OUTBACK STEAKHOUSE II
1- What are the key elements of the international expansion strategy being proposed by Hugh Connerty? Does the strategy outlined by Connerty make sense? 2- 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
c) Which country(ies) to enter first
d) How to adopt the best international approach in order to give response to globalization and national differentiation drivers (e.g. which activities you would standardize, which ones you would adapt nationally, etc.) (e) Whether Connerty is the right person to head the International Division Answers:
1- Hugh Connerty thought that the best way to prepare for international expansion was to go slowly and to open one restaurant by one. He was very close to the suppliers and he wanted them to keep working in the international expansion of the company. High loyalty to suppliers and expecting the same from them ( support operation).
To go ahead with this project Mr Connerty decided that the best option was to franchisee the international operation with company-owned stores in the EEUU and franchisees abroad.
Mr Connerty was aware that it would not be easy to entry in a new market country and for this reason he decided to do franchisees one by one. His major challenge was to found the best franchisee partner. This person had to be someone who knew perfectly the country and everything related with it and also had to think in the same way as them. This person had to be of absolute trust as they were investment many millions of dollars so they want to have a trusted person.
As for the geographical pattern of expansion, Connerty knew that people from different countries thought very different than the Americans that is why he wanted to go slowly starting with the closest countries and step by step going further. He thought the international expansion as a long term project....
Please join StudyMode to read the full document