Outback Steakhouse: Going International

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SGMT 5600J Strategic Thinking For Global Managers|
Case Study #1|
Outback Steakhouse: Going International|
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Professor: Tom Wesson|
Student Name: Meng Zhao|
Student Number: 212442588
March 20, 2013

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Q1: What are the principal features of Outback Steakhouse’s strategy in the US? Why has the strategy been so successful? Outback positioned itself as providing not only excellent food, but also a cheerful, fun and comfortable experience in US market. Instead of competing on low cost, Outback has gained its competitive advantage by differentiation in its strategy in the following five aspects. * Emphasize high quality of food and services delivered to customers. Outback strictly controls the quality and freshness of food in every process. The “No rules, just right” belief obviously shows the priority of customers’ need and preference. This is the most basic but critical part in restaurant industry. * The different management model on customer, employee, and table turnovers. Unlike most restaurants that worry most about customers and consider less about employees to achieve better performance, Outback focuses on fighting for employee turnover, and then achieves well-paced table and ultimate customer turnover. By creating a workplace where employees would like to stay long and improve skills, Outback can attract customers who can be better served. * Open hours are limited only during dinner. Considering the costs of longer hours of opening, employees’ working efficiency, and freshness of food, Outback focuses on dinner time. * Locate restaurant in residential areas rather than downtown. This reduces the rent costs and closer to customers. * Unusual management and ownership structure. With different incentives and functions assigned to “managing partners” and “joint venture partners” (see exhibit 1), they closely work together under executives. Q2: What are the key elements of the international expansion strategy being proposed...
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