Outback Steakhouse Case Analysis

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Professor Edward Desmarais
BUS 470 Business Policy and Strategy
Fall 2005

Outback Steakhouse Corporation
CASE ANALYSIS

Analysis completed by the Achiever’s

TABLE OF CONTENTS

I. Executive Summary

3

A. SWOT Summary

3

B. Recommendations

4

II. Current Situation

5

III. External Factors

12

IV. Internal Factors

39

V. Action Plan

76

Appendix A. Stakeholders Worksheet

87

2

I. Executive Summary
A. SWOT Summary
Weaknesses

Strengths


Low turnover rate for management



Lack of presence in fast food market

and hourly employees



Limited hours



Call ahead seating



Limited number of foreign



Strong quality control



Large portions and moderate prices



Inability to use economies of scale



Fun and relaxed atmosphere



Limited number of local fresh food



Managing partner ownership



Training strategy



Decreasing profit margins



Appeal to wide range of market



Large number of stores in hurricane

segments


restaurants

suppliers

ravaged areas

Curb side takeaway

3

Threats

Opportunities


Increase in foreign market stability



Aging median population



Ease and convenience of eating out



Mad cow disease

vs. self prepared meals



Increase in hurricane activity in US



Increase in population mobility



Wide availability of lower cost



More advertising opportunities to

substitutes

appeal to fast paced lifestyle



Quantity control of alcohol licenses



Emergence of Hallmark holidays



Fast paced lifestyle in America



Growing worldwide population



Decrease in discretionary spending



Restaurant industry employs 9% of
workforce

B. Recommendations
1. Market Outback’s non-beef based dishes
2. Determine public opinion and concerns regarding mad cow disease 3. Develop provisional marketing plan focusing on Outback’s safety measures 4. Toll free phone line available at hostess station to add customers to waiting list 5. Advertise and promote call ahead seating to a higher degree 6. Increase advertising for Curb Side Take Away

7. Perform market research as to what busy consumers look for in fast food service. 8. Send out flyers/promotions via radio, billboard and television advertising curbside takeaway 9. Teach detailed customer service techniques during training sessions 10. Use market research to identify the size of baby boomer market 11. Extend number of hours to accommodate older generations

12. Advertise with a focus on making Outback and affiliates attractive to older generations

4

13. Advertise in magazines such as AARP
14. Increase advertising prior to holidays such as Valentine’s Day and Father’s Day 15. Extend hours for holidays that fall on a weekends
16. Offer discounts and promotions such as birthday specials 17. Revise menu selections to include healthier choices and supply fat and calorie content upon request 18. Expand marketing department tasks to study growth strategies in foreign markets. 19. Best fit foreign locations with existing brands

20. Choose foreign restaurant brands to acquire or partner with 21. Build, staff, open and promote new locations.
22. Measure results and apply corrective action where needed

II. Current Situation
Mission
Criteria
What is our business?

Who are our customers
(stakeholders) (p. 34)?
What do we do for each
of them (p. 34)?
How (technology used or
functions performed) do
we meet their needs and
expectations (p. 34)?

How do we
communicate the
mission to our

Facts
Outback is in the restaurant business
with various market segments covered
through its subsidiary holdings
including:
Outback Steakhouse
Carrabba’s
Lee Roy Selmon’s
Cheeseburger in Paradise
Bonefish Grill
Fleming’s Prime Steakhouse and Wine Bar
Roy’s
Complete the stakeholder analysis
worksheet in lieu of...
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