SITUATION
Dr. Juldiz Afgazar, a native of the Republic of Kazakhstan, had been invited to spend a semester in the United States as a visiting scholar in entrepreneurial finance. Kazakhstan gained its independence from the former Soviet Union in 1991, and only after that were laws passed allowing citizens to own private businesses. Dr. Afgazar wanted to learn more about the free market economy of the United States to determine whether such a system could be implemented in Kazakhstan. Prior to this visit to the United States, Dr. Afgazar had not traveled extensively outside her country.
Although she enjoyed many aspects of U.S. culture, she was particularly impressed by the seemingly unlimited quantity and variety of goods and foods that were readily available. After a visit to a local restaurant's pizza buffet, she became an avid fan of American-style pizza! Dr. Afgazar found the crisp yeast crust, spicy tomato sauce, melted mozzarella cheese, and assortment of toppings to be a delicious combination. Pizza was an entirely new type of food for her, since it was not available in Kazakhstan. A true entrepreneur, Dr. Afgazar began to wonder if a pizza restaurant could be successful in her country.
Question 1 What obstacles would an entrepreneur have to overcome to establish a pizza restaurant in a country with a developing market-based economy, such as Kazakhstan?
Question 2 Is Dr. Afgazar's idea of developing a pizza restaurant in Kazakhstan ahead of its time? That is, do you think the economy of Kazakhstan is sufficiently developed to support a pizza restaurant?
Question 3 What methods could an entrepreneur use to evaluate the likelihood of success of a pizza restaurant in Kazakhstan?