Chapter 7, Question 1
Outback has clearly defined strategic goals that give a clear sense of where the company is headed in the future. The company intends to drive its future growth though a four pronged strategy. First, they want to continue to expand in the U.S. with an additional 300-350 Outback concept restaurants. They also plan to develop a second system of franchise restaurants called Carabbas. After that, the founders may develop additional themed restaurants, and branch out into international franchising. To achieve these goals, several operational goals have been defined. The owners will continue to focus on the development of Outback, because “there is still a lot of work left to do there.” Also, expanding Outback to greater levels will provide a strong foundation for the Carabbas venture. As Joe Coffer said, “I see [Outback] as the McDonald’s of the future, except a step up.” The operational strategy right now is to continue expanding Outback operations, and continuing to build their reputation as the premier mid-level steakhouse. There are many standing plans outlined in the text, but two of note deal with the promotional strategy and staff training. All job candidates for the restaurant staff are required to pass an aptitude test that assesses basic skills such as making change. Also, every candidate is interviewed by two people, and undergoes psychological profiling. With regards to promotion, Outback does local advertising on billboards and TV, but most of their promotion is done through community involvement. Actions speak louder than words, and the founders know that – their community involvement helps “build friends and an image of great food at a great price.” A single use plan was put into effect when the company needed additional venture capital to fund Outback’s early stages. They planned to offer a portion of the company for public sale. A project schedule was developed, outlining exactly what was needed for the...
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