Case Study: Strategy and Change Implementation at Nando's (4X-605475)

This case study analyzes Nando’s strategic decisions, focusing on growth, expansion, and change implementation. It evaluates strategies using suitability, acceptability, and feasibility (SAF) analysis, recommending expansion and development. The Lewin’s Three-Phase Change Process is applied to outline the implementation of expansion, emphasizing unfreezing, changing, and refreezing stages. A SWOT and BCG analysis further examines Nando’s strengths, weaknesses, opportunities, and threats, along with its product portfolio. The case study also highlights Nando’s international strategy, entrepreneurial spirit, and the need for innovation beyond its signature peri-peri sauce. The overall analysis provides insights into how Nando’s can sustain growth and adapt to market changes.

Running head: IMPLEMENTING STRATEGY AND CHANGE
IMPLEMENTING STRATEGY AND CHANGE
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1IMPLEMENTING STRATEGY AND CHANGE
Executive Summary:
The purpose of this assignment is to identify the different strategies that can be used by
Nando’s for its future development. A detailed analysis using different frameworks are to be
done for the better understanding of the strategies and how they can be implemented. The
focus will also be on the company background and how it has implemented change over the
years and how its innovation has played an integral part of its development.

2IMPLEMENTING STRATEGY AND CHANGE
Table of Contents
Question 1:.................................................................................................................................3
Question 2:.................................................................................................................................4
Question 3:.................................................................................................................................6
Reference:................................................................................................................................10

3IMPLEMENTING STRATEGY AND CHANGE
Question 1:
Nando’s is an international brand of snacks joint present worldwide in different
countries. It started by Robert Brozin and Fernando in 1987 in South Africa and from then it
has expanded its business worldwide (nandos.com 2018). A strong business structure and
strategic management is required to maintain such a large business. This discussion focuses
on the different strategic decisions that can be used by Nando’s to develop and sustain their
business.
One of the strategies that Nando’s can use is growth and expansion (Taylor 2016).
Robust expansion to different parts of the world by opening outlets in different cities in
different countries. This can let the brand gain a worldwide popularity and make it the
customer’s first choice.
Secondly, Nando’s has to maintain its quality without compromising the price. The
customer range of Nando’s primarily vary from 18years to 34 years. The young vibrant
customer base is always on the lookout for new dishes along with the classic traditional ones
(Holt 2018). Developing newer recipes in line with its peri-peri sauce can give Nando’s an
edge over other brands such as KFC or McDonalds.
Suitability, Acceptability and Feasibility:
Suitability: Nando’s has always focused on expansion, so further expansion is always
sustainable for the company. Moreover, Nando’s rapid expansion in different markets has
always acted as its strength, hence, this strategy falls in line with the objective of Nando’s
(businessnews.com.au 2018). The second strategy which focuses on changes and adoption
with time is also according to Nando’s work ethics which finds more suitability in changes

4IMPLEMENTING STRATEGY AND CHANGE
than remaining traditional. The ability of Nando’s to change according to the change in taste
of the customers is one of its major strengths.
Accetability: Nando’s has always shown a different attitude from the other companies
in its work culture. It has a lenient management style, partner selection style (nandos.co.za
2018) and an informal relation with its staff. The implementation of new strategies has a
higher acceptability factor in case of Nando’s as the partners and management are always
ready to take risks. In the past it has been seen that Nando’s has gone through a tough phase
but with the help of its partners and its successful strategic changes over time has shown its
acceptability in the market.
Feasibility: Nando’s is one of the most successful food outlets in the world, having a
decent financial turnover. Moreover, its successful management style (nandos.co.uk 2018)
provides Nando’s with the perfect infrastructure required to bring about the strategic changes.
The strategic changes are highly feasible considering Nando’s strength in the market and its
ability to focus on constant development and change.
Considering the three factors in the SAF analysis, it can be said that expansion and
development is the most effective strategy that Nando’s can adopt for its development in the
future. It is suitable considering Nando’s robust growth in the last few years in different
countries (Gander 2017). Moreover, Nando’s follows a lenient corporate structure which
gives freedom to its partners and management. This can allow them to easily accept the
required changes. Moreover, Nando’s has a strong financial development in the last few
years. Its management and infrastructure allows its expansion strategy to be more feasible in
the present market development.

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Question 2:
Implementation of change requires certain planning and processes. The most suitable
strategy discussed in question 1 is expansion and growth. The rapid development and
expansion of outlets all over the world has been seen as the most effective strategy that
Nando’s can adopt for its future development. The process used for planning the
implementation in this discussion is the Lewin’s Three Phase Change Process. This will
explore the existing ideas which needs to unfreeze, then changed and again refreeze so that
the change and strategic development takes place completely.
Unfreeze:
 Robust development and expansion is required for the company’s growth and
development.
 Nando’s maintains a strong relationship with its partners and management who are
always ready for change.
 In order to sustain in the competitive market Nando’s need to expand in a robust
manner to increase profits and popularity.
 Nando’s strong infrastructure and growth requires the expansion to sustain and
develop.
Change:
 The change requires strong communication between the authorities and the
management who will be directly handling the expanding market.
 There might be hurdles in establishing foothold in certain markets but belief in the
company’s vision can create a strong statement in repelling rumours and negative
impacts.

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 Establishing the outlets and successfully appealing to the new market is the key factor
to change.
 Promotion and directly involving new people helps generate interest in a new market
and trigger the required change.
Refreeze:
 When the outlets have already been established, it is essential to operate them
successfully.
 Encouraging the management to achieve success and not highlighting the initial
failure can motivate the employees to perform better in the expanded outlets.
 Providing training and support to the local employees can generate more interest
among the local people who can adopt the newly opened outlets in their own culture,
hence generating new markets.
 Moreover, it is very essential to celebrate the success of the organisation in the new
outlets in order to motivate the new employees and bring in success to the
organisation.
The above analysis perfectly highlights how the strategy can be successfully
implemented in Nando’s and how successfully it can bring in the desired change in the sector
which can help in the company’s growth and development. Moreover, these highlight the key
points available to Nando’s for bringing in the change and how it can benefit the newly
opened outlets. The success of this expansion theory further depends on how the company
handles it and how it operates the management and the newly appointed employees. They can
further encourage the new market and gain a strong foothold in that sector. The robustness,
active promotion and aggressive marketing all are the key factors in the success of the new
expansions and these play a major role in the development of Nando’s.

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Question 3:
Nando’s is one of the most famous chicken restaurants in the world jointly opened by
Robert Brozin and Fernando Duarte in 1987. The South Africa based restaurant expanded
over the years from South Africa to other countries such as Namibia, Zimbabwe, Mauritius
and Botswana. Subsequently it expanded to countries like Australia, UK, Portugal, Israel, and
Canada. In the middle of the 1990s it spread to the South-East Asian countries and has the
potential to become one of largest recognised food outlets all over the world.
SWOT analysis:
Strength:
 Nando’s uses exclusive décor for each outlet.
 Nando’s peri-peri chicken recipe is unique and popular among its customers.
 Customer satisfaction.
 Nando’s customer loyalty card.
 Active promotions.
Weakness:
 Nando’s is popular in only a few countries.
 Nando’s offers limited dishes besides the famous peri-peri chicken
 The rising costs of production compared to the affordable dishes that Nando’s offers
to its customers.
Opportunities:
 Introducing new and global dishes to its menu.
 Expansion in a robust scale.
 Development of infrastructure.

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Threats:
 Development and growth of competitors.
 Entry of new players in the food market.
 Rising prices of cooking fuel and raw materials.
BCG analysis:
The BCG framework analyses some of the products and aspects of Nando’s which are crucial
for understanding its sales benefits and growth. Over the years, it has been seen that Nando’s
Peri-Peri chicken is its star product having a high market share and a high growth rate.
Nando’s Peri-Per sauce is the product is its cash cow as it has a high market share, being one
of its most popular products but has a low growth rate in terms of development. Other dishes
that Nando’s offer can be put in the dog category as they neither have a high market share nor
a high growth rate. The biggest question mark for Nando’s is its expansion strategy. Nando’s
have made considerable expansions from its beginning, but the robust development that is
required for the rapid growth of the company is missing.

9IMPLEMENTING STRATEGY AND CHANGE
Nando’s International Strategy:
Nando’s follows a global strategy that gives freedom to its shareholders in different
countries worldwide. Nando’s promotes a spirit of entrepreneurship and ownership to its
partners. The parameters and visions of operations are set by the headquarters, but at the
same time it encourages the partners to take up responsibilities in their own hands so that they
can operate in a freer manner with a spirit of managing one’s own company. This has resulted
in creating a good relation between the management and the headquarters which has helped
the company achieve a considerable development in the recent years.
Nando’s and innovation:
Nando’s has limited number of dishes and taste options. It prepares chicken with the
utmost passion and aims at providing its customers with the best taste of Portugal. However,
the introduction of the peri-peri sauce in the market created a huge scope for Nando’s (Quinn
2012). It generated large profits for Nando’s from 2004. It is still one of the largest selling
products of Nando’s.
However, besides this Nando’s has very limited innovations. This is one of the
negative factors of the company. This can further lead to a negative impact on the company’s
reputation as the customers might get bored with the similar taste over the long period of
time. However, the main dilemma limiting Nando’s innovation is its constant urge to provide
the best peri-peri chicken and the taste of Portugal. There are different dishes of Portugal and
Nando’s should explore on the development of those dishes so that the main objective of
Nando’s is not harmed, and at same time it can innovate and develop its menu and taste for
the future.

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Reference:
businessnews.com.au 2018. Nando’s to expand in WA. [online] Business News. Available at:
https://www.businessnews.com.au/article/Nando-s-to-expand-in-WA [Accessed 27 Jun.
2018].
Gander, K. 2017. It turns out you were learning to love peri-peri long before we ever had
Nando's. [online] The Independent. Available at:
https://www.independent.co.uk/life-style/food-and-drink/nandos-peri-peri-chicken-origin-
rise-popularity-spice-levels-uk-restaurant-a7846706.html [Accessed 27 Jun. 2018].
Holt, M. 2018. Nando's are adding a new item to their menu and it involves lots of avocado.
[online] mirror. Available at: https://www.mirror.co.uk/money/nandos-adding-new-item-
menu-12633735 [Accessed 27 Jun. 2018].
nandos.co.uk 2018. Patrãos - Nando's Careers. [online] Nando's Careers. Available at:
http://careers.nandos.co.uk/roles/patraos/ [Accessed 27 Jun. 2018].
nandos.co.za 2018. Nando's Franchising | A spicy journey to treasure the Nando's brand.
[online] Nandos.co.za. Available at: https://www.nandos.co.za/franchising [Accessed 27 Jun.
2018].
nandos.com 2018. Story | Nando's. [online] Nandos.com. Available at:
https://www.nandos.com/story/ [Accessed 27 Jun. 2018].

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Quinn, J. 2012. Nando's profits and popularity on the up. [online] Telegraph.co.uk. Available
at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9731950/Nandos-
profits-and-popularity-on-the-up.html [Accessed 27 Jun. 2018].
Taylor, C. 2016. Nando’s hungry to expand after recording 28% jump in revenues. [online]
The Irish Times. Available at:
https://www.irishtimes.com/business/agribusiness-and-food/nando-s-hungry-to-expand-after-
recording-28-jump-in-revenues-1.2789980 [Accessed 27 Jun. 2018].