Innovation and Sustainable Business Development | Nando Australia

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Name of the student
Name of the university
Author note

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT1
Introduction to Nando’s Australia
The concerned organization, Nando’s, is a South African restaurant chain which
specialized in peri-peri style chicken dishes. The organization was founded in the year 1987 in
Johannesburg and developed branches in different regions of the world (Nandos.com, 2019). The
different changes that are initiated by the organization are specifically based on identification of
the needs and preferences of the customers (Nandos.com, 2019). The subtle changes in the
dishes and preparations permit the venture in gaining a sustainable edge while expanding in the
different markets. However, in the recent years the organization faced different issues which
minimized the rate of expansion and sustenance of the venture in stiffened market competitions.
The research will examine the issues and thereby develop recommended innovations with the
objective of mitigating the issues.
The problem to be solved
The major problem that is being faced by the organization, Nando’s, is related to the
quality of the chicken food offerings which resulted to loss of loyal customer base. It has been
reported that Nando’s stores in Perth was convicted of poor sanitation ad hygiene facilities in the
cooking areas which resulted to an increase in the rodent activities (Abc.net.au., 2017). On the
other hand, a customer reported and filmed maggots in a chicken meal served by the organization
in their Kotara store, which is about 160 kilometers north of Sydney (Abc.net.au., 2017). The
lack of efficient monitoring and quality related supervision activities in the organization affected
the brand image and the customer loyalty towards the offerings that are made by the same. The
organization apologized to the customers for the bad experience but the organizational position
was compromised due to lack of due diligence. Therefore, the problem must be taken into

Lack of
Pest
control
activity
Lack of
monitoring
and
reporting
Lack of
trained
personnel
Lack of
policies
relating to
quality
standards
Outco
me
Causes
Quality issues
Fishbone
diagram
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT2
consideration by the organization with the objective of retaining the trust and loyalty of the
customers over the propositions that are planned by the venture.
Problem insight
The problem relating to faltering quality occurred in the organization due to the lack of
efficient monitoring and evaluation programs. On the other hand, the absence of pest control
related operations of the venture affected the rate of operations of the venture while operating as
per the needs of the customers.
Figure: Fishbone of Nando’s
(Source: Author)
It has been noted that most of the target customers of the organization are millennial
(GenY), which focuses more on the quality of experience over the price of the offerings that are
proposed by the ventures (Dhang, 2018). The bad experience of dining in Nando’s restricted the

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT3
organization in retaining the trust of the customer group while proposing promotional offers on
the offerings. The organization also failed to adhere to the requirements as per the ISO 22000
certification (Silva, Fonsecav & Sousa, 2016). On the other hand, the organization also faced
significant issues in improving the quality of the propositions due to the absence of micro-
management principles in the organizational culture. The various issues that are being faced by
the organization are related to the lack of trained personnel, absence of policies adhering to the
quality standards, the lack of sufficient pest control activity and absence of monitoring and
reporting related operations. The quality related issues affected the brand image of the venture
while losing a group of loyal customers.
Portfolio of generated solution concepts
The different alternative solutions that might be applied by the organization are being
discussed in this section of the research:
 Developing Integrated Pest Management (IPM) program: The introduction of
Integrated Pest Management program would permit the venture in minimizing the pest
activity. The pheromones traps might be utilized by the organizations with the objective
of improving the efficiency of the operations while reducing the pest activities (Lowe et
al., 2019). The application of pest control mechanisms would permit the organization in
minimizing the risks of pests in kitchen. On the other hand, the regulations related to
sanitation can be maintained through the effective implementation of the IPM program
in the organizational operations.
 Recruiting trained personnel: The recruitment of trained personnel as the staff members
of the organization would permit the same in improving the quality of the propositions in
placement with the needs of the customers. The trained employees in the organization