Nando’s, is a well-known fast food restaurant which was found in 1987 in South Africa. Nando’s is specializing in chicken, especially its unique Mozambican-Portuguese style of Peri-Peri Flamed Grilled Chicken. Nando’s opened its first international strore 12 years ago and the Nando’s Peri-Peri trail has blazed from South Africa across the seas to other 22 countries, comprising 400 stores worldwide. The signature menu item at Nando’s is a Portuguese specialty, Peri-Peri chicken which has a truly unique taste.
Delicious alternatives and additions to Peri-Peri chicken include chicken breast burgers and pitas, prego steak rolls, vegetarian and bean burgers, chicken livers etc. Businesses today face three major challenges and opportunities which of course, as an international company, Nando’s is also facing the same challenges which bring opportunity to the business: Globalization, Technological Advancement and Outsourcing. Further details will be discussed in the following.
Globalization, technological advancement and outsourcing
Globalization is the growing integration of economies and societies around the world and legal system. That make people around the globe are more connected to each other than ever before. At a business level, we talk globalization when companies decide to take part in the emerging global economy and establish themselves in foreign market. Globalization means a company will adapt their products or services to the final user’s linguistic and cultural requirement.
Then, take the advantage of the internet revolution and establish a virtual presence on the international marketplace with a multilingual corporate website or even as an e-business. Nando’s first created in South Africa and had a fast development overseas. Nando’s has decided to go to an international market. Different stages in term of globalization are possible. Nando’s has acquired overseas outlets and branches. Nando comprises 400 stores worldwide with 176 stores in South Africa and the rest in international markets.
It plan to have rolled out excess of 600 quick service restaurants to world wide within 3 years serving peri-peri marinated, flame grill chicken and associated food items under the Nando’s brand name. In our opinion, globalization of Nando’s brings the greatest opportunities for higher economic growth and better living standards that more openness bring, policymakers to international, national and local. Chief executive Robbie Brozin had anticipated the fast food chain to introduce Nando’s unique flamed-grilled chicken to world wide. Nowadays, Nando’s already establish many restaurants in Asian like Singapore and`Malaysia.
To define the models of strategy used, the four P components of the Marketing Mix will help us understand nando’s view. Nando’s needs have a big promotion for their products to create a successful global brand. The first promotion of their product is advertised their grill-chicken by using the poster method. They provide four-different color chicken and create a slogan for their brand “We’re all the same on the inside, Pauline”. Then it used a radio advertisement featuring a soon-to-be-grilled chicken parodying a recording made by Hanson.
A vital part of low cost marketing strategy is to be flexible and topical and grab channel as soon as they arise to influence out of the publicity. Nowadays, Nando’s also create a website to introduce their tradition proteges food to world wide. Consumers can also download Nando’s peri-peri chicken recipes if they are interest to it. In Malaysia, the most attractive promotion is the Nando’s have classified their peri-peri chicken to four flavors, that is lemon-herb, mild peri-peri, hot peri-peri, extra hot peri-peri.
These promotion is aim to attract the people who interest to challenge for the level of spicy of Nando’s peri-peri chicken with their spicy chilly sauce. Beside the well-known of the brand, its products are well-positioned for international growth because of the healthier image of grill chicken. The famous food of the Nando’s is their peri-peri chicken. The chicken are butterfly-cut and marinated for 24 hours before they are flame-grilled to succulent perfection and are basted with your choice of peri-peri flavour when order are taken.
Nando’s are not change the recipe to prepare the peri-peri chiken while the peri-peri chicken is introduce to different countries because they want the consumer to enjoy a traditional Afro-Portugnese styled eating experi-perience and knowing the culture of their food at Nando’s. They are also ensuring that the ingredients to prepare the chicken are positive effect on life. For an example, the well known Nando’s peri-peri chicken has a high content of vitamin C and their peri-peri chicken release endorphins.
By the way, they are only using A-grade chickens, which are trimmed of any excess fat before cooking. Thereafter, the chicken is flame-grilled on custom designed grills, which burn away most of the remaining fat. This means that Nando’s chickens are low in fat and cholesterol. The results of recent nutritional research have confirmed that Nando’s has a lot to crow about when it comes to health. However, comparing to its competitors, Nando’s has the advantages to provide a 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. Nando’s not only recognize their food to the global, they are also promise that the Nando’s experience is universal. They ensure that consumers will find the same warm friendly service delicious chicken and a relaxed informal atmosphere when they walk in anyone of Nando’s restaurant. Beside that, Nando’s also want kids to share in the Nando’s experience, so they have special non-spicy flavour especially for children. They are intended that everyone can enjoy wonderful food and service in the restaurant
In order to achieve globalization and challenge with the international competitors, Nando’s have to set their own price for each product. So, Nando’s have five options to review pricing strategy. First, adopt a ‘bugger them’ attitude and keep your prices as they are. Second, slash your prices to undercut the undercutters. This two option could find yourself in the bankruptcy court. Third, adjust your prices downward to meet those of the competition. Forth, increase your prices and target a niche market. Select options three and four and need the financial clout to outlast the competition.
The best bet is option five that is cut costs to lower your prices and add value to customer service. It involves using resources (human and material) more efficiently. It may involve restructuring organization from top to bottom. It will certainly involve developing a customer service culture. Nando’s will choose their restaurants located in the high population location. This restaurant is under franchise whereby, this restaurant can find it in certain place. Normally, we can easily find it in Midvalley, KLCC, 1-Utama.
As a consumer, the cheap and better food is a first choice to them. It can not be denied that this restaurant is very convenient to consumer because after shopping, and then can enjoy this famous restaurant. The alternatively is this restaurant is very suitable for those people who are run out this means for the working people, this kind of people only 1 hour to enjoy their lunch, therefore, this restaurant is the better choice for them, because, the restaurant has this concept ‘ fast, cheap, near, convenient, best services, fair’.
This concept really attack attention for this kind of people. If we discuss the convenient place which the restaurant is located? The question wants to ask that, what the ordinary people are regards as the convenient place. It can not be denied that everyone can but car, bus, taxi, LRT, to the nearest shop which the restaurant. The especially go through by LRT it is most convenient for people whatever go to certain destination. Therefore, due to this convenient of the traffic, the indirectly can promote he restaurant to people about the special food, special services and so on. The indirectly the special rest6aurant will also one of the food in this restaurant because of the convenient which to improve the business of the restaurant. Therefore, the convenient place is very important point. As we know that the changes foreseen over the next decade or two will be more comprehensive and have a higher degree of impart on every aspect of our lives than has ever been witnessed.
Technology is advancing exponentially and the rate of advancement is accelerating; it is impossible to throttle back innovation and technological advancement. We need to approach policy decisions with a new predictive model that is built upon fact-based assessments. However, technology also provides the capabilities for countries to defend themselves- thus creating some degree of security. When we look at the rate of technological advancement or progress, we can see as time passes the technologically advanced and technologically disadvantaged to increase. Thus, a very good example is Nando’s UK.
Nando’s UK is different to the other Nando’s chains world-wide in that its 70 odd stores are not franchises but directly owned and managed. Nando’s UK started with a range of line-of-business applications and separate Web-enabled solutions, all requiring professional developers to update. Basic changes required HTML and other development skills. This process made timely posting of content more difficult than it should have been, and the Intranet was not being used as effectively as it should have been as an internal marketing, communication and management platform.
The solution had to have a single point of call, be easy to update, expandable, secure, utilizing the current structure with the ability to evolve, and be scalable. Nando’s IT department had built an earlier Intranet solution in-house. This experience had taught them the importance of security and authentication of users together with flexible user management within an expandable navigational structure. They also thoroughly understood all of the technical issues and problems and realized that the solution to these issues had to be esigned into the system at a fundamental level. When they went to market for a solution they knew how difficult and expensive it would be to develop an in-house solution and that there was no point in reinventing the wheel if there was a flexible system already in existence that could meet their requirements or could easily be adapted. High on their priority list was a solution that had already solved the problems of security, authentication, and interfacing with third party applications allowing consistent branding.
In addition they wanted a system that did away with the need for HTML staff to update content and allowed them to target these skills on enhancements. Non-technical users needed an easy-to-use application that would allow them to create and publish, directly to the site in a matter of minutes. In addition, the solution needed to be flexible and extendible so it could dynamically evolve to reflect changes within the company. Nando’s UK identified other requirements as the project evolved which ActiveWeb was flexible enough to address to produce a value for money solution to meet their needs.
Furthermore, ActiveWeb responded to this brief enthusiastically and with a commitment which impressed Nando’s staff. For example, the project management had the technology expertise to instinctively understand what Nando’s wanted to achieve and how it could be achieved using ActiveWeb CMS. They had already solved the problem of ease of use security branding and expandability. Besides that, the ActiveWeb CMS solution empowered Nando’s content contributors to take control of their own content and take a far more proactive role in terms of prompting their individual areas.
Moreover, the ActiveWeb cms is a NET development which ensures Nando’s has invested in a future [proof technology solution which can be integrated with back office systems, when required, with the Intranet and Extranet. Outsourcing is purchasing a significant percentage of intermediate components from outside suppliers. Furthermore, this also refers to a company buying services from another firm. For example, if company X is outsourcing its e-commerce services, it means that it is relying on another company to do this job rather than doing it internally with its own employees and resources.
Many companies, like IBM, outsource much of their production to Taiwanese firms. In addition, outsourcing is the transference to third-parties, the performance of functions once administered in-house. Outsourcing is really two types of service: ITO – IT Outsourcing, involves a third party who is contracted to manage a particular application, including all related servers, networks, and software upgrades. BPO – Business Process Outsourcing features a third party who manages the entire business process, such as accounting, procurement, or human resources. In this case, Nando’s has taken Portuguese food to the world.
For decades during the twentieth century, tens of thousands of people emigrated from Portugal, some to search for better lives, others to escape desperate poverty. And with them went much of Portugal’s entrepreneurial spirit. Initially, the migrants were fleeing a military dictatorship which governed the country for almost half the century: Under the rule of Antonio de Oliveira Salazar, wealth was greatly concentrated in the hands of a small upper class, leaving the rest of the population without the spare cash or opportunity to ever consider large scale business propositions.
After the military leaders were toppled in 1974, ending 48 years of dictatorship-ideas about profits and free enterprise were further curbed for years by the country’s left-wing rules. But now the entrepreneurs are back, as symbolized by the rapid rise of the popular Nando’s chain of spicy chicken restaurants-“official taste of Portugal 2004”
From the opportunities offer, Nando’s has now operated in the fiercely competitive international markets for years. It has stood the test of time and today it is an international high-street brand trading successfully in many different international countries with equally diverse cultures and customer needs. The Nando’s culture and chosen empowerment style has proven to be particularly suitable in adapting to this global expansion path.