BSMAN 3007 Report: Dinner by Heston Blumenthal's Australian Expansion

This report provides a comprehensive analysis of Dinner by Heston Blumenthal's potential expansion into the Australian market. It begins with an overview of the restaurant and its unique concept, followed by a market analysis of the Australian food industry, highlighting changing social trends and revenue growth. The core of the report is an external environment analysis, employing the PESTEL framework to assess political, economic, social, technological, legal, and environmental factors influencing the restaurant's operations. Each factor is examined in detail, considering its impact on the business. The report then identifies and discusses potential opportunities and threats for Dinner by Heston Blumenthal in the Australian market, leading to recommendations for successful market entry and operation. The conclusion summarizes the key findings and underscores the importance of adapting to the Australian business environment. The report uses multiple sources to support the analysis, which is essential for making informed decisions.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
Dinner by Heston Blumenthal
International Business Management
3/29/2019

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Table of Contents
Introduction................................................................................................................................2
Overview of Dinner by Heston Blumenthal...........................................................................2
Market Analysis of Australian Food Industry........................................................................3
External Environment Analysis.............................................................................................4
Political Factors/Forces......................................................................................................4
Economic Factor/Forces.....................................................................................................5
Social Factor/Force............................................................................................................6
Technological Factors/Force..............................................................................................7
Legal Factors/Forces..........................................................................................................7
Environmental Factors/Forces...........................................................................................8
Opportunities and Threats......................................................................................................8
Opportunities for Dinner by Heston Blumenthal...............................................................8
Threats for Dinner by Heston Blumenthal.........................................................................8
Recommendations......................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
The international business study has broadly developed in recent years. As stated by…….,
international business is a growing segment, because each zone in the management may have
its international aspect. As an outcome, the maximum effort has been made in the current
time period in order to map the field summarising patterns and trends. The analysis of the
different forces like political, economic, social, environmental, etc. has increased as a key
subject in the international business management field (Duarte, Suarez & Diaz, 2016). In
specific, there is a wide study of literature that has been devoted to analyzing the role played
by all these forces between the home nation and host nation in the procedure of
internationalization as a feature conditioning a broad range of internationalization decisions
(Sharan, 2011). Hence, this paper is being presented in order to analyze the influence of
external forces like political, economic, social, environmental, legal, and technological on the
operations of the business planning to expand its operations in the host country. The paper is
providing a detailed analysis of the host country’s forces and potential opportunities and
threats for the Dinner by Heston Blumenthal while expanding business in the Australian
market.
Overview of Dinner by Heston Blumenthal
Dinner by Heston Blumenthal is a London based restaurant, established in the year 201.
Within a year, the restaurant received a Michelin star. In the year 2014, the restaurant was
also listed on the fifth position across the world in the list of best 50 restaurants magazine. In
addition, Dinner by Heston Blumenthal also gained a second star in the year 2014 (Dinner By
Heston, 2019a). The head of this restaurant is Ashley Palmer-Watts. The options in the Menu
are based on the British ancient dishes that are identified by the historians of food and the

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British Library. With the opening of the restaurant, it drew high interest in the market as well
as industry and received positive reviews (Tapestry Management, 2019). Specific dishes
served in the restaurant have gained high praise, comprising the chicken liver mousse
designed like mandarin orange and meat fruit.
In 2010, in the month of August, the restaurant announced the opening of the dinner in order
to switch the Michelin introduced restaurant Foliage in the Oriental Hyde Park. The
commencement was actually organized on 1 December, but due to some reason some of the
delays occurred, which resulted in the opening of the restaurant at the time of Christmas. The
restaurant started accepting the reservations for 1 December on the opening day of the
restaurant. The management of the restaurant planned setup of around 42 phone lines for the
reservations of the table on the opening day, which received around 600 telephone bookings
(Dinner By Heston, 2019b).
The restaurant planned to change its menu every three months. Every menu includes the
ancient dishes from the 14th to 19th centuries. The dishes that are included in the Menu are
scallops and peas with cucumber ketchup and bergamot cured mackerel salad. Every item the
menu of the restaurant is based on the ancient method, like the scallop dish from The Cook
and Housewife's Manual, developed by Meg Dodds in the year 1826 (Dinner by Heston,
2019c).
Market Analysis of Australian Food Industry
Altering social trends have increased the growth of the revenue in the industry of Restaurant
in the last five years. Declining leisure and busy lifestyles of the people have significantly
turned the consumers towards restaurants for their daily meals. Restaurants have allowed its
customers to have their dining and leisure at a single place which has eventually reduced their
spending and time taken in preparing the food (Euromonitor, 2018). As an outcome, the

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revenue of the industry is anticipated to increase at the annual rate of around 1.8% in the
coming five years. In the current year, the revenue of the industry is expected to increase by
0.2%, since increasing disposable increase and optimistic sentiments increase the spending
habits of the customer in the industry (IBIS World, 2019). The demand of the customers for
quality food and dining at the restaurant has driven the revenue growth of the industry in the
last five years.
External Environment Analysis
The industry of restaurant is one of the most famous and profitable business across the world.
It is a setup where food is prepared as well as served to the customers and it operates its
business round the clock. There is diverse kind of restaurants extending from the simple
dining to spacious and expensive restaurant options, where people can enjoy their time with
family and friends (Vault, 2019). A decent restaurant is one of the best options for the tourist
or for a single person, who search for food at a reasonable price (Institute for Employment
Research, 2007). Dinner by Heston Blumenthal is one of the unique concepts of a restaurant
that offers some historical dishes that have been left behind by a number of societies and
people in order to have western and different types of food. The concept of the restaurant is
unique which will work towards attracting a maximum number of restaurants in the market.
In addition to this, tourism in the Australian market is the key component from the economy
of Australia (Holiday in Australia, 2019). The unique concept of Dinner by Heston
Blumenthal will attract a number of tourists who like to know more about the history and
taste of the nation. However, there are some factors in the Australian market that can
influence the performance and existence of Dinner by Heston Blumenthal:

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Political Factors/Forces
The political forces have a high influence on the industry of restaurant because government
bodies desires to have control over the industry and therefore it introduces numerous rules
and regulations regularly considering the health of the population (Adamkasi, 2016). The
restaurants are obliged to ensure cleanliness standards and follow the tax rules and labor
laws. For instance, according to the Health Menu Choices Act, the food restaurants at 20
places comprising Canada, Ontario, must post the specific food and drinks containing the
number of calories. Dinner by Heston Blumenthal must follow the following guidelines of the
government in order to survive in the market and get no-obligation certificate from the
Australian government.
The laws have been implemented because government desires to check the food and
ingredients quality that are utilized in the preparation procedure since the cholesterol can
influence the health of an individual and can suffer from obesity and different issues related
to stomach (Hewson, 2018). Many of the restaurants do not keep the kitchen clean, where the
food is prepared. Preservation of the food is very important which could be achieved by
maintaining a tidy and clean kitchen. While preparing food in the kitchen the chefs at Dinner
by Heston Blumenthal need to be careful about the cleanliness and the quality of the
ingredients they use in the food preparation procedure in order to avoid any kind of health
issues for the customers.
The government also enforces a few of the laws related to employment for the employees’
safety. Besides this, environmental guidelines, trade restrictions, tariffs need to adhere in
order to maintain the food standards of the industry (Export. Gov, 2018). Considering this,
the restaurant needs to be a customer as well as employee centric restaurant that not just
thinks about the taste of their customers but also the safety and interest of the employees. In

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order to do so, the restaurant must be equipped with all the safety equipment required at the
time of an uncertain event.
Economic Factor/Forces
The fiscal policy of the government can influence the business of Dinner by Heston
Blumenthal in the restaurant industry. If the Australian government raises taxes on the
consumer products, then the restaurant has to increase the rates of their food items that will
affect their profit margin (Skyler, 2018). In addition, the changes in the rate of inflation can
influence the restaurant because the ingredients prices could be increased and eventually, the
restaurants need to increase the food rates.
The time economic alterations take place in other nations, it also influences in other nations,
as it can have a negative influence on the restaurants that possess their outlets in other
nations. Presently, the world economy is dealing with the economic downturn, which is
affecting every industry and business (Santander, 2019). Dinner by Heston Blumenthal will
also have to deal with this downturn but can overcome this by offering different dishes by
adding healthy ingredients. Stable and slow economic growth in the nation and dangerous
economic markets could be a major threat to the industry. If any nation's economy is strong
then the restaurant industry can grow there quickly.
Healthier substitutes of the food are pricier in comparison to fast food meals. Besides this, the
convenience of having ready to eat food in spite of their unhealthy nature can overshadow the
trail of preparing the food items from scratch. This has allowed the high expansion of the
restaurants offering fast food.
Social Factor/Force
People in society are today becoming more educated and aware of their health and healthier
options available in the market. They ask for quality products and the increasing population is

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the key aspect for the increasing number of restaurants in the market (Gain Health, 2019).
Dinner by Heston Blumenthal is known in the market for offering historical food options to
the customers with the quality ingredients because historical recipes always make use of
natural products to prepare the food.
The market that is health conscious, restaurants provide healthy food options to the
customers, but in the market where people search for fast food products, the restaurants cook
food as per their choice. Similarly, in some cities, people like to go out for dinner and there
are numerous restaurants available that offer the same facility to them. But the market does
also have those customers who like to stay at their home and cook food.
Technological Factors/Force
Various famous restaurants in the market make use of IT technology and television for the
publicity of their products and dishes. The television is very costly in regards to promoting
the business; therefore, many of the restaurants launch their own websites for the promotion
of their different dishes (Advanced Business Manager, 2016). In order to get high traffic on
the website, businesses regularly update their sites and dishes. Dinner by Heston Blumenthal
can also promote its business by using a different type of technology like television,
hoardings, pamphlets, website, etc. Besides this, it can place a big screen inside the restaurant
in order to display its menu as well as different and attractive dishes.
Legal Factors/Forces
There is a number of agencies of government that are operating for the constant supply chain
quality of food. The government has executed numerous rules and regulations in order to
manage the supply of food in the market (Australian Government, 2018). Dinner by Heston
Blumenthal not only have to manage and deal with the framed regulations of the Australian
government but also have to consider the welfare and wages in the particular zone. It has to

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keep its dishes quality very high that could result in a healthy intake of the food for the
customers.
Environmental Factors/Forces
In order to maintain a safe environment of Australia, Dinner by Heston Blumenthal has to
check regularly the increasing corporate environment programs rates and adopt different
strategies of sustainability in order to grow the business. Climate change is another issue for
the industry of the restaurant (Adamkasi, 2016). The issues related to the environment are
increasingly severe and it is a high issue for the atmosphere. Every business more or less
adding in the problems of environment and businessmen must be conscious regarding this
type of threat and try to avoid them by complying with the policies of the government in
terms of environment protection.
Opportunities and Threats
Opportunities for Dinner by Heston Blumenthal
Australian market possesses a range of advanced technology that is used by the business in
order to ease its procedures and offer quick services to the customers. Besides this,
technology is also used by businesses to promote their services (Advanced Business
Manager, 2016). Dinner by Heston Blumenthal can promote its menu dishes on its website. It
can also place a big screen inside the restaurant in order to display its menu as well as
different and attractive dishes.
Dinner by Heston Blumenthal can also attract customers in the market by adding more health
conscious historian dishes in its menu.

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Threats for Dinner by Heston Blumenthal
Economic Downturn across the world is one of the major threats for Dinner by Heston
Blumenthal. The economy of Australia is also dealing with the similar type of issues,
therefore, in order to operate successfully in the market by adding healthy ingredients in the
food processing procedure such that it can attract a maximum number of customers (Skyler,
2018).
Changing lifestyle enforce them to more towards ready to eat food options and fast food,
which eventually affects the profit and sales of the dining restaurants in the market. In
increasing trend of fast food in the Australian market can be a threat for Dinner by Heston
Blumenthal.
Recommendations
From the above analysis, it could be said that Dinner by Heston Blumenthal can operate its
business in the Australian market by just following the guidelines and regulations framed by
the Australian government for the safety of the public as well as ethics of the society.
Moreover, the restaurant can attract customers by promoting the use of healthy ingredients in
the preparation procedure of its dishes. In the end, it can promote its business with the help of
different promotional strategies such as pamphlets, advertisement inside the restaurant by
using a big screen and displaying the cooking procedure to the customers.
Conclusion
The above report has provided a detailed external environment analysis of the Australian
market in order to identify the present opportunities and threats for Dinner by Heston
Blumenthal in the market. The paper has highlighted the details about the present operations

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of the restaurant in the London restaurant industry. From the analysis, it has been identified
that Dinner by Heston Blumenthal can successfully operate its restaurant business with a
unique concept of offering historian dishes to the customer in the Australian market and can
avail available opportunities such as technology and social awareness of the customers about
their health. If customers will be aware of the healthy products they will drop the junk and
will move towards Dinner by Heston Blumenthal which offers more healthy options to them.
Though, there are some of the threats for the business such as worldwide economic downturn
and increasing tread of fast food and ready to eat food.

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References
Adamkasi. (2016). PESTLE Analysis of Restaurant Industry. Retrieved from
https://freepestelanalysis.com/pestel-pestle-analysis-of-restaurant-industry/
Advanced Business Manager. (2016). How technology is changing the Australian food
industry for the better. Retrieved from
https://www.advancedbusinessmanager.com/about-us/news/how-technology-is-
changing-the-australian-food-industry-for-the-better/
Australian Government. (2018). Legal essentials for business. Retrieved from
https://www.business.gov.au/planning/new-businesses/legal-essentials-for-business
Dinner By Heston. (2019). Dinner. Retrieved from https://www.dinnerbyheston.com/
Dinner By Heston. (2019b). À la carte Menu. Retrieved from
https://www.dinnerbyheston.com.au/menus
Dinner by Heston. (2019c). About Dinner by Heston, Mandarin Oriental Hyde Park, London.
Retrieved from https://www.dinnerbyheston.co.uk/about
Duarte, C.L., Suarez, M.V., & Diaz, B.G. (2016). International Business and National
Culture: A Literature Review and Research Agenda. International Journal of
Management Reviews, 18(4), 1-13.
Euromonitor. (2018). Full-Service Restaurants in Australia. Retrieved from
https://www.euromonitor.com/full-service-restaurants-in-australia/report
Export. Gov. (2018). Australia Political Environment. Retrieved from
https://www.export.gov/article?id=Australia-political-environment

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Gain Health. (2019). Why do we need to go beyond awareness raising for healthy diets?
Retrieved from https://www.gainhealth.org/knowledge-centre/need-go-beyond-
awareness-raising-healthy-diets/
Hewson, J. (2018). The impact of Australia’s political instability. Retrieved from
https://www.eastasiaforum.org/2018/09/08/the-impact-of-australias-political-
instability/
Holiday in Australia. (2019). Welcome to Tourism Australia's corporate website. Retrieved
from http://www.tourism.australia.com/en
IBIS World. (2019). Restaurants - Australia Market Research Report. Retrieved from
https://www.ibisworld.com.au/industry-trends/market-research-reports/
accommodation-food-services/restaurants.html
Institute for Employment Research. (2007). Restaurant industry. Retrieved from
https://warwick.ac.uk/fac/soc/ier/ngrf/lmifuturetrends/sectorscovered/hospitality/
sectorinfo/subsectors/restaurant/
Santander, B. (2019). Australia: Economic And Political Outline. Retrieved from
https://en.portal.santandertrade.com/analyse-markets/australia/economic-political-
outline
Sharan. (2011). International Business Management: For Anna University 2nd ed. India:
Pearson Education.
Skyler, H. (2018). Restaurant PESTLE Analysis. Retrieved from https://bizfluent.com/info-
7911098-restaurant-pest-analysis.html

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Tapestry Management. (2019). About dinner. Retrieved from
https://www.dinnerbyheston.co.uk/
Vault. (2019). Restaurants and Food Services. Retrieved from
http://www.vault.com/industries-professions/industries/restaurants-and-food-
services.aspx