Ruth’s Chris Steak House was looking for a new business strategy focusing on continued growth of franchise and company-operated restaurants in 2004. Since it was currently a publically owned company‚ Ruth’s Chris Steak House had to meet Wall Street’s expectations for revenue growth. The question was‚ “How will we do this?” The most logical chosen model to do so was looking at Market Development which means having the same product but in a new market. With franchises in four international markets
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Case Study – Ruth’s Chris – The High Stakes of International Expansion Analysis 1. What did Hannah do to make a first cut in the list of potential countries? Hannah to make sure that customers were beef eaters. Ruth’s Chris was a steak house and its primary customers were people who enjoy beef. With the target customer being a well-to-do beef-eater‚ restaurants‚ needed to be in densely populated areas to have a large enough pool. Most large centers would probably meet this requirement.
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Questions: Ruth’s Chris 1. What did Hannah do to make the first cut to 35 potential new markets? Which variables seemed more important in his decision-making? Which unused variables might have been useful? Hannah and his team looked at product development‚ diversification‚ penetration and market development as a strategy for entering (a) market. They decided on the market development model or adding more of the same restaurants in new markets. One of the primary indicators used to determine
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Analysis for Ruth’s Chris 1.What did Hannah do to make a first cut in the list of potential variables? How did he get from 200 to less than 35 potential new markets? Which variables did he use in his decision making and why? Hannah created a criterion that included the factors that were key to Ruth’s Chris success and used that to narrow down the potential new markets. The variables were beef-eaters (their primary customers are beef eaters)‚ legal to import U.S. beef (Ruth’s Chris only used USDA
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rest of the world’s people. To meet Wall Street’s expectations for revenue growth‚ Ruth’s Chris must expand. The logically chosen model was Market Development Model‚ which dictated the entry of Ruth’s Chris into new market with same product. The critical issues facing Ruth’s Chris are: 1) Which market should Ruth’s Chris enter first? 2) Should franchising continue to be the exclusive international mode of entry? 3) Were there opportunities for joint ventures or company-owned stores in certain
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Ruth’s Chris: ‘The High Stakes of International Expansion’ Defining the Issues As a newly publically traded company‚ Ruth’s Chris was responsible for the development of a new business strategy to focus their efforts on revenue growth in order to meet shareholders expectations. By maintaining continued growth in established restaurant locations‚ this strategy needed to concentrate on building equity capital by planning/executing an international expansion to increase profitability of
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Ruth Chris: The high stakes of International Expansion In order to make the first cut in the list of potential countries‚ Hannah looked at the penetration strategy‚ market development‚ diversification and product development as a strategy for entering a new market. The unused variable that would be helpful would be the political stability‚ competition and the regulations that might limit the business growth. For research purposes the following were taken in consideration: Population‚ legal to
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EXECUTIVE SUMMARY Dan Hannah‚ Vice President for Business Development at Ruth’s Chris‚ uniquely American and successful Steakhouse restaurant was responsible for the development of new business strategy focused on continued growth and company operated restaurants. Even though current restaurants were seeing consistent incremental growth‚ new restaurants were critical. Hannah knew that the international opportunities offered a tremendous upside. There are currently 10 successful locations internationally
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markets will help to make international expansion possible. Identify a foreign market that you feel this company should enter next‚ and explain why it should enter that market and which of the strategies should be used. Explain the challenges from competition in the local market‚ and how the company might respond strategically to the competition. International Expansion The strategic partnerships which do not only have the knowledge to succeed in an international market but also has the
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INTRODUCTION TO INTERNATIONAL BUSINESS <INTERNATIONAL EXPANSION> STUDENT NAME : HASHINI KUMARAGE STUDENT ID NUMBER : T31200720 SUPERVISOR : Mrs. KANTHI BASNAYAKA Student needs to print this cover sheet and attach on the assignment/project report before submission to the respective tutor Name of Student: Hashini Kumarage Auston / UNI ID: T31200720 Date of Submission: 07/01/2014 Name of Lecturer: Mrs. KANTHI BASNAYAKA Program/ Module: A244BUS INTRODUCTION TO INTERNATIONAL BUSINESS Assignment:
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