Nando's: A Strategic Analysis of the Global Marketplace - Report

This report provides a strategic analysis of Nando's, a global restaurant chain, examining its strategy in the international marketplace. It begins with an introduction to Nando's and its global presence, followed by an analysis of the external environment using the PESTEL framework. The report identifies areas of potential competitive advantage using Porter's Value Chain, discussing both primary and support activities. Furthermore, the analysis considers the findings to identify challenges and opportunities for Nando's in the global market. Finally, the report concludes with strategic recommendations, supported by references to academic literature and business practices. The report aims to offer a comprehensive understanding of Nando's strategic approach to operating in a competitive global market.

Strategy in the global
market place

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY ......................................................................................................................................3
Analyse external environment using appropriate strategic frameworks & potential impact on
organisation from identified environmental changes & trends .......................................................3
Identify areas of potential competitive advantage...........................................................................5
Consider the analysis findings and identify challenges and potential opportunities that exist for
the organisation ...............................................................................................................................9
Recommendations..........................................................................................................................11
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15
Books & Journal:...........................................................................................................................15

INTRODUCTION
In business, strategy play an important role in achievement of corporate goals and
objectives. It is defined as set of tactics which are used by entity to achieve both short and long term
goals (Inge, 2019). Big businesses usually have offices abroad for countries they market to.
Currently, with the wide use of internet, even small businesses can reach consumers anywhere in
the world which results in access to information at rapid scale. A business chooses not to extend
foreign level can face domestic competition from international companies that are extending their
international presence. The presence of this competition almost makes it a requirement for many
businesses to have an global presence. Main purpose of this report is to analyse strategy in market
and globally with business perspectives. Nandos, a South African restaurant chain headquartered
din South Africa. The restaurant is located globally across more than 35 countries. They are mostly
known for their specialized service of Portuguese & African food. As located globally, they have
many competitors such as Shack – Shack, El Pollo Loco, Dennys, Texas Roadhouse etc.
Moreover, they use many new business practices when dealing at global market place. It leads to
better decision making process in effective manner. This report comprises of external environment,
areas of competitive advantage, analysis findings & challenges and recommendations.
MAIN BODY
Analyse external environment using appropriate strategic frameworks & potential impact on
organisation from identified environmental changes & trends
External environment are defined as those which comprises of external elements that affects
the overall organisational structure, functions and operations. So, to examine these impact of such
factors on MNC it is important to use strategic frameworks so that analysis can be done properly.
In relevance with Nandos, which has a diversified and large scale business expanded globally,
number of components present that highly effect on its operations externally. So, to analyse the
external environment factors PESTEL framework has been used to analyse how this company
respond towardssame, as which is further explained below-
PESTEL Analysis
It is a strategic framework which is used by organisation to identify the factors affecting
business externally (Björkman, 2019. It is widely used by most of the entity's as it helps in
examining of the way through which decision making could be affected so that strategies would be
made accordingly. By proper use of this tool, present firm I.e Nando's is able to take decisions
effectively. It is time consuming process but is required by every organisation. This framework
includes several components which are explained below-

Political factor-
It includes factors that reflects involvement of government within political concerns for
managing functions of both domestic & international businesses. It includes political stability,
environmental law, foreign trade policy, tax policy etc. In relation with Nandos, this firm also get
affected by these elements as they are have entered into China's market they can be get impacted by
corporate tax, business rate, trade restrictions etc. (deMatos, 2020). Moreover, government of China
has announced that it is essential for foreign businesses to source raw materials by focusing on
environment and social norms if not political factors will affect business activities. Other example
of China, other country like Japan has also strict rules in commercial sector which impact upon this
firm business too.
Economic-
This is another element which includes exchange rates, inflation and deflation, interest rates
etc. It has high effect on Nando's because GDP Of China is increasing & catering business of
country has improved from 2013 (Thomas, 2016). Thus, this is favourable conditions which impact
upon Nando's firm. Economic factors are crucial to be focused so that everything is carried out
appropriately. Factors of this component have deep impact on entity's working efficiency. For
example-in Japan also people are habitual of eating fast food which enhance catering businesses.
Social factor-
It involves taste, choice of preference, behaviour, attitude, affecting the business. With
changing interval of time, social factors are necessary to get focused. This is also seen that these are
flexible in nature which affects hospitality/ food industry at deeper level. These also have deep
impact on business operations as in reference with Nando's they have been operating China, it is
seen that that people behaviour of China prefer quality life and like to go out in fancy restaurant. So,
it enhances the chances of benefit of foreign businesses in country. Main rationale for undertaking
this example is that selected country has large population & they wish for quality of foods. Due to
this reason foreign business focuses of social component.
Technological factors-
It is being considered as most crucial element because technology is necessary for business
to run their activities for longer period of time. In context of chosen firm, they have been using
technology but are rigid and adopts new change in technologies such as raw material supply system,
quality monitoring & food production system where restaurant is still lagging behind & using old
methods. This is seen that use of technology has widen the scope of opportunities in business sector.
It increases chance organisation to improve their research & development department at larger scale
(Lin, 2020). For example - Selected entity uses online payment technology like debit & credit card
via online wallets etc.

Environmental factors-
It is an component in which it focuses on green agenda, waste management, recycling etc.
This element too impact upon firms operations because they China have rules and regulations
towards their environment according to which foreign businesses need to operate their functions or
activities. Also, there are many other countries such as U.S, U.K, Portugal which focuses on their
environment protection. This element assures that businesses are operated under environmental
laws or regulations so that surroundings does not get affected. This component affects selected firm
because have to use resources in such a way that they does not affects environment.
Legal element
In this factor, it comprises of contracts, agreements, laws which are enacted by government.
These also affects the entity activities because many foreign countries have different laws &
regulations which are to be followed by international organisation. In reference with given firm,
laws and legislations of China such as Food Safety Laws of PRC, Food Safety act etc. are required
to be followed by enterprise (Ortega, 2019). The legal department of firm make assures that
structures are well managed and organised so that problems or issues do not occur in future period.
Also, correct form of structure results in carrrying out of acivities, functions, operations with
appropriate cosdeirations. So, after analysis of above mentioned matter it has been stated that
macro envionment is essential which is to be focused by organisation so that appropriate change or
imlementation of strategy is done (Nurmi, 2018).
The above expalined PESTEL Analysis states that it is essential to be aware about
environmental components so that business decisions are taken accordingly. In this framework,
discussions is done regrading several elements such as political, social, technological etc. And how
these impact upon company.
Identify areas of potential competitive advantage
In business sector, it is important for company to be aware about market analysis and
competitive advantage in market where entity is operating their activities or operations. Main
rationale for cnducting this taks is to properly analyse how additional advantage can be gained by
Nando's in competitive market. To identify the these advantages, frameworks are adopted by
entperprise such as Porter Chain analysis whcih is further discussed below-
Porter Value Chain
This is another framework which is adopted by Nando's for idenfying competitive
advantage. In this Porter Value Chain Model, it is system which depicts the subsytems that are
being used to develop a product or services (Kawharu, 2019). It is divided into two activities which
are primary and secondary. Both these activities are focused by firms from start to finish in

systematic way.
Primary activities
These are activities in which it is mainly concerned with production & selling of product.
This includes five activities which are inbound logistics, outbound logistics, operations, marketing
and sales & service. All these activities are crucial different from industry to industry. (Sarsby,
2016).
Inbound logistics-
This is an activity in which purchasing and managing of raw materials is done. In reference
with Nandos, they recieve, store, inputs to product in most efficient manner. They carry out this by
properly maintaining raw materials throug maerials handeling, warehousing, inventory control,
proper scheduling etc. Thus, inbound logistics are required to managed so that correct form of other
acivities are being processed further. (Olyaeemanesh, 2018).
Operations
After properly all resources have been collected within firm, the next process is to convert
process into final product. It is most crictical process because care has to be maintained of
production processes. In context of chosen firm, they run their operations by managing packaging,
assembly, tools or equipments, etc. Through focusing on these operations are carried out in
respetive entity.
Outbound logistics-
Then next phase is outbound logistics which comes after final conversion of product. In this,

it focuses on how distribution of process is needed to be carried put so that they have access to
customers. Various activities are present which are finished goods warehousing, delivery vehicle
operations etc. In viewpoint of Nandos, manager of firm assures that operations are processed
properly without facing any problem (Roberts, 2018).
Marketing and sales -
It is activity which is mainly focused on trigger custoemer to purchase the products.
Customers decisons can get influenced by firm by promoting and advertising the product through
using many methods such as direct selling, social advertising, digital marketing etc. In context of
selected enerprise, they focuses on marketing funnel process which is benficial for company (Inge,
2019). Marketing & sales of firm is maintained by managaer who is responsible for overall
functioning and operations.
Service-
It is also an important activity in which entity focuses on delivering total satisfaction to
customers by roviding them effective after sale service. In relation with given corporation, they pay
attention on giving customers with meaningful knolwedge regarding product such as good table
service, discounts and offers, coupans, advance booking, VIP's treatment etc. BY focusing on such
afer sale service, they are able to increase their goodwill in market. Through carrying out this, entity
is able to increase the retaiing period of customers for longer interval of time.
Support activities
In this, main focus is on coordintaing and supporting the functions of a activities. It involves
puchased input, technology development, procurement, human resoure management. These are
somehow associated with primary activities. These are important because they are responsble for
achiving the final results. So, these are explained below-
Procurement-
It is process by which obtaining of goods and products is being focused mainly with
business purpose. Procurement assists both primary & support activities at all aspects which is
beneficial. In reference with given firm, they obtain raw materials by properly analysis of market
reserach. In this, it involves machinery, equipment, buildings equipment, and procurement is needed
for every value activity.
Technology development-
It is also an support activity in which it focuses on deisigning and developing of
manufacturing techniques. This includes hardware, software, procedures & many more. In

reference with Nando's, they pay attention on development technology such as they uses effcetive
supply chain management system which does not affect overall cost of entity. Also, they have been
using new updated software for security & safe transactions (Björkman, 2019). To achieve higher
growth & development, it is necessary to use advanced technology with changing period of time. s
Human resource management-
In this activity, it carry out the activioties such as hiring & recruiting talented workforce. It
is important to manage or hire deserved subordinates so that both primary as well as support
activities are managed effectively. HRM is base of organisation which is needed to be carried out
with proper considerations. In viewpoint of respective entity, they have well skilled HR who recruit
talented candidates have the ability to deliver positive output at workplace. The HRM of Nando's
uses advanced tools/ software to hire people for getting the work done in efficient way.
Infrastructure-
This is also an crucial one because it depicts the structure such as legal, government,
finance, accounting, planning, quality management etc. The infrastucture of Nando's unpin overall
activities of value chain instead of being supporting indvidual activity. Company's manager is
entitled to form an effective infrstructure so that decision making process id done properly.
(deMatos, 2020).
So, from discussed framework it is seen that it is necessary for company to analyse their
competitive advantage so that they can use their resources in proper manner. Moreover, it is duty of
manager to make assure that appropriate one is used for achieving better results. In both
frameworks of VRIO and Porter Value Chain, it is seen that they both are necessary to
Consider the analysis findings and identify challenges and potential opportunities that exist for the
organisation
The analysis of above explained frameworks and matter states that they are many challenges
and issues which are faced by entity when operated globally. Other than this, many opportunities
also exist in organsioation. Main rartionale for carrying out this tasks is that by identifying
challlenges s& oportunities, it will be easy to examine work efficieny level of copmpany in correct
way. In viewpoint of Nandos, they uses tools to access these such as SWOT Analysis which is
discussed below-
SWOT Analysis
It is tool which is used by comanies to identify the inner capabilities of firm be accessing
strength, weakness, opportunities and threat. It is time consuming tool because to carry out this

appropriate credetnail is needed. With help of this tool, it is is easy to make deicions in most
efficient manner. To use this, deep level of knowledge and skill is required to carry out in effective
manner. It focuses on several elements which are explained as follows-
STRENGTH
 Main strength of Nandos is that it has
located globally which strengthen its
customer base at larger scale.
 It has large distribution channel network
which impact upon its work flow in
positive way (Thomas, 2016).
 Another one is that it is able to provide
high level of customer satisfaction which
establishes positive customer relationship
management.
 With their stable organisational structure,
it for management to carry out decision
making process properly. This is because
it leads to carrying out workflow in
effective manner.
WEAKNESS
 It is popular in South Africa Britain, but
cannot be said in other parts of countries
because they are not much accepted in
some of foreign countries which limit
their popularity (Nurmi, 2018).
 The company has limited dishes due to
which they are less accepted by Asian
countries because it has their own taste
of references (Lin, 2020).
 This firm is mostly dependent upon their
franchisee based profits. Moreover, it
limits the independent decision making
of management & also cost of franchisee
is too high.
OPPORTUNITY
 Nandos have opportunity of accessing to
Eastern countries as taste of people in
many countries is changing which is
huge benefit for firm.
 Another opportunity is that they can can
choose partnership option as with local
brand which assist them in expansion of
business.
THREAT
 The biggest threat in catering or food
industry is that many people are leaving
jobs and starting their own business this
leads of threat of new entry at higher
level.
 Due to global existence, this entity is
targeted by many competitors like Hard
Rock cafe, California Pizza kitchen,
TGIF and many more (Ortega, 2019).
These competitors stry to dominate the
market of Nando's .
Findings- challenges and oppotunities

After analysis of SWOT Analysis, it is seen that many challenges & opportunities are faced
by Nandos whch are stated as follows-
Challenges
 It is analysed that in most of countries where Nando's is operating employees leave job
without even security and this leads to affecting organisational structure. Because , it
become diffcult for them to hire new subordinates with same skills or knowledge.
 Further challenge is to keep up with market trends because taste/ preference of customer
changes with periof of time. So, it also difficult to implement strategies with frequent
changes in market.
 Then, another challenge is that due there are many other different rules as well as
regulations which are to be followed by entity to run which is diffcult task (Nurmi, 2018).
 Other challenges is that in many coutries local marketers have grabbed the market, and it
has become diffcult for entity to change decisions of custoemers for their own business.
Potential Oportunity-
 Nando's have potential oppotunities of accessing to Asian countries which can enhnace their
margin or profit scale.
 Also, hositality industry is developing which is beneficial for them because they can recruit
new taleneted workforce globally which will improve their working flow level.
 With development of new technologies, entity can update or use new systems which will
results in using of resources with better efficiency (Neven, 2017).
 Other potential opportunity is that they can use more new technology for their business
through which new knolwedge is gained & which leads to new ideas/ thoughts.
Therefore, the explained paragraph shows that it is essential for food industry to analyse
challenges & opportunities which can faced by them at global market place. It results in making
decision in correct way. Also, SWOT Anakysis is being discussed whicj depicts areas wheree
improvemennt is needed by entity. It is duty of manager to make assure that appropriate form of
framework is adopted so that problem or issue do not occur in near future.
Recommendations
After examining the internal & external business environment of Nando's that operates
globally, it is analysed that it is necessary for this corporation to use strategies/ tactics to run its
operation successfully. Moreover, it is stated that in foreign market place, there are ample number

of opportunities which are available & from identified one opportunity which can be used as
competitive edge by enterprise is that they can access to Asian countries because of changing taste
and preferences of people. This opportunity is most beneficial as in this firm has the advantage of
expansion of business at wider scale. So, there are various recommendations through use of this
opportunity-
 It is recommended that Nando's can establish franchisee in Asian countries which will assist
them in accesing of more new opportunities.
 Further recommendation is that this firm can hire new talented employees for business
which will enhance their work effectiveness & will results in increased productivity at
higher scale.
 It is also recommended that to enjoy competitive opportunity of enhancing their customer
base they can change their Menu and service gap which will have positive impact on their
functions & operations.
 Another one is that this firm needs to concern on make improvement in its management
infrastructure that leads to development of new ideas or thoughts which is beneficial for
other procedures.
Thus, from above discussed recommendations it is stated that it is necessary to use the
identified opportunity as competitive edge so that resources are used accordingly in effective way.
The discussed recommendation will help Nando's in achieving competitive advantage as new
changes and strategies will improve their work flow which results in better productivity.

CONCLUSION
After a brief analysis of aboive report, it has been concluded that strategy at global market
place is crucial to be used by company for accomplishing goals at all aspects. Without using
strategy, it is not possible to use carry ourt activities in proper manner. So, discussions have been
made about macro environment, identification of competitive advantage. Then, challenges/
analysis, recommendations are being explained. In this report, a detail overview of macro,
intermnal & external environment of Nando's are being specified. So, it is examined that to achieve
goals effective strategies are needed to be adopted by firm. Moreover, selection of strategies
depends upon company's deicisions or requirements. Therefore, to use teffective tactics are required
to be adopted. A global marketing strategy can also be successful if the firm has managed to change
local preferences. A new product entering a local market will usually change preferences to some
degree, whether by new features, promotion, or price. Entering the global marketplace is a huge
opportunity for a company to meet demands of an international market, while possibly increasing
sales exponentially. Besides this, there are many advantages and disadvantages, as with any
marketing strategy. But the global market is definitely an excellent opportunity for any marketers.