Strategic Analysis: Dinner by Heston Blumenthal Expansion in Australia

This report analyzes Dinner By Heston Blumenthal's potential expansion into the Australian market, considering strategic management issues and relevant theories. It explores various entry modes, focusing on the 'Direct strategies' approach for its ability to customize market entry and eliminate intermediaries. The report identifies internal strengths, such as high-quality ingredients and health-conscious dishes, and weaknesses, like potentially limited appeal to younger demographics and a need for a robust supply chain. Strategies to overcome these weaknesses include targeted advertising, creating engaging environments for younger customers, and partnering with logistics companies. The report also discusses the company's potential strategy, corporate objectives centered on providing healthy and delicious ancient dishes, and intended organizational design, including global product, area, function, and customer considerations. It highlights the importance of leveraging Australia's tourism industry and the growing health consciousness among consumers. Finally, the report touches on financial capital requirements and staffing policies for successful market entry.

Running Head: IBM
Dinner By Heston Blumenthal
Report
System04104
5/24/2019

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1. Introduction
Dinner By Heston Blumenthal is one of the leading restaurant of UK and it was known
for its superior restaurant dishes and services. It was established in 2011 and since it is
continuously focusing on its business expansion strategy. The Dinner By Heston Blumenthal
is looking to enter in the Australian market and there is a tough competition already there
among the top superiors brands of restaurants and hotels (Brien, 2017). However, the dishes
which are prepared in Dinner By Heston Blumenthal is influence by old ancient taste of
British dishes. Generally, people love the dishes that reflect the taste of British ancient dishes.
However, this report has been prepared in order to consider various strategic management
issues and theories that are related to Dinner By Heston Blumenthal’s expansion strategy in
Australia. This report also helps to understand that what will be the potential and corporate
strategies of the organisation to expand its business in Australia, and what are the scopes for
this British restaurant in Australian restaurant and hotels industry. In the end of this report the
requirement of the organisation has been discussed that assist in starting the business in
Australia.
Short overview about the company
The ‘Dinner By Heston Blumenthal’ is known for its British ancient dishes and want to
explore its business in Australia. The restaurant is known for its best services to customers
and it also provides facilities to its customers to book their tables in the restaurant with a
phone call. The restaurant is committed to provide unique and new taste for its customers.
Therefore, the restaurant will change the menu table after every 3 months. Now, company is
looking for expansion its business in Australia where the increasing and altering social trends
increased the growth opportunities for restaurants business (Alonso & Northcote, 2010).
Therefore, the company has to decide whether they can enter in the Australian market or not
and if yes then what are the key considerations and requirements for the business expansion
in the Australia. These all factors will be discussed in systematic order in this report.
2. Entry mode
There are large number of people in Australia enjoys their holidays or enjoy the
companion of their friends or family in restaurants. However, the free days and leisure time
of people will automatically raise the number of customers in the restaurants. However, the

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people normally want to enjoy their leisure time in a hotel or restaurant with delicious foods
and meals. The business of restaurant industry is increasing every day and it is anticipated to
increase by 1.8% in the upcoming days. However, the revenue of this industry is also
increased by 0.2% per annum since the disposable income of people is increasing and also
their sentiments towards increase their spending on the outings and entertainment (Australian
Government, 2018). However, the number of people and consumers for restaurant business
will be increasing in future, thus selection of proper entry mode in the restaurant business in
Australia will be essential. The best way to enter in the Australian restaurant industry is the
‘Direct strategies’ where Dinner By Heston Blumenthal can easily contact with customers
and sell the products and service to the end users. The direct entry mode of the company
eliminates the concept of intermediary. This direct entry mode for the restaurant will enable it
to customize its market entry strategy according to the market conditions and customer
demand. In the direct entry mode of entry in Australia helps the Dinner By Heston
Blumenthal to sale the products to end users. The restaurant can also promote the products
through local sales representatives without taking ownership in the company. However, the
Dinner By Heston Blumenthal can prefer both online and offline sales strategy and company
can use a distributor or follow a supply chain network to sale the products directly to buyers
or end customers (Kustos, 2017).
3. Causes why this venture will be successful in the future
The changing social trend is the most important reason for the growth in Australian food
and restaurant industry. It not only leads to growth rather it also helps in collecting revenue
with increasing sale of food products and services on restaurants. However, there are several
causes that made this business venture more successful in future, which are as follow:
Internal Strength/reason for success/core competence that helps to be a
successful business venture in Australia
The Dinner By Heston Blumenthal is known for its ancient dishes and superb services.
However, the major success factor for this business organisation in Australia is its quality of
dishes. Dinner By Heston Blumenthal uses the quality ingredients in cooking the ancient taste
dishes which is oil and junk free (Santich, 2012). This quality of organisation not only protect
the help of people with delivering them quality and health foods rather it also help them to be
fit and healthy with enjoying the delicious dishes. The consciousness and commitment of

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employees towards public health and considering the choices of people will differentiate it
from other restaurants. This is the major internal strength of the organisation in operating its
business in Australia. People are more conscious about their health and it is considered by the
Dinner By Heston Blumenthal at every places where it operates its business operation. The
core competence of Dinner By Heston Blumenthal is caring for health of people and provide
them best delicious ancient food without harming or affecting the consumer’s health (Assaf,
Deery & Jago, 2011).
Internal weakness/ Reason for non-success
The major possible cause behind unsuccessful operation of Dinner By Heston
Blumenthal can be the interest of young people. It has been seen that large numbers of youth
people and children are not interested in old ancient dishes neither they like it (Duarte,
Suarez, & Diaz, 2016). In the time of modern era of junk food and fast food options, the
young generation may reject the taste of old ancient dishes. People are very busy in their life,
thus they need junk food or fast dishes. They do not want to expand time for ancient dishes,
which is normally taking time in cooking. However, the concepts of old ancient dishes are
attractive for old age people but it might not be attractive for the young generation in
Australia. However, the other weakness for the company is to weak supply chain network of
the company. People will ordered the food and dishes of Dinner By Heston Blumenthal
through online, and the delivery of should be done within the time limit. A weak supply chain
network for such type of business is a dangerous thing for its success in future (de Lange,
2012).
How to overcome these issues
Dinner By Heston Blumenthal should try to advertise its product among the young
generation and should tell them how these delicious foods and dishes for their health. Apart
from this, the Dinner By Heston Blumenthal should also arrange some fun game and playing
equipment for children and youths thus they can spend time in the restaurant and enjoy the
taste of delicious food. Apart from this, to strengthen the supply chain network in Australia,
the company can also tie up with third party logistic companies or other companies to deliver
the food dishes on time to its customers. Dinner By Heston Blumenthal should also focuses
on reviewing the idea of their customers and what are the change required to make more
magnificent to the restaurant services and dishes (Dunford, Webster, Barzi, & Neal, 2010).

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However, changing the menu of dishes on regular basis is definitely a good idea for attracting
customers, as they want to know every time when they will visit that what is new in dishes.
4. Potential strategy and corporate objective
Dinner By Heston Blumenthal operates its business on one of the unique ideas that sale
dishes which is inspired from old ancient traditional dishes of the country. This idea is almost
unique in Australia. Large number of people every year visiting in Australia and enjoys the
beaches and restaurants foods. If the people will find such type of dishes, they wonder about
these things and enjoy the delicious food with great taste. The Dinner By Heston Blumenthal
can attract the maximum number of people with its delicious and superior ancient dishes.
Dinner By Heston Blumenthal should take the advantage of Australian tourism industry
because a large number of people visit every year for the tourism purposes (Holiday in
Australia, 2019).
The corporate strategy of the company to provide ancient dishes tastes to the people. The
other main objective of the Dinner By Heston Blumenthal is to provide healthy and delicious
foods. It has been observed that the fast food industry adversely affects the health of people
and causes many harmful effects on the health. Today’s people are more health conscious and
prefer to those products that is good for tier health (This, 2016). The ‘Dinner By Heston
Blumenthal’ will provide quality food products and dishes to their customers, which not
affect the health of people. Dinner By Heston Blumenthal is known for their quality
ingredients in the historic food products and dishes that will not only provide good taste
rather it will also help the people from adverse health effects. The corporate objective of
Dinner By Heston Blumenthal to provide food and dishes to people just like their home cook
foods and which will not affect their heath.
5. Intended organisational design
Dinner By Heston Blumenthal can operate its business with healthy delicious ancient
dishes. The company can enlarge the size of its market with intended organisational design
and expansion strategy. The key factors of the organisational design are as follow:
4.1 Global product
The Dinner By Heston Blumenthal provides healthy dishes that reflects the image of
ancient country dishes and provide the best taste that is not found anywhere. The speciality of

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to cook the food with traditional style and that will be healthy for health. This the USP of the
Dinner By Heston Blumenthal. In Australia, Dinner By Heston Blumenthal provides
traditional ancient Australian dishes to the people and shows why these dishes are differ from
modern dishes.
4.2 Global Area
Dinner By Heston Blumenthal will operate the business in those areas where people love
the ancient food taste. For this purpose, Dinner By Heston Blumenthal can organise a
research or survey which helps in selection of places to opening the business. However, the
best places are those cities and beach areas where large number of people comes every year
for tourism and enjoyment (Davies & Roper, 2016).
4.3 Global function
The Global function of the company is to provide best quality services to its customers
such as instant access the restaurant through its website, people can book their orders with
their mobile phones from anywhere, quick delivery of products, and best delicious foods to
the customers within minimum time. The Dinner By Heston Blumenthal is also known for its
less waiting time which is required for cooking foods.
4.4 Global customers
Those people who loves old ancient food dishes in Australia or foods of other countries
like British ancient Food, Chinese ancient food, or Indian ancient food, or American ancient
foods, all are the global customers of Dinner By Heston Blumenthal.
4.5 Marketing mix designs
Product: The restaurant provides ancient foods with delicious taste, which does not
harm the health of people. It means healthy food.
Price: Prices are comparatively low compare to other restaurants that will help to gain
competitive advantage over other restaurants and attract customer in initial days of business.
However, it will shift immediately on increasing the prices with increasing demand of dishes
and services (De Klepper, 2011).
Place: Those areas, where large numbers of overseas people are visiting every year.
Apart from this, all big cities and town areas where people love to enjoy such kind of ancient
dishes.

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Promotion: Radio and TV advertisement, print media, and on the highways holdings
etc.
7. Scope of Expansion in Australian Market
The Australian restaurant and food industry is growing with increasing speed. Thus,
the opportunities for Dinner By Heston Blumenthal to expand its business in Australian
market is increasing every day (Hebden, King, Grunseit, Kelly, & Chapman, 2011). There are
some reasons that why Australia is a good place for Dinner By Heston Blumenthal to starting
its restaurant and what are the scope in business expansion in the country. These ideas and
causes are as follow:
Changing Social trends: The social trend in Australia is changing. People spend
more time in society, with their family, and friends. The people in Australia are focusing on
enjoy their life; enjoy their leisure time with their lovable ones, and the friendship circle of
people. People want to enjoy their life with delicious food and with some space for
enjoyment in a restaurant or at beautiful places (Dinner By Heston 2019).
Disposable income of people: The disposable income of people in Australia is
changing and it is increasing with their earnings. The growth rate of Australia is increasing
every day and thus the income and living standard of people also increasing. This leads to
better future growth and development in the restaurant and food industry in Australia.
New Sentiments: The new sentiments of people is expanding money on different
activities and spending free time with friends and family in a restaurant with delicious food
meals. The changing mentality and sentiments of people towards the expenditure of income is
one of the major reasons for Dinner By Heston Blumenthal to become a successful venture in
the Australia in future (Peštek, & Činjarević, 2014).
Economic growth of Australia and growth rate in food industry: The Australia is
a developing country and its economy is continuously growing with a high speed. This will
provide a platform for the Dinner By Heston Blumenthal to successfully operate its business
in the Australia without any fear of recession and other such things in the country.
Increasing online demand of foods and meals in the country: The people now order
everything online and the online trend in restaurant business will be suitable in Australia for
the customers. Peoples can easily book their tables, book their menu dishes, and helps them

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to increase the customer experience. This will satisfy the customers that further leads to a
great business venture that will be successful in future.
6. Financial Capital requirement
The Dinner By Heston Blumenthal needs relatively small capital and a infrastructure for
preparing foods. However, the Dinner By Heston Blumenthal can open the stores in the
different cities with infrastructure or capital cost, basic equipment required for the Dinner By
Heston Blumenthal, cost on advertising, cost of sitting arrangement and basic facilities like
water, electricity and salary of employees. These are the essential cost to explore the business
in Australia. The Dinner By Heston Blumenthal will have to expand large amount on
acquiring infrastructure for operating its restaurant (IBIS World, 2019). However, the Dinner
By Heston Blumenthal should ask the Australian government for financial support or can add
a business partners to provide all these facilities required for starting the business in
Australia. The Dinner By Heston Blumenthal should also ask the permission for starting the
business in new locations from the government. Financial help from the Australian
government can easily be available to start the business, as the present government is so
liberal and open for foreign business organisations.
7. Staffing policy
The Dinner By Heston Blumenthal should hire the people who have better knowledge of
ancient dishes and can cook tasty dishes. To hire these types of people, the Dinner By Heston
Blumenthal can take interview of clients and chef who are experts in preparing delicious
ancient foods and having good knowledge of ancient foods and other varieties of food taste.
Dinner By Heston Blumenthal should hire people from the local communities as they have
good knowledge of local taste and preferences (Spence, 2018). It will also show the social
responsibilities of Dinner By Heston Blumenthal towards the local community and it will
inspire other people and also attract them towards the Dinner By Heston Blumenthal.

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