Outback Steakhouse Goes International

1138 Words5 Pages
The two first Outback Steakhouse stores were created by Chris Sullivan, Bob Basham and Tim Gannon in 1988 in Tampa. Within 7 years, the company became "the fastest growing US steakhouse chain with over 200 stores throughout the United States". In 1994, the company's stock increased from $22.63 to $32. Moreover, Outback Steakhouse seen as an example of a great success story was awarded many times. In the context of this successful evolution of the company, the question of its internalisation and the conquest of other markets became obvious to the company. In 1994, Hugh Connerty was appointed president of Outback International and was in charge to lead to company abroad knowing that it would be a critical change. This case study states the problem of the global expansion of a company and the strategic and operational anticipated changes it must take into account to make this internationalisation a success. Can the reasons of Outback Steakhouse's success within the United States also be applied to other markets? If not, what are the inputs the company needs to take into account before being global? The potential international expansion of Outback Steakhouse can not be considered before explaining the reasons of the success of the company in United States through an environment and company analysis. Finally a few recommendations will be given to the company in order to help it to settle a suitable global strategy. The reasons of Outback Steakhouse's success on the US market rely on its corporate strategy which stresses mainly on its strong corporate culture and leadership. In this area, Outback Steakhouse benefits from a core competitive advantage compared to its competitors. Indeed, the case states that the turnover for general managers and employees is the lowest in the US food industry. Managers are highly motivated by higher wages than in the rest of the industry ($100,000 per year instead of $60,000-$70,000 in the rest of the industry) and employees benefit from profit participation, trust relationship with the management and a deep commitment in the company's activity. They also enjoy from a relative autonomy, a week schedule that is less important than in the rest of the industry (from 50 to 55 hours instead of 70 hours in other restaurants) and health insurance. The culture of the company focuses on "long term well being" for all the "outbackers" who all share the same values: hospitality, sharing, fun and courage.

More about Outback Steakhouse Goes International

Open Document