Strategy in the Global Marketplace

Strategy in the global
marketplace

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Strategic Option for Nando’s and its Evaluation using SAF Model....................................3
2. Implementation of the Strategic Plan at Nando’s.................................................................5
3. Sustainability Strategy at Nando’s........................................................................................9
4. Promotion of Innovation at Nando’s..................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
For a business organisation to operate successfully within the consumer markets and
operational industries, it is immensely essential for the business organisation to create and
implement a business strategic plan that is able to increase the operational and financial
performance of the business organisation while also providing it with a sustained competitive
advantage against its competing business organisations (Riku and Setyohadi, 2017). This report
analyses the business strategy of Nando’s, which is a global restaurant chain that operates in the
global hospitality industry. Nando’s was founded in 1987, 33 years ago in South Africa and
currently operates from its organisational headquarters in Johannesburg. Nando’s restaurant
chain business organisation specialises in selling African Portuguese styled chicken fast food and
casual dining cuisines. Nando’s operates more than 1000 distinct restaurant chain establishments
across 35 different countries around the world. This report makes use of various models and
frameworks in order to analyse the strategic plan of Nando’s.
MAIN BODY
1. Strategic Option for Nando’s and its Evaluation using SAF Model
The most optimum strategy that allows for the future growth and development of
Nando’s within the hospitality industry and also allows for the business organisation to gain a
sustained competitive edge against their numerous competitors within the hospitality industry
relates to differentiation strategy. Through the differentiation strategic plan, Nando’s is required
to differentiate the goods and products that it sells to its customers within the hospitality industry
from the goods and products that are readily available to the consumers in the external markets
through the operations of Nando’s competition business organisations. As the number of
business organisations operating within the food and dining hospitality industry of UK is
relatively high, differentiating the goods and products of Nando’s from their competitor’s is a
viable strategic plan (Galli, 2020). This strategy is justified to be the best strategic option
available to Nando’s as through the differentiation strategy, Nando’s can effectively provide
their distinguished and differentiated goods and services to their customers within the hospitality

industry the likes of which are not available to the in the hospitality markets of UK, which allows
for the business to effectively satisfy and provide value to their customers through their
distinguished and differentiated goods and products. The differentiation strategy is further
justified as through this strategy, Nando’s can effectively acquire new customers from the
hospitality industry, which contributes effectively towards their increased customer base and
market share parameters. This strategy also allows for Nando’s to gain a competitive advantage
against their competitors, allowing for Nando’s to grow and expand their business operations
effectively.
A strategic management model that can be used to evaluate the strategic plan of a
business organisation such as Nando’s, allowing for the business organisation to choose and
formulate most optimum business strategy is the SAF framework. Through the SAF framework,
there are 3 main factors that can influence the success or failure of a business strategy at
Nando’s, which are as follows:
Suitability: This metric analyses whether the formulated business strategy is suitable for the
business organisation or not, by analysing the micro environment of the business organisation.
The differentiation strategic plan is highly suitable for Nando’s as it already possesses highly
skilled and experienced chefs and managers within the business organisation who can effectively
differentiate the goods and products of Nando’s from their competitors, thus providing increased
value to Nando’s customers.
Feasibility: This metric of the SAF framework analyses the internal weaknesses and strengths of
the business organisation in order to evaluate whether the formulated strategic plan is feasible for
the business organisation or not (Zazueta Salido, Lagarda‐Leyva and Lozoya Díaz, 2019).
Differentiation strategy is also feasible for Nando’s as it possesses highly skilled and
experienced human resources within the organisation who are capable of effectively innovating
and differentiating the manufactured good and products of Nando’s from that of their
competitors.
Acceptability: This metric analyses the financial aspects of the proposed strategic plan in order to
evaluate whether the strategic plan is acceptable for the business or not. Differentiation strategy s
also highly acceptable to Nando’s, as though the strategy carries risks, it also has the potential to