Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution

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Raffles Holdings Limited Valuation Of A Divestiture Case Help

The structure of Raffles Holdings Limited Valuation Of A Divestiture Case Study Help remained in the year 1935, the time when Yunosuke Aoki-- daddy of Rocky (the current vibrant president of Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis) opened his first dining establishment chain in the Japan. It was called so when a little sized flower red in color grew near the dining establishment's front door. In 1959, Rocky, throughout his trip to the United States explored more opportunities in the United States of America as compared to Japan. After investing a duration of 3 years, he had better analysis of the restaurant market of the United States. In 1958, he was fretted about the cost rising and increasing competitors.

In 1963, Rocky opened his very first system to make an effort to apply what he had actually found out in the West Side with his initial savings of about $10,000 borrowed $20,000. This was repaid within a duration of 6 months. In 1964, opening a modest unit with 40-seat in the midtown Manhattan, Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis grew to fifteen units chain through the country and a net worth of about $12 Million.

By 1972, it was in fact a steakhouse with variation through the way food was prepared in front of consumers particularly by the Japnense chefs and the decor of the system was reasonably detailed like the Japanese country. Amongst fifteen units of Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis, nine of them were at company-owned locations and five were franchised.

Problem Statement:

Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution had been rather different and is tough to intimate, however the thing it lacked involved the high expense of the products which was due to the use of materials from the House of Japan and the participation of complete personnel of native Japanese in the shop. The service were time-consuming hence do not have fast service actions with a long time of queuing.

Operations in the organizational success:

Dining space:

Generally, the typical dining establishment requires 30 percent of the total space of the dining establishment as the house back. While, Raffles Holdings Limited Valuation Of A Divestiture Case Study Help contained just 22 percent of the total unit space as your home back that includes office, dressing rooms of staff members, dry and cooled storage and areas of preparation. This was a substantial boost in the flooring area percentage devoted to dining space to be efficient.

Hibachi table arrangement:

The elimination of traditional cooking area need with the plan of hibachi style provided Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis an uncommon mindful service amount and kept the cost of labor at the gross sales of about 10 to 12 percent. This was dependent if the system was at complete volume.

Reduction in menu:

Through reduction in the menu to just three easy entrées of Middle America that included Shrimp, Chicken and Steak. There had been significant storage of food and essentially no food waste. This had cut the expenses of food by 30 to 35 percent of the sales of food depending upon the meat rate.

Historical Authenticity:

The decorative lights, artifacts, beams, ceilings and walls of Raffles Holdings Limited Valuation Of A Divestiture Case Study Help were all from Japan. The product of structure was gathered from old houses which were disassembled in a mindful way and delivered in pieces to the U.S. where reassembling was done by one of his dad's two crews of carpenters of Japan.

Site Selection:

Due to the lunch break organisation significance, one fundamental concept of Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis was its choice of site i.e. high traffic. Lease was usually at 5 to 7 percent of sales for the area of about 5000-- 6000 square foot for the area of flooring. Many of the systems of Raffles Holdings Limited Valuation Of A Divestiture Case Study Help were located in the business districts with a simple access to the areas of residency.

Advertising Policy:

One of the essential factor in the success of Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis was its considerable financial investment in public relations and creative marketing. The financial investment of company of about 8 to 10 percent of its gross sales in order to be approachable to public. Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis used completely different technique for advertisement.

Training:

The chefs of Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis were a terrific key to its success as all the chefs were highly trained. All the chefs were accredited, native Japanese speakers, single and young meaning that they had finished their official apprenticeship of three-years. They were then provided with a course of 3 to 6 months in period in the English language about the good manners of American style and the Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution cooking design which was primarily showmanship in Japan.

The chefs were taken to the U.S. under the arrangement of a trade treaty. Training chefs was an ongoing procedure in the United States. There was a travelling chef responsible for periodical assessment of each unit and associated with the new systems opening. The chefs were not typically interested in resignation of their job due to the reason that included the possibility to rise in the Raffles Holdings Limited Valuation Of A Divestiture Case Study Help operation of America in comparison to the stiff hierarchy on the basis of education, age and class they might experience in Japan.Similarly, other aspect consisted of the Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution's paternal attitude which took forward all the workers.

As a result, personnel turnover in the United States was rather low, however, many eventually gone back to Japan. For that reason, for full gratitude of success of Raffles Holdings Limited Valuation Of A Divestiture Case Study Help, the uncommon mix of paternalism of Japan in the setting of America had appreciated.

Imitation:

The dining establishments of Raffles Holdings Limited Valuation Of A Divestiture Case Study Help embraced accurate and well-defined methods throughout the choice of websites and chefs training which assisted the organization in minimizing the typical time of dinner turnover and the distinct combination of paternalism of Japan in the setting of United States of America which made it challenging for other organizations to intimate.

Winning Strategy:

Effective Training:

Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis invested greatly on the programs of training for the chefs:

• Training of official apprenticeship for a period of three years with certification in the cooking design of Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution.
• 3 to six months course when it comes to the American good manners mentor and training in English language.
• Usage of training program as a constant procedure to be followed.

Employee Satisfaction:

Satisfaction of staff members as the ecosystem for support readily available for every worker:
• Complete satisfaction of workers increases development possibilities of performances of both employees and organization.
• Paternal attitude-- worked as the key to the bonding on basis of culture with efficient management.
• Supplying employees with handsome incomes and rewards such as strategies of perk.
• Offering staff members with intangible benefits like security of task and staff members' well-being.
• Pride of workers functions as the crucial factor in the inspiration of workers.

Effective and Aggressive Marketing:

Investment of Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution at considerable level in the maintenance of public relations and advancement of ad:

• Investment of about 8 to 10 percent in advertising from the gross sales.
• Organization lead in terms of its unusual strategy of marketing.
• Ad was exceptional, modern, off the wall visuals in the advertisement.
• Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis considerably maintained its policy word of mouth in a consistent way.

Customer Satisfaction:

Research of market to assess the prospective clients and their span:

• Quality of food drive the customers' satisfaction the most i.e. usage of food of prime grade.
• The essential motorists acted as the factors of customers' complete satisfaction was primarily atmosphere and service.

Problem Analysis:

Franchise

• Investors of business were not experienced in regard to grow the restaurant service.
• Lack of awareness about the culture of Japan and cooking design of Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution.
Investors lack control in regards to management of operations.

Expansion

• Funds-- unwillingness to get loans from organizations of finance such as banks.
• Company dealt with inadequacy in the extra skilled personnel.
Productivity is thought about excellent but is restricted with availability of only two carpenters.

Operation

• Providers of the organization were lengthy as there were no choices of fast service.
• The cost of ad was quite high and specific focus of company towards food.
• The services variation was limited to the main United States food market.
• The menu of the organization does not have range of food as the menu was restricted.

Improvements:

Expansion

• For the growth of service, there is a requirement to explore potential regions such as suburban area locations.
• Joint ventures are thought about more liable in comparison to franchise such as with the chain of global hotel.
• Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis can significantly take funds from the organizations of financing as capital was not a matter of issue.
• Expansion of business in the international market like market of South East Asia with anattention of middle to upper class division.

Development of brand names with differing worth proposition like Raffles Holdings Limited Valuation Of A Divestiture Case Study Help signature, Raffles Holdings Limited Valuation Of A Divestiture Case Study Analysis and Raffles Holdings Limited Valuation Of A Divestiture Case Study Help Asian Express.

Cost

• Through the expansion of business in the suburb locations, there will be reduction in the site cost.
• Reducing of extra cost of advertisement.
• Usage of regional material in the advancement of building to give it a shape of architecture of Japan.
• Usage of locally offered workforce for the work of woodworking.
• Purchase of decoration material wholesale total up to get more discounted rates of the items.
Structure of workshops in developing nation such as Indonesia or Thailand for production of decoration craft of Japan as new organisation line.

Operation

• Present operations with quick services in order to cater the department of youths.
• Raffles Holdings Limited Valuation Of A Divestiture Case Study Solution can use up add-on service in order to sell conventional things of Japan in a committed restaurant areas.
• Bring variation in the menu such as addition of sushi-on-the-go, udon, robatayaki.
• Introduction of attractive plans for old individuals and females.
• Intro of complimentary card of subscription to provide plan of special deal to its loyal clients.
Building of regional center for training particularly to train regional personnel.




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