Ruth Chris Analysis

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Adewale Adedeji
Mgmt 670
Case 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 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 (fine dining restaurant with an average cost over $70), if people went out to eat (if they didn’t go out to eat, then it made no sense), and affinity for U.S. brands (overtly anti-US countries would not accept Ruth’s Chris and eat there).

2. What other, unused variables might prove useful when assessing the attractiveness of particular international markets? Why? Political stability should be added to the list of variables. An instable government could lead to problems for a Ruth’s Chris franchise in that country. The restaurant would go through a hard time get the proper clearance to set up operations, war could break out and a risk exists of the government or a new government power taking claim and repossessing the restaurant.

3. What would be your choice of top 5 opportunities? How did you reach your conclusion?

There is a growing affinity for Western-style products and way-of-living and it has potential to bring in strong revenues. Singapore has a per capita beef consumption of 71.1 kg with a population of around 4 million. Its urbanization rate is 100% which tops all countries and has a per capita GDP of $28,100. It has a highly developed market-based economy and is the 5th wealthiest country in the world in terms of GDP (PPP)...
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