Outback Goes International
...s. The use of these tools can give a company their competitive advantage by positioning themselves to adapt to the differences that exist in the new market. Alternative Generation Decision Areas A business plan must be establish in order for further expansion globally. In order for Outback to compete and profit, they must develop a strategic approach in understanding their targeted market. Outback needs to maintain a competitive advantage to surpass their competitors and achieve targeted growth. The major decision areas that need to addressed are: Supply Management, Market and Public Relations, Localized Training, Research and Development, and Infrastructure. Supply Management: The company is dedicated to maintaining the highest standard of supplies and ingredients. Outback believes that a strong relationship with suppliers is essential, and wants their suppliers to grow with them. If not, Outback must contract new supply resources internationally. - Option 1- Do nothing, keep current supplier. - Option 2- Have supplier build plants in the non-U.S. markets - Option 3- Own their own supplies through vertical integration - Option 4- Contract new suppliers in the new market Marketing and Public Relations: Outback must develop a new marketing approach which in relation to the cultural habits of their targeted market. They must utilize market researches and data information to increase product awareness. - Option 1- Do nothing, follow your competitors. - Option 2- Develop an aggressive marketing strategy to establish which market to enter. - Option 3- Establish a Marketing/PR effort to determine a predictable market. Localized Training/HR: Individuals should be carefully chosen, motivated, and trained to include a good combination of locals. - Option 1- Continue the current hiring programs. - Option 2- Hire any willing workers - Option 3- Establish training programs that will help further employee growth. Research and Development: Outback should ensure that their uniqueness is maintained in the different international markets. The different backgrounds and cultures abroad should be used creatively to craft a consistent but different dining experience in every country. - Option 1- Maintain current focus in research and development. - Option 2- Decrease funding. - Option 3- Outsource. - Option 4- Increase funding and focus on custom-developed dining menus for each country. Infrastructure: Adopting a solid infrastructure is essential in expanding abroad. Outback must seek a network in which satisfies the supply needs and establishment standards. Being able to incorporate transportation, communication and cost saving methods into their infrastructure means utilizing information concerning all means of transportation of raw materials, employees, and all levels of economic developments. - Option 1- Use current domestic infrastructure traditions. - Option 2- Establish infrastructure projects such as transportation and communication. - Option 3- Increase spending developing infrastructure projects and social programs. - Option 4- Decrease spending on infrastructure projects. Decision areas and their corresponding options can be further analyzed. Strategy Supply Management Marketing/PR Localized Training/HR Research and Development Infrastructure Status Quo Status Quo Status Quo Status Quo Status Quo Build Plant Abroad Aggressive Marketing Strategy Any willing workers Decrease funding Establish Infrastructure Vertical Integration Predictable Market Employee Growth Outsource Increase spending on infrastructure projects New Suppliers Increase funding Decrease spending on infrastructure The following are four alternatives, or themes defined and presented below in the strategy table. Strategy Supply Management Marketing/PR Localized Training/HR Research and Development Infrastructure Invest Elsewhere Status Quo Status Quo Status...