![]() There is no change to the expected level of the final dividend for the financial year to 31 December 2006.Intention to return £350 million to shareholders via a special dividend.Net proceeds of approximately £460 million, after transaction costs and tax.Total enterprise value of US$975 million including the assumption by Seminole of approximately US$10 million of capitalised leases.Total consideration of US$965 million (equivalent to approximately £490 million) payable in cash.Hard Rock value is maximised for shareholders via an outright sale. ![]() Completes transformation of Rank from a diversified leisure group into a focused gaming business.A review of strategic options has resulted in the sale of Hard Rock to Seminole.Following the completion of this transaction, Rank intends to return £350 million (equivalent to approximately 65p per share) to shareholders through payment of a special dividend, and to effect a share consolidation. ('Seminole'), a wholly owned subsidiary of the Seminole Tribe of Florida, to sell the Hard Rock business ('Hard Rock') for a total consideration of US$965 million (equivalent to approximately £490 million) (the 'Disposal'). Therefore, the company should study the presence of substitutes and their impact on the target industry, including restaurant, hotel and casino industries.The Rank Group Plc ('Rank' or the 'Group') announces that, following a review of its strategic options, it has reached an agreement with Seminole Hard Rock Entertainment, Inc. Substitutes can replace Hard Rock Café from the market. Therefore, Hard Rock Café should choose the market where it can afford the competition with local rivals.įinally, the company should take into consideration the threat of substitutes. In fact, the company should assess adequately its potential and capability to maintain competitive struggle. In such a situation, the company should come prepared to rivalry. Therefore, Hard Rock Café should chose the target market, where barriers to entry are low, while prospects of the market growth are high. In contrast, markets, where the competition is tight but the number of companies operating in the market is high, barriers to entry are lower. They can raise substantially the barriers to entry. Barriers to entry are high in markets, where there are a few strong companies operating in the industry. The company will also have to overcome barriers to entry. Reliable local suppliers can help the company to save costs and to provide consumers with products and services of the high quality. Hard Rock Café relies heavily on local suppliers, especially in regard to its restaurant and hotel business. The supplier power is also important in terms of business development of the company in a new country. The high buyer power is likely to facilitate entering the new market because buyers can use services offered by Hard Rock Café, while customers with the low buying power are likely to save their money and refuse from using services of Hard Rock Café. In this regard, the buyer power can affect the success of Hard Rock Café entering new markets. The analysis of five force model can help Hard Rock Café to identify the best target market. The company can benefit from entering markets with the low level of the competition. Hard Rock Café will face considerable difficulties in the market, where the growth has stopped and the competition is tight. In fact, the company should enter markets which have a potential for growth. The country market and industry opportunities are also extremely important for Hard Rock Café and its international business development. – Country Market and Industry opportunities The company can also use its financial and material resources to develop its chains in the target market. Hard Rock Café can use its human resources to transfer to the new outlet and to train local employees. ![]() In fact, the resource base of the company is sufficient for the international business development. The company needs the resource base to develop its business internationally (Gitlow, 1997). The resource base of the company is crucial for the successful business development of Hard Rock Café. Hard Rock Café’s system of values promotes equal relationships within the company. The company has its set of values, which employees respect and appreciate. ![]() Hard Rock Café has the code of ethics which regulates relationships between employees working in the company. Hard Rock Café develops its business internationally. The company develops the value chain throughout new markets (Blanchard & Bowles, 1993). The company develops the value chain and, while entering the new market, Hard Rock Café should develop its value chain in the new market. Hard Rock Café should develop the value chain.
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