Outback Steakhouse Case Analysis
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
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