Outback Steakhouse - Going International

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Outback Steakhouse |
|Going International |

1) There is a combination of business practices and features that made Outback Steakhouse (OBS) successful in the US market:

• Unique human resources management style where management and joint venture partners take on ownership of their business and share success

• Limited operation hours reducing wasteful spending and employees’ stress

• Rigorous hiring process, high employee retention rate and skills

• Limited serving to 3 table per
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OBS should first target similar markets or those that are receptive to western practices and food. This allows they better control over supply chain development, understand the local market, build infrastructure, and adapt to local laws and policy. Limited exposure reduces risk, and this acquired knowledge can then further be used in expanding into other countries.

4b) Because there is a need to construct a strong supply chain and reputation, I would recommend to first expand with direct management. This is more costly option, but a limited expansion will allow them to have more direct control and gain firsthand experience. A successful international supply chain will strongly support its further expansion, at which point franchising would be feasible and are likely more successful. OBS might lose control if they go with JV.

4c) Canada would be the ideal country to first enter, as its market habit, purchasing power, and culture closely resemble that of the US. Supply chain would be easier to control as it is close to home. Yet, this market is not as saturated as the US. OBS can learn to manage international expansion and adaptation to different culture with much lower risk and cost.

UK is also a logical option, as it is more receptive to US ideology within the Europe market. This allows further understanding of overseas management and builds its brand.

Hong Kong is an unlikely candidate, but considers the following:

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