RESEARCH REPORT: STRATEGIES FOR GROWTH AND SUSTAINABILITY OF NANDO’S CITY CENTRE OUTLET Abstract
This study sheds light on the strategic growth and sustainability of Nando’s in order to rectify the present issues of this venture. Based on the background of this research, the study has developed its aim and objectives. Identification of issues in this company has pointed out and evaluated with theoretical perspectives. Based on the collected data and information, this report has evaluated a proper understanding that may bring an accurate response in completing the study. Finally, the implementation plan has suggested in order to meet the recommended approaches within a particular time.
- The food and beverage industry companies confront a tough competition in order to manage its business in a different places and countries.
- This study has developed a planned research based on the Nando’s food products along with evaluating its growth strategy in the New Zealand.
- Along with its customers such as KFC, Burger King and Subway, this venture is also a leading competitor in the fast food manufacturers.
Specialties of these companies are focused to access a developed market with its specialty of products in producing roasted and grilled chicken. In identifying the scenario of recent business issue the study has critically overview on research process. The problem statement of this study is to develop research outcome based on key concepts of strategic growth and sustainability in Nando’s City centre Outlet.
2. Background of research
- Nando’s has experienced a decreased revenue generation in recent days due to certain reasons.
- As for instance, the venture is facing several challenges due to excessive competition in this industry. Additionally, the failures of management strategies are also provide serious impacts on the work process of this business house.
- In identifying the background, the researcher has specifically overview on key aspects of this study.
- Due to the multiple failures the firm has not only faced poor business engagement but also lack the profitability and customers support.
In the country of New Zealand there are a large number of people who are habituated to access fast food products regularly. Failure in supplying healthy and fresh food products the brand can be replaced by other contemporary fast food producers. In addition to this, there are no previous research on the strategic growth and sustainability with removing core competition. Thus, this research is relevant to develop proper understanding on the selected topic.
3. Aims and objectives
The aim of the research is to lift up the profit of this business venture with removal of competitive effect in New Zealand.
- To enhance the diversification policy with assessing of competitive advantage
- To focus on strategic development to improve staff performance and satisfaction
- To access customer loyalty and sustainable development
- short fall of current growth strategy (nandosindia.com, 2018)
- Hard competition with new entrants and existing companies
- Fall in revenue generation (Jones, Hillier & Comfort, 2016)
- Ineffective support of New Zealand territory
- Improper access to strategic business development
The above mentioned problems are the key criteria that directly relate to necessity to conduct this research. Additionally, these issues are focused in this report to assure the successful outcome of the research.
5. Relevant aspects of literature review
Strategy of diversification:
- There is changing approach in modern food retail business and changing tastes of customers (Epstein, 2018).
- Low product variability cannot access wide range of customers
- Low profitability and decreased percentage of customers
- This strategy is highly reliable to use and helps to reduce different risks
- Bring changes in the monotonous food product selling and meet customer demand (Haigh & Hoffman, 2014)
- Alternative product supply is immensely beneficial to uplift the customers engagement
As stated in the above part there are multiple positive reasons with which a company can reduce the scope low percentage of profitability. Application of product diversification can make customers interested to access the products from a particular brand.
6. Types of diversification
|Concentric diversification ||Conglomerate diversification |
- Company produce more new products to reach more customers
- Close to the company's existing related products and services
- Used when a venture needs to increase the product portfolio (Engert, Rauter & Baumgartner, 2016)
- Proper growth strategy to add new products and services
- Generally different organization’s present product and services
- Starts operation in different unrelated industries
Above comparison has clearly shown the compatibility product diversification strategy in different organisation. Application of appropriate technique may be effective to access a better business position in existing market.
7. Effect on Nando’s:
- Approach of product diversification may help to deliver better business support in Nando’s market competence.
- The previous comparison has clearly shown way of application in the market status of the selected company.
- In order to develop company benefits the venture should implement concentric diversification strategy in its business process (Frederick, 2016).
8. Customer retention strategy:
- Customer loyalty is directly connected to the growth opportunity of a business firm
- Education, age, gender and expectation are related with the customer retention strategy
- Negotiation with customer demand is directly connected with the customer retention technique (Hahn, Preuss, Pinkse & Figge, 2014)
- It can support customers to access personalized as well as diversified product range
- Education and gender is the two key factor that controls long term relationship with customers
- Bargaining power of educated customers may provide negative impact
As suggested in the above context, it is important to access a proper customer retention technique in order to develop customer loyalty. Nando’s can approach the demands of its customers in order to verify the compatibility of products range, service level and product price. Proper evaluation can bring a suggestive change in order to develop current business scenario of the firm.
9. Summary of using visuals
- In order to complete the project researcher has conducted both qualitative and quantitative method in consideration
- Primary data collection along with statistical approach can help to develop a proper data in order to provide accurate result (Yang, Sun,Zhang, Wang & Cao, 2017)
- Based on positivism philosophy the researcher has approached to consider realistic factors
- Objective aspects has mostly focused
- A detail questionnaire had prepared to collect data about customer satisfaction and present condition of this firm
10. Summary of responses
There are different questions that had asked almost 7-8 customers in order to collect their view on the recent situation of this firm.
- The reputation of this venture is quite good to the customers while some of them have pointed to its recent issues
- Variability of product Peri peri is the best choice for large percentage of customers
- Other than cost and quality, delivery process is quite unsatisfactory for its customers
- Customers are rightly pointed out some of its problems while they also suggested to develop the work process
- According to the survey, it can be found that the business requires to extend its business process through online platform
- In the criteria of customer loyalty there are large disparities
- It indicates that the firm has to change several features in its product as well as service to satisfy its customers in future
12. Analysis with recommendation:
- It needs to access more loyalty programme
- The product line should be changed in an urgent basis in this company
- Lack of diversification is growing reason of dissatisfaction in this venture
- Lowering price is the demand of most customers
- Concentric diversification can help to develop the product line of this company
- Herzberg's hygiene theory can be accessed that can make an improvement in the level of employee satisfaction and job security (Alshmemri, Shahwan-Akl & Maude, 2017)
13. Recommended implementation plan
|Recommendation 1||Enhance the product diversity with multiple new products |
|Recommendation 2||More focus on organic food products. E.g. seafood |
|Recommendation 3||Switch to appropriate strategy in order to recruit efficient staffs |
|Recommendation 4||Considering customer feedback in order to bring development in service of this company |
- With proper market analysis and research the venture can meet customer requirements for product diversification
- Quality control manager and analysts may be entrusted with the duty of identifying issues related to food quality (Alli, 2016).
- 2450 NZD should be arranged to meet the needs of food quality control
- Development on customer satisfaction can be incorporated with online customer feedback and review on products
The above planning can be accessed by the management of this firm in order to develop the state of various issues in this organisation.
- The project is concentrated to assess sustainability of Nando’s food products
- It has not only focused on issues of the firm but also provided a detailed outline to resolve the business issues
- Focusing on strategies with theoretical underpinning can assure to make an accurate plan for business development
- Growth and sustainability development are helpful to manage recent issues in Nando’s and it also represent complete improvement in this firm
- The above study has successfully conduct a critical understanding on the selected issue of Nando’s
- Based on the issue of low success rate in competitive market, this report has proceeded to evaluate a complete improvement plan
- Theoretical help and research design is compatible with the study
- Collected information were relevant enough to bring an action plan that can meet the demands within a particular time
The concluded part has shown the success ability to conduct a complete study along with critical analysis. Based on the issue of the research, the study has emerged to develop proper planning in order to access sustainable development for Nando’s.