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I need some assistance with these assignment. ruths chris: the high stakes of international expansion Thank you in advance for the help!
I need some assistance with these assignment. ruths chris: the high stakes of international expansion Thank you in advance for the help! Ruth’s Chris: The High Stakes of International Expansion al Affiliation What are the criteria adopted by the Company Ruth’s Chris Steak W for the evaluation and selection of potential foreign markets? How can classify these criteria?
The first criteria involved selection of beefeaters, as Ruth’s Chris is majorly a steak house, thus needed a market of beefeaters (Clow & Baack, 2009). Given that the company’s model only used USDA Prime beef, the target market had to be allowing exportable beef. Increased urbanization rates would allow for increased customer pool. In addition, high disposable income would allow for increased consumer purchasing power. The criteria also involve determination of whether individuals prefer eating away from home as this would create market for the company. Lastly, only countries that have an affinity for US brands would be included.
2. If you are the manager in charge of external expansion of the company, which additional criteria will use to select and choose foreign markets?
As a manager, I would also include possible operational difficulties in my international market expansion criteria. One of the variables that have to be analysed under this criteria involves the legislation in the country. In addition, it is important to analyse the state level protectionism and the process involved in starting a new business in the foreign market. On the other hand, the tax rates should be checked as they have an impact on the profit margin. Lastly, it is important to analyse the local competition’s intensity to avoid venturing into a market with highly intensified competition.
3. Look carefully to the criteria that you got it in the two previous questions, Are these criteria equally importance for the company? How can be arranged In terms of importance? And why?
Both the adopted Ruth’s Christ steak criteria and the proposed criteria are of great importance to the company. The former involves a review of the consumer base to allow for expansion into markets that would offer the company high returns and foster further development (Clow & Baack, 2009). On the other hand, the latter criteria involves a review of the legislative and competitive environment to ensure that business is taken to countries that would not restrict the growth and development of the company through providing and equal political environment as that offered to the local companies. However, it is important to note that the criteria already adopted by Ruth’s Chris is more important than the proposed one as it provides information concerning the availability of consumers, who are the most important part of the company’s campaign. In the presence of adequate consumers, the company may risk the cost of high legislative costs in a foreign company to reach out to the consumers.
4. Was this criterion to vary in your opinion if the company were to adopt a strategy to enter non-licenses franchise market?
If the company were to change the entry strategy for entering into a non-licensing franchise market, most part of the criteria would remain the same. It is important to note that most of the variables involve the consumers and only one of the variables involves legal issues concerning importation of foods as the company only uses USDA Prime beef (Clow & Baack, 2009). In such non-licensing markets, there may be fewer restrictions on important and thus the company would drop the variable and concentrate more on the other variables that look at the size of the potential market and their purchasing behaviours.
5. If you are take responsible for market research in this company and they told you to evaluate some foreign markets based on the criteria that reached previously, any indicators and data you will collect for this purpose?
Some of the data that I would collect would include: the population of the urban centres. the rate of beef consumption as related to the production of beef in the country of interest. the rate at which individuals consume food away from home and the percentage that orders beef related meals. and the minimum income rates of the country’s population and the rates of disposable income. In addition, I would collect data concerning beef exportation in the country and the related restrictions or requirements.
6. What do you think are the most important amendments that the company have to be made to her brand and marketing mix upon entry to some foreign markets?
The company’s American based brand image contributes to the selectiveness of the company when entering new markets as some of the countries have good consumer bases but have a very low affinity for American brands. As such, it is important for the company to establish a global inspirational brand image that will be acceptable to more countries and allow the company to expand into foreign countries. In addition, it is important for the company to consider implementation of the restaurant model that they are currently using, in the international environment through keeping to strict franchisee criteria.
Reference
Clow, K. E., & Baack, D. (2009). Marketing Management: A Customer-Oriented Approach. Thousand Oaks, California: Sage.
