International Expansion (Case Study) - Essay Example

International expansion What decision criteria were being used in the selection of potential nations for expansion? Astable liquid net worth of at least US$1 million Verifiable experience within the hospitality industry Ability and desire to develop multiple locations The cost of a franchise estimated at US$100,000 per restaurant franchise fee, five percent gross sales royalty fee and a two percent of gross sales fee as a contribution to the national advertising campaign eliminated qualified prospects.

Are there other criteria the company should have included?Demand for the services.The income level of people in the country Availability of the same services in potential countries2. Of the four potential options, which assumes the most risk? Which is the most risk-averse? Defend your answers. Having a liquid net worth of at least US$1 million posed the highest risk since it is not a guarantee that the high amount of investment would ensure customer satisfaction. On the contrary, verifiable experience within the hospitality industry would be more risk-averse since there is an indication of knowledge related to the niche. 3. Of the four potential options, which offers the best chance to attract more customers in the same areas?

With verifiable experience within the hospitality industry, chances of attracting more customers are higher since customer service is the heart of any food and beverage industry.Which offers the best opportunity to expand the total number of company customers? Why? Ability and desire to develop multiple locations is probably the best way to increase the customer base since by spreading the risk more people who are exposed to the restaurant will be willing to try it out. 4. What modifications to the company’s brand might be necessary, either when operating a steakhouse in other countries or some new form of restaurant?

(page 105) By diversifying the products sold by the company from beef to other meat products, this will serve to increase the clientele. Product development- building new restaurants in existing markets will fold the number of customers visiting the restaurant. 5. Which marketing tactics will the company have to examine and possibly change when operating other countries? (page 106)Penetration- providing more of the same restaurants in the same marketMarket development- building more of the same restaurants in new markets