Nando's International Case Study & Strategic Marketing - Marketing Assignment Help

Assignment Task

1 Introduction 
The study is based on the case written by the Wits Business School. Nando's International is a fast-food chain which is specialized in Portuguese food, principally based on chicken. First created in South Africa, it had a fast development overseas, but it was not successful everywhere. The points developed in the study are first the comprehension of the strategy followed by Nando's, then we give some ideas for a future strategy, based on the globalization of the brand and finally the analysis of the resources of the company to determine if the strategy can be applied. 

2 External Analysis 
In order to understand the strategy developed by the company, it is necessary to look at the external factors. Some characteristics can define Nando's strategy. These characteristics help to identify the strategic opportunities as well as the threats and problems that the company can face.
 
First of all, Nando wants to maintain its culture and values while expanding abroad. That means that all the restaurants opened in the different countries need to share the basis of Nando's culture. That can be a threat as all countries do not share the same culture and then globalization may be more difficult in particular countries. Furthermore, lifestyles differ, and some people may be less attracted by Portuguese fast food than others. 

Nando's wants to extend its geographical coverage. A mature country should have at least 12-18 stores. Even at the prime year of its creation in South Africa, the idea of globalization was strong. For this, the company has to face governmental policies for foreign companies that will vary in all countries. In terms of marketing effort, Nando's wants to use the same tone in its advertising worldwide. However, as other countries may not be used to this kind of food, they need to adapt it to be more educational. To be international, the sales force and the culture need to be adapted. 

However, compared to its competitors, Nando's has the advantage to provide better quality and speed. As explained by Hume, they want to be the best, not the biggest. They found a niche market where they can develop their product. 

The development of Nando's international was made by the creation of outlets that were operated separately but this was not a good strategy and then, they changed by buying existing franchisees overseas. They also created a holding company in order to increase 

Models of strategy applied 
To define the models of the strategy used, the five P's will help us understand Nando's view. - Plan: when Nando's was created, the ambition of Brozin was to develop an international new brand that give the taste of Portuguese chicken around the world. To achieve this goal, he decided to hire new partners, as Duarte and Hume. Furthermore, he tried to introduce new markets thanks to local partners to support the structure but he wanted to have the same culture in all the restaurants. That is the reason for the creation of the 'Covenant', distributing in all stores. 

Ploy: Mintzberg said that 'as plan, a strategy can be a ploy, too, really just a specific 'maneuver' intended to outwit an opponent or competitor'. Following this idea, the ploy for Nando's is not to face the competitors but to find a niche, to find weaknesses in the competitors' strategy, and to position itself as strong to compete on these points. 

Position: it is the way to define its strategy in its external environment. As explained above, Nando wants to position itself as the best and not the biggest. - Pattern: according to Mintzberg, 'defining strategy as a plan is not sufficient; we also need a definition that can encompass the resulting behaviour'. To differentiate itself from its competitors, the cultural aspect seems to play an important role overseas. Every manager of outlets has a specific formation. There is a continuity in the spread of the culture around the world, even in new countries which seem not used to the kind of food provided by Nando's. In addition, the advertising campaign needs to be consistent worldwide. - Perspective: Nando's wants to develop new stores around the world. However, Brodin prefers to develop stores first in countries that share five criteria of culture with South Africa (chicken must be an acceptable food, consumers must like spicy food, the Nando's Experience must be acceptable to the country's lifestyle, the country must be English speaking and the right partners must be available). These criteria can be too selective but there will be used only for entry into globalization.

3.1 Incremental strategy 
Nando's strategy is to develop a new model. It is integrated thinking and acting at all levels. Bronze and Duarte want an easy management style, with informal approach to staff. Brodin has developed special relations with all its employees, he also believes in giving staff the possibility to improve themselves. The leaders can be seen as designers (Brozin and Denoon-Stevens), defining the value,  the vision and the core purpose and as steward (Hume), defining the people position. The incremental strategy follows the idea of building and encourage personal visions. That is not the case in Nando's as all employees have to share the same culture and follow the Covenant. There is an opportunity for employees to improve themselves but the  flat structure of the company, as well as the strong entrepreneurial spirit does not allow any new ideas and can go against improvement in the carriers.

5 Globalisation 
Nando's has decided to go to an international market. Different stages in terms of globalization are possible. Nando's has acquired overseas outlets and branches. To develop their ideas overseas, Nando's management wanted first to go in countries where some characteristics make them less risky. There is a general tendency of standardization of tastes around the world, however, some differences can be seen in local markets. This point represents the market driver to globalization. Furthermore, the government drivers, i.e. the infrastructures and the policies of the new market, can influence the decision to enter one country. The reason to choose countries that can speak English is a way to avoid misleading with governmental policies. It is less risky and easier for transactions. The scale of economies is a cost driver, as well as the differences in-country costs. When developing the Store and Country Models, the costs were well-studied to remain competitive and adapted to the new market. In term of competitor drivers, Nando's tries to position itself in a niche market where there is no real international competition. The essential steps when going to globalisation are first to develop a core strategy for  the home country, then internationalise the core strategy and finally globalise the international strategy. But maybe Nando does not follow rigorously these steps. As the idea of Brozin was to be international, he went overseas before really assure the core strategy in South Africa, which is the home country of Nando's. 

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