Outback Steakhouse - Going International
Outback Steakhouse |
|Going International |
1) There is a combination of business practices and features that made Outback Steakhouse (OBS) successful in the US market:
• Unique human resources management style where management and joint venture partners take on ownership of their business and share success
• Limited operation hours reducing wasteful spending and employees’ stress
• Rigorous hiring process, high employee retention rate and skills
• Limited serving to 3 table per employee
• Cultural support of innovative management process
• A wider range of option in their menu, as well as high quality food
• Partnership-like relationship with its suppliers
• Exotic Australian theme
• Diversified into other products such as that with Carrabba’s
These give OBS their differentiation identity amount its competitors. However, some argues that their unique culture might not fit well with international investors.
2) Hugh Connerty proposed that international expansion includes the following:
• An opportunity for its suppliers. OBS is committed to grow with its suppliers.
• Carefully selecting individuals that share the core value of OBS using franchising.
• Plans to expand internationally first into Canada, then into a diverse international stage all within the first year. UK will be the target of the following year. Market risk is diversified into other markets.
At first glance, this seems like it utilizes the similarity of the Canadian market to expand its international presents, while continuing to grow its value chain as a whole. However, there are many issues that this strategy will face as discussed in the next section.
3a) I recommend to
|Going International |
1) There is a combination of business practices and features that made Outback Steakhouse (OBS) successful in the US market:
• Unique human resources management style where management and joint venture partners take on ownership of their business and share success
• Limited operation hours reducing wasteful spending and employees’ stress
• Rigorous hiring process, high employee retention rate and skills
• Limited serving to 3 table per employee
• Cultural support of innovative management process
• A wider range of option in their menu, as well as high quality food
• Partnership-like relationship with its suppliers
• Exotic Australian theme
• Diversified into other products such as that with Carrabba’s
These give OBS their differentiation identity amount its competitors. However, some argues that their unique culture might not fit well with international investors.
2) Hugh Connerty proposed that international expansion includes the following:
• An opportunity for its suppliers. OBS is committed to grow with its suppliers.
• Carefully selecting individuals that share the core value of OBS using franchising.
• Plans to expand internationally first into Canada, then into a diverse international stage all within the first year. UK will be the target of the following year. Market risk is diversified into other markets.
At first glance, this seems like it utilizes the similarity of the Canadian market to expand its international presents, while continuing to grow its value chain as a whole. However, there are many issues that this strategy will face as discussed in the next section.
3a) I recommend to