a success in Hong Kong.
Campio had spent most of his time in America and only did research trips to Italy. His trips to Hong Kong were when he went there with his Vietnamese wife. It is during his trips to Hong Kong and several visits to Italian restaurants that he realized a gap in the market. He got back to Tom Brown’s to get the necessary financial backing. After an informal market research he came to the conclusion that there was a gap to be considered in the Italian restaurant.
This case study brings to the limelight the essence of understanding cultural settings before any kind of investment is done (Boella, 2000 p. 205). The La Napoli restaurant which was started in Hong Kong was a big flop under the leadership of Campio as the management director. There was huge employee turnover and conflicts occurred from time to time. Cultural issuesCampio was more acquainted with the America culture as compared to Italian culture. His orientation with the Italian culture was only when he did his research trips to Italy.
He had not stayed in Hong Kong long enough to understand the culture of the people of Hong Kong. He had been there for a holiday with his wife and moreover, the research that he conducted was informal may not have presented enough empirical evidence to support the setting up of the restaurant in Hong Kong. The setting up of the hotel may not have been a problem but the way it was managed caused the huge problem. The way the restaurant was run depicts the disparity between the American culture and Italian culture.
There seem to be little understanding of the difference between the different cultures. This is also an Italian hotel in China in the shopping centre of Hong Kong. Consequently there should some agreement between Chinese culture and Italian. Campio was able to convince John Clarke who in turn convinced the board to back his idea. It was a novel idea which was not implemented well. Seeing an opportunity in the Chinese market due to lack of serious competition, Campio set his heart at making a dream come true.
Adequate market research was not effectively done to determine the cultural dimension that defines the success of restaurant business in China (Hayes & Ninemeier, 2008, p. 43). It was a chance for the restaurant chain to diversify its portfolio.