1. What the principal features of Outback Steakhou

1. What the principal features of Outback Steakhouse’s strategy in the US? Why has the strategy been so successful?

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Read again the assessment information and the marking criteria in the module guide and answer ALL the sections.

A.  Industry evolution and strategic change (50%)

  1. Consider the changes that have occurred in a comparatively new industry (e.g. wireless communication services, wireless handsets, video game consoles, online auctions, bottled water, online book retailing). To what extent has the evolution of the industry followed the pattern predicted by the industry life-cycle model? What particular features does the industry have that have influenced its pattern of evolution? At what stage of development is the industry today? How is the industry likely to evolve in the future?
  2. Consider an industry facing fundamental technology change (e.g. the recorded music industry and digital technology, computer software and open-source, newspapers and the internet, automobiles and alternative fuels, corporate IT services and cloud computing). Develop two alternative scenarios for the future evolution of your chosen industry. In relation to one leading player in the industry, identify the problems posed by the new technology and develop a strategy for how the company might adapt to and exploit the changes you envisage.

b.  Global strategies and the multinational corporation (50%)

Read the case study “Outback Steakhouse: Going International” and answer the following questions.

  1. What the principal features of Outback Steakhouse’s strategy in the US? Why has the strategy been so successful?
  2. What are the key elements of the international expansion strategy being proposed by Hugh Connerty?
  3. If Outback is to expand internationally, advise Chris Sullivan on (a) The optimal rate of international expansion. (b) The best mode of entry into foreign markets (e.g. direct management, JV, franchise). (c) Which country(ies) to enter first. (d) Whether Connerty is the right person to head the International Division.

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