Ruth’s Chris: the High Stakes of International Expansion Essay

1372 Words Sep 22nd, 2015 6 Pages
1. What did Hannah do to make a first cut in the list of potential countries? How did he get from 200 to less than 35 potential new markets? Which variables seemed more important in his decision-making? Which unused variables might have been useful?

Hannah created a criterion that included the factors that played an important role in Ruth’s Chris success and used that to narrow down the potential new markets. These factors were beef-eaters (i.e. the market has their primary customers as beef eaters), legal to import U.S. beef (Ruth’s Chris only used USDA Prime beef therefore it had to be exportable to the new country), Population/high urbanization rates (restaurants needed to be in densely populated areas), high disposable income
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2. What would be your choice for the top five opportunities? The top 10? What equation did you use to reach that conclusion and why?

Based on the countries mentioned in the Exhibit 4 and appropriate parameters like beef consumption, population, urbanization rate and per capita GDP, the top 5 countries should be:
U.S., Singapore, UK, Spain, and Germany; with Belgium, Ireland, Israel, UAE/Dubai, France making up ten countries in total.
Below are the top 5 opportunities and the reason behind them:
Singapore: It has growing affinity for Western-products. The per capita GDP of US$28,100 and is 5th wealthiest in the world. It has 100% urbanization rate with third most expensive Asian country to live in. The existence of rival Morton's Steakhouse and its ability to survive there shows that the consumers have the liking toward this concept.
United Kingdom: UK is a developed country with high standard of living. It has omparable GDP with the U.S. and little political risk. It has similar eating habits as the U.S. andhas affinity for American products
Germany: It has high standard of living and largest national economy in Europe. It seems to be one of the upcoming counties and will serve as good place to tap the untapped market.
Spain: It is third behind the U.S. and Bahamas in per capita beef