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Outback Case Analysis

In: Business and Management

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Outback Steakhouse
Case Analysis
Module 4

Contents

1. Introduction 3
2. External analysis:
a. Five force Analysis 3
b. Key Driving Forces 4
c. Attractiveness of Industry 5
d. Strategic Group Map 6
3. Internal Situation Analysis:
a. Strategy of the company 7
b. SWOT analysis 8
c. Company’s performance 9
4. Major Issues or Problem the Company Must Address 9
5. Alternative courses of Action and Final Recommendations 10

Introduction

In 1987 three friends came up with a new Australian themed restaurant venture. Over cocktails they all agreed on the name “Outback” and before the first restaurant opened they had a fourth join the team. The first restaurant opened in 1998. The original business plan was for four restaurants, one for each. But the “No Rules, Just Right” service took off with great success. By 2004 they had hundreds of restaurants all over the world.

Company-owned restaurants consisted of restaurants owned by partnerships (with the company as the general partner) and joint ventures (with the company as one of the two members.) In 1993 the company decided to expand and diversify its restaurant portfolio to capitalize on the growing popularity of casual dining. This was done mainly through joint venture partnerships.

The industry had been growing very strong but that changed in 2004. Due to higher energy and commodity cost, natural disasters, top management changes, and strong competition it become much harder to continue the level of growths and profits.

Five Force Analysis

Revenue for the U.S. restaurant industry was 1 Trillion in 2004 and was expected to reach 1.2 Trillion in 2005. But the restaurant industry has incredibly intense competition, tight margins…...

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