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Managing Ability Nandos Marketing Essay

This report aims to describe and evaluate functions it'll use the source of information based view to examine them in greater detail and examine the importance of these to a firm. Following this, the report will then evaluate Nandos resources and capabilities and will discuss ways in which these can build a basis for competitive benefits. It'll then use a variety of analytical frameworks relevant with Nandos to research in greater detail the competitive edge they may have over their competition. Finally it'll then discuss how Nandos professionals are able to develop and deal with their functions.


This report depends around Nandos the restaurant string. Nandos whose food, along with wacky advertising campaigns has captured the hearts of thousands of precious customers. The origins of Nandos can be followed back to South Africa where in fact the first restaurant opened in 1987, Robert Brozin and his friend Fernando Duarte popped into a Johannesburg restaurant called Chickenland. The rooster was the best they'd ever before tasted, they thought, and promptly bought the joint. They renamed it Nando's, after Fernando, a Portuguese national(Guardian. co. uk). It's the distinctive chicken they provide, happy staff and customer support which offers a distinctive 'Nandos' dinner experience which competition could only hope to achieve. It has had rapid extension overseas finding triumph in many of the 30 countries they operate, although it has not been successful just about everywhere they 'laid their eggs'. To be able to comprehend the strategy as well capacities the companies own, it is essential to check out all the pieces of the Nandos puzzle, this article will do this by pulling on true to life types of how Nandos have utilised resources and capacities, in addition will be using analytical frameworks to aid conclusions and present further understanding.

Resource Based View

The resource-based view of strategy proposes that both resources and functions are crucial to success in business; Grant states it is the 'basic principle foundations for strategy, along with appropriate understanding and execution of them, are a firm's key source of profitability'. (Give 2009 p. NUM)

It is also important to tell apart between resources and the capacities of a company; resources are, 'The productive assets possessed by the company whereas features are the particular firm can do' (Offer 2009). Among the foremost sources of success is the competitive gain in a market. 'Establishing competitive advantage can be achieved through the development and deployment of resources and features, and has become the main aim for strategy. '(Offer, R 2009 p. 124).

Furthermore, if the external environment change's frequently, then a more secure foundation is made using inner resources and capacities (Offer, R 2009). This strong range of resources and capabilities can be employed by a firm to exploit different marketplaces in which they could match, instead of allowing the market in which they operate along with customers to control how it functions and what it produces, further assisting the importance competitive benefit can have in a market, as well as the necessity to have got this.


In Fig 2, it identifies the money ratio of the organization. Since beginning the business in 1987 it includes see persisted financial success especially through 1993 to 1997, there income experienced increased by over 700%. Transporting on in to the 00s the organization has seen triumph in the united kingdom with the starting of over 200 stores by 2008(Guardian. co. uk). When looking at the total amount mattress sheets of Nandos it shows them in a solid financial position, although 30 million pound acquisition of GBK could been seen as an pointless risk by some, it'll allow Nandos to acquire more capabilities rather than having to develop them independently.


Management within Nandos shows the way they are constantly innovating which is seen as a reason behind their success over recent years.

Another valuable resource within the last two decades has been there reputation, helped in no small part by their wacky promotional initiatives which have attracted the attention of several. Nandos the brand sometimes appears as thought provoking and contemporary worldwide. In addition they boast an excellent unrivaled customer service, with the rate and quality that competition could only imagine.

However having considered all of this, I really believe the most key resource is Nandos ethnical background. We can see this culture emanating using their restaurants when you go into them, it almost seems as if you step into a foreign land or as Nandos call it ' The Nandos Experience', and is based around there 'five beliefs: Courage, Integrity, Pride, Interest and family'. (Nandos. Co. uk)


The unveiling of Nandos saw Brozin hire the best possible team to add effectively to the performing of his restaurant. This platform of business has been replicated in every with their stores currently to guarantee the greatest food and service to the client. What Brozin achieved was a family within each Nandos restaurant consisting of employees with knowledge in all areas of running a restaurant as well as the passion and passion for great food. How they communicated through the business enterprise was also casual and personal presenting a far more close knit feel to the business enterprise. This however does not come without problems, because of the organisation framework of Nandos it triggers problems for promotion prospects due to the most employees being on a single level, which in turn could cause motivational problems in the workplace.

Resources and Features as a way to obtain Competitive Advantage

The aspect of competitive benefits is formed via a capability or resource which have two conditions; there relevancy and there scarcity 'The advantages from these resources and capacities depend not just on their capability to establish a competitive advantage, but also how long that edge can be suffered' (Grant, R 2009). And yes it is dependent on how resilient the company's features are; as well as though a rival company can replicate specific capabilities. Also provided is a more comprehensive view of Nandos resources, Physique 1 shows Nandos tangible, intangible and human resources, as well as their current features, this article will now analyse just what a core and powerful capacity is, including certain relevant illustrations related to Nandos from Physique 1. After this, I will look at discuss comprehensive the bond between these and how they may be able to present Nandos with effective edge over their competition, following on out of this, I will then use certain frameworks to analyse and determine whether they are ecological or not.

Core & Active Competences

Grant deems that Competences can be explained as either 'main' or 'distinctive', the dissimilarities between the two are; 'key are the primary fundamental competences a company must have got to contend in the chosen market, whereas distinctive are ones which split the company from the competition, giving them a competitive gain'. (Grant 2009 p ) I am going to now look further into Nandos capacities with regards to them in forms of center an distinctive.

In order for Nandos or any company for that matter, to stay in a position that is both profitable and sustainable is a very hard move to make. The knowledge of their functions is imperative, as though they don't understand them then they may find themselves on the path to inability. Development of capacities can take quite a while, this has become clear in the restaurant industry being one of the major and most competitive industries. Huge amounts of time and money are invested every year into new diet plan and trends of their markets to ensure they stay one step ahead. One way of acquiring capacities through a reduced time frame is acquiring a corporation which already posses a very important set of features, this however does indeed carry dangers to start with it is a huge financial risk when acquiring a firm as it is a very expensive process to complete, and also when making use of acquired capacities with a companies already established could cause problems.

Nandos show during the last 10 years that they are doing something right in the restaurant industry by opening up over 200 stores in the united kingdom exclusively, and high operating revenue (SEE FIG). Also they have offered this success by means of the acquisition of Premium Burger Kitchen, getting new features in a fresh portion of the restaurant market. As explained by Clapham House (GBK), "The past few years have been challenging and there are difficult times staying forward. Nandos has comprehensive experience in this sector and can therefore help the business enterprise overcome its issues and develop into a far more successful company. " (Thisislondon. co. uk, 2010) The success of Nandos has been down to their thrive to build up a valuable base of central and distinctive competences in addition to their mergers with associates at the start of procedures to minimise dangers. Also that they have come out at the top within and already highly populated market, providing the consumer with an new eating experience.

Development of capabilities and Relationship? Discuss Nandos resources and capabilties

Management of Resources and Capabilities

An company with consistently successful financial performance are recognized by their managerial worth they posses, and define how the organization performs(Offer 2009). This can be used in regards to how Nandos have

Acquisition of GBK over the last few weeks.

Capabilities are split up into to two different sections Scarce capacities are widely available in their chosen market. If this is the circumstance in Nandos chosen market then there is no real chance of gaining a more substantial segment of the market, they have to supply the customer something new and various. Another factor is the relevance of these capabilities to the business and chosen market, as though they aren't giving the mark market what they need then they can't stay competitive, for example Nandos is made as a firm who solely provide chicken breast, but what's to say people go and eat at KFC as they just serve rooster as well, it is the tastes and quality of the meals which will keep customers returning, as well as Nando's unique restaurant experience which is relevant to the marketplace they are simply in.




Financial( Cash, securtities, borrowing capacity)


(plant, equipment, land, nutrient reserves)

Technology (patents, copyrights,

trade secrets)

Reputation(brands, connections)



Capacity for communication and collaboration


Organisational Capabilities


Industry key factors success factors

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

Nandos SWOT Analysis


Advantages of proposition?


Competitive advantages?

USP's (unique offering details)?

Resources, Possessions, People?

Experience, knowledge, data?

Financial reserves, likely dividends?

Marketing - reach, syndication, 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 functions?

Lack of competitive power?

Reputation, presence and reach?


Own known vulnerabilities?

Timescales, deadlines and pressures?

Cashflow, start-up cash-drain?

Continuity, supply string robustness?

Effects on center activities, distraction?

Reliability of data, plan predictability?

Morale, commitment, command?

Accreditations, etc?

Processes and systems, etc?

Management cover, succession?


Market trends?

Competitors' vulnerabilities?

Industry or lifestyle movements?

Technology development and invention?

Global influences?

New markets, vertical, horizontal?

Niche target markets?

Geographical, export, transfer?

New USP's?

Tactics - wonder, major contracts, etc?

Business and product development?

Information and research?

Partnerships, agencies, distribution?

Volumes, creation, economies?

Seasonal, weather, fashion affects?


Political results?

Legislative results?

Environmental effects?

IT advancements?

Competitor intentions - various?

Market demand?

New technologies, services, ideas?

Vital agreements and companions?

Sustaining internal capacities?

Obstacles encountered?

Insurmountable weaknesses?

Loss of key staff?

Sustainable financial backing?

Economy - home, overseas?

Seasonality, weather effects?

DepartmentAreas FinanceReturn On Investment

Cash Move

Return on Capital Employed

Financial Results (Quarterly/Every year)Internal Business Processes Volume of activities per function

Duplicate activities across functions

Process position (is the right process in the right team?)

Process bottlenecks

Process automationLearning & GrowthIs there the right level of competence for the job?

Employee turnover

Job satisfaction

Training/Learning opportunitiesCustomerDelivery performance to customer

Quality performance for customer

Customer satisfaction rate

Customer percentage of market

Customer retention rate

http://www. businessballs. com/balanced_scorecard. htm

http://www. guardian. co. uk/lifeandstyle/2010/may/16/nandos-fast-food-chipmunk-tinchy

http://www. thisislondon. co. uk/standard-business/article-23879070-nandos-puts-gourmet-burger-kitchen-on-the-menu. do

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