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Posted on April 27th, 2014, by

Choosing the country

While choosing the country, Hard Rock Café should take into consideration several factors. In this regard, Hard Rock Café should pay attention to criteria included in BERI index, which may be grounded on the PESTEL analysis of the target country. The company should choose the country, where the environment is the most favorable for the development of its business. In addition, the company should take into consideration the country attractiveness and competitive strengths, based on the analysis of the target market and competitive environment in the target market.

On the ground of the aforementioned criteria, Brazil is the most attractive country for the development of the hotel and casino business, while India is the most attractive target market for the development of the restaurant business of Hard Rock Café. At this point, it is possible to refer to the PESTEL analysis of each country.

First, Brazil is a politically stable country, where democratic principles prevail. The political development of the country is foreseeable and no radical political changes are expected in Brazil in the nearest future as well as in a long run perspective. The economic environment in Brazil is also favorable. Even though the economic growth has slowed down since the global financial crisis of 2008, Brazil still has a considerable potential for the further growth and business development. In addition, the local government supports foreign direct investments.

Furthermore, the social environment is also positive. Brazil attracts millions of tourists annually, while the local population can be attracted to the hotel and casino services offered by Hard Rock Café too. In fact, the hotel and casino business progresses in Brazil and the demand on hotel and casino services is high, while the local culture and tourist industry stimulate the development of the hotel and casino industry in Brazil, especially in large urban areas, such as Sao Paolo or Rio de Janeiro.

At the same time, the technological development of Brazil is high and the country implements technological innovations fast. However, environmental concerns of the local population grow stronger but Hard Rock Café can overcome this challenge introduce environment-friendly policy and investing in environmental projects (Kotter, 2001). As for the legal environment, Hard Rock Café can develop its business in Brazil successfully because the local legislation is stable and oriented on the attraction of foreign direct investments.

As for India, the PESTEL analysis also reveals the positive environment for the development of the restaurant business of Hard Rock Café in this country. The political situation is less stable than in Brazil but Indian political system remains unchangeable and there are no direct threats to the maintenance of the democratic development of the country. The economic growth of India is even more substantial than that of Brazil. India is attractive as a target tourist destination for millions of people from all over the world. In addition, Hard Rock Café can use the local cuisine to match interests of the local population and to attract tourists (Hazen, 2003). The technological development of India is fast and the company can use advanced technologies for the development of its business and higher customer satisfaction. Environmental concerns are relatively low in India (Chowdhry and Howe, 1999). Therefore, Hard Rock Café can develop its business successfully with minimal investments into environmental programs but still the company should maintain the image of the environment-friendly company. The legal environment of India is stable and allows Hard Rock Café to develop its business due to the support of the foreign direct investments.

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