Business

Only available on StudyMode
  • Download(s) : 232
  • Published : February 4, 2013
Open Document
Text Preview
analysis of managing capability at nandos
This report aims to describe and evaluate capabilities it will use the resource based view to examine them in more detail and examine the importance of them to a firm. After this, the report will then evaluate Nandos resources and capabilities and will discuss ways in which these can create a foundation for competitive advantage. It will then use an assortment of analytical frameworks relevant with Nandos to investigate in more detail the competitive advantage they have over their competition. Finally it will then discuss how Nandos managers are able to develop and manage their capabilities. INTRODUCTION

This report will be based around Nandos the restaurant chain. Nandos whose food, along with wacky advertising campaigns has captured the hearts of thousands of beloved customers. The origins of Nandos can be traced back to South Africa where the first restaurant opened in 1987, Robert Broz in and his friend Fernando Duarte popped into a Johannesburg restaurant called Chicken land. The chicken was the best they'd ever tasted, they thought, and promptly bought the joint. They renamed it Nando's, after Fernando, a Portuguese national (Guardian.co.uk). Its the distinctive chicken they serve, happy staff and customer service which offers a unique Nandos dining experience which competitors could only hope to achieve. It has had rapid expansion overseas seeing triumph in many of the 30 countries they operate, although it has not been successful everywhere they laid their eggs. In order to comprehend the strategy as well capabilities the companies possess, it is essential to look at all the pieces of the Nandos puzzle, this report will do this by drawing on real life examples of how Nandos have utilised resources and capabilities, in addition will be using analytical frameworks to support findings and present further understanding. RESOURCE BASED VIEW

The resource-based view of strategy proposes that both resources and capabilities are essential to success in business; Grant states it is the principle foundations for strategy, along with correct understanding and implementation of them, are a firms key source of profitability. (Grant 2009 pNUM) It is also important to distinguish between resources and the capabilities of a firm; resources are, The productive assets owned by the firm whereas capabilities are what the firm can do (Grant 2009). One of the foremost sources of profitability is the competitive advantage in a market. Establishing competitive advantage can be achieved through the development and deployment of resources and capabilities, and has become the primary goal for strategy.(Grant, R 2009 p. 124). Furthermore, if the external environment changes frequently, then a more secure foundation is constructed using internal resources and capabilities (Grant, R 2009). This strong assortment of resources and capabilities can be used by a firm to exploit different markets in which they could complement, instead of allowing the market in which they operate along with customers to control how it functions and what it produces, further supporting the significance competitive advantage can have in a market, as well as the need to possess this. Tangible

In Fig 2, it identifies the financial resources ratio of the firm. Since beginning the company in 1987 it has see continued financial success especially through 1993 to 1997, there revenue had increased by over 700%. Carrying on into the 00s the firm has seen triumph in the UK with the opening of over 200 stores by 2008(Guardian.co.uk). When looking at the balance sheets of Nandos it shows them in a strong financial position, although the 30 million pound acquisition of GBK could been seen as an unnecessary risk by some, it will allow Nandos to acquire more capabilities rather than having to develop them by themselves. Intangible

Management within Nandos shows how they are constantly innovating and this can be seen as a reason behind...
tracking img