Hugh connerty outback steakhouse

Individual Case Study

Uwe Wehner

June 20, 2010

06/20/2010 2  Uwe Wehner

I. Preface: This individual case study concentrates only on the most important facts mostly in bullet point style and not in essay style, to get a quick overview. It gives you a view about the conent of the text and the possible strategies. The case study can support case study - presentations and/or exam preparation. Not all questions signed are answered as they are answered already by parts of the previous questions. The case study is based on the "Outback – Going International" case out of the book of Mr. Robert M. Grant "Contemporary Strategy Analysis and Cases – 7th Edition". The "Individual Case Study" represents the opinion of the Author and has no demand to completeness.

06/20/2010 3  Uwe Wehner

II. Assignment Questions for Case Study: Outback Steakhouse – "Going International" 1. What are the principal features of Outback Steakhouse’s strategy in the US? Why has the strategy been so successful? 2. What are the key elements of the international expansion strategy being proposed by Hugh Connerty? 3. Assess the proposed strategy in relation to (a) Should Outback Steakhouse expand internationally, or would it be better to expand through starting new restaurant chains within the US? (b) Does the strategy outlined by Connerty make sense? 4. If Outback is to expand internationally, advise Chris Sullivan on (a) The optimal rate of international expansion. (b) The best mode of entry into foreign markets (e.g. direct management, JV (Joint Venture), franchise). (c) Which country(ies) to enter first. (d) Whether Connerty is the right person to head the International Division. Additional Questions: 5. Do a SWOT Analysis of Outback Steakhouse. What does it suggest? 6. What are the 5-Forces by Porter? 7. What are the key success factors in the casual dining portion of the restaurant industry? Build-up a strategy on the Key Success Factors. 8. What are the primary elements of Outback’s strategy in the United States? What resources/capabilities have been critical to Outback’s success? Possible further Questions (can be found as part of previous questions): 9. What are the standout business and economic characteristic of the restaurant industry? 10. Assess the alignment between Outback’s proposed international strategy and these key resources and capabilities developed in the United States. 11. If Outback does expand internationally, what would you recommend as far as which countries to pursue first, the best mode of entry into these countries, and the pace of international expansion? If you recommend that Outback not expand internationally, how might Outback further develop its business opportunities in the U.S. 12. What major issues and conditions is the restaurant industry facing in the US? 13. What recommendations would you make to Outback Steakhouse to keep increasing sales and profit margins in his stores?

06/20/2010 4  Uwe Wehner

III. Answers: 1. What are the principal features of Outback Steakhouse’s strategy in the US? Outback Steakhouse's strategy in the US – Principle Features: Strategy of Outback Steakhouse: Differentiation Astute positioning within the intensely competitive US restaurant business through differentiation strategy. Principle Features:

1- Differentiation Strategy (central of chain's differentiation: High quality of food and service, relaxed ambience and comfortable experience) 2- Limiting service to dinner (Outback serves only dinner) 3- Customer satisfaction 4- Outback Location and Australien Theme 5- Management and ownership structure, Benefits for employees 6- Human Resources - Selection of managers and employees 7- Long term relationship with suppliers and employees 8- Constant drive for innovation and improvement 9- Diversification: Entry into other market or restaurant concepts besides the traditional Steakhouse Market– JV with Carrabba's Italien Grill

06/20/2010 5  Uwe Wehner