Innovation Management Report: Nando's Australia Business Case Analysis

This report presents a comprehensive business case analysis of Nando's Australia, focusing on innovation management strategies to address quality issues and enhance customer trust. The report begins with an executive summary and table of contents, followed by a detailed problem definition, highlighting issues like degrading food quality and unsanitary kitchen conditions in Australian units, and the negative impact on brand image. The report then explores the benefits of addressing these issues, including improved customer trust, adherence to food safety standards, and increased sales volume. It analyzes strategic responses, including strategic intervention options like enhanced quality of offerings, aggressive promotions, and diversification of product portfolio. The report also delves into project options analysis, identifying stakeholders, social and economic impacts, and conducting a cost-benefit analysis. Finally, it provides details of the recommended solution, detailed costing, and management considerations. Appendices include a Canvas Model and financial data presentation.

Running head: INNOVATION MANAGEMENT
INNOVATION MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
The research will aim at assessing the issues that are being encountered by Nando’s Australia
and the recommended strategies that might be considered by the same while developing the
operations. The research also developed discussion on the different costs that might be incurred
by the organization while implementing the modifications. The innovative measures that might
be undertaken by the organization is being discussed in the research along with the benefits of
the creative processes. The strategies and responses that might be undertaken by the organization
are being illustrated as a part of the research which has enabled in enhancing the study.

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Table of Contents
Part 1- Problem................................................................................................................................4
1.1Background.............................................................................................................................4
1.2Definition of the problem.......................................................................................................4
1.3Evidence of the problem.........................................................................................................4
1.4Timing considerations............................................................................................................5
1.5Considerations of the broader context....................................................................................6
Part 2- Benefit..................................................................................................................................6
2.1Benefit to the be delivered......................................................................................................6
2.2Importance of the benefits to the government........................................................................6
2.3Evidence of benefit delivery...................................................................................................7
2.4Interdependencies...................................................................................................................7
Part 3- Strategic response................................................................................................................7
3.1Method and response..............................................................................................................7
3.2Strategic options analysis.......................................................................................................8
3.2.1Strategic Intervention...........................................................................................................8
3.2.2Strategic options..................................................................................................................8
3.2.3Ranking of strategic options................................................................................................9
3.3Recommended strategic option.............................................................................................10
Part 4- Project options analysis......................................................................................................11

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4.2Stakeholder identification and consultation..........................................................................11
4.3Social Impacts.......................................................................................................................11
4.4Economic impacts.................................................................................................................11
4.5Cost benefit analysis.............................................................................................................12
4.6Risk.......................................................................................................................................13
Part 5- Deliverability of the recommended solution......................................................................13
5.1Details of recommended solutions........................................................................................13
5.2Detailed costing....................................................................................................................13
5.3Management.........................................................................................................................16
References......................................................................................................................................17
Appendix: Canvas Model..............................................................................................................19

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Part 1- Problem
1.1Background
Nando's is a South African restaurant chain, which specializes in peri-
peri style chicken and other dishes which has assisted the venture in developing the loyalty of the
customers. The concerned organization was founded in the year1987 and is headquartered in
Johannesburg. The developments that are made by the organization are reliant on the authentic
and innovative dishes that assisted the venture in retaining the attention of the target customers.
However, apart from all the establishments, the concerned organization faced different issues
which affected the competitive benefit while operating in a market.
1.2Definition of the problem
The concerned organization, Nando’s Chicken, faced a substantial issue in their
Australian units which referred to the degrading quality of the foods and the filthy kitchens
where the foods are prepared. The degradation in the quality has affected the brand image of the
venture as well as incapacitated the same in retaining the trust and loyalty of the customers.
Kwon, Lee & Shin (2014) opined that the degrading quality of the operations and the product
offerings of an organization affects the capabilities of the same in retaining the trust ad loyalty of
the customers. Therefore, the quality related issues has affected the capabilities of the concerned
organization in developing their product offerings while operating in different regions of
Australia. On the other hand, the developments in the communicability through the social media
platforms and negative word of mouth has affected the brand image of the venture.

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1.3Evidence of the problem
The concerned organization was accused for quality related issues that affected the
interests of the customers. It was found that the Northbridge and at Belmont Forum stores of the
concerned organization, Nando’s, violated the regulations that were set by WA Department of
Health’s food standards (Akgün et al., 2014). The lack of suitable adherence to the guidance of the
food safety and security has affected the capabilities of the organization in improving the
efficiency of the operations in adherence to the demand of the customers. It was found that the
filth in the kitchens and the rotten food that was reused by the units for serving the customers
affected the propositions of the same (Androniceanu, 2017). On the other hand, the escalation of
the issues failed to evoke suitable feedbacks from the management of the units. It has affected
the trust and loyalty of the customers. In a report it was portrayed that the food offerings of the
organization consisted of maggots and the kitchen had rats (Wong, Tseng & Tan, 2014). Portrayal
of such quality related issues in the different media vehicles incapacitated the concerned
organization in retaining the trust and confidence of the customers towards the product offerings.
1.4Timing considerations
The issue is required to be resolved with the aim of maintaining the efficiency of the
operations while retaining the trust and confidence of the consumers. The different changes that
are undertaken by the organizations are dependent on the smooth functioning of the system in
adherence to the demand of the customers. The enhancements in the quality of the food offerings
of the venture would assist the same in developing the potentials of the same while operating in
different international markets. Pimentel and Major (2014) opined that quality is the primary
priority that must be adhered by the organizations. Therefore, the concerned organization must

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take steps to develop suitable quality management mechanism on an urgent basis as it would
assist the same in developing the trust and confidence of the customers.
1.5Considerations of the broader context
The enhancement in the quality of the operations would assist the venture in developing
the potentials of the same while operating in different international markets. The considerations
of quality management would assist the concerned organization in retaining the brand image and
prevent negative word of mouth to expand the scope of its sales revenue.
Part 2- Benefit
2.1Benefit to the be delivered
The benefits that will be accumulated by the concerned organization through mitigating
of the issues is related to the improvements in the trust and confidence related factors among the
customers. On the other hand, the mitigation of the quality related issues would support the
organization in adhering to the standards and conducts related to food and beverage safety
(Molina-Azorín et al., 2015). The major benefit that will be gathered by the organization through
the mitigation of the issue is related to the enhancement in the sales volume of the same while
operating in different international markets.
2.2Importance of the benefits to the government
The benefits will ensure that the different rules and regulations that are framed by the
same are adhered which will assist in maintaining the efficiency of the corporate culture. On the
other hand, Jaca and Psomas (2015) noted that the adherence to the food and beverage safety
related guidelines would assist the government in ensuring the safety and security of its citizen
while monitoring and controlling the activities of the concerned organization.

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2.3Evidence of benefit delivery
The KPIs that might be considered by the organization while managing the change in the
organizational operations are related to the maximization of the sales volume by 10% annually.
The KPIs will assist the venture in developing a positive insight on the effectiveness of the
change that is being planned by the same. The enhancement in the sales volume would support
the organization in delineating the market position of the same and the enhancement of the trust
and confidence among the consumers. Almeida, Domingues and Sampaio (2014) stated that the
KPIs assist an organization in monitoring and controlling the operations of the same while
adhering to the demand of the customers. Therefore, the efficiency of the measurements will
assist the venture in developing the operations of the same while operating in different
international markets.
2.4Interdependencies
The organizational change will be reliant on the decisions that are undertaken by the
management authorities in South Africa. The different changes in the processes will be based on
the efficiency of the project managers and the change agents. Benavides-Velasco et al., (2014)
stated that the delineation of the change agents and the role that they play in the organizational
modifications assist a venture in developing a coherent and systematic process which will ensure
the smooth functioning of the systems. Therefore, the changes that are undertaken by Nando’s
would assist the same in improving the efficiency of the operations in adherence to the demand
of the customers.

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Part 3- Strategic response
3.1Method and response
The methods of response that might be undertaken by the concerned organization
Nando’s is dependent on the efficiency of the operations in adherence to the demand of the
consumers. The concerned organization must take steps to develop a range of operations with the
objective of improving the trust and loyalty of the target customers. The major assumptions that
might be undertaken by the organization are reliant on the choice and safety based needs of the
consumers (Augusto, Lisboa & Yasin, 2014). It will assist the venture in developing the operations
of the same while assuring the consumers of the quality of the food and beverages that are being
delivered by the organization.
3.2Strategic options analysis
3.2.1Strategic Intervention
Intervention 1 Consumer needs relating to quality of the
products
Intervention 2 Regulations and guidelines that are enforced
by the government
Intervention 3 Developing the brand image of the
organization
Intervention 4 Sustenance in highly competitive markets
3.2.2Strategic options

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Strategic
Intervention
s
Option 1 Option 2 Option 3
Intervention
1
Developing
the product
portfolio
Enhanced
social media
promotions
Sales
promotions
and offers
Intervention
2
Adhering to
the
guidelines
Negotiating
with the
government
Establishing
modification
s in the
processes
Intervention
3
Social
media
marketing
Encouraging
the
involvement
of the
customers
through
contests
Enhancing
the quality of
the offerings
Intervention
4
Diversifyin
g the
offerings
Pricing
consideration
s
Developing
sound
monitoring
and control
activities
3.2.3Ranking of strategic options
Option 1 Option 2 Option 3
Diversifying
product
portfolio
Enhanced
quality of
the
offerings
Aggressive
promotionsBenefits
Percentage
of full
benefit to
be
delivered
30% 67% 3%
Benefi
t 1
Increasing
scope of
attracting
customers
Increasing
trust and
confidence
of
customers
Increasing
awareness
among the
customers
Benefi Competitive Enhanceme Developing

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t 2 edge nt in sales
volume
suitable
processes
through
feedbacks
Benefi
t 3
Enhanced
sales based
on different
preferences
Adherence
to the
standards
and
guidelines
imposed by
the
government
Competitive
edge
Cost
Estimated
capital
investment
cost
(Range)
$4600 -
$5000
$4000 -
$6500
$3700 - $4500
Estimated
operationa
l costs
(Range)
$2800 -
$3000pa
$3000 -
$3500 pa
$2800 - $3400
pa
(Range) mm-mm mm-mm mm-mm
Time
(Range) 6- 8 months 1-
1.5
year
s
5-
7mont
hs
Risks
Risk 1 Lack of
suitable
understandin
g of
consumer
needs
Lack of
sufficient
monitoring
and control
Negative
interpretation
of the message
Risk 2 Diminished
quality of
offerings
Falsification
of reports
Lack of
understanding
of the target
audience
Dis-
benefits
Dis-
benefit 1
Enhanced
costs of
operations
Increased
cost of
operations
Negative
promotion
Dis- Greater Failure of Lack of

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benefit 2 portfolio
require huge
monitoring
units
the
monitoring
and
controlling
mechanisms
suitable
investment
options
Ranking
1-3 3 1 2
3.3Recommended strategic option
The recommended strategic option that might be considered by Nando’s will be the
enhancement of the quality as it will assist the venture in developing the potentialities of the are
in maintaining the efficiency of the operations while adhering to the demand of the customers.
The enhanced quality of the operations will assist the venture in developing the positive brand
image of the same while operating in different business situations.
Part 4- Project options analysis
4.2Stakeholder identification and consultation
The major stakeholders of the concerned venture are the customers, the project managers,
the investors, the suppliers, government and the board of directors. The integrated functioning of
the stakeholders assist an organization in developing the operations of the same while operating
on the different objectives of the venture.
4.3Social Impacts
The social impact of the organizational operations are reliant on the inclination of the
Australians towards the quality of the products. The enhanced quality of the offerings will assist
the venture in developing the operations in adherence to the need of sustenance.