Comprehensive Analysis of Nando's Business Environment and Strategy

This report provides a comprehensive analysis of Nando's, a global fast-food chain specializing in Portuguese-African cuisine. It examines the company's type, size, and scope, highlighting its market presence in numerous countries and its diverse product offerings. The report delves into the interrelationship of various organizational functions, such as marketing, research and development, and food and beverage services, illustrating how these departments contribute to Nando's success. Furthermore, the report conducts internal and external analyses using SWOT and PESTLE frameworks, respectively, to identify strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors influencing the business. The analysis reveals insights into Nando's strategic positioning, market challenges, and potential for future growth, offering a detailed understanding of its business operations and competitive environment.

Business Environment 1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The type, size and scope of the Nando’s................................................................................3
The interrelationship of functions on organisation structure..................................................4
Internal and external influencers via a PESTLE and SWOT analyses on business operations
................................................................................................................................................6
The influence of globalisation on organisational strategy and decision making....................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is defined as set of such external and internal factors of the
business those are directly or indirectly linked with organisation and its functions as well. There
are various factors which are associated with providing higher impact to the business and in
order to gain success this is imperative to deal with these factors in most significant manner
(Khan, Çera and Nétek, 2019). This report is associated with examining type, size and scope of
business organisation such as Nandos. Besides this the report is elaborating such internal and
external factors those are influencing the business and its operational functions as well. Nando’s
is a South African fast food chain which is highly known for their Portuguese-African food and
signature flame-grilled peri-peri style chicken. The company was founded in the year of 1987
and it is a private company which is headquartered in South Africa. With the help of this report
various aspects are being elaborated that could be helpful for the business to deal with long
term market success and to acquire such prominence as well. Using these practices a business
can grow and flourish so that sustainability can be enhanced and retained for longer duration of
time.
MAIN BODY
The type, size and scope of the Nando’s
Nando’s is a South African fast food chain which is famous for their Portuguese-African
food and signature flame-grilled peri-peri style chicken in around the world. The company was
founded in the year of 1987 and in current time Nando’s is having their widest market in UK as
they have more than 340 outlets in UK. Nando’s is managing their business in near about 35
countries and in this the company is having more than 1000 outlets around the world. The brand
is famous for their delicious verity of chicken and this is the major reason of their higher market
succession.
Type: Nando’s is one of the most successful fast food chains which is a private company and
headquartered in South Africa (Nando’s, 2020) . It’s a fast food retailer organisation which was
initiated in the year of 1987 and managing their business in restaurant industry. Nando’s is a
privately owned company which is still owned by its entrepreneur those have set up this

business in first instance. The company is having affable brand image due to which with the
help of advertisement campaign they can launch new product in optimal manner.
Size: Nando’s is having their operations in more than 35 countries and due to this near about
1000 stores are being maintained by the company. The company have employed 34000
employees and they call them Nandocas as this is the special name given to Nando’s family.
The company is having wide range of competitors such as McDonalds, KFC and many more.
With the help of their distinct level of products the company is having prominent market image.
Nando’s is having their food chain in Australia, Bahrain, Oman, India, US, UK and various
other prominent countries.
Scope: Nando’s is known for their Portuguese-African food and signature flame-grilled peri-
peri style chicken as due to these chicken verity the company is famous around the world. The
scope for the company is large as they are having capabilities to enhance their business in
global market due to differentiated product offerings (The Cool Chain Restaurant, 2020).
Nando’s is a fast food chain which is having their operations in various countries so that this the
major reason that the company is at its progression stage and in prominent manner dealing with
all the possible business complexities.
The interrelationship of functions on organisation structure
Organisational structure is defined as such system which is helpful in creating outlines
for the business and its activities so that the same can be executed in systematic manner and
overall objective of the business can be attained. The structure is associated with types of roles
and responsibilities exerted within an organisation in various levels so that appropriate
execution can be made (Moss and et. al., 2017). This helps the business to grow so that overall
development can be made and business objectives can be attained. In this manner interrelation
can be seen within organisation and this could be helpful for Nando’s to attain their business
obejctives.
 Functional organisation structure: This type of structure is one of the most common
structures that could take assistance of skills and capabilities of employees and by using
the same organisational objectives can be attained in most prominent manner. This is
showing the clear image of the business at all the levels so that higher profits can be

earned and market prominence can also be enhanced. This is the structure which leads
the business to align their objective with executed efforts.
 Divisional organizational structure: This is referred as such organisational structure
which is associated with dividing of overall work or task in such a way that overall
working can be completed. Under this type of structure the whole the organisation get
divided into various sub parts as according to their function such as finance, marketing,
research and many more (Lee, 2017). For Nando’s this organisational structure is
followed within the organisation that could be helpful in obtaining higher harmony in
the business and acquiring corporation as well. When inter communication within an
organisation is appropriate then desired profits can be earned by the company and
higher sustainability can also be attained. With the help of this of this structure smooth
flow of information can be seen and overall objectives can be attained in systematic
manner.
Interrelationship between the organisational functions
 Marketing and research and development: Marketing and R&D departments are the
most essential departments in the organisation as these departments are directly linked
with customers and analysing their needs. Both these functional departments are
connected to each other so that product of respected business can be promoted for
customer in most appropriate manner. Both of these departments are working to boost
sales and customer satisfaction of customers. Research and development department
perform market research in order to analyse market demands and such channels by

which products can be reach out to customers. Besides this marketing department is
associated with using such demands in order to enhance sales and profits for the
organisation (Meroño-Cerdán and López-Nicolás, 2017). In this context Nando’s the
combination of these two department will lead the business to gain differentiated insight
in the market and process of market expansion can be made easier. As whenever
Nando’s think of market expansion or new product development, collaboration of these
two departments are necessary and plays prominent role as well. So interrelationship
with these two department will lead Nando’s to attain higher market share and acquire
solution for needs of their current and potential customers as well.
 Food beverage and service department: Food and beverage department is actually
associated with preparation of food which has been ordered by customers and service
department is associated with providing the same food to customer in their table in least
possible time so that cravings of customers. With the help of interrelationship in these
two departments it will help Nando’s to serving capacity to their customer so that
customer footfall can be increased and profitability can be earned. In this manner these
two departments are playing major role as this could help the organisation to acquire
higher range of customers so that they can led with higher markets share and customer
capture as well.
Internal and external influencers via a PESTLE and SWOT analyses on business operations
Internal analysis
Internal analysis in the context of Nando’s can be examined with the help of SWOT
analysis which is elaborated as under:
Strengths Weaknesses
 Nando’s is world famous for their
Portuguese-African food and signature
flame-grilled peri-peri style chicken
which has natural preservative and due
to this higher sales and prominence can
be earned by Nando’s (Nando's
becomes the first restaurant group in
 The company is having limited dishes
in their menu due to which limited
popularity is gained by the brand.
 The aspect of customisation is totally
absent from menu of Nando’s which is
the major weakness for this brand.

Europe with an approved science-
based target, 2020).
 Nando’s black card is the scheme
launched by the brand in which
customers can have unlimited access to
food at any branch and this is the
major reason for high customer footfall
and customer satisfaction.
Opportunities Threats
 The brand may have opportunity to
expand their business in global market
so that to gain higher share in the
market and earn more profits as well (5
reasons why you need to visit
NANDO'S, 2020).
 By introducing new product range
Nando’s can acquire new customer in
their customer portfolio.
 The major threat for Nando’s is of
their competitors such as McDonalds
and KFC as these brands are known
around the world so Nando’s is having
threat of market survival in existence
of these brands.
External analysis
External analysis can be performed for Nando’s with the help of PESTLE framework,
and the same is elaborated as under:
Political factors: Political factors are associated with political stability within country and
political power within country. Nando’s is one of the significant fast food chains which is
having their business in various countries and due to this governmental policies may influence
business functions. On the other hand in the time of COVID situation stores are closed due to
situation of lockdown which is adversely impacting business operation of Nando’s. In the
context of market expansion Nando’s may have some issues as governmental and political
conditions so in order to expand their business in market in different countries.

Economic factors: Economic factors are associated with economic stability and economic
power existed within countries. Nando’s is having their business in various countries and
market segments so economic position may have higher impact on market position of Nando’s.
For instance in current time economic condition of India is enhancing in every passing day so
Nando’s is having opportunity to acquire higher market share in India so that to gain more
customers as on (Nando's on track to reach carbon neutrality this year, 2020). On the other hand
for effectively managing business operations understanding economic inclination is necessary
as this will lead Nando’s to develop understanding regarding markets and its trends.
Social factors: This factor is associated with needs and preference of customers, in order to get
higher succession opportunities this is necessary to understand needs and preferences of
customers so that appropriate position can be attained in the market and more customers can be
added to customer portfolio. In the context of Nando’s as the brand is providing fast food and
specifically chicken as their product offerings. In current time people are inclined towards using
and trying new products whether they are eatery products or for daily use. So this market
change is giving higher opportunities to Nando’s for placing their brand in market in such a
manner that distinct identity can be created.
Technological factors: These factors are associated with using of advanced and latest
technology in the business so that easiness can be provided within processes and business
functions. In the context of Nando’s, as the company is using various advanced technology in
billing and food preparation process so that to provide higher level of satisfaction to their
customer and minimising their service time. This way Nando’s can acquire higher market
prominence which may lead the company to new heights in market succession. In this time of
digital age using such technology could be helpful for Nando’s to set up their business in such a
manner that prominent position in food industry can be received by them in competition with
rivals.
Legal factors: These factors are associated with using of various laws and legal obligations so
that to avoid any legal proceedings and to lead the business in most possible ethical manner. In
the context of Nando’s as the company is having international operations and for sustaining in
the market this is necessary for them to use various laws and Acts within operational functions
so that in various dimension controlling power can be rendered. In this manner by using

employment laws Nando’s is able to provide satisfaction to their employees. With the help of
satisfied employees this will be easier for Nando’s to attain their set organisational objectives
and to unleash market success as well.
Environmental factors: These factors are linked with using such practise which may have
negative impact over the environment or eco system. For Nando’s being a food chain keeping
environment factor high is necessary as food is linked with eco system. In order to manage
these aspects Nando’s is using sustainable packaging for their food so that negative impact over
the environment can be minimised. Whereas in production process such processes are being
used by Nando’s which may not have any negative impact on health of user and environment as
well.
The influence of globalisation on organisational strategy and decision making
Influence of globalisation on organisational strategy
Globalisation has increased the market competition and in this manner higher impact
has been seen over organisational strategy. Due to globalisation all the economies has been
integrated and this is giving immense opportunities to the businesses to grow and acquire higher
market share (Perraton, 2019). In the context of Nando’s with application of globalisation more
opportunities can be inhaled by the company in order to sustain and acquire market share as
well. In the terms of organisational strategy Nando’s is now required to focus on global market
and global customers so that distinct edge can be attained by them and steady growth can be
attained. After introduction of globalisation Nando’s is getting power to enhance their size and
overall business operations. Besides this as Nando’s is entering into a new country government
policies will be different over there and in order to align with the same Nando’s need to alter
their business strategy so that to acquire higher customers and to attain success.
The influence of globalisation on decision making
After introduction of globalisation businesses are required to take decisions as per
international market scenario so that to align with global needs and to attain organisational
objectives effectively (Millar, Lockett and Mahon, 2016). In the context of Nando’s as the
brand is willing to expand in various international market so due to change in technological and
other factors have been seen and for this process of decision making is required to be changed

by the company. In this manner Nando’s is required to change their decision in relation to
business functions and human resource as well. This is being observed that human resource of
each country may have several features which could be adapted by Nando’s in globalisation
tenure.
CONCLUSION
From the above discussed information this can be concluded that business environment
is the set of various elements in which internal and external factors are included and in this
manner for every business analysis of these factors is necessary so that to reach out to business
objectives in systematic manner. Besides in the trend of globalisation, higher impact is seen
over organisational strategy and decision making so analysis of internal and external business
factors may lead to develop prominent business strategy which could be helpful in developing
the organisation in long run. On the other hand organisational interrelationship helps the
business to execute various aspects in most appropriate manner so that clarity in goal attainment
can be seen.

REFERENCES
Books and journals
Khan, K.A., Çera, G. and Nétek, V., 2019. Perception of the selected business environment
aspects by service firms. Journal of Tourism and Services, 10(19), pp.111-127.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Meroño-Cerdán, A.L. and López-Nicolás, C., 2017. Innovation objectives as determinants of
organizational innovations. Innovation, 19(2), pp.208-226.
Millar, C.C., Lockett, M. and Mahon, J.F., 2016. Guest editorial: Knowledge intensive
organisations: on the frontiers of knowledge management. Journal of knowledge
management.
Moss and et. al., 2017. Structure of the public relations/communication department: Key
findings from a global study. Public relations review, 43(1), pp.80-90.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Online
Nando’s. 2020. [Online] Available through< https://carbon.ci/case-studies/nandos-science-
based-target/ t>./
Nando's becomes the first restaurant group in Europe with an approved science-based target.
2020. [Online] Available through< https://www.edie.net/68298/case-studies/Nandos-
becomes-the-first-restaurant-group-in-Europe-with-an-approved-science-based-
target/14461>.
Nando's on track to reach carbon neutrality this year. 2020. [Online] Available through<
https://www.edie.net/news/6/Nando-s-on-track-to-reach-carbon-neutrality-this-year/>.
The Cool Chain Restaurant. 2020. [Online] Available through<
https://<www.vogue.com/article/nandos-restaurant-drake-beyonce-bella-hadid-prince-
harry-recipe/>

5 reasons why you need to visit NANDO'S. 2020. [Online] Available through<
https://www.cityshor.com/bengaluru/5-reasons-why-you-need-to-visit-nandos/>