Ruth Chris Essay

358 words - 2 pages

A decision must be made as to what countries have the best growth potential with minimal risk. The growth model and market selection criterias are methods to narrow down the list of countries. Some important criterias that will aid in choosing the country to enter includes:Beef consumptionDensity of population (urbanization rate)Disposable income (GDP)Legal to import?The next step is to decide a mode of entry - joint ventures or ...view middle of the document...

Cons include being difficult to manage and greater risks. With franchising, the strengths are less risks, growth of the brand, and steady income. The weaknesses are sharing of intellectual property, less control, and less profit. As we can see, franchising has been effective and profitable and should probably continue to be established.With all the criterias being listed, Singapore comes down to the number one choice of potential country. Singapore shows an affinity for US products and culture and has the potential to bring in high revenue. The beef consumption is fairly high with 71.1 per capita in a population of about 4.5 million people. It has an urbanization rate of 100% which tops all other countries. The plus side to this is that it can lower cost by minimizing numbers of locations that they would need to cater to everyone. Even with just one location in Singapore, it will be able to cater to the whole population on the island. Singapore has a GDP of $28,100 and is considered one of the wealthiest countries in the world. Finally and most importantly, The US and Singapore is in a free trade agreement so the importation of USDA beef will be without a problem.

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