Case Study On Nando’s Restaurant Essay

Introduction This report is to outline business analysis on Nando’s restaurant in Singapore. In this report, we will perform environment analysis on the market in Singapore. We will make use of SWOT analysis and also PESTEL analysis to perform this. Last but not least we will end it with aconclusion/evaluation to sum the whole evaluation up. Environment Analysis Environment analysis is a evaluation on the possible effects (both internally and externally) and conditions that will affect an organisation survival and growth. In order to develop strategy to move into a new market like Singapore, it is necessary to look into factors that may post a threat to the company or even discover new opportunities for the company. In order to identify this, we will be using the SWOT (strength, weakness, opportunity & threats) analysis and PESTLE (political, economic, social cultural, technological, legal & environment) analysis to analyse the factors. 2.1 : Internal and External Factors for Nando’s INTERNAL Inside the Organisation Can be controlled by the organisation. (Example as of below.) HR Strategy Process Culture Money factor Departments EXTERNAL Outside the Organisation Cannot be control by the organisation. (Example as of below.) Government policies Natural disaster Economic policies Competition Diversity of workforce Technology Exchange rate Weather ENVIRONMENT  NANDO’s Opportunity, Threats Strength, Weaknesses SWOT ANALYSIS SWOT analysis is use to evaluate the strength, weaknesses, opportunity and threats involved in a business venture. A SWOT analysis is important as it help companies to inform later steps in planning to achieve their objective. Using SWOT can generate meaningful information on each category and to plan ahead base on the point listed out. Below table 1 is the SWOT analysis on Nando’s. STRENGTHS Branding. Outlets available globally. Australia, Canada, Malaysia, Singapore, South Africa, UK, USA and many more. This shows how well the business has  developed with so many branches over different country. Healthier Choice. Chickens are delivered fresh and not frozen. Marinated for 24 hours with absolutely no preservatives, MSG’s, colorant or artificial flavouring. Chickens fats are trim-ed and flame grill, making it more healthier. Differentiated. Portuguese Flame grilled chicken. Said to be the best. Sauces are unique with secret recipe that are not let known to public. Competitors unable to copy it’s style. Finances. Business opened globally. Stable business with high revenues. Comparable with it’s competitors like KFC etc.etc. Good internal marketing. Staffs are happy working in the chained restaurants. Good values adopted in the company. Good staffs are driven by good environment and of course better food and services are produced. Affordable price. Price are quite satisfactory even though they are of restaurant based environment. Unique taste. The chicken prepare is combine with a variety of the sauces. Sauces are of different taste, very unique. Other brands are unable to come out with so many different sauces that good. Nutrition Values showed on the menu. Singaporeans are being more and more health conscience. Giving them the option to choose how many calories they want to intake is a plus points to the company. Weakness Not Halad. Singapore is a multi religion country. Muslims consist approx twenty percent of the population. Hence it has not capture the market of the muslim community. Lack of extended services. Major related business like KFC, they offer deliveries and also allows consumers to order online. Nando’s do not have this kind of services that could be offered to the consumers in Singapore. Lack of marketing advertisements. Comparing with KFC, Nando’s are not fully known by people of all ages in Singapore. However KFC do. There were not much advertisement posted either on online platform or even in the media. Not many outlet. As research on the number of outlets in Singapore, there are only a total of nine outlet’s in Singapore so far. Weak R&D. Slows down or even no growth to the company. Competitors will out innovate Nando’s. Lack of promotions to attract customers. Opportunity Government incestives on business from overseas. Singapore government encourage overseas investor to set foot and do business in Singapore. By  giving incentives, Nando’s could do with more outlets or even save a little cost to spend on other areas. Rising demands for healthier food/ choice. Singaporeans are getting more and more conscience in what they eat. A actual figure of the calories for each dish could actually gives Nando’s a boost in their sales as consumers would rather know what they are eating rather than eating what they do not know. Increasing population. Singapore are becoming more and more populated with foreign talents coming in to work and set place in Singapore. Opening more branches, making it almost available everywhere could help Nando’s in increasing it’s revenues. Rising of malls. Government are building more and more malls, giving Nando’s more opportunities to expand it business. Airport. Singapore governments are coming out with T4 and T5. Internet/ use of social media. Singapore are getting more and more IT saavy. People do transactions online. Or look for alternatives in food through online media. CSR. Organising events to shows consumers what the company is doing. Threats Rising cost of livings. Singapore is the most expensive cities in the world. May make consumers to rethink to go for cheaper alternatives when it comes to eating out. Diseases. Nando’s menus consist of mainly chickens. If bird flu were to break out, it will greatly affect the business of Nando’s Competitors. Compeitors giving a better edge/ better promotions/ better advertising techniques could make consumers go to the competitors Most expensive cities. Case of opening 10 outlets in Singapore VS opening 10 outlets in Malaysia. Economic crisis. After conducting the SWOT analysis of Nando’s, the business can be expanded greatly if Nando’s were to go the ‘ E-commerce ‘ way of doing business as what KFC and Macdonald’s are adopting. Nando’s can do with hiring a group of IT professionals to come up with a better webpage that could do all these functions. Nando’s can emphasize more money on it’s advertisement to make it a well known brand in Singapore, being a long term investment in Singapore market. Economics in Singapore is doing not so bad and in long term wise, Nando’s will stand to get benefits out of it. PEST Analysis SWOT analysis is use to study company’s business Strength, weakness,  opportunity and threats in a company. Studying SWOT on a company is not enough. If Nando’s were to move in it’s business available globally, they have to study the country political,economic, social cultural and technology behaviour to enter it’s market in to the country. In this case, PEST analysis is used on Singapore to analysis it’s potential in setting up business in Singapore. The PEST analysis of Singapore is in Table 2. POLITICAL Government seeking foreign investors. GLOBAL INVESTOR PROGRAMME (GIP) http://www.edb.gov.sg/content/edb/en/why-singapore/ready-to-invest/setting-up/entering-singapore.htmlIncestives for business. http://www.edb.gov.sg/content/edb/en/why-singapore/ready-to-invest/incentives-for-businesses.htmlLow level of corruptions. Ranked no.7 in the world and no.1 in asia for least corruption in the economy. http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.htmlStable government. No protest was made to overrule the Singapore government. Singaporeans quite satisfied with the system Singapore government had in place. Uses the Parliamentary system of government based on the Westminster model . http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/facts.htmlStrict regulations. Trade agreement. Employment law. Singapore has talented workforce. Government are providing fundings to train professionals up. http://www.edb.gov.sg/content/edb/en/why-singapore/ready-to-invest/setting-up/recruitment.htmlGovernment spendings on Infrastructure. EG. RWS, Casinos, MBS ECONOMIC Low Taxes. Singapore has one of the lowest taxes compared to different country. http://www.edb.gov.sg/content/edb/en/why-singapore/ready-to-invest/setting-up/taxation.htmlBest investments potential. US based research institute Business Environment Risk Intelligience (BERI) ranked Singapore as first out of fifty Major investment destination.  http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.htmlHigh standards of living. Singapore ranked 25 for best place to live work and play. http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.htmlSpending power Unemployment rates. Singapore is one of the countries with the lowest employment rate. http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/facts.htmlStrong currency. Income level. Most Singaporean holds job of the medium class level. Basically Singaporean has more people to the medium income and high income class. Impor t and Export access. Strategically located. Labour cost. SOCIAL CULTURAL Busy worklife. Most of the working class people have a busy work life. Some of these people have to work over time sometimes. The cultural in Singapore. Therefore many people will dine out instead of cooking at home. In one family at least 80 percent of the members will be working. Therefore high chance people will dine out instead of having a homecook meal at home. Multi-religion. Statistic shows the largest population is of Chinese in Singapore. Therefore when coming up with strategic planning we will have to focus on this target group. Not forgetting the muslims in Singapore which comes in second place. http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/facts.htmlYounger generations taking more to Western culture. Education. Singapore government are focusing to give proper educations to Singapore. Not forgetting foreigner students. They plays a part of Singapore economy when they come over Singapore to study. Aging population. Tech saavy. People in Singapore nowadays carries smartphones around. Ordering of food/ tickets or E-shopping is very common nowadays. Family dynamics. Low birth rates. Fast paced society. People would prefer fast food than casual dining as they can pick and go to fill their stomach before moving on to do other things. Technological Most IT saavy country. A lot of the business in Singapore are starting to adopt the IT way of resolving things. Eg, Using of softwares to get things done. Automated machines etcetc. High usage of IT. Every aspects in life of a Singapore, we can see IT gadget/devices anywhere. For example in buses, people are using ez-link cards to tap on the machines. Topping up cards with self-service kiosk. Advertisements on television located in shopping malls. Ordering of food using ipads. Etcetc) IT are common in SG. High percentage of people owns a laptops, smartphones, desktops to ease their life. These items are easily available anywhere and it is not as expensive as comparable as last time. Their price are very affordable to Singaporeans here. Use of smartphones. Singaporeans use smartphone to communicate, or even making purchase online. Why queue for movie tickets? Where you can make purchase online and collect the ticket afterwards. This make e-commerce rather popular in Singapore. Strong IT infrastructure Ecommerce  IBanking. Singaporeans uses iBanking for solution instead of queueing in the bank for hours to settle and bank related issues. Communication advancement. Credit card Usages High Security Systems One of the key advantage to Nando’s is the high finances. Being a business available globally, it is already making quite a profit out of it. With the help of the Singapore government with the rules and regulations for foreign investor, it will help Nando’s greatly in setting up business here. Attractive labour market , policies, infrastructure and financing efficiency also have make Singapore an attractive place for Nando’s to set foot on. However to expand the business more, Nando’s have to try to get in to IT more has more and more businesses are doing their business through internet platform. By not doing so they have already made one less target consumers to focus on. Conclusion All business benefits from the SWOT analysis. They benefit from completing a SWOT analysis on their compeitiors. PEST analysis can then provide some  feedbacks into the economic aspects by the PEST analysis. These feedbacks is then ranked and and make relatively important strategic decisions. Singapore is a favourable location to set up business here. Of all the four points in the PEST analysis it has fulfil all 4 of criterias to be a effective place to set up business. However Nando’s will have to segments their target consumers to at least target 75% of the consumers in Singapore. To further improve on it’s business it could probably focus it’s business to more of the IT aspects and have their business done online also.