case analysis

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Ruth’s Chris Steak House Case Study
The primary objective of any business or investment is growth and profitability of the organization. Due to such factors among many others many investors pay special attention in the identification of business strategies that facilitates growth and diversification. Today, the business world is swiftly changing due to globalization and emergence of new technologies that facilities almost every aspect of business operations. On the same note market saturation especially in industrialized countries and territories has become an issue of concern to business investors. For such reason among many others, business diversification in term of international expansion remains to be the best alternatives approach for organizations and business that want to leverage on technology and globalization to increase profitability as well as organizational growth (Weatherspoon et al 34). However, this does not mean that it is obvious to experience growth after expanding internationally. And it is for this reason that firms and businesses must apply clear strategy while seeking to exploit the potential of the international market. Therefore, in this regard, this paper discusses the Case of Ruth’s Chris Steak House to providing a strategic proportion of the business.
Ruth’s Chris as an organization operates a chain of restaurants located in different locations and the organization seeks to diversify and expand its business operations to different location globally.

The origin of Ruth’s Chris was a single restaurant that was located in New Orleans (Alon 12). As part of its operations, the restaurants offered different products such included USDA Prime grade, high-quality grade as well as stakes to its customers. Other than the above-stated products the restaurant also offered other products in their menu with the sole purpose of attracting more customers. After the business was established Ruth’s Chris started expanding and started other restaurants as a result of good returns on the primary investment. Besides, the company also started franchising this was a tactical way to penetrate the market effectively. After the successful business operation, the company was able to penetrate and spread in the local market in the year 2005 it becomes a public company. And as a result, there adhere need to increase profitability through diversification to international expansion to maintain the good public image and reputation.
Owing to the fact that the company had saturated the local market and it was now a public company Ruth’s Chris faced a challenge of identifying the most appropriate country to facilitate its international expansion plan. Given the fact that the company had successfully tried to expand its business operation in other countries such as Hong Kong, Canada, Taiwan, and Mexico. It was paramount for the organization to implement market development strategy to exploit market in the potential countries. For international expansion to be successful it is important that the organization establishes the appropriate market for its products. Neelankavil (20) emphasizes that it is vital to conduct international market research before making expansion decision. As a result, the organization needs to conduct effective market research of all the possible target market and conduct analysis in relation to future growth in the identified market to identify chances of succeeding in the target market.
The organization has many strategic options that can facilitate the expansion of the organization, however, it’s important to note that each option has its own consequences. Amongst such strategies include the introduction of new products in the market it operates, however, this approach compromises the organization core role. This because the organization has specialized in brand founded on dining steakhouses, therefore, the introduction of new product for organizational expansion would require more resources to establish the brand. The other approach that presents an alternative approach to expansion is diversification strategy. This implies that the organization needs to establish restaurants of different forms in the same market. With good market research this can be effective but having launched business in other markets successful the same approach can be applied in other countries. The other strategic option is the model of market penetration. Using this approach the organization requires to establish a more similar restaurant in the same market. However, the consequences of this approach are that the business would soon face the challenges of market saturation thus limit financial growth.
In order to increase profitability Ruth’s Chris should implement market development strategic option. It is through this strategy that the organization would be able to establish similar restaurants in different countries. For the organization, this is the most viable option given that the organization has already mastered it brand and has successfully strategized it in different international markets. France and Italy are the best potential international locations for the next restaurants.
The Cage analysis
Countries Cultural difference Administrative distance Geographical distance Economic distance
France -Different languages.
-Different in norms and values.
-Different national work system. -No colonial ties.
-Different currency.
-Difference in the legal system. -Common land border.
-same time zone. -Consumer income differences.
-Difference in availability of resources such as human resources.
-specialized labor.
Italy -Lack of connective.
– Ethnic network.
-Different religion.
-Different language.
-Lack of common currency.
-Differences in legal system.
-No colonial ties.
-political friendship. -Physical distance
-common land border. -High income.
-capital availability
-Large market.
-supply chains.

Recommendation
Italy is the best location to for the next restaurant to arrive at this world market was assessed alongside the key criteria. Exhibit four of the case material was the starting point. To do this the top beef consuming nations were ranked based on the data provided. Just for reference purpose, the US was included the GDP of the top countries was also ranked (Kupetz et al. 8). The next item was to rank the metropolitan area of the top countries. It is also important to accesses each country in order to determine the prevailing attitude toward the US. This is to help determine if there is an anti-US attitude that may negatively impact Ruth’s Chris reception in the target market. Of all the countries there is a considerable presence of products from the US provided by Burger and Subway restaurants, therefore, no significant sentiment in regards to anti-U.S attitude. In this regards countries in the Europe market and specifically Italy is the ideal place to locate the restaurant. Italy ranks high in regards to market penetration Italy have most of the attributes that make expansion in this country so inviting such include high beef consumption rate, populated cities as well as high GDP. Rome is the most appropriate city for the next restaurant since, it is the capital of the country and most of people reside in Rome and thus, it is the biggest city in Italy. To effectively enter into the Italy market franchising would be the best entry mode. This is because Ruth’s Chris has already established a reputation in four other international markets. However, the cost of buying the franchise should be well balanced. Since the organization deals with foods it must strictly adhere to the principles of the HACCP “Hazard Analysis and Critical Control Point system” (National Advisory Committee on Microbiological Criteria for Foods. “Hazard analysis and critical control point system 18). Besides, the organization has to register with local trade register and at the sometimes comply with Vat and taxation rules as it is a requirement in Italy. I believe the best option for Ruth Chris to continue to grow is for the company to enter the Europe markets.
Works Cited
Alon, Ilan. Global franchising operations management: Cases in international and emerging markets operations. FT Press, 2012.
Kupetz, Allen H., and Ilan Alon. Ruth’s Chris: The High Stakes of International Expansion. Richard Ivey School of Business, University of Western Ontario, 2006.
National Advisory Committee on Microbiological Criteria for Foods. “Hazard analysis and critical control point system.” International Journal of Food Microbiology 16.1 (1992): 1-23.
Neelankavil, James P. International business research. Routledge, 2015.
Weatherspoon, Dave, Joyce Cacho, and Ralph Christy. “Linking globalization, economic growth and poverty: impacts of agribusiness strategies on sub-Saharan Africa.” Achieving Sustainable Communities in a Global Economy: Alternative Private Strategies and Public Policies. 2004. 27-42.