Part A: Outback Steak House: Going International Part B: Individual Reflection and Self-Analysis

UNIVERSITY of SALFORD
BUSINESS SCHOOL




Graduate Certificate in International Management : CRN 32274


International Business & Management




Semester Assingment / Part 2


Part A: Outback Steak House: Going International
Part B: Individual Reflection and Self-Analysis




Monday 11th August 2014




Oguzhan AKIN
@00394149

,TABLE OF CONTENTSI Page




PART A: CASE STUDY – OUTBACK STEAKHOUSE: GOING INTERNATIONAL

INTRODUCTION ..................................................................................................................... 1

Question 1: Expand to Internationally or Stay in Locally ......................................................... 1

Question 2: If Outback is to expand internatonally ................................................................... 2

a) The optimal rate of international expansion .............................................................. 2

b) The best mode of entry into foreign markets ............................................................. 4

c) Which country / countries to enter first ..................................................................... 6

CONCLUSION .......................................................................................................................... 7



PART B: INDIVIDUAL REFLECTION AND SELF ANALYSIS

Questions 1: Expectations .......................................................................................................... 8

Question 2: Challenges .............................................................................................................. 8

Question 3: Preparation ............................................................................................................. 8



REFERENCES .......................................................................................................................... 10




I Report on Outback Steakhouse: Going International

, PART A: CASE STUDY – OUTBACK STEAKHOUSE: GOING INTERNATIONAL1


INTRODUCTION


Outback Steakhouse was founded in Florida in 1988. The restaurants founded based on the
hospitality, balanced pricess with quality, serving the best steaks and be entertained colleagues. The
company turned out to the fastest expanding steakhouse restaurants chain with more than 200 stores
domestically in the United States in 7 years (Funding Universe, 2000).


However, such a fast growing restaurant chain has reached saturation? Or in the restaurant industry
is facing stiff competitive attitude of its competitors? Or this fast-growing company, how to meet
the expectations of investors increased revenue could more? Answer is the current situation, the
abroad adventure began with the opening of Canada continues with over 1200 restaurant in 47
states and in many countries (Outback, 2014).


Question 1: Expand to Internationally or Stay in Locally


United States consumers' demographics: the population growth rate is slow, more demand for
convenience foods for comfort of working parents, tastes are changing according the population
ages, and the high expendable incomes of 'baby boom' generation. These are some of the conditions
that directs of the restaurant industry in the United States. The means of the Outback customers are
aging, who does not like to eat fast food, the people who can wait long time to find table for dinner
at the weekend, and also who is willingly to pay more for a dinner. The demographic of consumers
in U.S. is meeting with the customer profile of Outback Steakhouse. A substantial raise of local and
overseas franchising, international convergence of cultural bias, rising incomes, infrastructure
enhancements and higher education levels are pressing to the company for the expansion to
international areas (Citadel, 2000).


Although a local brand that captures the success, though, in almost every state and many strong
competitors in the restaurant industry for Outback Steakhouse with all indicators showed the
opening to international. As a company which accustomed to open 70 new restaurants branches
annually, is easy to predicts growth is not permanent in the same country. The financial health was
in good shape for business enhancement. Between the 1990 and 1994, the average annually increase
in net profit became 202 %, nevertheless, in consequence of saturation, net profit was 141 % in

1 Report on Outback Steakhouse: Going International