International Business Report: Nando's Sri Lanka Expansion Plan

This report provides an executive summary of Nando's potential expansion into the Sri Lankan market. It analyzes various factors, including market entry modes, marketing strategies, and HR considerations. The report examines the economic and political environment of Sri Lanka, comparing it to Australia, where Nando's has an established presence. It recommends joint ventures as a suitable market entry mode, considering licensing, exporting, and diversification. Furthermore, the report highlights the importance of understanding cultural diversity and adapting marketing strategies to succeed in the new market. The analysis includes strengths, weaknesses, and recommendations for successful business development in Sri Lanka, addressing both micro and macro environmental factors, including trade policies, economic reviews, and potential risks and opportunities. The report also touches upon marketing and R&D considerations to ensure a successful international business venture.

International Business

Executive Summary
This report on international business focuses on various factors and elements that needs
to be considered while entering into a global market or expanding business in a foreign country.
The project analysed various entry modes which can be implemented by an organisation to
expand its business in a new country. The report is in context to a leading restaurant chain
Nando's which needs to expand its restaurant in Sri-lanka after achieving success in Australia.
The report conducted effective research on difference among the existing and new country along
with recommendation for marketing strategies.
The report identified various micro and macro environmental factors that may affect
Nando's restaurant in expanding its business in Sri lanka such as Political, Environmental, Legal,
Social and other factors. The trade policies in Sri lanka are completely different as compared to
Australia. This report explains that how the cited firm can ensure a successful development of
expansion in Sri lanka. There are various risk factors such as social and cultural acceptance of
business in a new market place. In addition to this there are various opportunities for the
organization as identified in the report such as low taxes policies, high population and easy
availability of human resources which can help Nando's to gain profitability and high
performance.
This report recommendation is monetary frameworks in Australia incorporates both
component government controlled economy and open economy. The general population can
work private organizations yet under the supervision by the Australia government. It is
important for Nando's HR professionals to understand and maintain culture diversity within the
organization.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Background of the company ...........................................................................................................1
Additional country analysis - Sri-lanka...........................................................................................1
Recommendations for strategies and entry mode. ..........................................................................3
Marketing and R&D considerations ...............................................................................................5
Marketing strategies and Recommendations...................................................................................7
International Business strategies......................................................................................................8
HR strategies relevant to macro environment .................................................................................9
Production recommendation............................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
In the modern world, each and every organization needs to increase its revenue or
profitability in the market. There is a huge competition in the marketplace which influence
business to make effective strategies and plans in order increase the market-share as well as grow
its profit margin. In order to achieve these objectives organizations focus on expanding or
entering into international markets. This report is in context to Nando's restaurant chain that
needs to expand its business in Sri-lanka. The Nando's restaurant is a leading food chain
operating in and now it is trying to enter into an Asian country in order to increase its
profitability. The report will identify various modes of entering into the new market which can
be used by Nando's to expand its business successful in Sri-lanka. The report will also determine
various strategies which can be applied by the cited organization to enter successfully in the new
market.
Background of the company
Nando's is a multinational casual dining restaurant chain which was established in South
Africa, in the year 1987. The organization operates more than 1000 restaurants in around 30
countries, the restaurant is famous for its chicken products along with chilly sauce made from
pepper. Nando's is operating restaurants in various countries such as, United Kingdom, Australia
of America etc. The organization is planning to increase its profit and revenue by entering into
new markets and countries such as Sri-lanka.
Additional country analysis - Sri-lanka
The economic freedom score of Sri-lanka is 57.8, which make its economy the freest
111th country in 2018. Its overall score has enhanced by 0.4 point, with effective improvement in
business freedom, investment freedom, and legal effectiveness surpassing a decreased score for
financial health. Sri-lanka has been ranked 25th among 43 nations across Asia pacific region as
well as its overall score is beneath the world and regional averages(Lane and et.al, 2017). In
order to control and maintain the dependable economic expansion as well as macro-economic
stability which Sri-lanka has developed, the government should at the same time focus on its
high level of debt out of reduced tax receipts with deducting public sector and reducing
historically high budget deficits. Even though the government has proper land in the east and
north economic development, bonded interests in property are normally acknowledged. An
efficient business start-up procedure has developed an already improved regulative system. A
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rigid legal structure is making it tough for organizations in decreasing their work force and the
cost of dismissing an employee is the highest across the globe. Trading is important for the
economy of Sri lanka, the value for imports and exports is around 51 percent of total GDP
altogether(Titman and et.al, 2017).
Economic Review
Fragile but improving – Economic growth showed to +4.4% in the year 2016, The real growth of
GDP decreased at the starting of 2016 due to floods. In the second half of the year, economy
demonstrated signs of development and improvement achieved by manufacturing and service
development. In the year 2017, economic development is ready to modify about +4.4% earlier
fast in 2018. Exports should regain step by step on the back of high international need and the
competing tourism business. In the short-run, national demand enlargement will be restricted
due to monetary adjustment as well as continued financial consolidation.
Hazard to the mindset are overhead and base from national and outside point. On the
home front, they are related to atmospheric condition (drought, e.g.), the capability of the
government to bring down debt sustainability hazard and cause critical economic reforms (SOE,
e.g.). Outwardly, origin for interest lies in possible daze such as lower exports, since the nation
has a very weak extrinsic place. Furthermore, the government is examined by the IMF. In June
2016, the latter authorized a 36-month Extended Stock Installation for just about USD1.5bn to
assist the economy in its improvement program(Chee and et.al, 2017)
Strengths
 Enhanced business revenues and
individual's’ remittent
 Increasing touristy sector
 Powerful economical growth, disregard
the currency crisis of 2000/2001 and
global down-swing in 2009
 Economical policies are broadly
adjunct of business organization and
economical development(Ahmed and
et.al, 2017).
Weaknesses
 Fault quality of the political system,
with specifically enervated alliance
governments
 Cultural strain stay a danger to stability
and development potential
 Ample fiscal deficits and wide national
debt
 Vulnerability of export base (45%
textiles and clothing).
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Recommendations for strategies and entry mode.
The Department of Foreign Affairs and Trade (DFAT) will acquire an annexation of $5.3
billion for the 2018-19 fiscal year. In order to enter in to a new market Nando's needs to develop
and apply various methods or strategies so that it can effectively expand its business into a new
market as well as increase its profitability easily(Adler and et.al, 2017). Worldwide business or
trade is a procedure under which organization deal its restaurant and administrations in the in
excess of one nation. While any firm consider on the global business exercises then it needs to
center around the different worldwide business condition and additionally hones. Nando's
restaurant has a wide range of restaurant chains and organization which are providing variety of
food items famous all over the world. Organization have principle enthusiasm and mission is to
create the high caliber of food products, beverages, dinning and so forth and convey the best
answer for its client. Its point is to acquire the greatest benefit and piece of the overall industry in
the showcase as it right now work in the marketing. Nando restaurant clients are extremely
certain and guaranteed by the utilization of most developed front line innovation. Along these
lines, one might say that Nando's restaurant have exceptionally successful position in the market
in the business of restaurant and client reliability is additionally high. Presently, Nando's
restaurant wants to grow its business at worldwide level in this manner it chose the SriLankan
market for global development. In the India there are tone open doors for business development
that is the reason Nando restaurant wants to look for the development and strength in the
SriLankan market. The restaurant wants to expand its restaurant chain by entering into the
SriLankan market. For this reason for propelling new restaurant and go into the SriLankan
market, advertise passage mode is one of the real concern which firm need to consider in the
universal development. Entering into a new market is arranged strategy for conveyance products
or administration to another objective market and circulating them there. There are different sorts
of market passage procedure which can use to enter in the new market(Cronk and et.al, 2017).
These market section system are as per the following-
1. Authorizing or Licensing - Licensing is a procedure under which one organization gives
their rights to deliver or offer the organization's restaurant and administrations. In simple
words a business arrangement in which one organisation provides other organisation
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permission produce its product for a specific payment. The licensing can be related to
trademarks, copyrights, patents and other intellectual property.
2. Joint Venture-It is an exceptional sort of association in which at least two organizations
cooperate with a specific end goal to frame the third new association. In this way, One
organization joint or together with another same organization which deliver a similar
restaurant. The cited organisation can join with other local restaurant or food chain to
establish a joint venture and share profit among them. This can help in enhancing the
popularity as well as attract more customers
3. Diversifying - This passage mode is most regular among the evolved way of life business
under which organization adapting and gluing an idea in the new market. It is an ideal
when one organization mark is as of now understood. Diversification can help in
increasing return by inventing in various segments that results differently to a same
circumstance or situations.
4. Trading - In this market passage methodology, organization send the products and
ventures in a worldwide market. There are two sorts of sending out that is immediate and
circuitous. In coordinate sending out, organization takes charges of delivery merchandise
to universal market and in the roundabout exportation company utilizes a mediator to
incorporate the restaurant into the worldwide market. This can help in the cited
organization to increase its sales and profit, as well as it supports in enhancing popularity
of the business.
According to the above exchange it has been learned that there are different methods of
passage in the worldwide market. For the Nando's restaurant, joint wander is extraordinary
compared to other market passage mode by which it can consolidate with another comparative
Nando's restaurant in the SriLankan market and expand its restaurant chain. Under this market
section mode, at least two companies cooperate for frame a third partnership. Nando restaurant
can utilize this alternative since it requires propelling the new restaurant in Sri-lanka. In this way,
the cited organization can match with another comparative organization of Nando restaurant and
can dispatch the new restaurant in the SriLankan market. Other market section system like
permitting, sending out and diversifying isn't appropriate a direct result of the few reasons which
are as per the following-
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1. In the sending out, organization require to deals its restaurant and administrations in the
universal market either by winning or by sue of the middlemen. Nando's restaurant wants
to dispatch the new restaurant in the India showcase that is the reason it sometimes falls
short for this sending out market passage technique.
2. With regards to permitting and diversifying, business gives the retailer of franchisee
authorization to utilize the privileges of hallmark, brand and deliver a protected
restaurant. Referred to firm will the new restaurant in SriLankan market that is the reason
these specified technique won't be appropriate for global business extension(Emuchay
and et.al, 2017).
Marketing and R&D considerations
In order to identify and determine effective recommendations for the organization it is
essential to analyze the micro and macro elements of both the countries. These analyze can be
describes as below -
1. Australia
 Framework - The Infrastructure of the Australia is especially created and successful, It
can be referenced as the main and most progressive Infrastructure around the
world(Knight,2015). The Supply chain of the Australia has been created exceptionally
well by interest in general society areas. The Government is adequately keeping up the
foundation of the nation by permitting development and innovative headway inside the
nation. For example, transportation offices and so on.
 Economy - The Australia consist of the blended economy, Sometimes the Australia had
free market economy. The monetary frameworks in Australia incorporates both
component government controlled economy and open economy. The general population
can work private organizations yet under the supervision by the Australia government.
The Nando's's showcasing systems can be influenced by the different financial changes in
the UK and also Sri-lanka. The significant change in the financial variables is the
fluctuating work cost. The Australia has a main economy on the planet which prompts
the expansion in the work cost, the adjustment in labor cost can influence the showcasing
systems. High work cost influence the showcasing choices of an organization as far as
cost of promoting and advertising rehearses.
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 Legislative Policies - Australia government set numerous directions and laws in a
working spot for the welfare of the representatives and to ensure them. For instance Laws
with regard to the promoting and showcasing forced by the Federal Trade commission
which is created in order to ensure the costumers and keep the associations faithful and
fair as for their administrations or items. The laws of the Australia government bolsters
the business and in addition controls them to perform tasks thinking about clients welfare.
The Political or social changes in a nation can influence the promoting techniques of each
restaurant or brand. The Australia is the residential market of the Nando's organization,
therefore it includes a created advertise inside the Australia. The political changes in the
nation may influence the advertising practices of the organization yet because of its
image picture in the Australia the progressions does not have much effect on the situation
of the organization in the market. Culture - The Australia takes after a propelled western culture and American English is
the most positive for the general population in the Australia. The Nando's showcasing
techniques are relied upon request of their items in the market neighborhood or universal.
The social factors such culture and individuals' keen in the Australia for a restaurant is
more satisfactory and can influence the promoting systems of an organization(What is
International Business, 2017.)
2. Sri lanka
 Framework -Sri lanka's framework is as yet creating and isn't quite best in class. The
Country's greatest monetary sources is the generation and exportation of bond. Sri lanka
is developing towards the advancement by putting into different foundation tasks and
projects. Sri lanka can build up a more powerful foundation, transportation offices are
should have been further developed and efficient. It doesn't have a created foundation yet
is creating.
 Economy - The Sri lanka is a creating nation, that clearly expresses that it doesn't have
that much solid economy. The Sri lanka's economy needs the exchanging of items. The
universal proprietorship in couple of segments is denied. The monetary states of the Sri
lanka are not that much viable and grew but rather is endeavoring to accomplish the
development. The Sri lanka has a low economy, the general population are expecting
work and wellspring of pay which brings about the low work cost. The Nando's can
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procure workers requiring little to no effort that influence the advertising of the new
restaurant, for example, the Restaurant. The promoting methodologies can be produced
distinctively in both the nations
 Legislative Policies - Administration of Sri lanka have set a little complex strategies
identified with the business association. The Sri lanka does not have any approach to lead
ventures to specific geographic territories. The Sri lanka government is now confronting
issues, for example, psychological warfare, low economy which influences the
organizations by implication. Sri lanka isn't even now a creating country, the economy of
the nation is additionally not all that noteworthy, because of this obtaining energy of the
clients is lower. Any adjustments in social or political zones of Sri lanka can majorly
affect the Nando's presenting new items, for example, I pad
 Culture - The Sri lanka utilizes Swahili dialect. Also, the way of life of the nation isn't
that much progressed when contrasted with the created nations like Australia.
The general population in Australia and Sri lanka have diverse culture, perspectives and
qualities. As the general population in Sri-lanka are very little model and created as far as
society, The request of the new restaurant, Its cushioning can contrast because of progress in
culture and social components. In this manner, it will influence and can change the promoting
choices or plans in both the nations.
Marketing strategies and Recommendations
Competitive Strategies
1. Disregarding the Critics - Incredible thought regularly get vicious restriction from fair
personalities. The Nando's has confidence in there thoughts and advancement. The
general population judge the brand in different negative ways still they make items
overlooking the pundits or cost. The Nando's centers around their items as opposed to
tuning in to the pessimistic faultfinders of the general population. The Restaurant is
likewise advanced similarly, A commercial center may acknowledge the restaurant or
may not the Nando's is presenting their imaginative items in each nation to increment
there commercial center.
2. Product : All products follow a logical product life cycle and it is vital for marketers to
understand and plan for the various stages and their unique challenges.
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3. Price – The Nando's centers around the nature of the Restaurant to meet and legitimize its
cost. In The Australia individuals are all the more financially stable contrasted with the
general population in Sri lanka, the brand considering this improved the restaurant which
can fulfill the clients in both the nations by creating and valuing the items as needs
be(Luthans and et.al, 2018).
4. People – The Marketing procedures causes a brand to display and present the results of
an association to the clients. The correspondence between the clients and the organization
should be powerful. The Nando's deal with this component, the promoting practices, for
example, the ad and so forth are made by the commercial center and the dialect utilized
as a part of that specific market or zone. These practices are done any other way in the
Australia and Sri lanka. The Nando's Restaurant is effective in the dialects of both the
nations, with the goal that the clients can comprehend and recognize the restaurant and its
highlights. This causes in getting associated with the general population and pull in them
to purchase the items.
5. Promotion – The another advertising methodology of the Nando's for their Restaurant or
Its cushion is to offer a point by point understanding of the restaurant by giving hands-on
and limited time exercises for the general population helping them to touch and
experience the restaurant without paying anything.
6. Place : The placement strategy will help assess what channel is the most suited to a
product. How a product is accessed by the end user also needs to compliment the rest of
the product strategy.
The worldwide or universal market consist of an extensive variety of items and
administrations, the associations present inventive items or administrations to accomplish upper
hands in the worldwide market. Nando's Restaurant needs to actualize certain methodologies and
systems keeping in mind the end goal to distinguish the business condition or economic
situations to build up the best activity design while entering inside the worldwide market.
International Business strategies
Different worldwide market approaches helps in giving successful chances to the
associations to grow most suitable procedures for working inside the worldwide market. There
are a few philosophies for worldwide promoting for Nando's Restaurant(Beugelsdijk and et.al,
2017).
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 One size doesn't fit all incorporate nearby flavor - Association constantly get
procedures will accomplish the client needs and needs. What's more, another principal
focus of the association is to accomplish the objectives and companions promote plans.
This approach gets the client certainty it in like manner needs to make effective troubles
for the contenders. Nearby that, another essential methodology of the affiliation is to
master or to perceive the client needs and needs.
 Appreciate the social differentiation -At the point when association forming brand
things into the unmistakable countries to make thing around the world. Nando's
Restaurant needs to look at the market culture to make fruitful publicizing strategies.
 Tie up the nearby accomplices who grasp the neighborhood showcase - Nando's
Restaurant in like manner needs to grasp extraordinary association with the area
accessory to get close-by showcase and their theories of age. With the help incredible
cognizance between close-by assistants this will grasp other culture easily.
HR strategies relevant to macro environment
There are various types of issues and problems faced the human resource management in
an organisation while trading globally. These issues can be described as below -
1. Cultural diversity – The major issue faced by HR professionals is to understand and
maintain cultural diversity. It is due to the reason that there are people from different
country, location or cultural background. It is difficult to understand their culture or
language, this thus create a problem for HR management. It is important for Nando's HR
professionals to understand and maintain culture diversity within the organization(Vahlne
and et.al, 2017).
2. Compliance with international laws -When an organisation or business expand itself
globally it needs to hire employees from various locations and cultural backgrounds, for
this purpose they need to adopt new employee laws and policies. For example – If
Nando's restaurant expand its business in Sri-lanka, it needs to consider laws related tot
employees as imposed in that particular country. This is an issue as organizations needs
to modify its policies and laws.
Production recommendation
 Buy or produce decision – In order to achieve effectiveness and efficiency in the new
market Nando's restaurant can make proper decisions regarding manufacturing items or
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