Ruth’s Chris: The High Stakes of International Expansion Case Study Solution
Ethical Dilemma and Possible Unethical Behavior
The suggestion given by senior member of the business development staff to label the USDA beef as an Australian beef, and using it in any international markets is an unethical behavior that does not reflect the acceptable standards of business practices.
Dan Hannah would not agree to this suggestion due to the fact that the company would not be able to maintain the long term relationship with its customers if it gets exposed after acting on this suggestion. It would result in conflict internally, decreased company value, increased misconduct, and reduced probability of reporting unethical behavior and misconduct of others. Not only this, it would damage company image and brand.
In addition to this, the company should be committed to unbiased and fair treatment, and design the policy against the discrimination in the workplace, hence providing the healthy and safe working environment. The company should raise awareness and engage the employees of the ethical decision making. The company should also provide training and reinforcement, in which the discussion of scenarios would help the employees in exploring the ethical concerns in training sessions.(Paine, 2015).
Industry life cycle stage
It wouldn’t be an exaggeration to state that the company has strong brand image and high reputation in the market due to the fact that it has highest market shares as compared to the market rivals. Also, the company has become one of the largest and leading fine dining steak house in the US with major emphasizes on the broad selection of USDA’s prime grade steaks and unwavering commitment of customer satisfaction, which shows that the company is at the favorable position, and is growing further due to its growth strategies, which increase the revenues of the company.Furthermore, the credit of the overall success of the company goes to its effective growth strategy and strong relationship with its franchise partners. It is to note that the franchisees most likely operate in around 75 locations, this in turn have made about half of the business.
Notably, the company should pursue the international strategic alliance due to the following stated reasons:
- It would allow the company to contribute brands, skills, assets and market knowledge, hence creating a synergetic effect.
- It would allow the company to gain competitive advantage or a favorable brand image developed by one of the partners.
- It would allow the company to reach its goals faster by expanding the customer base, giving access to the positive brand awareness and improving the product quality.
In addition to this, since the company has contemplated to grow in the market quickly and with least amount of risk; the company should formulate the market penetration strategy. It would allow the company to seize the large market share, which would bring cost advantage to the company.(Yip, 2005).
International Corporate Level and Business Level Strategies
The company should select multi domestic strategy as its corporate and business level strategy to grasp the market share, broaden the customer base, and improve its productivity as well as its brand image. The company should make researches and understand each country’s local foods and customer behavior before creating its menu item and opening up the store.
In addition, the company should focus on satisfying the needs and preferences of its customers in international markets in order to achieve above the average profit margins. Also, the company should employ the flexible and multi-skilled workforce to meet the customers’demands, and it is significantly important for the company to react adequately and faster to the regulations and changes in the areas of the food safety and handling. The business strategy of the company should be differentiation strategy,which would be its franchisee program.The company should also grow its franchisee owned restaurant locations.
Appendix A
Strengths | Weaknesses | Opportunities | Threats |
§ Renowned restaurant company in upscale segment
§ Strong brand image § International units § High quality products
|
§ High cost of operations
§ Limited vendors § Increasing beef price |
§ Expand nationwide and internationally
§ Development of alternatives on menu § Price arrangements
|
§ Slow economic recovery
§ Increasing government regulation § Fierce competition |
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