Ruth Chris free essay sample

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. Which variables seemed more important in his decision making? The most important variable in the decision-making process was to make sure that his target customers were well-to-do beef-eaters. Which unused variables might have been useful? Unused variables that might have been helpful would have been the countries that allowed the importation of U. S. beef. 2. What would be your choice for the top five opportunities? My top five opportunities would be: Bahamas, France, Hungary, Ireland, and Spain. We will write a custom essay sample on Ruth Chris or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The top 10?My top 10 opportunities would be: Bahamas, France, Hungary, Ireland, Spain, Netherlands, Portugal, Germany, Israel, and Belgium. How did you reach your conclusion and why? My conclusion was based on the analysis of the beef consumption and population of the particular countries that are listed in Exhibit 4. 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. 3. Hannah was focused on franchising as his mode of entry.Do the critical variables change if a different mode is employed? Ruth’s Chris regularly received inquiries from would-be franchisees all over the world, but strict criteria – liquid net worth of at least U. S. $1 million, verifiable experience within the hospitality industry, and an ability cost of a franchise – a U. S. $100,000, per restaurant franchise fee, a 5 percent of gross sales royalty fee, and a 2 percent of gross sales fee as a contribution to the national advertising campaign – eliminated some qualified prospects. 4.What are some of the internal and external challenges that Hannah will face in moving from a list to actually opening restaurants? Some challenges that Hannah will have to face when opening restaurants are trying to find the right country to locate and break out into the market with a new restaurant in. Another challenge that he will have to face is trying to find a franchisee that will have the funding and staying power that is capable of handling such a daunting task of opening a restaurant and keeping it open with the stipulations that are involved.