Case Study Synopsis: Ruth’s Chris – the High Stakes of International Expansion

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Case Study Synopsis: Ruth’s Chris – The High Stakes of International Expansion Defining the Issues company completed a milestone completing a successful IPO that raised more than $154M USD in new equity capital in its 2005 annual report, the company committed to an accelerated development plan through company owned and franchised locations. current stores were seeing consistent incremental revenue growth, but accelerated development will require entry into the international market shareholders will expect to see share prices increase (i.e., to maximise profit) The Basic Issue company wants to increase revenue through expansion (“growth”) Analysing Case Data (Cause & Effect) barrier to international…show more content…
Find out which countries truly offer the greatest growth potential with the least risk, and test those markets first. Page 1 of 2 Selecting Decision Criteria international markets were already opened and successful in Canada, Hong Kong, Mexico, and Taiwan. These markets should be expanded first (as was done with the US market), before the company expands into other international countries. This will generate the increase in revenue promised in the 2005 Annual Report, as well as fit the qualification for accelerated development; furthermore, it will bring more exposure to the “brand”, and help the company to test and refine both its market selection criteria and its market development model, as well as allow the company time to mitigate the risks of entering other foreign markets by completing the inconclusive market research. Assessing Alternatives maintaining the current franchise model could limit growth potential in foreign countries. relaxing the demand for US Beef would eliminate barriers in countries that don’t permit the import of US beef, thus broadening the market for expansion; additionally, use of locally raised beef and other produce shows investment in the local economy and raises the profile of the company favourably attempting company‐owned (i.e., US‐owned) restaurants on foreign soil may not win the support and patronage

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