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Managing Potential Nandos Exec Summary

This report seeks to spell it out and evaluate functions it will use the tool based view to look at them in more detail and the importance of them. After this the report will evaluate Nandos resources and capabilities and will discuss ways that these may well lead to a competitive advantage. After this it will continue to divulge using an assortment of analytical frameworks associated with Nandos to research in more detail the competitive advantages they may have over their competition. After this it'll ascertain the way the management of Nandos is able to develop and manage these capacities.


This report will be based around Nandos the restaurant string. Nandos whose food, along with wacky advertising campaigns has captured the hearts of thousands of favorite customers. The roots of Nandos can be followed back again to South Africa where the first restaurant opened in 1987, with Portuguese style food an ingrained idea within the business; basing their menu around chicken has afforded them the chance to gain a considerable stake in their chosen market. It has had rapid development overseas experiencing triumph in many of the 25 countries they operate, though it is not successful all over the place they 'laid their eggs'. (Research IN HERE) To be able to comprehend the strategy as well capabilities the companies hold, it is vital to look at all the bits of the Nandos puzzle, this survey will do this by attracting on real life examples of how Nandos have utilised resources and capabilities, in addition will be using analytical frameworks to support studies and present further understanding.

Resource Based mostly View

The resource-based view of strategy conjoins both resources and capabilities together; Grant state governments that it is the 'basic principle foundations of strategy along with appropriate understanding and implementation of the are a firm's key basis to profitability'. (Offer 2007)

Grant deems it important to distinguish between resources and the capacities of a firm; resources are, 'The effective assets owned or operated by the firm whereas capacities are what the organization can do' (Give 2007). One of the foremost sources of profitability is the competitive gain in their market. 'Establishing competitive advantage can be achieved through the development and deployment of resources and capabilities, and thus has become the main aim for strategy. '(Grant Site 124).

Furthermore, Give affirms that if external environment alters significantly, therefore could have an effect on the markets an organisation runs in; then the need for a secure basis of internal resources and capabilities becomes very important an developed within the organization (Grant Booklet). This strong assortment of resources and capacities can utilised by the firm to exploit different marketplaces where these features could complement, instead of allowing the marketplace where they operate along with customers to regulate how they should go about doing business, further supporting the importance of competitive advantage in market, as well as the need to possess this.

Resources and Functions as a way to obtain Competitive Advantage

Resources are defined as the productive possessions of a business, these contain; tangible( ) Intangible() and real human( Knowlede) Give 2007

Resources and Features as Sources of Competitive Advantage

Resources are the productive possessions, both tangible (such as cash and vegetable), intangible (technology, reputation & culture) and human (skills, convenience of communication and cooperation & desire), in control by the company (Offer, 2007).

Capabilities are thought as the things a firm can do (2007, p. 130-131), these capabilities are formed by way of a firm's capacity 'to utilize and deploy their resources for a desired end final result' Helfat & Lieberman (2002 p. 135 quoted in Give 2007). The RBV of competitive gain is born out of experiencing a potential or tool that has the two following conditions; scarcity & relevance. This benefits however is only useful and an advantage if it is durable, hard to imitate and replicate by other companies (Offer, 2007). In Appendix 1 the tangible, intangible and recruiting of JnJ have been identified, along with their capabilities, I will now define just what a core and active capability is with some brief types of JnJ's taken from the resources in the table. I will then go on to show linkages further and finally if and how they offer JnJ with a competitive advantages, part 3 will go onto use frameworks to judge further if these are in fact ecological.

The characteristics of competitive adavantage is shaped via a cpabilitiy or resource that have two conditions; there relevancy and there scarcity 'The benefits from these resources and capabilities depend not only on their potential to establish a competitive advantage but also on how long that benefits can be suffered' (BOOK 2009). And yes it is dependent about how resilient the business's capabilities are; as well as though a rival company can replicate specific capabilities. Number 1 shows Nandos tangible, intangible and recruiting determined, as well as their current capacities, this record will now analyse just what a core and dynamic functionality is, including certain relevant illustrations related to Nandos from Amount 1. Following this, I will go onto discuss comprehensive the linkages and exactly how they might be able to present Nandos with effective gain over their competition, pursuing on from this, I will then utitlise certain frameworks and analyse and determine whether they are lasting or not.

Grant thinks that Capabilities can be explained as either 'core' or 'distinctive', the distinctions between the two is; key are the primary fundamental capabilities an organization must possess to remain competitive in the chosen market, whereas distinctive are the features which spate the company from your competition, giving them a competitive benefit. (Grant 2009) I am going to now look further into Nandos capabilities with reference to their capabilities in kinds of core an distinctive.

It is capability that is the fact of superior performance

In order for Nandos or any company for that matter, in which to stay a position that is both profitable and ecological is an extremely hard thing to do. The knowledge of their capabilities is imperative, as though they don't really understand them then they could find themselves from the market or even worse out of business.

Capabilities are split into to two different sectiosnScarce capacities are accessible in their chosen market. If this is the case in Nandos chosen market then there is absolutely no real potential for gaining a more substantial segment of the marketplace, they need to supply the customer something new and various. Another factor is the relevance of the capabilities to the business and chosen market, as if they are not giving the mark market what they want then they can't stay competitive, for example Nandos is made as a business who solely provide fowl, but what's to say people go and eat at KFC as they just provide chicken breast as well, it's the tastes and quality of the food which keeps customers coming back, as well as Nando's unique restaurant experience which is relevant to the market they are really in.

When we apply this to Nando's they may have a specific area of the company that they focus everything around and that is rooster, they only serve chicken on their menu, which in some areas could be beneficial as no other large company is dedicated to that type of menu apart from KFC but there's is Kentucky fried rooster and they are an easy food restaurant rather than Nando's set up as a restaurant/takeaway so they aren't in immediate completion in their markets.

Core Competences & Active/Distinctive Competences

Linkages of Resources and Capabilities

Evaluating Strategic Capability

1. 2 Marriage between features and competitive advantage

2. 4 Development of Capabilities

2. 5 Competition Analysis

3. 0 Value String Analysis

3. 1 SWOT Analysis

3. 2 Balanced Scorecard

3. 3 Bench Marking

3. 4 Percentage Analysis

3. 5 VRIN Analysis

4. 0 Contribution by managers to develop capabilities

5. 0 Conclusion

Acquisition of GBK over the last few calendar months.




Financial( Cash, securtities, borrowing capacity)


(flower, equipment, land, mineral reserves)

Technology (patents, copyrights,

trade secrets)

Reputation(brands, associations)



Capacity for communication and collaboration


Organisational Capabilities


Industry key factors success factors

Competitive AdvantageRelationship among resources capacities and competitive advantageC:\Users\Tom\Desktop\value_chain_analysis. gif

Nandos SWOT Analysis


Advantages of proposition?


Competitive advantages?

USP's (unique offering items)?

Resources, Investments, People?

Experience, knowledge, data?

Financial reserves, likely earnings?

Marketing - reach, distribution, awareness?

Innovative aspects?

Location and geographical?

Price, value, quality?

Accreditations, qualifications, certifications?

Processes, systems, IT, communications?

Cultural, attitudinal, behavioural?

Management cover, succession?


Disadvantages of proposition?

Gaps in capacities?

Lack of competitive strength?

Reputation, presence and reach?


Own known vulnerabilities?

Timescales, deadlines and pressures?

Cashflow, start-up cash-drain?

Continuity, supply chain robustness?

Effects on central activities, distraction?

Reliability of data, plan predictability?

Morale, commitment, control?

Accreditations, etc?

Processes and systems, etc?

Management cover, succession?


Market trends?

Competitors' vulnerabilities?

Industry or lifestyle movements?

Technology development and development?

Global influences?

New markets, vertical, horizontal?

Niche target markets?

Geographical, export, transfer?

New USP's?

Tactics - delight, major contracts, etc?

Business and product development?

Information and research?

Partnerships, agencies, syndication?

Volumes, development, economies?

Seasonal, weather, fashion affects?


Political effects?

Legislative effects?

Environmental effects?

IT developments?

Competitor intentions - various?

Market demand?

New solutions, services, ideas?

Vital deals and companions?

Sustaining internal capacities?

Obstacles experienced?

Insurmountable weaknesses?

Loss of key personnel?

Sustainable financial support?

Economy - home, overseas?

Seasonality, weather results?

DepartmentAreas FinanceReturn On Investment

Cash Flow

Return on Capital Employed

Financial Results (Quarterly/Yearly)Interior Business Processes Range of activities per function

Duplicate activities across functions

Process alignment (is the right process in the right office?)

Process bottlenecks

Process automationLearning & GrowthIs there the correct level of know-how for the work?

Employee turnover

Job satisfaction

Training/Learning opportunitiesCustomerDelivery performance to customer

Quality performance for customer

Customer satisfaction rate

Customer percentage of market

Customer retention rate

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